Online shopping has made it quite convenient for all of us to purchase anything. And as orders have increased, so have returns.

What happens if a consumer receives a damaged item or the supplied item does not match their expectations? Simple: they’d start a return.

Consider managing these returns at scale. This may be a nightmare for e-commerce enterprises if they do not have the necessary systems in place.

In this post, we’ll look at how e-commerce organisations may develop and implement an effective returns management strategy.

Something that keeps both consumers satisfied and your bottom line healthy.

What are e-commerce returns?

E-commerce returns are things that buyers return after purchasing online. Customers return items for a variety of reasons, including defects, size mismatches, and products that do not function as planned.

It is critical for brands to handle returns effectively. It isn’t simply about returning a product. It’s also important to keep a positive relationship with the customer. A simple return process may encourage customers to buy with you again.

What is the definition of e-commerce return management?

E-commerce returns management describes how firms handle things that customers return or send back. It’s a strategy for managing these returns easily and efficiently. Let’s go down the procedure step by step:

The customer returns the merchandise:

Assume a buyer purchases a product online and returns it after delivery. This is where the e-commerce returns management procedure begins. At this point, it’s critical to establish a smooth return procedure, ideally with door pickup. 

Businesses inspect the product: 

When an item is returned, the firm must properly check it. This step is critical to ensuring that the goods are in original condition and fulfils the return policy requirements. The inspection may include looking for any damage, confirming that it is the proper item, and ensuring that it has not been unduly used or altered.

Refund or Exchange offered: 

Once the returned goods pass inspection, the company moves on to the next phase. Depending on the firm’s policy and the customer’s preferences, the company provides either a refund or an exchange. A refund may be sent using the client’s original payment method, but an exchange may require sending the customer a replacement.

Communication with the customers: 

Keep clients informed about the return procedure. Regular updates on receipt, inspection, and refund/exchange progress increase confidence and demonstrate efficiency.

E-commerce Returns Management Best Practices

While limiting e-commerce returns is critical for a business, there are situations when returns cannot be avoided. That is why you should be aware of the finest strategies for dealing with them effectively. 

Here are the main best practices for turning refunds into a smooth procedure. They will also improve the consumer experience and increase brand loyalty.

1. Offer a customer-friendly return policy

Customers today make well-informed selections. A brand’s return policy is one of the most important elements people examine before making a purchase.

It is, in reality, something that indicates whether or not a buyer can trust your brand.

So, how can you design a return policy that will not dissuade customers? Here’s a simple hack: make it easy to discover, read, and comprehend. As much as you want your returns policy to stand out, it is critical that it clearly conveys expectations. Many online shops lose the plot here by creating ambiguous regulations or failing to provide adequate information to customers. 

2. Make returns easier

Is it simple for your customers to apply for returns? According to UPS, only 53% of customers are happy with the simplicity with which they may return to a previous buying site.

Customers are frequently requested to fill out superfluous papers, courier the things themselves, and, in some circumstances, pay for shipment.

3. Have the appropriate automations in place

Automation has become quite popular in logistics nowadays. They go a long way toward speeding up operations and reducing manual labour.

The good news is that they can also expedite your return procedure.

Regardless of the exceptions that arise while processing returns, having the correct automations may be a game changer for your warehouse personnel.

4. Provide your receiving staff with the correct instructions

Correctly identifying and classifying returned merchandise is a critical step in return management. Clearly, this is a labour-intensive activity.

However, there are a few steps you may take to sort results more effectively.

You should have a distinct area at your warehouse where you can check any returned items. Instruct your receiving crew to manually inspect each product and ensure that it matches the original item. They will also have to consider the item’s quality, the amount of goods received, and the sender’s name, among other factors. The main advantage of designing these processes is that your receiving team does not have to wait for instructions everytime an exception occurs.

5. Seamless internal collaboration is essential

Time is of the importance when it comes to processing refunds. Why? The longer a returned goods sits in the warehouse, the lower its worth becomes.

However, returns are rarely managed end-to-end by a single staff.

Customers are likely to follow up via emails, calls, and texts, therefore the support team must connect with the warehouse crew to keep them updated on order progress.

The logistics team must collaborate with the financial team to conduct credit card transactions when a client requests a refund. 

The receiving crew must liaise with merchants to return damaged products to their location. Otherwise, if the goods are unopened, they must connect with the appropriate warehouse workers to arrange for an exchange for the consumer.

All of these multiple channels of communication must function simultaneously and flawlessly. Writing emails to other teams, forwarding order receipts, using CCs to include coworkers, and so on are all conventional ways to accomplish this. However, this strategy might become burdensome when the volume of return orders increases.

6. Recovering the most value from returned goods

On the one hand, timely returns are critical to increasing customer loyalty and retention.

To reduce your losses, you must recover as much value as possible from returned items.

After sorting the returned products, verify that the processes you have in place direct these things to the path with the greatest selling price.

Treat every returned good as an asset, and ensure that a mechanism is in place to extract the greatest value from it.

7. Evaluate the financial impact of returns

No matter how simple it is for customers to apply for refunds, handling the return chain is costly and complex.

So, how can you make it cost effective?

For this, you must be aware of the financial impact returns have on your company.

Figuring out the separate prices would provide online merchants with a clear view of which aspects of the return procedure may be enhanced to save expenses.

8. Listen to your consumers

Collecting client feedback is an efficient technique to identify flaws in your return procedure.

Are customers finding it difficult to start a return? Are they irritated by delayed exchanges or a lack of updates?

A well-designed return procedure has a direct influence on customer satisfaction (CSAT). You can find areas for improvement by collecting feedback via surveys at critical touchpoints.

Remember that a pleased customer is a repeat customer!

Collect feedback across many ways such as email, SMS, and in-app surveys. For convenient access, avoid using paper forms and instead add a QR code (which may be readily made online).