E-commerce businesses focus time and money on providing customers with efficient and flexible delivery options. However, many companies neglect to extend this attention to the return of unwanted goods. Paul Galpin, Managing Director of P2P Mailing, looks at the importance of assessing and managing this vital process.
Research organisation, Harris Interactive has found that 85% of customers say they will stop buying from a retailer if the returns process is a hassle and, conversely, 95% will return to the same catalogue or internet retailer if the process is convenient. Yet, retailers still fail to implement an effective returns solution. Some e-commerce businesses fail to even consider the returns process, with many leaving it to the customer to make their own arrangements to send items back. Our research shows that almost a third (32%) of UK consumers say they find the online returns process time consuming and difficult.* But, in order to encourage customers to make repeat purchases and promote growth, the principle of offering a returns service is important to e-commerce businesses of all sizes.
Returns: Key considerations
First, the system needs to be easy to implement. This involves being scaleable so that as the business grows the system can keep pace with increased traffic. Ideally, if the business is operating in different countries, the system will be rolled out under a single platform. This will not only create consistency for customers but will also reduce implementation costs.
Secondly, whether dealing with international or domestic mailing, it is important that the process is cost effective – whether the service is offered free of charge or at a cost. There can be import and duty considerations for customers located outside the EU, so it’s important that the system is set up correctly in the first place to ensure that the company is complying with regulations and that these costs are considered from the outset.
Lastly, it’s important to step back and view the process from a customer perspective, to ensure that it’s easy to use and reliable. Systems should be tested and tested again before being rolled out to the market.
Outsourcing returns
For many businesses partnering with an expert third party to plan and/or administrate the returns solution will be the most sensible and cost-effective strategy.
The best providers will tailor the solution to the business, customising it to deal with national and regional differences where necessary. It should also be possible to integrate with existing IT systems and logistics providers to ensure minimal disruption and cost. Ideally, the returns process should be integrated into the website on a white label basis, so that as far as the customer is concerned, everything looks and feels the same.
By outsourcing the returns solution (and potentially the main distribution as well), companies can concentrate on simply producing a good website and online shopping experience for their customers. For small retailers especially, this may be an attractive option.
E-tailers that ignore the returns process do so at their peril. As competition hots up, the returns process is likely to become increasingly important as customers seek the best supplier In my next blog I’ll be considering the specific considerations relating to cross-border returns.
*Online survey of 1,000 UK consumers conducted in 2013
