Returns management refers to the process of handling returns, refunds, and exchanges in such a way that makes customers trust your brand and you keep maintaining profit margins.
Online retailers are much more affected by returns than physical stores, firstly because of the ease of shopping and returning that comes with ecommerce. Secondly, in a lot of cases, the actual products they receive do not match the descriptions provided on the website or marketplace. Sizing varies from brand to brand and that’s why apparel and footwear segments see the most number of returns.
However, as an online seller, you must try and make the most of returns. And with better service and returns management, bring those numbers down. To turn returns into profit, you need to invest in an excellent returns management system for eCommerce.
What is Returns Management?
Returns management is everything that happens from the time a customer places a return request. As soon as an ecommerce business receives a return request, it’s time to validate the return. That is, to check whether the product is applicable for return or exchange. If it’s not, the request is denied. If it can be returned/exchanged, then the seller immediately notifies the shipping carrier to arrange a reverse pickup for the item.
At this point, customers are contacted to ascertain availability. On the selected date and time, a pickup agent collects the returned item and performs a basic quality check at the customer’s doorstep. This involves tallying names, SKUs, addresses, etc. The item is then shipped back to the seller of the warehouse. Refunds for returned products are only initiated once the package has reached the original destination and passed all quality checks. For exchanges, a new order is processed and shipped to the customer.
How to Reduce and Manage Product Returns Effectively?
The first step to managing or reducing product returns is understanding why your store faces high returns. The answer will be different for different companies. Conducting a thorough inventory analysis with respect to customer feedback can help reduce returns by freshening up the product lineup or understanding what customers like or don’t about your products. Things like sizing issues and inaccurate product descriptions can be taken care of easily.
The other thing to look at is your company’s return policy. Unclearly documented or hard to find return policies can also lead to higher returns because customers are not sure which items are not returnable. It may also cause more customer dissatisfaction and an eventual customer churn.
Returns and exchange management software have become the top choice for most ecommerce brands for managing and systematizing returns. These software offer real time online tracking with shipment status updates, refund notifications and on-demand reverse pickups.
Can Shipping Carriers and Returns Management Software Help?
Many factors give carriers and software an edge over in-house returns management by eCommerce businesses. First, they have more experience handling this specialized shipping service.
Second, they have more manpower ready to be deployed than an online entrepreneur can ever have. Third, their network of serviceable locations is far greater.
Lastly, they have the economy of scale, which means handling the intricacies of reverse logistics does not cost them as much as it does an eCommerce business. And above all, they leave e-tailers to work on scaling up their business.
How to Choose the Right Returns Management Software or Courier Company?
Choosing a partner or returns management software to outsource your reverse logistics needs to be a careful and well-thought-out decision. But from so many options to choose from, how do you settle on one? Surely it is not feasible to try out all the options before selecting one. To help you with your choice, we are going to list some of the most important factors you should consider before selecting a returns management for eCommerce.
1) Multiple carrier integrations that service your delivery locations
Like any shipping software, a returns management software must be able to provide services in the geographies that you are active in. Therefore, the number and type of shipping carrier integrations it provides are important to note. Carriers like FedEx, UPS, DHL, USPS, DTDC, etc., have an extensive coverage of zip codes across the world. They also come with specialized services like bulk shipping, temperature-controlled transportation, integrated logistics, etc., that can be of great help to eCommerce companies in India of all sizes.
Therefore, it’s good for a returns management software to have integrations with some of these big and trustworthy names. Apart from these, look at the local India based logistics companies the software is partnered with. For instance, if your business is located in the Netherlands and that’s where most of your business comes from, then having a local shipping carrier is a plus. They will know the lay of the land, be aware of sudden changes that may disrupt supply chains and more.
2) Branded returns page/portal
Regardless of the returns management software you choose, they must provide a customizable returns portal. Returns can change into sales with a personalized return tracking page with upselling and cross-selling tiles that feature the latest product releases, discounted items or other products your customer likes.
This is also a great way to continue the brand experience from start to finish and show that you care about their return journey and would like to make it as comfortable as possible.
Return or exchange portals should have a section for customers to fill in their return reasons. To prevent return fraud, include a section for cutomers to add product images. And yes, return pages must allow shoppers to track the progress of their package and the refund.
3) Faster refunds processing
You don’t want your customers waiting for an eternity to receive their refund. But what makes refund processing faster? Some brands opt to refund loyal customers immediately. They look at things like how long the shopper has been with them, what their return rates have been, their usual order value, etc. Based on these parameters, the company decides whether or not to offer these customers instant refunds. This can surely be one way of making refunds faster.
The other way depends on you, the returns management software and its carrier integrations. In most cases, the returned item goes back to the original warehouse but by choosing return warehouses near the customer’s location one can potentially offer quicker refunds. It also helps businesses save up on reverse shipping costs. Carriers with expedited shipping services would be better equipped in making this possible.
4) Speedy pickup of inbound shipments
As soon as a return is confirmed, the returns management software should quickly notify shipping carriers to pickup the order. This process also involves communicating with the customer to finalize a date and time when they will be available. Returns management software must also allow customers to change the scheduled pickup time/date, relay the same information to businesses and arrange pickups on a different day seamlessly.
5) Careful handling of items during the reverse journey
It’s crucial that items don’t get damaged or lost on their way back to the warehouse and lose all ability of being up in the market again. Some retailers ask customers to send the items back in their original packaging with tags intact while others don’t.
It falls on shipping carriers to check whether the packaging provided will withstand shipping and handling. Although shipping insurance is provided by many shipping carriers it is mostly used for forward shipping. We advise opting for shipping insurance for reverse shipments as well to steer clear of losses, theft or damage.
6) Real-time tracking visibility for online sellers and customers
Your returns management software must be able to provide you with the latest shipment tracking updates. The return tracking link must allow shoppers to ntrack the exact status of their returning packages in real-time as well as the status of their refunds and exchanges.
In addition to tracking shipments online, order updates must be conveyed to customers via communication channels like WhatsApp, SMS, email, etc. Brands using a returns management software must be able to see the updates directly on their dashboards.
Conclusion
Managing eCommerce returns is not rocket science. With the help of a few shipping partners and returns management software, your online shop can easily manage product returns. A good returns management system for eCommerce is the need of the hour because it retains customers. If an online shopper has a good post-purchase experience they will want to come back to your virtual store in the future.
