Ecommerce companies become successful by working efficiently to connect customers with the products they want. But often an effective supply chain for getting shipments out to consumers is not enough. To provide the high-quality service that today's online shoppers expect, businesses also need to be capable of reliably handling returns.
For many organizations, that's where the trouble begins. Returns can be tough for even well-established retailers, and it's especially difficult for a company that's still getting off the ground. When leaders understand the challenges that go along with managing reverse logistics, they can make strategic decisions and form partnerships that enable top-notch customer service at every stage of a relationship – even if something goes wrong.
Shipping costs add up
"Ecommerce returns can be expensive."
The most immediate problem with ecommerce returns is that they can be expensive. If an online retailer covers the costs involved in repackaging a product, sending it back and exchanging for a replacement, the overhead for a transaction shoots way up. To make matters worse, those expenses can become all-too-routine, particularly for companies in industries where fit and style are essential factors like clothing, shoes or furniture.
Fortunately, there are ways to make shipping more cost-effective. Fulfillment services from an experienced partner allow a growing business to find significant savings. Ecommerce companies get the benefits of established relationships and volume-based discounts.
Determining an effective return policy
One of the big questions facing any new ecommerce retailer is what their policy for returns should be. Laying down some clear rules governing the circumstances for an exchange or refund, as well as setting conditions for when a company will pay for shipping, is an important means of keeping costs under control. On the other hand, overly stringent returns policies run the risk of discouraging purchases and damaging relationships with customers.
Consider how these rules should differ based on whether a product arrived damaged or malfunctioning. Present a specific time frame for accepting returns of particular types of products. Note whether customers can expect to receive a full refund, exchange or store credit under certain circumstances, and avoid surprising them with any unexpected charges.
Returns can interfere with warehousing and distribution
An ecommerce company that's in the process of scaling up has to deal with a variety of challenges in augmenting its supply line, including finding larger facilities, bringing in more workers and managing orders. Handling returns adds even more complications to the daily work of maintaining inventory and keeping operations on track. That's why it's a good idea to draw on resources from a partner with extensive background in warehousing and fulfillment, implementing technology solutions for full visibility into these key processes.
What do you do with returned products?
Once products come back in, businesses have to figure out what to do with them. Can an item be repacked to go back into the inventory to be sold again, or should it be recycled, donated or remanufactured? Having a partner tasked with streamlining the returns process allows an ecommerce company to keep its focus on providing customers with the best items and service.
SFG provides ecommerce businesses with the technology, processes and personnel they need to take command of shipping and returns.
