Before going into the topic at hand, do you know that around 30 percent of all online orders are returned? Yes, you read that right; it is an astronomical number that one needs to keep into account if they are just starting their online eCommerce business.

Sooner or later, you must deal with product returns and refunds. It is part and parcel of the eCommerce business that one needs to get used to ASAP. To combat this, companies opt for a product returns management mechanism to make the return process more straightforward. But what exactly is returns management? Let’s look at that first.

Returns Management is the process by which the recipient of order returns the item for any reason whatsoever, which is also referred to as reverse logistics. Once the return is complete, the seller then determines what can be done with the returned product as well as the customer.

As it is pretty obvious, product returns management could be quite complicated. Here are seven tips that can assist one in a successful returns management mechanism.

1. Understand controllable and uncontrollable returns

One of the first things a business needs is to understand what controllable and uncontrollable returns are and put in place policies that can mitigate such risks. Controllable returns are those that could be likely reduced and eliminated with the help of a better logistics process.

Uncontrollable returns are those for which the seller cannot do much about, as they are often due to a change in the buyer’s mind.

First, you should understand both these types of returns and then you will be able to implement strategic policies to avoid them.

2. Understanding the cost of return

Customer satisfaction must be a matter of prime concern for businesses, and they must go above and beyond to make sure that is the case. But it is also essential for them to understand the impact of reverse shipping and tracking.

Such insights are incredibly crucial. Remember, you cannot take any return shipping charges, as studies have shown that over 79 percent of customers won’t purchase from the site ever again.

3. A clear return policy

When purchasing from an unfamiliar eCommerce store, customers first look at the delivery and return policy. There is no point in being vague about the return policy or having a complex mechanism in place, making it difficult for customers to take advantage of.

You should post the return policy boldly and in front where customers can easily access it to take advantage of it. Make sure to keep this in mind.

4. Analyze the returns

You cannot simply receive a return order and then forget about it. Analyze the reasoning between the return. Is it the low quality of the product, its price, etc., that is the reason behind the return? Ask customers to submit a feedback form to get a better understanding. This would help you learn whether continued investment in a product is worthwhile or not.

5. Be quick in processing the eCommerce return.

Customers not just prefer immediate shipping and return, but they, in fact, demand it. Eighty-eight percent of the customers would limit or even stop stopping from the eCommerce site when the seller takes too long to process the return.

Naturally, this is something that one should take into consideration. The faster the return process is, the higher the customer retention of the eCommerce platform would be.

6. Provide visibility into eCommerce returns

Transparency into the shipping process is essential to gain the customer’s trust. Top eCommerce sites worldwide have a visible return process, where the customers can easily track the return of their parcel and the status of their refund. Businesses can also set up automatic text alerts that can notify customers of the status without even needing to be prompted.

7. Use a fulfillment center to manage returns.

One can’t keep track of their every product return, especially after their business crosses a certain threshold. The best solution in such a situation is to take advantage of a fulfillment center like FirstMile that can store, pack, and ship the products for you and ultimately deal with the returns management as well. It is simply a win-win for all eCommerce businesses and something that is a must for every eCommerce platform that wants to thrive and scale-up.

For any business, successful product returns management is something that needs not to be overlooked. Now, you can follow these tips and you can easily ensure successful product returns management.