Product returns are a common practice in e-commerce, directly influencing customer satisfaction and loyalty. In Europe, countries like Germany and France see high return rates, with 53% and 45% of online shoppers respectively returning at least one product (source Shippypro). This trend is even more pronounced in India and China, where return rates reach 80% and 70% (source Statista). These figures highlight the importance of effective return management to maintain customer trust and satisfaction.
This article guides you through the best practices for effectively managing customer returns
Implementing an Effective Returns Management Strategy
How to Qualify a Return Request?
- Order Identification: Ensure you correctly identify the order concerned by the return.
- Collecting the Return Reason: Gather structured reasons such as “size too large”, “wrong color”, etc. These data are valuable for your purchasing or marketing department.
- Type of Request: Determine if the customer wants an exchange, a standard exchange, or a refund.
- Traceability: For expensive products, request the serial number to ensure optimal traceability.
Available Tools for Return Requests
Keep in mind that there is no single tool to manage the entire returns chain. This is because returns management requires communication with the customer (CRM), providing information on your site (front-end), communication with the warehouse (WMS), exchanges with commercial management for invoices/refunds, and finally exchanges with the order management tool for processing exchange orders. However, returns management can generally be handled entirely via two tools:
- A “front-end” tool for collecting the return request and keeping the customer informed.
- A “back-end” tool (usually the ERP) for management aspects.
Different Options for Collecting Requests (front-end)
- Include the return label directly in the package: If your WMS allows, including the return form and label directly in the package is likely the most user-friendly solution for your customers. However, it has the drawback of not finely controlling return reasons and deadlines.
- The return portal: This is probably the most sought-after solution by e-merchants. Customers can log into the portal to send the return request by providing the products and return reasons. Once this request is accepted automatically or manually, they receive the return slip along with the label to send their package back.
- The contact form: Unattractive for the consumer and not necessarily well-structured, this solution should be avoided if possible.
Return Management Workflow
- Back-office tools: These allow your teams to track and process return requests. The primary mission of these tools is to collect, track, and record all return requests.
- First step: Accept (or not) the return. Whether automatic or manual, validation allows the customer to receive the return slip with the return label.
- Next step: Follow the receipt of goods. It is essential to know the date they were received. The tool should also allow for “qualitative” receipt, meaning if a consumer returns a product in unsatisfactory condition, the state should be recorded to allow for proper restocking or return rejection.
- Deciding on the logistics: Once the products are received, you need to decide on their logistical allocation. Generally, three options are possible:
- Restock for sale if the product’s condition allows.
- Scrap the item if it is not sellable and its value does not justify action with your supplier.
- Return to supplier for products with manufacturing defects or still under warranty. It is important to identify these products electronically to manage future supplier returns.
- Commercial processing: This usually takes two forms:
- Creation of a credit note with a voucher or refund.
- Issuing a new order to send the replacement product. This new order may also involve additional billing or a refund.
- Ensure that your tool centralizes these operations to avoid your staff handling multiple tools, which can lead to time loss and a higher risk of errors.
Keep an Eye on Statistics
Beyond a macro analysis of the return percentage, it is important to conduct a more detailed analysis to identify potential issues early. Here are some analytical axes and possible actions:
- A high number of exchange requests for color or size might highlight a problem on your site, perhaps related to product photos or a size guide.
- Make the data available to your purchasing department for action with suppliers or to avoid referencing problematic products.
- Conduct a client analysis, as some consumers might have an abusive return practice.
How Boostmyshop myFulfillment Can Help
Our OMS tool, myFulfillment, facilitates returns management with extensive compatibility with CMS platforms like Magento and PrestaShop. MyFulfillment allows you to manage your returns from A to Z:
- Send return forms and labels to the customer.
- Track product receipts.
- Manage refunds and restocking.
- Generate exchange orders.
- Provide detailed statistics and reports.
By integrating these best practices and using the right tools, you can turn returns management into an asset for your business, improving customer satisfaction and operational efficiency.
