Logistics And After-sales: Suggestions For Process Optimization Of Multi-warehouse Systems And Return/Exchange Policies In Korean E-commerce Platforms

1.

Set clear goals: Reduce delivery times, lower the rate of cross-border returns, and improve the efficiency of refund and exchange processes. First, establish KPIs such as average delivery time, first response rate, return and exchange completion cycle, return rate, and transportation costs, and record these target values in the SLA and weekly meeting reports.

2.

Steps: 1) The locations in South Korea (Seoul, Busan, Incheon) were selected based on the source of orders and the areas with high demand for deliveries ； 2) Divide each warehouse into A/B/C zones based on the SKU turnover rate, and establish safety stock levels for each zone ； 3) Configure warehouse transfer rules and priority outbound rules within the WMS system ； 4) Conduct a small-scale trial operation for 30 days to collect data on timing and costs before scaling up production.

3.

Set up storage allocation formulas for each SKU: Safety stock = Average daily sales volume × Restocking cycle × Service factor. Give priority to storing best-selling SKUs in local warehouses, while concentrating less-popular SKUs in central warehouses or domestic distribution centers. Use OMS to route orders in real-time to the most appropriate warehouse.

4.

In OMS, establish a scoring model that assigns weights based on distance, commitment timeline, and shipping costs ； Implementation rules: If the local warehouse stock is sufficient and the promised delivery time can be met, the local warehouse should be preferred. Otherwise, the nearest warehouse or a centralized warehouse should be selected, and expedited logistics should be requested.

5.

Signed contracts with 2-3 local courier services and 1 international first-mile carrier, specifying clear compensation guidelines, thresholds for package loss rates, deadlines for return shipping notifications, and tracking interfaces. Require carriers to support real-time tracking APIs and establish automatic alerts for any anomalies.

6.

Implementation Steps: 1) List the interface requirements (inventory, shipping, returns, transfers) ； 2) Use REST API or SFTP for integration ； 3) Develop test cases for batch SKU processing, concurrent ordering, and exceptional return scenarios ； 4) Initially, operate in shadow mode for monitoring purposes for one week to ensure there are no issues before switching over.

7.

Clearly state the return/exchange window (e.g., 7 days after receipt), list the reasons for return/exchange (such as damage, wrong item sent, incorrect size, etc.), and indicate whether shipping costs will be waived or if a inspection fee will be charged. Include the terms on both the product page and the checkout page, and attach a return instructions sheet to the shipping documents.

8.

RMA process: 1) The customer submits an RMA request online and uploads photos ； 2) OMS automatically generates a return order number based on the matching order and the reason for the return ； 3) The customer returns it to the designated warehouse ； 4) Within the warehouse, fill out the inspection form according to the inspection criteria (including taking photos and documenting functionality, appearance, and accessories), and upload it to the system ； 5) After review, process the refund or exchange and initiate the logistics instructions.

9.

Establish return sorting rules: Available items → Stored in inventory and inventory levels updated accordingly ； Items that cannot be sold should be repaired or destroyed, and the associated costs should be recorded. For exchanges, similar SKUs will be allocated from the nearest warehouse and dispatched preferentially. Establish automatic replenishment triggers for shortages across warehouses.

10.

Building a dashboard for display: Shipping times, return rates, RMA processing durations, individual logistics costs, and inventory turnover rates. Regular weekly reviews are conducted to analyze exceptional cases, with data broken down by SKU and channel. For SKUs with high return rates, root cause analysis is performed, and adjustments are made to the product pages or quality inspection requirements accordingly.

11.

Ask: How can I quickly identify SKUs with high return rates and suggest ways to improve them?

Answer: On the dashboard, filter the return rates by SKU to identify the top 10 items, and then examine the distribution of return reasons (such as size/match quality/descriptions not matching). Update the size chart in response to size-related issues and include tips for users when trying on garments ； For quality-related aspects, additional random inspections are conducted before product release, and discussions are held with suppliers to identify areas for improvement ； The description does not match the optimized visual content; additional measurement data should be provided.

12.

Ask: The cost of returning goods across borders for domestic processing is high—how can this be optimized?

Answer: Give priority to using the local small-item processing centers in South Korea for preliminary inspections and availability verifications. For items that can be resold, proceed with direct re-sales in South Korea or transfer them to local warehouses ； For large items that need to be returned to the factory for repair, these are consolidated on a limited number of designated return flights to be imported together, allowing for a direct reduction in individual shipping costs and sharing the repair expenses with the supplier.

13.

Ask: How to conduct acceptance testing for processes and systems before they go live?

Answer: Prepare a test checklist: Interface throughput, concurrent order placement, return process closure, and exceptional scenarios (such as inventory mismatches or lost items during interception). Perform the steps: 1) Unit testing ； 2) Integration testing (shadow mode) ； 3) Run small batches of actual orders and monitor them for 48–72 hours ； 4) Adjust the rules based on the results before making the official switch.