How to Optimize Your Return Process? Tips for Increased Revenue, Higher Customer Satisfaction, and Fewer Returns
A significant number of online entrepreneurs face a surge of returns in January due to the previous peak season. Incorrectly purchased Christmas gifts, party dresses that didn’t fit as expected – you name it. Do you notice that the return process within your online business could use some improvement? Or is it already doing well, but you still want to learn more about the opportunities that lie ahead, so you can optimize these processes in the future? Keep reading.
In the e-commerce sector, a well-optimized return process can not only increase efficiency but also contribute to more revenue and customer satisfaction. This process, although sometimes complex, offers a unique opportunity to strengthen customer relationships and encourage repeat purchases. Investing in a smooth return process for both the webshop and the consumer is a crucial step for every online entrepreneur!
Introduction to Return Process Optimization
According to the EHI Retail Institute, about 39% of online retailers consider efficient handling of returns as a current focus in their business, while 92% of all consumers find an easy return process crucial for making a repeat purchase. We assume you are now convinced to take customer-friendly return management seriously. With these tips, you can ensure you’re not falling behind.
1. Analyze Customer Expectations and Return Policy
Recent research by invesp reveals that at least 30% of all online ordered products are returned (this figure rises to around 40% for fashion), which is significantly higher than the 8.89% seen in physical stores. This highlights the importance of a customer-oriented return policy.
A crucial aspect of a good return policy is the ease with which customers can return products. Recent UPS research shows that 67% of online shoppers first check the return page before making a purchase to see how this process is handled by the webshop. Therefore, provide clear and easily readable shipping and return policies. Place this information not only in a prominent section on your website but also disseminate it on product pages and through customer service.
But what about the costs? In the past year, there has been a noticeable increase in the number of webshops choosing to pass the entire return amount or a portion of it on to the consumer. This shift also reflects public opinion; whereas last year, people expected free return options, the majority of consumers now accept paying a (small) fee to use the return process. Of course, the less cost for the consumer, the higher the customer satisfaction. One solution is to discreetly include return costs in the item price, allowing you to continue offering ‘free’ return costs to your customers. But as an online entrepreneur, you’d prefer to have as few returns as possible. Aside from the processing costs of returns, they simply decrease your revenue. There are several ways to reduce returns and return processing costs. Let’s delve deeper into this.
2. Minimize Returns and Reduce Return Costs
Returns are an inevitable part of the business model, but minimizing returns and return costs is essential for profitability. What can you do concretely to reduce returns and return costs?
Monta’s RMA in action: Making exchanges easy for the consumer and providing transparency for the online entrepreneur.
3. Utilize Technology for Return Logistics
The use of technology is crucial for reducing returns and improving return logistics in e-commerce. Here are some ways:
4. Integrate Sustainability into the Return Process
Integrating sustainability into the return process is a crucial step for any conscious retailer and an essential part of your webshop’s sustainability strategy. Here are some ways to achieve this:
Monta: The Key to Efficient and Customer-Friendly Return Management
Do you now realize that you have much to gain in terms of return processing? Take action and ensure higher customer satisfaction, fewer returns, and lower return costs. Monta can help you with this. Whether you’re interested in Monta’s RMA or in fully outsourcing your returns to Monta, we’d love to discuss how we can elevate your return management to the next level.
Contact us today or request a demo to discover how Monta can optimize your return strategy and help you grow. Give your return policy the boost it deserves!