Introduction
When a product is returned by the consumer to the eCommerce seller, the handling of that process is called return management. The issue of returns is of concern to all eCommerce sellers. Of course no eCommerce seller wants to see their product returned by the consumer. Sellers try their very best to avoid returns by including sizing information and accurate descriptions and images of their products. Returns have a cost, and they reduce the profits, so we can say… returns are an unfortunate reality, and the return management team must be accurate, efficient, and do their best to make the customer happy and keep the financial loss for the seller as low as possible.
When returns are handled slowly or improperly the seller loses that buyer as a customer. Poor returns destroy customer loyalty and loyalty is something eCommerce businesses seek above all. A reputation for mishandling returns can follow that company and this is reputation damage no company wants to experience.
A full-service 3rd party fulfillment company will handle returns for their clients in addition to handling their warehousing and fulfillment and a number of other services. Due to their expertise in fulfillment and customer service, the return management process is optimized. When the return is requested by the consumer, the fulfillment team will follow the procedures of their client and do so efficiently with an eye toward cost savings. The outcome will be a satisfied customer, a good reputation, and as little financial loss as possible
Why Return Management is Critical in eCommerce
As we pointed out, it is critical to optimize return management in eCommerce. Customers, when making their purchases, expect to be able to return the item if it’s not satisfactory, and get a product exchange if it’s the wrong size or the wrong item, or they simply want the option of returning it and being reimbursed.
When the customer expects the returns process to be easy and quick, and it is not, that person will never be a customer again. Dissatisfied customers will also make sure to comment in the reviews section and make their opinion known on social media, so the reputation of the brand can be greatly diminished.
If product returns are not done properly and efficiently it will have an impact on the company’s profits and operational efficiency. Returns have a cost, but that cost can be mitigated to a great degree by the expertise of a full-service fulfillment company. Happy customers who have been treated well when returning a product, will shop with the eCommerce seller again. They will let their good experience be known in conversations on social media as well as in online reviews of the company or product. Proper return management is a necessity for success.
Key Challenges in eCommerce Return Management
There are key challenges in eCommerce return management in that some product categories, such as apparel and electronics, have a high return rate for various reasons. To try and mitigate this, apparel sellers make sizing, color, fabric and so on very clear for buyers. Careful and accurate descriptions of products do help in reducing returns. Nonetheless, return rates with apparel are high. It is believed that customers may purchase several items with the intent of returning some. This is simply the reality in some fields.
The reverse supply chain, i.e. the shipping of the product from the customer back to the seller, can be complicated for sellers as well. The advantage of a fulfillment center in this case is significant. If a full-service fulfillment company is facilitating the return, one advantage is the relationship of the fulfillment company with the carriers. Because of the high utilization of carriers by the fulfillment center, rates and processes are negotiated and returns are accomplished quickly and efficiently.
There are costs associated with restocking, refurbishing, repairing and reshipping. Once again, the fulfillment center will have a streamlined process and teams in place to handle everything associated with returns, including repairs. Because of the inherent efficiency, the fulfillment center will provide a cost savings.
The final issue is one that is difficult, no matter who is handling the return management. Unfortunately, there are individuals who will attempt to defraud or otherwise abuse the opportunity to return purchases. In eCommerce, fraud must be factored in as a possibility, and every step possible must be taken to prevent fraud and abuse.
Best Practices for Efficient Return Management
Clear Return Policies
The return policies of the seller should be very clear, uncomplicated and understandable for the eCommerce customer. Exactly what can be returned for a monetary refund? Make it clear. What can be exchanged for another item or store credit? Make it clear. What will the return cost the customer if anything? Make it clear what the customer is responsible for. The returns policy should be very transparent so that the customer’s expectation won’t be disappointed and the return will be accomplished as efficiently as possible.
Automated Return Processing
The return management process is greatly benefitted by technology and automation. If the seller provides automated and prepaid labels, the process is simplified. When the eCommerce seller works with a full-service fulfillment company, the returns software of both companies will be fully integrated, making all parties capable of following the return through the supply chain as it is shipped back to the fulfillment company’s team. These benefits lead to cost savings as well as satisfied customers. When automation and technology streamline the returns process, the cost is diminished and the customer will likely return to shop again.
Reverse Logistics Optimization
How is reverse logistics, which simply means the return process, optimized? The answer is by partnering with fulfillment services to manage return shipments and inventory. The fulfillment company’s returns team will be trained on how to handle all aspects of the return including getting the product back into inventory, repackaging the product if needed, repairing the item if repair is possible and wanted by the seller, recycling the item, re-selling the item through another avenue, donating the item to a community organization and finally, if no other solution is possible, discarding the item in an environmentally responsible manner.
Data-Driven Insights
When the seller is able to identify trends, the company will likely be able to reduce the rate of returns. Trends are analyzed by collecting and studying data on orders and returns. This can be done as part of the return management process by the seller and/or the fulfillment partner.
The Role of AMS Fulfillment in Return Management
AMS Fulfillment is highly experienced at return management with a team that receives and handles returns for many different clients. When the return is received, the team follows the wishes of the client with regard to handling. AMS will follow the procedures mentioned, and provide the AMS clients end-to-end return management solutions.
Another advantage to the client and the client’s customer is technology integration. With AMS Fulfillment, through the integration of technology, returns can be tracked and the client and their customer can see where the return is in the process. The return tracking and customer service communication that AMS offers translates into return management that is a success for AMS clients.
Benefits of a Well-Managed Return Process
When the return process is managed by a full-service fulfillment company like AMS, the first beneficiary is the customer. Customers making returns or exchanges can check on the progress of their request, or talk with an AMS customer service person, and see that they can trust the brand. Excellent return management and hassle-free returns definitely do strengthen a customer’s relationship with the seller. The second beneficiary, of course, is the seller. The seller not only enjoys a good reputation, but cost savings as well through AMS’ efficient handling and processing, not to mention AMS’ top-level inventory management.
Another outcome of utilizing a fulfillment provider such as AMS is reduced waste due to AMS’ refurbishment, recycling and donation efforts. The refurbishment of products will be done according to guidelines established by the client. Whether the product requires testing, repacking, checking for a broken seal, replacing components… the refurbishment will be done by a skilled hands-on team.
How to Choose the Right Fulfillment Partner for Return Management
When choosing a fulfillment partner for return management there are some very vital considerations. Look first at the integration of technology – can the fulfillment center integrate their technology fully with that of the eCommerce seller. A successful integration is needed for warehouse and inventory management and many other services including return management.
At AMS, the returns team utilizes barcode scanners or they will count by hand if necessary in order to itemize exactly what was returned, and communicate that information to the eCommerce seller via the established systems integration. The eCommerce seller, the fulfillment center and the customer should all be able to track the return through this integrated technology. Some full-service fulfillment centers, such as AMS, will also provide customer service for their clients, answering phone calls on behalf of the eCommerce seller.
Sellers should also look at the fulfillment service’s scalability – can they quickly adjust to changes up or down in a client’s inventory. AMS Fulfillment’s tailored solutions for businesses of different sizes and industries make it the choice of very successful eCommerce sellers. AMS is outstanding in Client Services through a partnership commitment to its clients.
When a product is returned by the consumer to the eCommerce seller, the handling of that process is called return management. The issue of returns is of concern to all eCommerce sellers. Of course no eCommerce seller wants to see their product returned by the consumer. Sellers try their very best to avoid returns by including sizing information and accurate descriptions and images of their products. Returns have a cost, and they reduce the profits, so we can say… returns are an unfortunate reality, and the return management team must be accurate, efficient, and do their best to make the customer happy and keep the financial loss for the seller as low as possible.
When returns are handled slowly or improperly the seller loses that buyer as a customer. Poor returns destroy customer loyalty and loyalty is something eCommerce businesses seek above all. A reputation for mishandling returns can follow that company and this is reputation damage no company wants to experience.
A full-service 3rd party fulfillment company will handle returns for their clients in addition to handling their warehousing and fulfillment and a number of other services. Due to their expertise in fulfillment and customer service, the return management process is optimized. When the return is requested by the consumer, the fulfillment team will follow the procedures of their client and do so efficiently with an eye toward cost savings. The outcome will be a satisfied customer, a good reputation, and as little financial loss as possible
Why Return Management is Critical in eCommerce
As we pointed out, it is critical to optimize return management in eCommerce. Customers, when making their purchases, expect to be able to return the item if it’s not satisfactory, and get a product exchange if it’s the wrong size or the wrong item, or they simply want the option of returning it and being reimbursed.
When the customer expects the returns process to be easy and quick, and it is not, that person will never be a customer again. Dissatisfied customers will also make sure to comment in the reviews section and make their opinion known on social media, so the reputation of the brand can be greatly diminished.
If product returns are not done properly and efficiently it will have an impact on the company’s profits and operational efficiency. Returns have a cost, but that cost can be mitigated to a great degree by the expertise of a full-service fulfillment company. Happy customers who have been treated well when returning a product, will shop with the eCommerce seller again. They will let their good experience be known in conversations on social media as well as in online reviews of the company or product. Proper return management is a necessity for success.
Key Challenges in eCommerce Return Management
There are key challenges in eCommerce return management in that some product categories, such as apparel and electronics, have a high return rate for various reasons. To try and mitigate this, apparel sellers make sizing, color, fabric and so on very clear for buyers. Careful and accurate descriptions of products do help in reducing returns. Nonetheless, return rates with apparel are high. It is believed that customers may purchase several items with the intent of returning some. This is simply the reality in some fields.
The reverse supply chain, i.e. the shipping of the product from the customer back to the seller, can be complicated for sellers as well. The advantage of a fulfillment center in this case is significant. If a full-service fulfillment company is facilitating the return, one advantage is the relationship of the fulfillment company with the carriers. Because of the high utilization of carriers by the fulfillment center, rates and processes are negotiated and returns are accomplished quickly and efficiently.
There are costs associated with restocking, refurbishing, repairing and reshipping. Once again, the fulfillment center will have a streamlined process and teams in place to handle everything associated with returns, including repairs. Because of the inherent efficiency, the fulfillment center will provide a cost savings.
The final issue is one that is difficult, no matter who is handling the return management. Unfortunately, there are individuals who will attempt to defraud or otherwise abuse the opportunity to return purchases. In eCommerce, fraud must be factored in as a possibility, and every step possible must be taken to prevent fraud and abuse.
Best Practices for Efficient Return Management
Clear Return Policies
The return policies of the seller should be very clear, uncomplicated and understandable for the eCommerce customer. Exactly what can be returned for a monetary refund? Make it clear. What can be exchanged for another item or store credit? Make it clear. What will the return cost the customer if anything? Make it clear what the customer is responsible for. The returns policy should be very transparent so that the customer’s expectation won’t be disappointed and the return will be accomplished as efficiently as possible.
Automated Return Processing
The return management process is greatly benefitted by technology and automation. If the seller provides automated and prepaid labels, the process is simplified. When the eCommerce seller works with a full-service fulfillment company, the returns software of both companies will be fully integrated, making all parties capable of following the return through the supply chain as it is shipped back to the fulfillment company’s team. These benefits lead to cost savings as well as satisfied customers. When automation and technology streamline the returns process, the cost is diminished and the customer will likely return to shop again.
Reverse Logistics Optimization
How is reverse logistics, which simply means the return process, optimized? The answer is by partnering with fulfillment services to manage return shipments and inventory. The fulfillment company’s returns team will be trained on how to handle all aspects of the return including getting the product back into inventory, repackaging the product if needed, repairing the item if repair is possible and wanted by the seller, recycling the item, re-selling the item through another avenue, donating the item to a community organization and finally, if no other solution is possible, discarding the item in an environmentally responsible manner.
Data-Driven Insights
When the seller is able to identify trends, the company will likely be able to reduce the rate of returns. Trends are analyzed by collecting and studying data on orders and returns. This can be done as part of the return management process by the seller and/or the fulfillment partner.
The Role of AMS Fulfillment in Return Management
AMS Fulfillment is highly experienced at return management with a team that receives and handles returns for many different clients. When the return is received, the team follows the wishes of the client with regard to handling. AMS will follow the procedures mentioned, and provide the AMS clients end-to-end return management solutions.
Another advantage to the client and the client’s customer is technology integration. With AMS Fulfillment, through the integration of technology, returns can be tracked and the client and their customer can see where the return is in the process. The return tracking and customer service communication that AMS offers translates into return management that is a success for AMS clients.
Benefits of a Well-Managed Return Process
When the return process is managed by a full-service fulfillment company like AMS, the first beneficiary is the customer. Customers making returns or exchanges can check on the progress of their request, or talk with an AMS customer service person, and see that they can trust the brand. Excellent return management and hassle-free returns definitely do strengthen a customer’s relationship with the seller. The second beneficiary, of course, is the seller. The seller not only enjoys a good reputation, but cost savings as well through AMS’ efficient handling and processing, not to mention AMS’ top-level inventory management.
Another outcome of utilizing a fulfillment provider such as AMS is reduced waste due to AMS’ refurbishment, recycling and donation efforts. The refurbishment of products will be done according to guidelines established by the client. Whether the product requires testing, repacking, checking for a broken seal, replacing components… the refurbishment will be done by a skilled hands-on team.
How to Choose the Right Fulfillment Partner for Return Management
When choosing a fulfillment partner for return management there are some very vital considerations. Look first at the integration of technology – can the fulfillment center integrate their technology fully with that of the eCommerce seller. A successful integration is needed for warehouse and inventory management and many other services including return management.
At AMS, the returns team utilizes barcode scanners or they will count by hand if necessary in order to itemize exactly what was returned, and communicate that information to the eCommerce seller via the established systems integration. The eCommerce seller, the fulfillment center and the customer should all be able to track the return through this integrated technology. Some full-service fulfillment centers, such as AMS, will also provide customer service for their clients, answering phone calls on behalf of the eCommerce seller.
Sellers should also look at the fulfillment service’s scalability – can they quickly adjust to changes up or down in a client’s inventory. AMS Fulfillment’s tailored solutions for businesses of different sizes and industries make it the choice of very successful eCommerce sellers. AMS is outstanding in Client Services through a partnership commitment to its clients.
Conclusion
Whether it is an eCommerce buyer expecting to return a product for immediate credit, or an individual returning a broken item for an exchange… however straightforward or complex, we know that returns are an unwelcome reality requiring excellent return management in order to mitigate loss and keep customers happy. At AMS Fulfillment our return management team will make the process as painless as possible. AMS’ team is truly efficient, quick and cost-effective.
In addition, as a B Corporation with a strong environmental commitment, the AMS team will take every step possible to not ‘add to the landfill’. If the returned product is damaged to the degree it cannot be repaired and returned to inventory, AMS will utilize the best possible option among the following: it might be a donation to a community organization, offering it for sale in an alternate sales channel, recycling the product appropriately or arranging for a sustainable destruction.
AMS works closely with every client to determine the best possible returns policy for the eCommerce seller. We integrate software systems with our clients so that returns data is immediately available. The skill of our returns team creates efficiency and diminishes the financial damage of returns to the seller. The AMS return management team utilizes documented guidelines for each returned product, and our aim is always the same as that of our clients – a satisfied customer.
