The Covid-19 pandemic has passed. Even though the pandemic left awful memories, it has also had a positive impact on e-commerce businesses. The number of online purchases has increased dramatically because most people were not allowed to go outside. This increase in online orders has of course also increased the rate of returns. After the advent of these improvements, it has become imperative for online stores to evaluate their return policies and find ways to manage returns more efficiently. A returns management system (RMS) can greatly assist a business in the returns process. Here we can find out what RMS can do and the benefits it offers.
Selling items is easy, but the customer journey doesn't end when the order is paid for. There is a process called after-sales including activities such as returns, exchanges, complaints, and refunds. This process takes time and is just as important as your sales and marketing efforts. consumers sometimes return goods for a variety of reasons including the wrong size, wrong color, or the item does not match the description or photo shown. Online business return rates can even reach 30% compared to physical stores which are only 8.89%.
After-sales service is crucial to create a shopping experience and build your business brand so you can own loyal customers. Stores that don't pay attention to the after-sales process by automating and streamlining the return process run the risk of losing customers.
You should find that it turns out that there is an unexpected relationship between returns and consumer psychology. Researchers at the University of Texas-Dallas studying the effect of return policies on consumer behavior found that more lenient return policies and longer return periods lead to more sales.
Likewise, store policies including return periods can greatly influence consumer behavior and the decision of whether they will purchase or not. Sometimes stores create complicated return policies that include photos or other evidence. Based on research, these things become reasons why consumers hesitate to make a purchase.
Consumers can also decide to buy if the store is willing to fully refund or hold the shipping costs if they return the item. Conversely, if a store does not offer free shipping on returns, consumers are less likely to return and may not even buy in the first place. Cheaper products are also returned less frequently than more expensive products. This also applies to durable or consumable goods.
Today's business owners are often looking for solutions and actions to help minimize rates and costs of returns. For example by providing a full description including size, photos with good lighting, virtual trials, or conducting customer surveys. Even so, these efforts cannot minimize returns completely, so stores must evaluate their return policies properly and use software that helps with the process.
Returns management systems are typically cloud-based SaaS solutions that coordinate and streamline various aspects of the returns and after-sales process such as warranties, repairs and recalls. Stores can configure return systems according to customer requirements and integrate them with e-commerce platforms and supply chain solutions.
Using the right returns management software can help save time and money, and keep customers happy. According to McKinsey, business owners see up to a 5% increase in profits and a 15-25% increase in customer satisfaction after optimizing their return system.
Here are some reasons why you need a returns management system:
When running an eCommerce business, business owners should manage customer issues, handle returns, arrange replacements and refunds, and handle more tasks every day. Handling many operations, sellers or business owners require more help, especially large-scale businesses.
Here are some benefits of Returnkey's returns management solution to help business.:
Just as placing an order requires logistics channels, aka shipping services to reach customers, returns also require shipping services so that products return to the seller. Sometimes these reverse logistics costs are much higher than regular shipping because they require a faster response.
In addition, because all eCommerce returns are not exchanges, sellers often have to incur shipping or warehousing costs to store returned products. By using an efficient returns management system, sellers can reduce costs, thereby increasing overall profit margins.
As previously mentioned, business owners cannot avoid eCommerce returns, but can reduce them by leveraging data obtained from online activity. When sellers use a better system, they can track returns in real-time.
On the other hand, the customer support team can analyze the data obtained from customer return patterns and make the necessary changes to the platform or service. It can be useful for minimizing future returns.
Customer satisfaction depends on the customer service provided, including reviews from other customers. For example, if you have a review about shipping damaged or rejected products, customers will think twice before buying products from your platform. Similarly, if you offer options such as free returns and refunds, customers will usually be happy and may become loyal customers.
Managing eCommerce returns doesn't stop at customer satisfaction. When a buyer returns a product, throwing away the product is not the right choice. If you can repair or upgrade the product and resell it, it can help improve your brand reputation. Plus, you can help reduce waste by managing returns well. The fewer items returned, the fewer items end up in disposal. So, using the right management system or software can be great for the environment.
With an optimized return management system, you can respond to return requests faster and provide efficient product replacement. It can increase customer satisfaction and also speed up your product improvement process. This option can even reduce the cost of replacing returned items and the cost of employees who handle it manually.
ReturnKey is a feature-packed integrated return management software available for business owners in Southeast Asia. This software has various features and collaborates with operators who provide pick-up locations for rescheduling shipments. Returnkey enables business owners to perform in-depth analysis, organize returns into exchanges, and customize and automate returns portals as needed. So, why not try the benefits of ReturnKey for your business right now.