Returns are a big problem for many retailers. It’s even a bigger issue for e-commerce businesses since managing returns for this sector is more expensive. Managing them properly is also important since research shows that 95 percent of buyers come back to an online store to buy more if they had a positive experience there.
Fortunately, with proper returns management services and other steps, you can ensure that the rising tide of returns won’t cut into your bottom line.
Have a Clear Return Policy
One of the things you need is a good and transparent return policy. You must present on your website what exactly the customers need to do so that they can successfully return any faulty or damaged product. A good way to present this is to have a dedicated page that presents all the requirements they need to meet or even a video on how to do a proper return. You can also include a return label in every order you send out to facilitate easy returns.
It is not just how you present your return policy that is important. Formulating a return policy that is fair to customers and to you should be a priority. Fraud isn’t just on the part of the sellers in the online marketplace; buyers can also send in returns that will end up costing the seller.
That is why when you formulate your policy; you should do an estimate of how much every return is going to cost you. Your returns should not end up eating your profits. Your return policy should lessen the burden of cost on you without displeasing your customers.
Returns Automation is the Logical Next Step
Managing returns can be a time-consuming and expensive process if left solely to human hands. That is why returns automation should be a priority in your business. It is actually easy to integrate. Many companies offer returns automation as part of their inventory automation services.
However, returns automation is not a one-size-fits-all service or solution. Depending on the size of your operation, returns automation can range from a simple software app to complete integration into the inventory management system. Think about the volume of returns that you get and opt for a service that works best for you.
Prevention is the Other Half of the Equation
The best way to reduce the money lost on returns is to cut down returns at the source by delivering quality products properly and in good condition. Fortunately, automation in shipping management and logistics can help you with that. Additionally, you might want to invest in good customer service that helps cut down on unnecessary returns. For example, a feedback page on why the customer is returning the product can help you identify what you need to fix or improve.
As an e-commerce business owner, you’re in a highly competitive and unforgiving market. If you don’t take the necessary steps to ensure that your returns don’t hurt you in the long run, your company might be in trouble. Seize the initiative and look at your processes to see what you can improve so that you and your customers will reap the benefits.