How to manage product returns?
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22 November 2023
Traceability in the textile field : Fairly Made
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After the end-of-year festivities, it’s essential for e-retailers to ensure that their customers’ products can be returned. Particularly after Christmas, some consumers might have made a mistake, changed their mind or received a damaged item and want to return it.
For a good management of product returns, you need to establish a returns policy with conditions of sale, it is compulsory.
A return policy
Each e-retailer develops its own returns policy r through General Sales Conditions. These terms and conditions must be clear and available on the website so that Internet users can read them at any time. They are adapted to the business sector and the logistics of the products which are offered by the company.
This is where the implementation of a returns policy comes in, to ensure flawless customer satisfaction. Applying a returns policy is an integral part of company legislation, and the law requires e-retailers to define it clearly. It must include all the information required for the purchase and use of the product.
It is usually placed on the website under the heading “Terms of sale”, “Delivery and returns” in the footer of the website. It may also be included on the FAQ page of the website.
Consumer-focused purchasing factors
According to “Médiamétrie’s Observatoire des Usages Internet”,in the third quarter of 2021 there will be more than 42 million cyber shoppers : 1,100,000 more than a year ago. These online shoppers are particularly active at this time of the year, looking for bargains in the run-up to the festive season.
A study was published by Médiamétrie in partnership with Fevad. Out of 1,002 cyber-buyers, 37% choose a website for its free returns and 36% for the ease of returns and refunds it offers.
Simplicity and free returns are therefore two essential factors for purchasing decisions.
That’s why e-tailers are well advised to communicate the date up to they can order to optimize the chances to be delivered before Christmas and reduce the returns rate.
A bad management of returns policy leads to dissatisfied customers and repercussions on your company’s image.
Applying a returns policy focused on the customer is a way of winning more customers. Nowadays, e-retailers often cover the cost of returns in order to convert more customers.
It’s a way of building customer loyalty, ensuring that they can trust your company and the terms and conditions communicated.
Logistics
By offering consumers the option of returning their product, the company needs to set up a dedicated product returns area within thelogistics warehouse. This is a very important part of customer satisfaction. It’s a fairly complex process that involves several stages. Firstly, the returns are received and then scanned to check the state of the parcel and the products inside. Warehouse staff then sort the goods according to their condition. The products are then labelled so that they can be returned to stock and put back on sale. Finally, customers receive a refund or an exchange Sometimes, products are recycled if they are damaged and can no longer be sold to consumers.
Digital solutions
Many companies have set up a Return Merchandise Authorizationcalled RMA. It’s an integrated process for managing returns from your online store. Customers wishing to return their order will receive a prepaid shipping label with an RMA number. This enables the e-seller to track returns and measure the Return On Investment (ROI) by product. This enables the e-retailer to identify products that are working and those that are not or are less successful.
A concrete example :
In the case of a textile company like Zalandothe return policy applied by the marketplace is expensive. The company has chosen to debit its customers 18 days after receiving their order, a model that offers a longer period of time for buyers on the Zalando platform. This is a powerful marketing tool.
Especially as buying clothes online is a delicate process, despite the solutions offered by these sellers, such as size suggestions, because it is impossible to try on or touch the item when you buy online.
Some customers order an item in several sizes or colours so they can choose at home and keep only the product that suits them. So itmakes sense to offer customization so that the product purchased by the consumer is as close as possible to their expectations, always with the aim of reducing the returns rate.
Offering the cost of returns has its limits, particularly from an ecological point of view.
Some companies have chosen to put an end to free returns and to involve the consumer in the process. This has led to a considerable reduction in the returns rate and has made consumers more aware of their actions. By charging the consumer, the company is also educating the customer.
According to a study by Molliethe rate of product returns by consumers worldwide will almost double between 2020 and 2022, rising from 10.6% to 18.1%. This increase is due to the fact that e-retailers are offering the cost of returns.
Offering the cost of returns is not free for the company; instead of, it is quite costly and requires a certain amount of organisation in terms of logistics and transport.
Since the end of April 2022, Zara has been asking its customers to pay to return an item unless it is defective. Reducing the group’s environmental impact is the main motivation.
In terms of ecology, this is not necessarily the best solution, as customers can return products to the shop for free. Nevertheless, it has had an effect. The cost of returning an item in its original condition is 1.95 euros.
To reduce the environmental impact of your e-commerce :
