Effective returns management is a crucial aspect of any successful ecommerce business. It’s critical to optimise the returns process to ensure customer satisfaction, build trust, and maintain a competitive edge. In this article, we’ll explore the key strategies and best practices for managing ecommerce returns, from establishing clear returns policies to leveraging automation and technology solutions. By implementing some of these recommendations, you can streamline your returns management process and create a positive experience for your customers.
Clear and Transparent Returns Policy
A clear and transparent returns policy forms the foundation of a successful returns management process. By clearly communicating your policy, you set customer expectations and reduce potential confusion or frustration. When developing your returns policy, consider including key elements such as timeframes, condition of items, and returns shipping responsibilities. Clearly state the steps customers need to follow when initiating a return.
To effectively communicate your returns policy, provide easy access to it on your website, preferably on the product pages and in the checkout process. Use concise and easy-to-understand language, ensuring that customers can quickly grasp the necessary information. Consider using visual aids, such as icons or infographics, to enhance clarity.
Danny Ellard, Business Development Manager at ILG, believes the key areas of a returns policy are to, “have a clear returns policy and a user-friendly returns portal for your customer to arrange returns hassle-free; offer clear and accessible returns shipping options; and provide easy-to-follow guides or instructions for repackaging or re-bagging items to ensure each returned item is easy to process.”
Streamlined Returns Process
As Danny highlights, having a streamlined returns process is essential for efficiency and customer satisfaction. Beyond your returns policy itself, a streamlined returns process should start by outlining the steps involved in a return, including customer initiation, returns authorisation, returns shipping, and refund or exchange. Optimise each step to minimise customer effort and maximise convenience.
Make it easy for customers to initiate returns by providing multiple channels for initiating returns, such as online forms, email, or phone. Automate the returns authorisation process to ensure prompt approval and minimal delays. Provide clear instructions and prepaid shipping labels (if you’re not charging for returns) to simplify returns shipping for customers. Once the returned items are received, aim to process refunds or exchanges promptly, enhancing customer trust.
Efficient Returns Handling
Efficient returns handling is vital to reduce costs and maximise the value of returned inventory. Thoroughly inspecting returned items is crucial to determine their condition and eligibility for resale. Establish clear guidelines for assessing item condition and implement quality control measures to ensure accuracy.
Johannes Panzer, Head of Product Strategy, Ecommerce at Descartes feels focusing on splitting out the physical returns handling from the rest of the process is important: “What our customers find works best is typically splitting up the physical processing of incoming returns from the financial refund process. This helps to get items back in stock and thus available online quicker.
“If returns departments/stations work closely with the customer service team, the financial refund process can also be initiated swiftly, creating a positive customer experience.”
It’s important that returned inventory is organised systematically to facilitate efficient handling. Separate items by condition and return reason to streamline the decision-making process. Consider integrating returned inventory back into your fulfilment process whenever possible to minimise storage costs and maximise resale opportunities.
Johannes concurs, “in addition to customer refunds, the returns process should focus on restocking items efficiently. This involves accurately determining which returned items can be returned to regular online inventory and which are no longer sellable in their original condition. Proper evaluation and sorting of returned items allow businesses to make informed decisions about restocking, repairs, or disposal.”
Automation and Technology Solutions
Automation and technology solutions play a pivotal role in streamlining the returns management process. Barcode scanning enhances accuracy and speed when receiving returned items, while inventory management systems track returned inventory, automate workflows, and optimise stock replenishment.
Johannes Panzer adds, “digitising the returns process can lead to faster processing times. By implementing technology solutions that allow for digital capturing of return information and automation of return workflows, businesses can streamline the process and expedite the assessment and handling of returns. This reduces the time it takes to complete the returns process and facilitates quicker customer refunds or exchanges.”
Several software platforms offer comprehensive returns management solutions that can automate various aspects of the process, and are worth considering as part of your fulfilment toolkit.
Customer Communication
Effective customer communication is essential during the returns process. Promptly respond to customer inquiries and concerns, demonstrating your commitment to customer satisfaction. Invest in a robust customer support system that enables your team to provide timely and accurate responses.
Proactive communication is key to keeping customers informed about return status and refund progress. Send automated notifications at key milestones, such as when the returned item is received or when the refund is processed. This level of transparency reassures customers and helps build trust in your brand.
Continuous Improvement and Analysis
To maintain a competitive edge in the ecommerce landscape, it is essential to continuously improve your returns management process. Analyse return data to identify trends and areas for improvement. Look for patterns in return reasons, product defects, or shipping issues to address the root causes and enhance product quality.
Johannes Panzer highlights the importance of this philosophy, “returns are an inherent part of B2C ecommerce. It is impractical to completely eliminate returns, as customers have the right to return products that don’t meet their expectations or requirements. However, businesses can work on reducing the frequency of returns by analysing the reasons why customers return items. This analysis helps identify the root causes of returns, enabling businesses to address those issues and improve product quality, descriptions, or sizing information. By proactively addressing the underlying factors that lead to returns, businesses can reduce return rates and the associated costs.”
Leverage return data to refine your product descriptions, images, and sizing charts, thereby reducing returns due to misrepresentation or improper fit. Use customer feedback obtained during the returns process to identify areas where your products or services can be improved. By embracing a culture of continuous improvement, you can enhance customer satisfaction and reduce returns over time.
Conclusion
Effectively managing ecommerce returns is a critical component of building customer trust and loyalty. By implementing the strategies outlined in this article, you can streamline your returns management process and create a positive returns experience for your customers. From establishing clear and transparent returns policies to leveraging automation and technology solutions, optimising your returns process will help your ecommerce business thrive.
Like this article? Read more fulfilment content in the Ecommerce Fulfilment Update August 2023.
Rob Gamage is Managing Editor of Modern Retail. Combining many years of experience in publishing with a keen interest in small business and entrepreneurship, Rob is passionate about sharing interesting and inspiring content with retailers to help them grow.
