Returns & Reverse Logistics

Let’s just agree on the fact that customers returning a product is an inevitable factor of an eCommerce business. Customers can be dissatisfied with your product more than you anticipate. A study suggests that 30% of products bought online are returned for many reasons.    Many eCommerce owners dread returned items; as they cut into the profit and gut conversion rates by adding the logistical cost of handling a returned item. In fact, some business owners hate returns so much that they complicate the return process. Believing if the return process is complex, customers might give up the thought of returning the item.    Returns don’t have to be dreadful after all. There are ways in which you can turn the tables and use returns to your brand’s advantage. Of course, managing returns incurs hidden charges that come to your attention after some time; however, consider it a necessary investment for the greater good of your brand in the longer term. Because the way you handle your returns creates an impression of your brand in the market.    In a survey, 92% of consumers said that they are likely to buy again from the brand if the product return process is easy. The reason behind this is consumers feel confident, and secure buying from an eCommerce store in which getting back the money is as easy as spending it on an item. Therefore, streamlining your returns management process is imperative if you want customers to keep coming back for more.  What is Returns Management process?  Returns management, also referred to as reverse logistics, is the process of managing the end-to-end cycle of a returned product. The cycle starts with the end-user initiating the return to the seller deciding what to do with the item. Whether to salvage, refurbish, or add it back to the inventory based on why the customer has returned the product.    A customer might return your product for various reasons; a dress that didn’t fit well, tampered packaging, broken goods, mismatched items, delay in delivery, unsatisfactory quality, or customer having a change of heart are a few of the common reasons why products are returned.    Understanding Controllable and Uncontrollable Returns   Returns are classified into controllable or uncontrollable based on why a product is returned. It is essential to be aware of your business’s total controllable or uncontrollable returns if you plan on reducing them.     Controllable Returns Products that have been returned due to the mistake of the seller, which can potentially be controlled by improving internal processes, better handling and storage of goods, and better inventory management, are called controllable returns.    One considerable advantage of controllable return is that it provides feedback on why the product is being returned. This allows the company to rectify its mistake that happened the first time.    Some of the most commonly occurring errors of sellers or their shipping partners: Manufacturing defect Item breakage during transit Poor or tampered product packaging Product quality doesn’t match the description displayed in the online store Item mismatched at the warehouse Delay in delivering the product     Likewise, a business can control these types of issues by increasing the quality of material used to package the product, by explicitly displaying pictures and descriptions of the product on the website, educating the staff for better inventory management, and by partnering with an experienced 3PL provider to ensure on-time delivery.    If you think your product description and pictures accurately display the details of your product and still you are getting a high volume of returns, then there has to be some issue with the quality of the product. First, assess the quality of your products and if it does not match the standard quality, it’s time you tell your manufacturer to improve the product’s quality.    Uncontrollable Returns   Uncontrollable returns are those returns that are out of your control, which means you cannot do anything about it. Typically, Customers initiate these returns when they have a change of heart or have ordered multiple variations (different sizes and colors) of a single item. To check which one fits and looks the best and return the rest of the variations.    The apparel industry witnesses the most uncontrollable returns; wherein the customers tend to return due to misfitting or color dissatisfaction. To be honest, there is nothing much you can do about uncontrollable returns other than reducing the time for returning the product.    Well, this is not a sold foolproof plan for reducing returns, but it is based on the theory that the more time a customer spends with the product, the less likely they will return it, as people tend to grow an attachment to it.    Though uncontrollable returns will cost you the extra money of handling, reverse logistics, and storage of goods, uncontrollable returns have to be entertained if you want to keep your customers satisfied.    Why is Returns Management Important?  Customer Retention:  Well, this one comes as a no-brainer. As mentioned above, with the help of a solid returns management process, you can retain customers while reducing the impact of returns on sales. Customers are most likely to come back to you to buy more products when they are confident that they can return them if they don’t like them.    Customer Satisfaction: Imagine being stuck with a product you don’t like because it doesn’t fit well, doesn’t match the description shown on the website, or doesn’t fulfill the purpose you ordered it for. Sounds unsatisfying, right? Want to make your customers feel the same? I hope not.    Brand Loyalty:   Customers feel loyal to the brand that accepts returns as quickly as it accepts a sale. Therefore, initiating quick refunds and simplifying your return process will help you win your customers’ loyalty for a long time.    Steps a Product Will Go Through in a Return Process  Customer initiates return stating the reason why they wish to return the item. A return is initiated when the customer is not satisfied or happy with the item. Perhaps the item was broken, or in the case