How to manage returns in eCommerce efficiently?

No doubt returns are the most ignored part of the eCommerce business. A rise in eCommerce returns neutralizes the happiness of increased sales and business.

According to the facts, the return percentage of eCommerce returns is as high as 30%, which rises to 40% for certain product categories such as apparel and footwear.

These returns are recorded highest at the end of holidays and festive season, every year. Thereby, returning festive or holiday sale products is a greater headache for online retailers.

There exist multiple reasons why customers return their products. Such as:

• 20% of received products were damaged
• 22% of products were different in appearance
• 23% of customers received the wrong item
• 35% of customers specify their return reason as other

The increased amount of return rate in eCommerce cannot go unchecked now, as it leads to huge losses for an online merchant, but can be managed if acted smartly.

How much does an average e-commerce return cost your business?

Today’s eCommerce is mostly D2C business-driven, where free shipping has become universal along with hassle-free returns. The ease of returning the products has increased return requests to become a common factor these days. Also, influencing customers who purchase multiple products with the intent to return them.  For e.g., a customer ordered 1 clothing item with 4 different sizes to try on, with the intention to keep the right fit and return the other. So, whenever a product is returned, the retailer has to suffer from double supply chain costs along with the decreased resale value of the product due to damage, wear and tear, devaluation of product in this duration, especially on festive or seasonal items. A better understanding of how returns affect your business profit margin can help you keep your business profitable. To prevent these return losses first, you need to manage the return request properly, and second, influence your customers for repeat purchases by delivering the best return experience to them.

Ways to manage eCommerce returns

Product returns have become an inevitable part of eCommerce with the rise in online purchases. 

But the merchants need not worry as handling returns is not as much difficult as it sounds. You just need to focus on some major points that create most of the confusion in your customers’ heads and sort them. 

Return management is not at all a headache if done smartly and precisely.

How can you manage your eCommerce returns in the most simplified manner?

Here are some ways that can help you to manage your returns easily and improve customer satisfaction.

– Automated return management system

Return automation solution enables a frictionless return experience for your modern shoppers and can take the pain of returning products for your customers. 

It efficiently reduces your burden of managing return requests through customer support calls, manual entries, and daily mails.

The automated return management organizes various departments involved with returns such as cataloging, customer support, operations/warehouse, finance, logistics, etc.

It streamlines the return process so that you can effortlessly manage the return requests and reduce the total turnaround time of the return process, saving you all the extra time, effort, and money. 

With an automated return management system you can:

• Create a branded return page where your customers can generate return requests.
• Automate schedule reverse pickup with QC.
• Automatically approve returns.
• Smart order refunds with various payment options (Store Credit, Gift Card, Credit & Debit Card).
• Automatic Refund Approval.
• Send Notifications for return status updates (reverse pickup scheduled, refund processed, exchange order shipped, etc.).

– Create a flexible return policy

Return policy is one of the crucial parts of the return management system, the best practice is to create a flexible return policy.

Make sure to clearly mention your terms and conditions for returning a product, such as what kinds of return you accept, what are the terms for exchanging a product, what will be the duration of returning a product, etc.

Also, there should be clarity for the return procedure, how a customer can raise a return request. Use easy to understand language, so that there should be no point for confusion.

A well-drafted return policy helps the customers to understand your return process better and also encourages them with their purchase decision.

– Extend the window period of returns

After the end of the festive or holiday season, always expect high returns. So keeping that in mind you can readjust your return window for returns but make it clearly visible on your return policy or online store.

Generally, people with genuine return problems put their return request within 3-10 days of delivery, so you can extend this return window. Because it extends the customers’ relaxation time before returning the product and hence increases their chances of keeping the product.

– Provide a clear return choice

The return policy and your return page should be clear to tell your customers that you care for them and respect their return choice. 

Does your store support refund, exchange, or both? In case of a refund, is credit, original payment method, etc. are available?

Add the list of return types to your system and let your customers decide what they want to do with their purchased product.

– Decline returns on certain items

In response to a few products or items that you don’t want to get returned by your customers, simply select and mark them as non-returnable items. 

Tag the selected products with non-returnable tags and add them to your system. This way, the selected items won’t be applicable for the return.

– Provide quick refund and exchange

Upgrade your return management system to provide instant refunds and the fastest exchange delivery. 

Enable your system to refund your customers within 24 hours with their choice of payment method (original payment method, IMPS, store credit, gift card, etc.).

Also, operate exchange orders as soon as the original product gets picked up, and notify your customer at every stage of the return procedure to maintain transparency.

How can e-commerce return experience win customers?

The quickly handled return requests will always give you customers’ repeat purchases and good word of mouth.

A simplified, easy, and convenient return process will encourage customers to trust your brand and purchase again in the future, despite receiving the wrong or defective order. 

Hence, returns are an important part of the eCommerce business that can’t be ignored or taken lightly making the return management process an influential part of customer retention.