The surge in direct-to-consumer (DTC) e-commerce sales over the past seven years has been nothing short of phenomenal. Insider Intelligence highlights this growth, citing a jump from $36.08 billion in 2016 to a staggering $128.33 billion in 2021. Forecasts even predict this figure touching $212.90 billion by 2024’s end. Parallelly, B2B online sales are expected to hit $1.8 trillion in 2023, accounting for 17% of all sales. However, a darker side to this growth is the high return rates. Retail Dive estimates that 20-30% of products ordered online end up being returned. Such volumes of returns can significantly dent profits, emphasizing the urgency for an all-encompassing returns management solution.
The keys to making an impact are:
Create Low Friction for the Customer
Retaining a customer is five times cheaper than acquiring a new one. In the era of instant gratification, making returns easy and seamless can bolster brand loyalty. A noteworthy 92% of consumers pledge loyalty if returns are hassle-free. Here’s how we can achieve that:
- User-Friendly Returns Portal: Ensure a seamless experience irrespective of access points – be it the website, mobile app, in-store, or the support center.
- Guided Return Process: Navigate customers through an intuitive, step-by-step return initiation, ensuring transparency and simplicity.
- Instant Access to Return Tools: Whether it’s generating shipping labels, QR codes, or checking return statuses – make everything available at their fingertips.
- Swift Repurchase and Exchange: Allow customers to swiftly exchange or repurchase, minimizing downtime.
- Instant Merchandise Credit: A perk that’s sure to woo customers – instant credit upon initiating a return.
Efficient return processing
The backend process of returns can be laborious, yet often neglected. With e-commerce on the rise, businesses can’t afford this oversight, especially when labor is scarce. Streamlining this process is the need of the hour:
- End-to-End Review: A thorough assessment of the entire return process – from receiving to restocking.
- Lean Techniques: Employ Industrial Engineering and Lean methodologies to optimize workflows, reduce touchpoints, and enhance workstations.
- Standardization: Implement standardized procedures and train associates for consistent operations.
- Automation and ROI: Invest in tech and tools with a clear ROI justification for optimized return processing.
- Effective Labor Management: Set clear productivity expectations by employing engineered labor standards, ensure timely onboarding, and plan for peak periods.
Analytics to gain Actionable insights.
A superior Return Management System provides invaluable insights to refine and improve operations:
- Complete Return Journey Insights: Track in real-time, from initiation to completion.
- Smart Decision-Making: Leverage Business Intelligence for informed choices.
- Customized Dashboards: Prioritize what’s crucial for your business.
- Data for All: Democratize data, enabling everyone to enhance their contributions.
- Granular Return Data: Achieve end-to-end clarity.
Fraud Prevention
According to LinkedIn insights Fraud is a major issue in reverse logistics and returns, as fraudsters can take advantage of return policies to get free products, money, or both. Return abuse is when customers return used, damaged, or altered products that were not purchased from you. The best way to efficiently manage these concerns are:
- Automating Policy Enforcement – Automatically approve, reject, or flag returns based on any policy.
- Have omnichannel visibility into returns, preventing fraudulent and duplicate returns.
- Verify order information, such as where a product was sold, registered, and its condition.
- Leverage data and reporting that alert you to suspicious return patterns or certain customers who make very frequent returns.
Reduce environmental impact.
With an eye on minimizing their environmental impact, companies across industries are rethinking how to efficiently manage returns while maximizing resell, repair, and recycle opportunities. New breakthroughs in data analytics are driving the best way to improve sustainability of returns—and how to avoid them in the first place.
- The ReverseLogix Returns Management System (RMS) has the visibility and power to be the technology foundation for your recommerce program. The Recommerce Module lowers your return management costs, drives new revenue streams, and enhances sustainability efforts. Whether you have a B2C, B2B or a hybrid operation, ReverseLogix supports recommerce programs for smarter returns, a better planet, and happier customers.
In Closing
The need for a holistic Returns Management Solution is undeniable. It’s about bridging customer experience, operational efficiency, cost management, and inventory goals seamlessly. The collaboration between industry front-runners, ReverseLogix and Connors Group, promises a world-class reverse logistics solution, primed for tomorrow’s challenges.
ReverseLogix has a comprehensive returns management system (RMS) that enables companies to streamline return requests, logistics, inventory, and processing, connecting every point in the return lifecycle all through an intuitive and flexible SaaS platform.
Connors Group is Supply Chain Management Consulting/Industrial Engineering firm that specializes in continuous improvement by activating operation excellence.
To learn more about the Connors Group and ReverseLogix Returns Management solution contact us at:
ReverseLogix.com |www.linkedin.com/company/reverselogix
Connors Group connorsllc.com | info@connorsllc.com | 800.813.7028