Returns Management in Your E-commerce. How to Keep the Cash Flowing?

Effective returns management is key at several levels. Firstly, it enables you to save money by reducing the costs of each return. Secondly, it builds customer satisfaction, as in many markets, returns management is among the most critical purchase-driving factors.

How to manage returns in your e-commerce effectively? You need to begin by collecting and analysing the data to recognise the patterns. Then, you have to write down a clear returns policy. Finally, you should optimise your logistics to streamline the returns and make the process as cost-efficient as possible. Do you want to learn more? Then read this article!

How to Optimise Your E-Commerce Returns Management?

Without any further ado, let’s discuss how to optimise it and improve your business operation. Here are our tips:

Analyse Data

The first step you should take in order to optimise your returns management is to collect, clean, and utilise your data. With the use of AI, you may discover patterns or behaviours indicating potential returns and use this knowledge to plan your inventory levels.

If you’re running a larger e-commerce, using an automated system might be helpful in one extra way: optimising the returns route. By analysing who is likely to return and where they will be returning the product from, you can designate the most optimal warehouse to store the returned product in and ensure that it has free storage space.

Improve Your Product Descriptions

Many returns can be avoided by changing product descriptions on your site. All you have to do is leverage feedback to learn why the products are returned. Then, use this knowledge to filter your product pages for key information – perhaps your products seem like they have certain qualities, while they don’t, so including this information could actually cut down the number of returns.

Create a Clear Returns Policy

A clear, transparent returns policy will attract customers and pave the way for your returns management procedures. While it might improve your return processes only slightly, it will evoke trust in your customers, attracting them to your store.

How to do that? You need to streamline all the processes included in returns management – ground transportation, airline shipping, customs clearance, paperwork and so on. Here, it’s worth working with professionals, like us. Why?

Our returns management services at Landmark Global provide you with a fully tracked solution and custom clearance conducted by our LTS team. This way, you can simplify the procedures and make the whole process faster – many of the legal requirements are carried out for you by us! You no longer have to worry about labelling your products correctly and coordinating the logistics, and you can be sure that no delays will affect your returns.

Returns Management with Landmark Global

At Landmark Global, we understand the challenges regarding returns management and how they can affect your e-commerce business. Therefore, we provide you with an E2E fully tracked return solution for UK customers shipping to the US. Our returns management services come at a competitive price, quick transit time, and coverage with more than 10.000 PUDO points. By working with us, you will:

• Increase confidence in purchase decisions made in your shop.

• Reduce the perceived risks associated with online purchases, as your consumers will be able to return products if they don’t fit or are damaged.

• Create a hassle-free return experience for your customers.

• Build customer satisfaction and loyalty.

• Turn returns management into a competitive advantage.

• Build brand reputation through effective and seamless returns.

Why Returns Management Matters?

Why is returns management so important in e-commerce? Because it affects your income and general operational efficiency. Let’s go through all the ways in which this process impacts your business.

Returns Management and Customer Satisfaction

If you read our US shipping guide, you probably realise that there are certain markets, like the US one, where clear and simple returns management is key to building customer satisfaction. In certain cases, it is the decisive factor for potential shoppers. Therefore, improving your returns management helps you attract more customers and drives sales.

Additionally, a well-optimized returns management system reduces the impact that the returns in your e-commerce have on the environment. You don’t have to send your delivery company to pick up the returns, thus reducing the carbon footprint, making your business more sustainable and attracting eco-aware customers.

Returns Management and Money

Every time you send a courier just to pick up a return, it generates extra costs. If you have to manage hundreds of returns monthly, and each time they are picked up separately, the losses are significant. Therefore, optimising returns management should be a priority for any e-commerce.

This is extremely visible in cross-border transactions. In such cases, shipping is more expensive in general, and so are the returns. Add to that the fact that managing returns might involve navigating customs regulations and paying duties, taxes and transportation fees, and you can clearly see that the costs generated by this can be quite high.

Returns Management and Inventory Management

Another aspect that returns management affects is your storage space. Imagine you restock your products after selling them, and then half of them are returned – you end up with too much space taken by goods that will take months to sell and have to limit your other operations due to the lack of storage space at your warehouse. That’s why analysing data is crucial – it lets you predict such returns and avoid getting stuck with an overabundance of certain products.

Returns Management and Legal Regulations

Each country or union has its own customer-protection laws, some of which govern returns management directly – both concerning internal trade and cross-border transactions. You have to optimise your returns management procedures so that they are compliant with these regulations; otherwise, you may face legal repercussions or even damage to your reputation.

The Takeaway

No matter big or small, local or international, every e-commerce needs an effective returns management system. By optimising your processes, you can become more sustainable, improve customer satisfaction and loyalty, and finally, your revenue by cutting down the extra cost. Contact us and find out how we can help you improve your returns management at Landmark Global – we’re happy to use our experience to help you!

You might also read: 9 Proven Strategies for Reducing Cart Abandonment in E-commerce in 2023