5 ways new eCommerce sellers can effectively manage their product returns

Product returns are the most distinct and challenging feature of an eCommerce business. Despite having an excellent sales strategy, e-sellers cannot make progress without knowing how to manage their returns.?

As customers shopping online do not get to try on their products, bulk orders and returns become the most convenient option for them. But on the seller end, this means using additional resources, organizing the returned inventory to check what is sellable, and facing the risk of fraudulent returns. To make matters worse, most customers expect free returns, which leads to sellers incurring a loss.?

Regardless, returns are an integral process in eCommerce and provide a competitive edge to your business. Here are five ways new e-sellers can effectively and cost-efficiently manage their product returns:

1. Advanced planning:

There are two types of product returns: controllable and uncontrollable

• Controllable returns are returns that can be eliminated or reduced in the future by optimizing reverse logistics. To prevent these returns, a seller must take care of inadequate product descriptions, late deliveries, wrong sizes/colors/commodities, poor quality, packaging errors, etc.?
• Uncontrollable returns consist of returns that a seller cannot do much to prevent. These include situations where a customer changes their mind or does not find an appropriate use of the product.?

An e-seller must always expect product returns and equip themself to manage them, without disrupting other processes. A generous portion of the business’s budget must be allotted to returns management as it involves logistics, inventory management, as well as customer support.?

2. Route-optimization:

While planning a route for delivery, it is necessary to simultaneously plan a route for product return. Planning will streamline the reverse logistics, and prevent future bottlenecks. At the same time, it is important to maintain transparency in the logistics process and keep the customers updated about their refund.?

3. Open-box pricing:

While most returned products are often easily resalable, some products are sent back due to packaging issues. These products are not damaged but are less presentable due to a slight scratch on the outer packaging. Such items are called open box products, which can be sold again at a discounted price. Open-box pricing is an excellent way for new e-sellers to incur some profit on decent products that may have otherwise been discarded.?

4. Refund without return:

Often due to errors in inventory management and handling, a wrong or slightly damaged product reaches the customer. While a customer would certainly want to return the item, it may not be worth the company’s time and resources to get it back. In such situations, it is wise for a seller to offer a refund on the product without picking it up. This satisfies the customer as they get their money back, and can find a utility for the product after all. On the other hand, paying the refund can significantly reduce the seller’s expenses on reverse logistics.?

5. Fulfillment centers:

Returns management is a hectic task that requires a dedicated team and space. Inefficient inventory management can be highly counterproductive. Hence, it is advisable to carry out inventory management of the returned products in a dedicated fulfillment center to avoid any disarray.?

Returns are inevitable. On the brighter side, they are an excellent way to understand what the customers don’t want and make amends accordingly. AAJ Enterprises provides a streamlined and error-free returns management service using the latest technology and a three-step quality check. It has a dedicated returns management facility, and a system-guided process to provide the seller with live updates at every stage.?