The Reverse Recap

Maybe, it’s time to reconsider your returns policy?

There is a clear consensus within the retail ecosystem that consumers are defacto at the center of their business operations. This is especially true of the reverse logistics segment, which exists to calm irate consumers and provide an experience that continues to keep them patrons of the brand.?

The lynchpin to a good returns experience is building a consumer-friendly returns policy.

A consumer-friendly returns policy is simple, concise, and consistent. Your customers must be able to understand it, engage with the returns process seamlessly, and have a consistent experience based on their expectations after reading the policy. Considering 30% of your customers will return purchased goods, you might as well make it worth their while.

Remember -- a bad returns experience can end your relationship with that consumer. It doesn’t matter how great the purchase experience is when you do not back it up with a good returns handover.?

Following a few best practices that will help make the returns policy consumer-friendly: transparency and clarity, flexible modes of returns, setting boundaries in the returns process, and exploring data-driven optimization.

For an in-depth overview of developing a consumer-friendly returns policy, read our helpful piece here.?

Industry Voices

“A good return policy is an investment in customer trust. Make it easy for customers to return unwanted items, and they'll be more likely to do business with you again."

- Jeff Bezos, founder of Amazon.

Know Your Term?

Return Policy

What Is It?

A returns policy is documentation or rules explaining your business or supply chain's return process. The policy details the if, when, and how a consumer can engage with the returns process. It is a set of policies designed to guide your customers throughout the returns process and ensure a seamless experience.

What Purpose Does It Serve?

The returns policy is designed to help customers navigate the returns process seamlessly. This way, they will have a better experience with your business and more trust and loyalty in its ability to cater to their needs.

How Do You Create One?

A well-crafted returns policy can do a lot to help your business satisfy consumers. This makes it a critical tool for the business's success in the current economic landscape.

To create one, do the following:

1. Define acceptable reasons for return: This helps prevent fraud and minimizes loss from unnecessary returns.
2. Set time limits: A time frame helps consumers immediately decide what they feel about the product, whether they want it or not. This way, your business does not have to wait around to get product returns that have been worn out or damaged.
3. Specify Returns Conditions: Outline the conditions of the goods being returned. For instance, the product must come with tags attached or undamaged.
4. Identify Who Pays For the Return: Is it free, or does the customer have to pay for it? Remember that, in most cases, free returns are an expected part of the experience.
5. Modes of Returns: Outline and explain the different modes for returning the items and what each mode will entail, including timeframe, fees, and turnaround time.

You can start drafting the policy when you have all of these in place. Ensure that the policy is transparent and easy to understand by all types of consumers who will engage with the system.

What’s Up In The Market

The Reverse Logistics Market Is Well On Its Way To Crossing The Trillion-Dollar Mark.

The rise of e-commerce has directly impacted the reverse logistics industry, as consumers return more of their online orders than products they bought in a physical store. The returns management framework allows consumers to buy goods they cannot see or test, as they know they can always return them. Ultimately, this led to growing attention to the reverse logistics market, and by 2033, it is estimated to cross the trillion-dollar mark.

Amazon FBA Set To Release New Return Policy

Starting on June 1, 2024, the e-commerce giant will introduce returns processing fees for products or items with a high return rate. However, there will be some exceptions in the fashion department, such as shoes and apparel. According to Amazon, the fee will only apply to products with return rates above a threshold specific to each category. More importantly, the return processing fees will be directed to the sellers on Amazon FBA according to the new policy.

New Survey Says Most U.S. Shoppers Want Sustainable Returns

Sustainability is now a major concern for businesses and the government. The common denominator to all this is the people. Half of the people SAP Emarsys interviewed said they want a sustainable returns policy. And 55% said they're more loyal to brands with sustainable return processes. This is a pointer for more supply chains and retail businesses to take sustainability seriously.?

The Feature of the Month?

Reverselogix offers real-time tracking and insights across the entire return journey. This ensures you have 100% transparency and visibility throughout your returns management process, especially with the internal and external stakeholders.

Our tracking and analytics feature comes with some exciting functionalities:

• Every Person’s Analytics: Democratize your data and operation insights so everyone can leverage them to increase their impact.
• Customizable Dashboard: Flexible, configurable dashboards that always show what’s most important upfront.
• BI on Every Screen: Go beyond static visibility to access actionable intelligence for better decisions.
• Role-based Reporting: Maintain control with role-based access to accounts and reduce your business risk.
• Gain Insight & Edge: See real-time data on what matters to improve your sales, positioning, and restocking.

Scenario Spotlight

BRKT Electronics customers were having a hard time navigating the company's returns system. The company was running out of resources trying to keep up with customer inquiries and the massive mountain of product returns.

BRKT Electronics had a return policy, but the customers could hardly make sense of it. This led to confusion and frustration for both parties, and ultimately the company began losing customers. To understand the challenge, the company ran a survey. It was discovered that the number one problem customers had was how the company handled its returns management process.

To mitigate this, the company began searching for a solution when it came in contact with ReverseLogix. Upon review, ReverseLogix found that while the returns management process was well structured, it was too generic and was not tailor-made to every customer’s needs.

Together, both companies developed a consumer-friendly returns policy that was clear, well-detailed, consistent with the reverse logistics structure in place, and transparent about the rules, including what could be returned, the time frame for returns, and the different modes of return. Finally, they made the returns policy visible enough for consumers to find and explore it thoroughly.

There was a visible turnaround in quick time. The returns management was more efficient, but more importantly, customers could navigate the process seamlessly, leading to trust and brand loyalty that surprised the company.

Testimonial

“We were looking to significantly upgrade our legacy platform handling B2B and B2C returns from around the world….we decided to pursue a more specialized partner who grasps the complexity of reverse logistics, and Reverselogix is that partner.”

- Martin Hartvigsen, VP of Support and Services at Jabra