Handling e-commerce returns can be a daily challenge, particularly given that around 80% of online shoppers regularly return purchases. Since returns are an inevitable aspect of online retail, it’s vital to transform them into a positive experience for both your customers and your business.
Customers expect returns to be straightforward and affordable, if not free. As a business, you want an efficient, cost-effective, and easily manageable process. A robust returns strategy, paired with modern solutions, can ensure smooth operations across all aspects — from handling return requests to integrating shipping options.
This comprehensive guide covers everything you need to know about e-commerce returns, including links to our in-depth articles on related topics. Let’s dive in!
Inside this Guide:
- Why Returns Are Crucial in E-commerce
- Creating a Strong and Balanced Return Policy
- Reducing Return Costs for Your Business
- Minimising Returns with Expert Strategies
- Handling International Returns with Finesse
- Benefitting from a Smooth RMA Process
- Optimising Reverse Logistics Like the Pros
- Using a Return Tool to Boost Customer Satisfaction
- Making E-commerce Returns a Positive Experience
Why Returns Are Crucial in E-commerce
It might seem counterintuitive to simplify returns, but making the return process hassle-free can turn a negative shopping experience into a positive one. Customers return products for various reasons, and 92% of consumers say they’ll buy again if the return process is easy. This makes customer-centric returns essential for building lasting relationships.
In fact, most online shoppers expect to return products occasionally:
- 72% almost always check the return conditions before ordering.
- 65% will abandon an order if clear return information is missing.
Therefore, creating a transparent return policy that meets your shoppers’ needs is crucial.
Creating a Strong and Balanced Return Policy
To build an effective return policy, consider these five key components:
1. Return Period: Decide how long customers have to return an item. In the UK, the legal minimum is 14 days. Offering a longer period can be a goodwill gesture that gives customers more time to explore the product and often get attached to it.
2. Return Costs: Determine who will pay for return shipping. Options include free returns, which customers love, or paid returns, which can help you manage costs.
3. Return Scope: Clearly define which products are returnable and which are not to avoid confusion. This includes perishable goods, hygiene-sensitive products, and custom-made items.
4. Return Process: Simplify the process for customers by including prepaid return labels and clear instructions. Digital tools like an online self-service return portal can streamline the process and reduce customer service interactions.
5. Return, Exchange, or Refund: Establish a smooth process for returns, exchanges, and refunds. Ensure timely refunds and offer options like store credit to encourage further purchases.
Reducing Return Costs for Your Business
Returns can impact your margins if not managed properly. Here are tactics to balance customer satisfaction and cost control:
- Better Carrier Rates: Work with a shipping solution to secure pre-negotiated carrier rates suited to your business.
- Paid Return Options: Introduce a return fee to discourage unnecessary returns and manage costs effectively.
- In-store and Drop-off Returns: Encourage customers to return items in-store or at drop-off points to save on shipping.
- Insured Returns: For higher-value items, use shipping insurance to protect against loss, damage, or theft.
- Automated Return Process: Modern logistics solutions like those from Blue30 reduce labour costs and streamline your customers’ return shipping experience.
Minimising Returns with Expert Strategies
Preventing returns is the best way to reduce return shipping costs. Here are some effective tactics:
- Optimise Product Descriptions and Visuals: Ensure product pages are detailed and accurate, with high-quality images and videos. This helps customers understand exactly what they’re buying.
- Improve Delivery Accuracy: Implement automated labelling and offer flexible delivery options to decrease errors such as wrong items being sent.
- Educate Customers*: Provide detailed product manuals and maintenance guides to reduce returns due to misuse.
- Enhance Customer Communication: Keep customers informed about their deliveries, especially for time-sensitive products, to prevent returns caused by late deliveries.
Handling International Returns with Finesse
If you target an international customer base, your return policy must accommodate their needs. Key considerations include:
- Collaboration with International Carriers: Use a shipping solution that leverages deals with international carriers for better rates and services.
- Local Return Centres: Work with local partners for return management to expedite the process and reduce costs.
Benefitting from a Smooth RMA Process
Implementing a Return Merchandise Authorisation (RMA) system can keep returns running smoothly. The RMA process involves customers requesting returns, receiving an RMA reference number, and tracking all relevant information in your backend system. Benefits include:
- Greater transparency and oversight.
- Time and resource savings through automation.
- Faster refunds, encouraging quicker repeat orders.
- Data collection for continual improvement of your product and return shipping experience.
Optimising Reverse Logistics Like the Pros
Reverse logistics refers to the process of handling returned products. Successful e-commerce giants like Amazon have mastered reverse logistics with customer-centric policies and efficient systems. Implementing robust reverse logistics involves:
- Product Returns Management: Assessing the condition and resale value of returned items.
- Refurbishment and Recycling: Repairing or refurbishing items for resale, and recycling materials from unsellable products.
- Inventory and Data Management: Efficiently tracking returned items and managing data.
- Customer Service: Maintaining clear communication with customers regarding their returns.
Using a Return Tool to Boost Customer Satisfaction
High return rates cost UK retailers around £18 billion annually. However, making the return process easy can improve customer satisfaction. Strategies include:
- Offering a Better Pre-sales Experience: Provide better product descriptions to help customers make informed decisions.
- Displaying a Clear Returns Policy: Include straightforward return information on all product pages and order confirmation emails.
- Leveraging Technology: Use returns management software like Blue30’s solutions to streamline the returns process with features like a customer-friendly returns portal.
Outsource to a third-party Fulfilment services UK
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Check out the full list of our services provided here. You can also book in a free call to discuss your requirements and what we have to offer here. Alternatively get a free quote here.
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