Proactive Compensation for Domestic Late Delivery

Cascade Date: June 26, 2024

Background

Proactive compensation on late delivery is implemeted for all ventures local delivery - CB orders adn local DBS excluded.

LazCash is available for collection from the LD page (Delivery Details page).

Eligibility

Buyers must be low risk as determined by BTS R5-R8
Returns processing time takes longer than 4 days (count from the moment the item is picked up successfully by 3PL)

Collection

LazCash is available for collection from the OD page (Order Details page) once the the return processing time is longer than 4 days (from 3PL successful pickup)

Please help to cascade to BPO, agent shoud know how to instruct buyer to collect and redeem LazCash from their end.

Compensation Summary

Proactive compensation

Proactive compensation is compensation issued automatically by the system when there is a service breach. Currently there are 3 scenarios where we issue proactive compensation:

● Late delivery --> Delivery Guarantee

● Cancellation by sellers/Lazada --> Purchase Guarantee

● Delays in returns/refunds processing --> Returns Guarantee

● Adhoc mass compensation for unexpected events (e.g. mass cancellation due to wrong pricing/out of stock...)

The value for each compensation is stardard accross all proactive compensation and is as below:

1.1. Delivery Guarantee

Eligibility

- Have Check-out promise (Original promise) breach (repromise does not affect compensation)
- Buyers must be low risk as determined by BTS R5-R8
- Parcel must be successfully delivered

Collection

- LazCash is available for collection from the LD page (Delivery Details page) once parcel is successfully delivered

Validity
LazCash is available for collections for 15 days after parcel is delivered.
Once collected, LazCash is valid for 1 year

- Current scope for Delivery Guarantee
  - Priority Delivery
  - LazMall
  - MP Sellers
  - Choice

--> In summary, the scope covers all domestic deliveries (all delivery options except DBS) and LazMall/Choice Crossborder deliveries.

1.2. Purchase Guarantee (LazMall only)

Eligibility

- - Buyers must be low risk as determined by BTS R5-R8
  - Cancellation reason is by sellers/Lazada

Collection

- - LazCash is available for collection from the OD page (Order Details page) once the item is cancelled by sellers/Lazada

Validity

- - LazCash is available for collections for 15 days after item is cancelled
  - Once collected, LazCash is valid for 1 year

Current scope for Purchase Guarantee

- - LazMall

1.3. Returns Guarantee (LazMall only)

Eligibility

- Buyers must be low risk as determined by BTS R1-R8
- Returns processing time takes longer than 4 days (count from the moment the item is picked up successfully by 3PL)

Collection

- LazCash is available for collection from the OD page (Order Details page) once the the return processing time is longer than 4 days (from 3PL successful pickup)

Validity

- - LazCash is available for collections for 15 days after the compensation becomes available
  - Once collected, LazCash is valid for 1 year

Current scope for Returns Guarantee

- LazMall

2. Reactive Compensation

Reactive compensation is compensation that is issued when buyers reach out to CC with a valid complaints/Reason.

Currently, there are a few scopes for reactive compensation that is operated by CC:

Counterfeit items --> Authenticity Guarantee (LazMall & SPU)
Prices higher than comparable products from other platforms --> Lowest Price Guarantee (SPU & LazSubsidy)
Sorry vouchers for some predefined situations.

3. SOP Adjustment & Exception handling

SOP adjustment discussion

As proactive compensation is now covering a large number of buyers, we need to adjust the agent SOP so that we dont double compensate buyers unnecessarily

Long-term solution: To have compensation status tag displayed in xSpace for agents to know if order has been compensated --> This is taking longer than expected as there's an on-going migration for compensation which is only completed end of July
Short-term solution: to stop giving out vouchers for late delivery reason (delivery guarantee accounts for 90% of all compensation budget and majority of deliveries are now under delivery scope).

Exception handling

We have experience situations in the past where budget for a compensation scope runs out and as a result, compensation cannot be issued to buyers. While we're putting in place some alerts system to help better monitor and prevent these situations from happening, in the event that budget runs out and we couldnt get finance approval to top up in time, we will inform V3 to allow for manual compensation if buyers reach out because they could not collect compensation.

4. Chatbot enhancements

Direct compensation from chatbot (in progress)
Compensation status info (advising buyers what guarantee program their order is eligible for).

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