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In a time when e-commerce has truly made its mark on the world and the rate of online shopping is increasing, there is also a growing trend of consumers making use of returns. But how can you, as a business, reduce both the number of returned items and return costs while also improving the experience for those customers who, for one reason or another, wish to return your products?
As a business, you are of course interested in increasing your bottom line and thus keeping your return rate low. But for this to be possible, it is important to both understand the reasons behind customer returns and identify the steps you can take to reduce your return costs.
In this blog, we provide you with 5 tips to reduce your return rate and costs:
- Understand the reasons for your customers’ returns
- Avoid returns due to shipping errors
- Offer alternatives to refunds in your return portal
- Save resources with labelless return shipments and return packaging
- Inform customers about the return process
Tip 1: Understand the reasons for your customer’s returns
As a business, you probably want to minimize the need for your customers to return your products. But before you can do this, it is important to understand the reasons for your customers’ returns. This is where Shipmondo Analytics comes into play. With our Return Portal Analytics, you gain in-depth insights into your return data.
If you use Shipmondo Return Portal and our Return Management, you can view a detailed analysis of your return deliveries over a chosen period.
The analysis shows return frequency, so you can see which and how many items were sent and returned during the given period, as well as the return patterns in the reasons for returning each item.
The return portal analysis also provides you with a comprehensive overview of reasons, solutions - for example, whether the money should be refunded, the item should be exchanged, or something else - and return method selected during the return process within the chosen period.
With this valuable insight into your return data, you are now ready to take action. Are there defective/inadequate products in your shop that should be removed? Do you need better size guides, product descriptions, or clearer images and videos? Are there errors in your warehouse or order management that result in customers receiving the wrong items? Or are there other steps you can take to reduce the number of returns and generally increase customer satisfaction? This way, you can make quicker decisions that will ensure fewer returns and, as a result, improve your bottom line.
Tip 2: Avoid return shipments due to errors
Sometimes shipments are returned due to errors that could potentially have been avoided. For example, this could happen if there were errors in the customer information on the shipping label or if the customer was unable to pick up their package at a preferred location.
With Shipmondo Order Management you can integrate your webshop system and automatically import your orders into your Shipmondo account. This automation not only saves you time but also helps reduce errors that might occur if you manually entered the customer information when creating the shipment.
Another way to avoid return shipments due to errors is to ensure that the customer can pick up their package at a preferred location. You can do this by offering a choice of pickup points with Shipmondo Delivery Checkout. This way, it is easy for your customers to receive the package where and when it suits them and you also reduce the risk of the shipment being returned.
Tip 3: Offer alternatives to refunds with a return portal
When you have tried to avoid unnecessary return shipments, Shipmondo Return Portal is another tool you can implement on your webshop to make the return process easy for both you and your customers. This is important, because even though these tips will help you minimize your return costs, there will probably still be a need for your customers to return some orders.
If you’re already using Shipmondo Order Management, you can, with Return Management, skip including a printed return label in your customer’s package. Instead, you offer the customer a digital solution, allowing them to order their return label if needed. This way, you avoid printing unnecessary return labels that might never be used. This approach is both environmentally friendly and cost-effective!
Return reasons, methods, and management
Whether you use your own or our shipping agreements, with a return portal, you can control return shipping and costs, as well as set up your own return reasons, methods, and much more.
You can manage return orders in various ways, for example by offering your customers a refund, issuing a gift card, or exchanging the item. The customer can also choose whether to return the item by dropping it off at your address, which can be beneficial for upselling in a physical store if applicable, or through one of the carriers you provide at the drop-off location.
Additionally, you can customize your return portal to match your brand, ensuring a consistent experience between the portal and your webshop. For example, you can use your own logo, brand colors, and text on the return portal. In other words, you can tailor your return portal precisely to your business and customers’ return needs.
Setting up the return portal
If you prefer not to use Shipmondo Order and Return Management, you can instead use a Basic Return Portal, where your customers book the shipping, and you receive, scan, and manage the return shipment in your own system. Whether you use Return Management or Basic, both solutions are available to Shipmondo customers, and you can implement your return portal on your webshop in several ways. How you direct your customers to your return portal is important, as it can reduce customer service inquiries and thereby lower support costs.
Tip 4: Save resources with labelless return shipments and return packaging
Did you know that with the Shipmondo Return Portal, it’s also possible to let your customers book return shipping with a labelless code? Carriers like GLS, PostNord, dao, Bring, Budbee, and Instabox allow your customers to either simply write a numeric code or use a QR code that can be scanned at the nearest drop-off point when they want to return items. This way, both you and your customers can avoid spending unnecessary time and resources printing a return label.
In addition to offering labelless return shipments, you can also consider using eco-friendly packaging with double sealing/resealing, so the same packaging can be used for both sending and possibly returning the items.
Tip 5: Automatically inform customers about the return process
With our personalized messages, you can keep your customers informed about everything related to returns. First and foremost, you can remind your customer to pick up their package from the pickup point, which not only provides excellent customer service but also helps you avoid return shipping charges if the package is not collected.
If the customer has already picked up their package and decided to return one or more items, you can also provide great customer service during the return process. For example, you can set up a personalized message that is automatically sent when:
- The customer has created a return shipment in the return portal
- You have received the return package
- You have approved and processed the return order
This is not only good customer service but also another way to reduce support costs and avoid unnecessary questions such as “Have you received my return package?” from customers. This way, you also save time and money in your customer service department.
