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Returns Management in E-Commerce

How Reverse Logistics Works

Reverse logistics is essentially the physical movement of goods during returns. It covers returns consolidation, international shipping, and other aspects concerning the movement of physical goods, whether between carriers or warehouses. Reverse logistics is also concerned with recovering value from products, materials, and parts that the final consumer has returned. In the beverage business, for instance, companies make use of empty tap containers via the reverse logistics process. Beverage manufacturers are able to reclaim the value of the containers by reusing them, which necessitates transportation planning, shipping load management, and container cleaning.

Customer Returns Policy for Online Purchases

A comprehensive and clear customer returns policy for online purchases is one of the factors that influence consumers’ purchasing decisions. In fact, 67% of e-commerce buyers do perform research on return policies before making a purchase. A clear policy will enable your consumers to return items more promptly and with less difficulty, resulting in a better return experience for online shoppers. Quicker returns also mean a quicker turnaround time; by allowing customers to return products efficiently, this increases the likelihood that a returned product will be in suitable condition for resale. Furthermore, defining clear instructions about how and when to return a product after purchase reduces the number of calls to customer support.

Free Shipping for Returns

Do you know 71% of consumers expect free shipping for returns? Some argue that free shipping for returns, or free returns, is essentially an investment in customer retention and acquisition.. Offering free shipping for returns may also boost a merchant’s conversion rate, since returns policies do play a part in a consumer’s purchasing decision. Companies should nevertheless measure the cost of returns to online retailers and the benefit of doing so before deciding to provide free returns to consumers.

Best Practices for E-Commerce Returns

Having a robust returns management process is a great way to secure repeat customers and develop a great brand reputation. When done correctly, it can also be a good way to discourage wasteful shopping behavior. Let’s take Zara as an example. This brand recently changed its customer returns policy for online purchases to reduce cost from customers who tend to over-order without the intention of retaining everything. Zara customers who return items at third-party drop-off points can deduct a £1.95 fee from their refund. Customers can additionally return online purchases for free to any Zara store.