Ecommerce returns are a nagging reality. Be that as it may, online retailers have to learn the tricks to optimize product returns. With the comfort of online shopping, many customers choose to order several products in varying sizes and colors with the intention of returning at least a few.

Moreover, size charts vary for every brand, and navigating through them can be a little tedious. And lastly, returns are so much easier on an online business platform. All you need to do is request a return and a carrier service provider will be there to pick it up. 

Zero work for customers but almost insurmountable logistical issues for sellers. There is no way to survive in the ecommerce environment without learning to manage product returns.

Why is Returns Management Crucial For Ecommerce Success?

Managing product returns in ecommerce is crucial because recurring returns can hamper profits greatly and add to logistics costs in the form of reverse shipping where no actual money is made. Returns can happen for various reasons and some factors like customer behaviour are beyond anyone’s control. 

However, by planning returns correctly, businesses can not only lower returns but also offer their customers an excellent post-purchase customer experience.

One that makes them want to return to the store as repeat customers. The trick to managing returns is not just to try and bring the numbers down but to offer a hassle-free experience that earns them more customers. 

8 Ways to Handle eCommerce Returns Effectively

Since product returns make up such a big part of online commerce, it’s important for entrepreneurs to use it as an opportunity to learn and thrive.

Efficient management of returns can significantly reduce their number and also help you leverage such opportunities to build loyalties among your customers. Below, we discuss some of the best ways to manage product returns for an online eCommerce business.

1) Avoid a Stringent Return Policy

There are some businesses that believe giving customers the opportunity to make returns is how losses occur. On the contrary, allowing customers to return products easily builds trust and makes them want to come back to your store in the future, thereby negating the loss suffered by the return. 

While you are drafting your Return Policy be clear and direct about your conditions. That is, which products can be returned or exchanged, for how long, and the condition they must be returned in.

If you have any special terms be sure to include them. For example, if you don’t accept discounted items, clearly mention them in the return policy. 

Some brands require their customers to return products in original packaging with a return label. State it clearly, if you want the same. Inform customers about all the ways they can return items, such as drop-off locations, nearby stores, post offices, etc.

2) Make Returns Easy

Enable shoppers to place return requests easily by establishing a return portal that makes one-click returns possible. This return portal should also offer real-time return and refund tracking.

To further ease the process, offer on-demand return pickups from the customers’ preferred locations. Brands must also provide live return tracking updates to customers on their phones through SMS and WhatsApp and via emails.

3) Enable Speedy Refunds

A crucial part of managing eCommerce product returns is ensuring faster payouts and refunds. A returns management system can save you here by automating the refund process.

You should also consider multi-channel refund gateways, like, bank transfers, credit points, and other e-payments. To provide the best returns experience slime brands choose to instantly refund loyal customers based on past data. 

4) Offer Faster Returns and Exchanges

Your customers don’t like to wait while your online shop processes their returns and exchanges. Consider using a returns management software for eCommerce that enables instantaneous returns and exchanges on your customer’s doorstep to make up for the time lost in reverse shipping.

5) Automate Carrier Allocation for Reverse Pickup

For bigger eCommerce companies dealing with too many monthly shipments, handling returns can be a major burden. Hiring a reverse logistics partner can seriously help you with inbound logistics and automatically assign courier services best designed for reverse pickup. Doing so will ensure quick shipping and delivery of returned items.

6) Real-time Tracking

The shipment tracking feature is imperative for both outgoing and incoming orders. Make order tracking transparent for your customers so that they know when the order reaches the seller and when their refund is initiated or their exchange order is out for delivery. It’s also important you share the details of their orders through regular messages and emails.

7) Gather Feedback

Every time a customer returns an order, ask them what went wrong. This could be done by sending out packing slips with every order or following up on the phone, WhatsApp, or email.

Using a returns management software helps too. It records customer feedback right at the returns portal and analyzes the reason for the return. Customer feedback not only helps you identify and rectify a problem but also makes your customer feel valued. In the long run, evaluating return data can help minimize returns and streamline your product lineup.

8) Leverage Returns data

An effective returns management system uses technology to analyze data on returning items. This would include reasons for returning, delivery exceptions, fake deliveries, or other issues. Using this goldmine of returns data should enable you to bring down product returns considerably.

Final Conclusion

Returns management is something every eCommerce business should look for regardless of its size. Even if your business is still in the nascent stages, you must find a way to effectively tackle product returns.

While returns may not seem like a problem when you are shipping only 1000 to 5000 orders a month, they have the potential to become larger issues as your business grows.

Keeping all the ways listed above in mind should help you make returns one of the strongest points of your online business. All the best!