As online shopping continues to soar, e-commerce businesses must prioritize their returns strategy to remain competitive. The global average e-commerce return rate is now at an estimated 20%. That means for every five products sold, one was returned. If your business doesn’t offer returns, customers might buy from another business altogether. 

That is why most e-commerce businesses have now accepted returns as a critical part of their business. Some have even turned it into a competitive differentiator. The key to making it work in your favor is to ensure your returns strategy is airtight, and your returns process is as streamlined and as cost-effective as possible. 

In this article, we explore the five key considerations that your e-commerce businesses must keep in mind when developing a successful returns strategy. From managing customer expectations to understanding the true costs of returns, we delve into the critical factors that ensure long-term returns success.

A seamless returns experience for e-commerce customers typically involves the following elements:

1) A clear returns policy

Having a clear and easily accessible returns policy is the foundation of your returns strategy. When you outline the rules and conditions for returns clearly, you help set customer expectations and reduce friction for them. If you decide to digitize returns, integrating the returns policy as part of the returns experience will help with airtight automation of the entire process. For example, tagging product(s) as ineligible for returns directly on the request form to prevent out-of-policy return. 

2) Simple return initiation

An embedded delivery tracking portal lets your customers keep track of their orders easily. But if it comes with returns options, your customers–and business–will benefit from a simple, straightforward way to return unwanted items. With an embedded tracking portal on your website, your customers get an instant way to track and initiate returns–and keep your customer service teams free from return request tickets. 

3) More shipping options

To keep your retention rates high, offering a seamless returns process is key. With a digital returns management system, you can provide more convenient options like labelless returns, nearby drop-off locations, or walk-in returns. If you have a strong focus on sustainability, these options can also help reduce waste. With digital returns, you can avoid attaching pre-printed labels with every order, or use print-on-demand labels and QR codes instead. 

4) Proactive customer communications

With a delivery experience platform, customers not only get delivery updates via notifications, but they also stay updated for items traveling in reverse. By keeping customers updated, you can reduce WISMR queries. When you keep your customer service teams updated, you empower them with logistics knowledge that help resolve WISMR tickets fast. For logistics teams, knowing beforehand what items are on the way back can help them plan ahead and stay in control of inventory. 

5) Flexible return options

Offering returns to customers gives them the confidence to buy. When you offer alternate options like exchange, partial refund, store credits, or discounts on future purchases, you take customer confidence to the next level. These alternate options not only make customers more likely to check out, but they also ensure customers continue to spend with your business. 

Developing an effective returns strategy is essential for any e-commerce enterprise. By addressing the key considerations we've outlined, you can reduce the costs and challenges associated with returns while building customer loyalty, improving brand perception, and deepening customer relationships. 

So, whether you're looking to reduce return rates, improve customer loyalty, or simply stay ahead of the curve in the competitive e-commerce space, these key considerations will help you develop a robust and effective returns strategy. 

Parcel Perform’s returns management solution is embedded into our end-to-end delivery experience platform. That means you get the same tracking capabilities for outbound and returned parcels. It also includes a variety of essential returns features that you can instantly offer customers for a comprehensive returns experience.

Find out how your business can use Parcel Perform’s RETURNS to elevate your business today. Request a personalized demo of returns management solution with one of our e-commerce experts.