Ecommerce Returns: Best Practices and Costs for UK Retailers Using a Fulfilment Service

Ecommerce businesses strive to be the sender, not the receiver. However, returns are an inevitable aspect of online retail. The way a company handles returns can significantly impact customer loyalty and profitability. This comprehensive guide explores the reasons behind ecommerce returns, associated costs, and best practices to manage them effectively.

Understanding Ecommerce Returns

Ecommerce returns, or reverse logistics, involve customers sending products back to the retailer. In the UK, the return rate for ecommerce sales hovers between 20% and 30%, notably higher than in physical stores. This trend is influenced by various factors, including the inability to physically examine products before purchase and the convenience of online shopping.

Common Reasons for Ecommerce Returns

1. Product Not as Described: Discrepancies between product descriptions and actual items can lead to returns. Accurate and detailed product information is crucial to set correct customer expectations.

2. Poor Quality or Faulty Products: Items that are damaged or of subpar quality often result in returns. Ensuring quality control before dispatch can mitigate this issue.

3. Sizing Issues: Incorrect sizing is a prevalent reason for returns, especially in fashion. Providing detailed size guides and using augmented reality (AR) tools can help customers make informed decisions.

4. Buyer’s Remorse: Impulse purchases or items that don't meet the customer's needs can lead to returns. Clear product information and customer reviews can help reduce this.

5. Multiple Orders of the Same Item: Accidental duplicate orders can occur. Implementing order review steps during checkout can minimize this.

   
   

The Costs of Ecommerce Returns

Returns incur several costs for retailers:

• Return Shipping: The cost of transporting the returned item back to the retailer.

• Restocking: Labor and resources required to inspect, repack, and restock returned items.

• Inventory Loss: Items that cannot be resold, often due to damage or obsolescence.

• Administrative Costs: Resources spent on processing returns and handling customer inquiries.

• Environmental Impact: The carbon footprint associated with return logistics and potential waste from unsellable items.

  
  

Best Practices for Managing Ecommerce Returns

1. Clear and Accessible Return Policy: Ensure your return policy is easy to find and understand. Transparency builds customer trust and reduces disputes.

2. Accurate Product Descriptions and Images: Provide detailed and truthful product information to set correct expectations and reduce the likelihood of returns.

3. Offer Exchanges or Store Credit: Instead of refunds, offer exchanges or store credit to retain revenue and encourage repeat business.

4. Implement a Return Merchandise Authorization (RMA) System: This system helps track returns and ensures that only eligible items are returned, streamlining the process.

5. Utilize Customer Reviews: Displaying customer reviews can provide insights into product quality and fit, helping future customers make informed decisions.

6. Sustainable Practices: Adopt eco-friendly packaging and consider refurbishing or recycling returned items to reduce environmental impact.

7. Monitor Return Trends: Regularly analyze return data to identify patterns and address recurring issues, such as sizing problems or product defects.

   
   

The Role of Fulfilment Services in Managing Returns

Partnering with a reliable fulfilment service can streamline the returns process. Fulfilment services handle inventory management, order processing, and returns, allowing retailers to focus on core business activities. In the UK, companies like Blue30 Fulfilment offer comprehensive solutions to manage ecommerce returns efficiently.

Conclusion

Ecommerce returns are an unavoidable aspect of online retail. However, by understanding the reasons behind returns, calculating associated costs, and implementing best practices, retailers can manage returns effectively. Partnering with a professional fulfilment service can further streamline the process, enhancing customer satisfaction and profitability.