Return Management Strategy in E-commerce Business

Return Management Strategy in E-commerce Business

Return management must be managed properly if you are in an e-commerce business. Knowing the right strategy can certainly help you manage returns in an easier way while giving you more profit. If you don't really understand how strategies work in return management, you can find out about strategies that include ideology and return management tips below!

Attract Customers

If you have an ideology or return strategy to attract customers then you should optimize your website to do it. The reason is that the return policy in your business is quite an important marketing asset. Data shows that more than 60% of customers will check the applicable return policy before deciding to buy your products. If you explain your return strategy well and the policy is acceptable to customers then it can give customers confidence to buy your product even for the first time.

You need to know that building customer trust will certainly be very helpful in an online-based business. A study shows that 81% of consumers need to trust your product or brand before they decide to buy from your store. Typically, customers who have requested returns have higher purchasing power and have made many repeat purchases. This means that you have to optimize your website as a marketing tool and build customer trust. You can also implement a return strategy or policy by offering free exchanges, store credit or refunds.

Reduction of Refund Rate

Some business owners may avoid refunds as an option in return management. The reason is because if you offer a refund it will usually discourage customers from shopping at your store and they will likely not buy from you again.

By implementing cash returns you usually not only lose customers but can also be detrimental because you have to pay shipping and processing fees for orders that don't sell. If you want to avoid this loss then you should choose the right return option such as offering an exchange. Some of the options that you can apply to an exchange policy include free exchanges, store credit or if you have to return money then create a policy regarding shipping costs borne by the buyer. By offering suitable exchanging items, you can avoid losses and lost customers. It is certain that customers who are happy with your service will leave positive reviews.

Cost reduction

If you are more concerned with reducing costs in return management then you have to charge shipping costs to your customers. However, reducing operational costs by passing shipping costs on to customers can be detrimental. For example, customers who are buying for the first time may not make a purchase or customers who previously tended not to want to exchange goods and prefer to exchange money. 

The best strategy for reducing costs incurred as a result of exchanging goods is to charge different customers the shipping or other costs from time to time. For example, in the first month you can apply fees for the exchange of items, store credit or money and in the following month you can remove these fees or reduce them except for the refund option which is still deducted by shipping costs.

Tips for Implementing a Returns Strategy in Your Business

It doesn't matter if you are going to implement any strategy or ideology in managing returns, you can try some of the following tips to make the return process easier and more profitable.

Return Policy Must Be Clear and Appealing

If you want to handle returns like a pro then of course you have to make it easy for the customer. It all starts with creating a clear and attractive return policy. Done right, a return policy can even be one of your greatest marketing assets.

In other words, you can start your business success by creating an attractive return policy. You can tell your customers that you offer free shipping if they want to return an item. This offer will impact buyers the most as 67% of buyers mostly check the return policy first before making a return. So offering free return shipping can be a big draw for your business.

Have a Dedicated Page for Return Policy

Already have a good return policy? Next, make sure you put it front and center on your e-commerce website. Don't hide it and it's good that you don't just write it in small writing under your website or site. Make sure the special page that creates the return policy is easy for customers to find and well understood.

Set a Return Deadline

Some sellers or business owners choose to limit customer return times to a narrower term. This strategy is actually not the best solution in terms of returning goods even if you apply a 1 month time limit. If you can pay attention, some businesses that grow big usually protect their customers with a return policy with a long time limit, for example 1 year. They also offer free shipping returns for customers. Even though this looks detrimental in fact their business is increasing and they are getting more sales. For this reason, you can consider the time limit for returning goods by customers so that they can freely return goods when needed.

Direct Customers to Exchange Items

Another strategy that you can employ to reduce business operational costs in managing returns is to offer an exchange of items. By offering exchanges, you can get other opportunities to satisfy customers and give them a positive impression. That way they don't hesitate to give good reviews for your business and get other people interested in buying the products you sell.

Use Return Management Software

Apart from relying on a return policy, you can also use special software that can help you manage returns from customers. Software like ReturnKey can be very useful for your growing business. By using ReturnKey, you can also implement return policies that suit your business and reduce operational costs. You can handle the process of returning goods more quickly and efficiently so that you have the potential to get bigger profits.

Whatever strategy you use in managing returns, you should still consider it carefully so that you can provide positive service to customers and increase sales and make your business better known.

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