eCommerce Non-Delivery Reports: What You Need to Know?

In the world of e-commerce, delivering orders on time and intact is critical for customer satisfaction and brand loyalty. But sometimes, deliveries fail, and when they do, a Non-Delivery Report (NDR) is generated.

According to a recent KPMG study, return shipments can make up as much as 20% of all e-commerce deliveries.

This article will walk you through everything you need to know about Non-Delivery Reports (NDRs), what they are, why they happen, how they impact your eCommerce business, and the best ways to manage and reduce them.

What is a Non-Delivery Report (NDR)?

A Non-Delivery Report (NDR) is a formal notification generated by a shipping carrier when a delivery attempt fails. It serves as a communication channel between the carrier, the merchant, and sometimes the customer, highlighting the reason for non-delivery and requesting further action to complete the shipment.

Typical Scenarios That Generate a Non-Delivery Report

• Incorrect or incomplete address.
• The customer was unavailable at the time of delivery.
• Refused delivery.
• Payment issues in COD orders.
• The delivery location is restricted or inaccessible.
• The package is damaged or tampered.

Common Reasons for Non-Delivery

• Incorrect or Incomplete Address

Mistyped or missing address details often lead to failed deliveries. Even small errors like a missing apartment number can cause confusion for delivery agents.

• Recipient Unavailable

If the customer isn’t home during the delivery attempt and no one else is authorized to receive the package, the courier cannot complete the delivery.

• Refused Delivery

Customers may reject the package due to delays, damaged packaging, change of mind, or lack of order confirmation, especially in Cash on Delivery (COD) orders.

• Damaged Package

If the parcel is visibly damaged during transit, carriers may halt delivery to avoid customer disputes or return it to the origin without delivery.

• Delivery Restrictions

Some locations, like remote villages, high-security buildings, or gated communities, may have restricted access, making it difficult to complete deliveries.

• Payment-Related Issues (COD Orders)

In COD shipments, failed payments due to lack of cash, change, or customer denial often lead to non-delivery and eventual return.

How does the Non-Delivery Reports Process work?

• First Delivery Attempt Fails

The carrier attempts to deliver the package but is unable to complete it due to issues like an incorrect address or the recipient’s unavailability.

• Non-Delivery Report is Generated

The carrier logs a Non-Delivery Report (NDR) detailing the reason for the failed attempt.

• Notification to the Shipper

The shipper is notified through a dashboard, email, or API, depending on the logistics setup.

• Action Required

The shipper or sometimes the customer is expected to respond with updated delivery instructions or corrections (e.g., new address, delivery time).

• Next Steps: Reattempt or RTO

Based on the response:

1. The carrier reattempts delivery, or
2. The shipment is marked for Return to Origin (RTO) if no resolution is provided within a set timeframe.

Impact of Non-Delivery Reports on eCommerce Businesses

• Increased Logistics Costs

Every failed delivery comes with added expenses, whether it’s for reattempting delivery, coordinating updates, or managing Return to Origin (RTO) shipments. These costs can quickly pile up, especially at scale.

• Customer Dissatisfaction

Repeated delivery failures frustrate customers and damage your brand’s reputation. In today’s competitive e-commerce space, a single bad experience can drive customers to your competitors.

• Inventory and Cash Flow Issues

Products stuck in transit or returned delay restocking and freeze working capital. For COD orders, failed deliveries mean delayed or lost revenue, creating unnecessary strain on cash flow.

• Operational Delays

Handling NDRs consumes time and resources from customer support, warehouse, and logistics teams, distracting them from core business operations and slowing down the fulfillment cycle.

How to Reduce Non-Delivery Reports?

• Address Verification and Validation

Implement address validation tools at checkout to detect incomplete or incorrect entries in real time. Auto-suggestions, pin code mapping, and area verification can prevent errors before dispatch.

• Enable Real-Time Order Tracking for Customers

Give customers visibility into their orders through live tracking links. When customers know when to expect their package, the chances of missed deliveries go down significantly.

• Use Automated Non-Delivery Report Management Tools

Platforms like Shiprocket and ReachShip offer automated Non-Delivery Report workflows. These tools instantly notify you of failed deliveries, allow address corrections, and even auto-schedule reattempts, reducing manual effort.

• Confirm Customer Availability Before Dispatch (Especially COD Orders)

For Cash on Delivery orders, send a confirmation SMS or WhatsApp message before shipping. This reduces refusal rates and ensures the customer is prepared to receive the package.

• Train and Educate Delivery Agents

Well-informed delivery personnel can handle common delivery issues better, like calling customers on arrival, understanding alternate drop locations, or reporting failed attempts accurately.

• Partner with Reliable Logistics Carriers

Choose carriers with high delivery success rates, strong last-mile coverage, and responsive Non-Delivery Report resolution systems. Your logistics partner plays a major role in ensuring successful deliveries.

Tools and Platforms that Help Manage Non-Delivery Reports

Non-Delivery Reports (NDRs) can disrupt fulfillment, but with the right tools in place, they can be managed efficiently. Here’s how the process unfolds and how modern platforms help you stay on top of it:

• First Delivery Attempt Fails

The delivery agent is unable to complete the delivery due to reasons like an incorrect address, the customer not being home, or access restrictions.

Tool Insight: As soon as a failed attempt occurs, shipping aggregators like Shiprocket or ReachShip automatically record the attempt and trigger a Non-Delivery Report within your dashboard.

• Carrier Generates the Non-Delivery Report

Once the delivery fails, the logistics partner (e.g., Delhivery, Bluedart) creates an NDR with the failure reason like “address incomplete” or “recipient unavailable.”

Tool Insight: Platforms such as ReachShip or Pickrr centralize these reports, tagging them clearly and displaying them in an actionable format within your NDR panel.

• Notification to the Shipper

The merchant receives real-time alerts about the failed delivery via dashboard notifications, email, or push APIs.

Tool Insight:

1. With API integrations, you can receive Non-Delivery Report data directly into your Order Management System (OMS) or CRM.
2. Shiprocket also sends instant alerts via email and app, prompting your team to take quick action.

• Response from Shipper or Customer

Based on the Non-Delivery Report, the merchant (or customer) provides updated delivery instructions such as a corrected address or rescheduled delivery time.

Tool Insight:

1. ReachShip enables direct edits within the dashboard.
2. Many platforms also trigger automated messages via WhatsApp or SMS, allowing customers to confirm availability or update their delivery address instantly.

• Reattempt or Return to Origin (RTO)

Once updated instructions are received, the carrier either reattempts delivery or returns the package if no action is taken.

Tool Insight: You can configure automated workflows in platforms like Shiprocket, for example, auto-retry after address update or auto-RTO after 48 hours of no response.

Best Practices for Handling Non-Delivery Reports

• Respond to Non-Delivery Reports Alerts Promptly

Time is critical. Ensure your operations team monitors Non-Delivery Reports notifications in real time and takes quick corrective action to avoid RTO (Return to Origin).

• Maintain Clear Communication with Customers

Keep your customers informed about the failed delivery attempt. Use SMS, WhatsApp, or email to let them update their address or confirm availability for reattempts.

• Provide Easy Rescheduling Options

Allow customers to easily choose a new delivery date or time. Self-service options reduce delays and increase the chances of successful delivery.

• Make Delivery Instructions Easily Accessible

Ensure any special delivery notes (like gate codes, landmarks, or preferred delivery windows) are visible to both the carrier and the delivery agent.

• Integrate Non-Delivery Reports Management Tools

Use shipping platforms or carrier dashboards that offer Non-Delivery Report automation, track alerts, update delivery info, and trigger reattempts from a single interface.

• Confirm Critical Orders Before Dispatch

Especially for COD or high-value orders, confirm the recipient’s details before shipping. This reduces the chances of refusal or address-related failures.

• Analyze Non-Delivery Report Trends Regularly

Review your Non-Delivery Report reports to identify patterns, certain locations, SKUs, or customer types that may have higher failure rates. Use insights to adjust your strategy.

Conclusion

Non-Delivery Reports (NDRs) may seem like routine logistics issues, but they hold the key to improving operational efficiency, customer satisfaction, and delivery success rates. By understanding the Non-Delivery Report process, identifying common failure points, and leveraging the right tools like shipping aggregators, automated alerts, and API integrations, businesses can turn delivery setbacks into service recovery opportunities.

Proactive Non-Delivery Report management isn’t just about reducing returns; it’s about building trust, saving costs, and creating a seamless delivery experience that keeps customers coming back.

FAQs

Further Reading

• Quick Commerce in 2025: Essential eCommerce Strategies for Success
• Understanding Shipping APIs: How They Can Transform Your Logistics
• The Ultimate Guide to Enterprise Shipping