For your customers, the conditions for returns are an important component of the purchase decision. It is therefore all the more important that your returns management is well planned.
There are many reasons why customers return goods. Customers often return goods if they do not fit or do not like them. However, defective or damaged goods are also frequently cited as a reason for return. Likewise, depending on the category, articles are ordered in different variations and the return is thus planned in advance by the customer. Other reasons for returns can be too long delivery times or that the customer discovers a cheaper offer from another supplier in the meantime.
In any case, customers nowadays expect a clear and customer-friendly returns process. If the processes here run to the customer's satisfaction, this can increase customer loyalty in the long term. In view of the frequency of returns, you as an online retailer should therefore analyse your returns processing and optimise it if necessary.
Internal problems as the cause of miscalculations
A high cost driver with regard to returns is incorrect calculation, inaccurate forecasts and inefficient processes in operations. Many e-commerce retailers work with outdated return rates and incomplete data from their merchandise management. This results in incorrect calculation rates and insufficient personnel planning.
The sifting of returns and the loss of value of goods are major cost factors. Therefore, as a prudent retailer, you should try to influence the return rate in advance. By providing comprehensive information to the customer, many returns can be avoided. You should present the goods appropriately so that the prospective buyer receives all relevant information in good time - even those that might make him withdraw from a purchase after all.
Measures before dispatch of goods
You can definitely influence the occurrence of returns if you ensure practicable processes in your business in good time. The following points improve customer friendliness and help to avoid problems in advance:
pack goods securely to avoid transport damage
have a delivery period determined by the customer
provide all relevant information clearly visible in the online shop
offer customer reviews of the individual products
clear design of the website
enclose the return label and the relevant instructions with the shipment
Many traders underestimate the power of customer reviews. The often very descriptive and informative comments from the practical experience of other buyers ensure that interested customers learn many details about the product in advance. Product reviews, especially if they are critical, are seen as particularly honest and realistic. Interested buyers can thus best assess whether the item really suits them and their application. Many returns can thus be avoided beforehand.
With an improved product display, you can optimise your returns management and avoid many incorrect purchases in advance. However, a large number of customers still want a personal conversation with one of your employees. This direct contact with a service employee usually resolves unclear ideas on the buyer's side. By communicating via the company's hotline, many problems can be avoided even before the order is placed.
Optimise internal processes
Unfortunately, cancellations are an essential part of business in online retail. If you are able to handle returns professionally, you will avoid unnecessary losses. Because too many returns will otherwise reduce your profits too much.
Often there are high costs in the returns process, as processing returns takes a lot of working time. As a retailer, you want your product to be available again soon. At the same time, product defects or even fraud attempts must be reliably detected. In e-commerce logistics, there are now different approaches to improving or even automating mail order. With the digitalisation of internal logistics, there are options for increasing efficiency.
Automation prevents incorrect deliveries
Even the ordering process can be the cause of problems. For example, returns resulting from an incorrectly shipped item can be avoided. A dispatch check in your warehouse helps to ensure that the recipient actually receives the product he or she has chosen. These checks can already be carried out today with the appropriate automation.
Digital returns systems also give you the option of prioritising certain returns. If seasonal goods remain in the handling process for a long time, there would be a significant drop in price. Smart technologies, such as RFID, identify returned items as soon as they are received. The check is contactless, so the package does not have to be opened. The items are then processed according to a prioritisation. The subsequent booking is also carried out by automation, and much faster. The goods are soon back in the warehouse and are available for sale in a timely manner. The entire processing of returns, including customer communication and subsequent billing processes, can now be fully automated.
Observe legal regulations
In contrast to stationary trade, your customer is legally entitled to a 14-day right of withdrawal when buying over the internet. Within this period, your customer can withdraw from the purchase contract without giving any reasons. The withdrawal must be clearly declared by the customer. The period for withdrawal begins from the time of receipt of the goods. As a trader, you should note that you are not obliged to bear the return costs. However, many customers expect a free return delivery as a gesture of goodwill. In principle, a customer does not have to accept a voucher in online trade.
Document item condition at delivery
Discrepancies often arise when there are signs of use on the item that are due to the customer's behaviour. Therefore, as a trader, it is advisable to keep proof that the product was delivered in perfect condition and in its original packaging. Photographing the goods is an easy way to protect yourself against unjustified claims.
Ease of use for returns
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