Returns are an essential part of the customer journey. Done right, they can turn a frustrated buyer into someone willing to give you a second chance. This protects your reputation, reduces negative online feedback and helps you retain customers.
Product returns happen for all sorts of reasons. The most common are packaging errors, defects, damage or a change of heart on the customer's part.
Whatever the reason, they cost money. Staff must spend valuable time inspecting incoming parcels, processing refunds and managing customer complaints. Budgets get eaten into by new packaging, relabelling and transportation.
So, how do you make returns work for you? There are two sides to this. The first is to prevent returns in the first place. The second is to streamline your reverse logistics processes.
In this article, we explore the ways you can achieve these twin goals.
Tell the customer what they need to know
Some returns happen because the customer changes their mind. But often, they're on you – and that tends to be because of insufficient information at checkout.
Reducing the cost of product returns involves making your product data as accurate as possible. That means customers know what they're getting and are less likely to send the item back.
This involves adding precise dimensions, weights, colour descriptions and high-quality photos and videos. With clothes and footwear, it involves furnishing the buyer with sizing charts, measurement guides and even try-on tools.
Reviews play their part, too. Customer reviews and user-generated photos help other shoppers know what they're buying.
You can also minimise the chance of returns by sending automated customer emails with essential setup information, care instructions and product tutorials.
These steps take time. But the time investment reaps rewards in the long run. By minimising the likelihood of returns in the first place, you minimise the money spent processing them.
Optimise day-to-day operations
Educating the customer is an important way of reducing the cost of product returns. But it's equally important to bake reverse logistics best practices into your day-to-day operations.
One way to do this is to offer alternatives to a straightforward return. Customers can be invited to swap products. If a customer buys the wrong-sized hat, for instance, you could give them a like-for-like replacement in the right size. This means you hold on to revenue and keep their custom.
When aiming to reduce the cost of product returns, data is your friend. If you track the reasons
why
products are returned, you can take fact-based steps to address the problem at the root. This emphasis on data-driven decision-making is one of the key benefits of upgrading your WMS.
If shipping damage is a recurring complaint, you can invest in sturdy, well-fitting packaging. This also stops you from wasting money on incorrectly sized packaging.
Sometimes, buyers will ask to return a low-value item. In this case, it can be better to offer a simple refund without a return.
Finally, you should treat returns with the same accuracy and attention as standard fulfilment. By optimising picking accuracy and increasing inventory visibility, you reduce the chance of sending the wrong item.
In many of these cases, a WMS can help. Here's how.
How can a WMS help reduce the cost of product returns?
