Nothing beats the joy of receiving the orders you placed on an online shop. But as you rip open the packaging, you find to your horror that the product you have received is not the product you had ordered.
We have all been there. In the absence of the right thing, we immediately want the next best thing – the ability to easily return the product.
A customer might want to return their product for any number of reasons – wrong size, damaged product, wrong color, etc., or they might simply not want it anymore.
How your eCommerce business handles returns greatly affects the customer experience. Ensuring a smooth returns procedure will not only get you returning customers but can actually prove extremely beneficial for your business.
What is Returns Management?
Returns management is a set of processes that begins when customers return products that are damaged or unwanted either for exchanges or refunds.
The product moves back to the point of origin during reverse logistics. It can be a fulfillment center, a warehouse, or a retail outlet of the eCommerce store.
Managing returns is extremely critical for an eCommerce business especially when 20%-30% of all products are returned on average.
This means without a proper strategy, you are at the risk of losing substantial amounts of revenue while facing customer dissatisfaction, and even abandonment.
The key steps involved in returns management are:
- Authorizing return requests including setting up guidelines for return eligibility and a medium to process or accept return requests.
- Setting up return transportation, connecting with carriers to coordinate return order pickups or designating a return kiosk/center.
- Doing quality checks for evaluating the condition of the returned item at the warehouse or fulfillment center.
- Issuing a refund back to the source of payment or providing store credit once the evaluation process is complete.
- Restocking the item as inventory if it’s in good condition or liquidating it if it’s damaged and unusable.
- Dispatching another product in case the customer opts for product exchange.
8 Best Practices to Efficient Returns Management
As an online business owner, you must put a premium on having an effective returns management system so that customers are never left wanting. With that in mind, we have made a list of 8 best practices to handle online returns.
1)Have a clear return policy
Make sure your returns policy is transparent and easily accessible by the online shopper. This will truly save you a lot of trouble.
Having a clear returns policy will help customers understand which items come under the returns category and which do not. It’ll also specify the eligible state of condition for returning them.
Your returns policy should also clearly mention the return window for every kind of product. Ideally, we recommend keeping a 30 day returns window that’s been considered the golden standard in the industry followed by brands like H&M and Decathlon.
The point of extending the return window is to encourage people to keep the product for longer. This can lower the return rate for customers who can’t decide whether to keep the product or not. Also, consider including an information pamphlet with every order you send out.
2)Make Returns a Breezy Process
No one likes returning orders. On top of that, if you have a convoluted and complex returns management program, your customers are going to take their business elsewhere. The way eCommerce companies handle online returns speaks volumes about their customer service.
Consider using an automated returns management software in eCommerce that can create a seamless branded returns portal for your customers to place their return requests.
An automated system that’s configured to your return policy can automatically approve or reject their request while ensuring quality check protocols like image validation.
Research suggests customers prefer a returns portal over communicating with customer service agents. However, if they call your helpline number, handle customer queries positively and with respect even during the return journey to keep them returning to your store. A happy customer can even share their positive experience with friends or on social media.
3)Multi-channel returns and refunds
Your customer placed an order on your virtual store and now wishes to return the same to your brick-and-mortar store. How do you handle it? Generally speaking, you should try to keep returns as hassle-free as possible. That also means, opening up multi-channel return and refund options.
You can either connect with a software like ReturnBear that offers multiple collection points or drop off location prompting customers to return their product at their nearest drop off point. These drop off kiosks are mainly located at malls and are easily accessible.
In terms of refunds, consider giving customers as many options as feasible for your business. Incorporate easy digital payment options like PayPal or offer direct deposit to their bank accounts or to their credit card. More importantly, offer them store credit, which is a better option that encourages customers to shop with you again.
4)Offer free shipping and returns
Online commerce is an extremely competitive field and if you want to survive you need to keep up with the market trends.
Most eCommerce businesses today offer free shipping and returns on purchases. Having a strict returns policy can prove detrimental to your business.
While free return shipping may hurt your business, there are other ways you can make up for the dent created. Try going label free and package free.
Having no box will save your operations team both time and effort (hence money) and reduce waste. It’ll also help consolidate products so that they take up less space with your carrier and you pay less for the overall trips made to your warehouse.
5)Return Packing Slip Included with Every Purchase
You can also consider including a packing label along with every order that you send out. This will allow customers to return orders easily and also help you procure valuable feedback on the cause of return.
6)Provide clear product descriptions and representation
Always include correct product pictures and descriptions on your ecommerce platform. Displaying accurate information on measurements, color swatches, etc., can significantly bring down returns and help shoppers to make an informed choice.
Make sure to have product descriptions that include size charts for things like clothes, shoes, furniture, etc. If possible you can include virtual reality enabled ‘try on’ mechanisms that’ll give customers a sense of how the product will look on them. It’ll further reduce your return rate.
7)Over-communicate
Having an open line of communication can go a long way in customer satisfaction. Keep your customers posted on shipment status by providing real-time tracking updates on their email, phone, and Whatsapp.
Keeping your customers in the loop makes them feel valued. This translates to good business.
8)Quick Exchanges
Most of the time a customer returns a product they absolutely loved but got the wrong size. In such cases, shoppers are only looking to exchange the product for the correct size. Ensuring quick and hassle-free exchanges increases customer lifetime value and is great for your eCommerce business.
Conclusion
Following these returns best practices will help your online business to cut down returns and make them profitable at the same time. Returns management is the backbone of the eCommerce industry and having an efficient system is essential for customer retention, satisfaction, and the overall performance of your business.