Reverse Logistics: Reducing Online Returns

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Reverse Logistics: Reducing Online Returns

Most of us will regularly shop online, and especially given that many companies now offer free shipping. However, if your company has seen significant growth in online sales, it has almost certainly seen the number of returns also increase. This problem of returns is called reverse logistics and can dramatically affect the bottom line. Increasingly, companies are looking at how to reduce online returns, or how to turn this situation into an opportunity. Reducing the costs of reverse logistics and ensuring products are returned more effectively is crucial for any company dealing with online sales.

Obviously, the ideal situation is zero returns, but given this impossibility, there are several ways you can reduce this number. Often the reason given for returning an item will fall into one of three categories. The product might not be as described, or the customer receives the wrong item, or that item is damaged.

Provide Detailed Information About Products
If the product isn’t as described, this issue can be fixed by providing more detailed information about the product. Whenever possible include high-resolution photos that can be magnified or videos where appropriate.

Include Consumer Reviews
Make sure the product has up-to-date reviews. When an item receives good reviews, it motivates people to purchase it. Consumer reviews will frequently contain useful information about the durability or fit of an item, and which elaborate on the product description. The information derived from reading reviews can prevent consumers from purchasing the wrong item.

Ensure Customers Receive the Correct Item in Perfect Condition
Make sure your employees are properly trained and continually update their knowledge. Invest in software that downloads customer orders, reducing the risk of human error.

Choose the Right Cartons for Shipping
There is little more irritating than receiving an item packed into an inappropriately sized box. This is even more concerning for companies aiming to become more environmentally aware. Our BlackBox software selects the best cartons to use for every order, eliminating wasteful packaging and excess shipping costs if online returns are required.

State Your Returns Policy Clearly
Customers want to know about the online returns policy so ensure this information is easy to find. Ideally, offer free returns as this can significantly increase sales. Over 90% of consumers in one survey would consider buying from an online store again if they found that returns were easy. Try to ensure customers wishing to return items can easily generate a shipping label and provide tracking and email notifications so they can see the status of their online returns.

Contact us now to learn how our software can save your business time and money.