Returns Management in Ecommerce
Returns management in ecommerce is a significant challenge for both sellers and logistics professionals. The primary goal is to ensure it doesn't become a hassle for consumers.
Before the pandemic, online shopping was growing steadily, but since 2020, online sales have surged significantly. This boom has driven stores to focus on customer loyalty. Here at Lógicos 3PL, we explain how to manage returns in ecommerce and offer several tips to help you navigate this process effectively.
Moreover, we provide the option of partnering with a 3PL logistics provider like us, so you never have to worry about reverse logistics again.
Reasons for Returning Online Purchases
To effectively manage returns in your online store, it's essential to understand why customers are returning products. Most products are returned because they are in poor condition, do not meet expected specifications, or due to a mistake made by the customer during purchase.
To avoid additional issues, prominently display both your ecommerce purchase conditions and return policy. While these can be tailored to your business needs, they must comply with certain legal requirements. Key elements to consider include:
- Exchange and Return Period - The minimum period to return a product is 14 calendar days from the date of purchase. Although this deadline can be extended at the owner's discretion, it cannot be shortened. Additionally, this return must be free of charge to the customer. When purchasing online (without seeing the product in person), a 14-day "cooling-off period" is automatically offered, unless the product is bespoke or made to measure.
- No Need to Give a Reason for Return - Customers are not required to provide a reason for return within the offered period.
- Return and Reimbursement Costs - Customers are entitled to receive the full amount spent, including shipping costs. However, stores are not obligated to cover return costs. Not offering free returns could deter customers, as this is a critical service aspect.
Ways to Manage Ecommerce Returns
To ensure returns management (reverse logistics) doesn't complicate your supply chain or consume excessive resources, consider the following tips:
Available Stock
One effective strategy is to treat returned products as available for future purchases. This prevents them from taking up warehouse space and allows for direct reshipping to new customers. This solution also saves travel time for operators.
Integrate Returns Operations into Your Ecommerce Systems
Returns management has become a crucial operation for customers and should not be treated separately from other supply chain activities. Information must be available in systems like WMS (Warehouse Management System), TMS (Transport Management System), and ERP, integrating key flows: materials, information, and accounting.
Optimize Your Warehouse for Ecommerce Returns
To avoid a collapse or avalanche of returned items, especially after Black Friday or Christmas, establish procedures to expedite returns:
- Have a specific space for returns control to ensure the right item arrives in perfect condition.
- Determine if the product can be reshipped to a new customer or requires a new warehouse location. Update databases to prevent stock issues.
Find Local Returning Channels
While reducing the carbon footprint, this option may be challenging for small or digital-native brands. However, it's worth considering to prevent all returns from being directed to one location. If you want to care for the environment while avoiding reverse logistics steps, consider the following option.
Outsourcing Reverse Logistics
Many companies rely on specialized logistics providers to handle parts of their supply chain, including reverse logistics. What are the advantages of working with a 3PL operator like Lógicos?
- Access to a strong and developed logistics network that minimizes both costs and time.
- We handle ecommerce fulfillment, so you don't have to worry about stock or maintaining an optimized warehouse.
- We find the carrier that best suits your needs and manage all customs formalities.
Customer satisfaction is our priority, so we strive to maintain it. For more information about how we manage returns in ecommerce and other supply chain stages, feel free to contact us.
