Ordered, Tried, Returned: How to Establish a Successful Returns Process

1. What does returns processing mean?
2. What legal requirements are there for returns processing?
3. What benefits does returns processing offer?
4. What do companies need to consider for returns processing?
5. What forms of returns processing are there?
6. 7 Tips on returns processing
7. Which tools are suitable for returns processing?
8. Avoid returns, reduce costs, increase customer satisfaction

The clothes do not fit you or a product does not work as you expected? Maybe it's even damaged? Then you simply send it back to the manufacturer. Returns are now an integral part of E-Commerce. At the same time, the processing of returns is a huge cost factor for the manufacturers - from checking the receipt of goods and products to sorting out unsalable goods and personnel effort. To support you and your company in efficient returns processing, you will learn in this article what returns processing is, what legal requirements it is subject to, what benefits it offers and what you need to consider. In addition, you will learn about the different forms of returns, receive valuable tips for your returns management and know which software is particularly suitable for your returns processing.

What does returns processing mean?

Returns processing refers to a process in which your customers send their ordered products back to you. It does not matter if they did not like them, the products were delivered incorrectly or have quality defects. The process starts with the buyers expressing their desire to return the merchandise.

What legal requirements are there for returns processing?

In Germany and the European Union, consumers by law have the right to withdraw from the sales contract without giving a reason within 14 days of receipt of the goods. This is accompanied by the obligation to send the products back to the merchants. By this law, you are obliged to offer your customers returns processing and thus ensure that you meet the legal requirements. Some companies even extend the 14-day period to 30 days to offer additional value to their customers.

In addition, there is the Packaging Law for B2B, which requires all natural and legal persons who professionally put packaging filled with goods into circulation for the first time to take them back. This applies to different materials like glass, paper, cardboard, and carton, iron metals and aluminum, other composite packaging, plastic as well as natural materials and other materials.

What benefits does returns processing offer?

In addition to meeting legal requirements, it is also important for other reasons to establish an efficient returns processing system as a company. A customer-oriented returns processing system has a positive effect on the satisfaction of your customers. It also helps to build trust in your company and strengthen your business relationship. Furthermore, the efficient processing of returns can become a competitive advantage, as customers often prefer the providers where they know that the possible returns process is quick and uncomplicated. Added to this is the fact that a well-organized return processing of returned products reduces transport and energy expenses and thus has a positive effect on your company's sustainability initiatives.

A returned package will also always bring costs for the manufacturing company. By efficient return processing, you can reduce these costs. You achieve this by optimizing storage, administration, and transport procedures and streamlining the process for reintegrating returns into your inventory.

What do companies need to consider for returns processing?

There are a few basic things you should consider in your returns processing. This includes, for example, that you must inform the buyers in writing about their right of withdrawal. If they have already paid for the ordered products, you must refund the purchase price within 14 days without deductions. As more and more customers are now shopping online, the requirements for online retailers have also changed accordingly. Therefore, you should transparently communicate your return process on your website. This way, your potential buyers already know in advance how a return at your company works and can decide whether they are willing to take on the effort in case of a return.

Furthermore, shipping and return costs are a reason for many online shoppers not to order in an online shop. Therefore, you should weigh up whether you want to charge your customers for the costs of their returns, even if they would otherwise burden your account.

What forms of returns processing are there?

If you want to allow your customers to return the goods they ordered, you can choose from different forms of returns processing. For example, you can include a return slip in the parcel directly. This is particularly convenient for the customers as they only need to stick the return slip on the parcel and take it to the post office for a return. There is also the option for your buyers to call you or email you to receive a return slip.

Since this form of returns processing is very time-consuming for both you and your customers, it is rarely used. Furthermore, there is the option to manage the returns via a returns portal. In this portal, your customers can view their orders, register their return and directly download a return slip. This type of return processing combines the advantages of both sides.

7 Tips on returns processing

Even though you are now quite familiar with the topic of returns processing, there are still a few tips and tricks that can help you better position and prepare your company.

Tip 1: Try to avoid returns

This sounds more difficult than it actually is. Because as a manufacturer, you can also influence that your products are not returned in the first place. For example, you can reduce the likelihood of a return by putting value on high-quality materials and goods. In addition, you should provide your shoppers with many high-quality photos on your online shop and include meaningful product descriptions that leave no questions unanswered. The more detailed your customers can get information about your products beforehand, the better they can weigh up whether it meets their requirements.

Tip 2: Use high-quality packaging material

Packages are often returned because they and their content were damaged during transport. With high-quality and sturdy packaging material, you can prevent damage. On top of that, you can offer a tracking service, so that senders and recipients know where the parcel is located at the moment.

Tip 3: Use a simple, standardized return process

The easier you make the return process for your customers, the more they will consider this as a positive contact with your company. You can use a return portal for this or include a return slip in the packages. A standardized process will also positively impact the work at the goods receipt, as all employees know how to handle a return, how it is re-stored and what further steps need to be considered. In any case, you should process a return promptly and keep the sender informed about the current status. Nothing is more annoying for your customers than waiting for a replacement product or refund without being informed.

Tip 4: Incorporate customer reviews.

Like detailed product descriptions and high-quality photos, customer reviews help build customer trust in your company. To get honest feedback on your products and the ordering process, you can ask your satisfied shoppers for feedback after their orders by email. To increase the incentive for this, you can also offer a voucher or discount code for the next order in return.

Tip 5: Regularly analyze your return volumes

To regularly put your internal and external processes to the test, you should look at the most common reasons for returns at fixed intervals. From this, you should derive appropriate measures and communicate them to your colleagues so that you can jointly optimize your processes and minimize the returns.

Tip 6: Keep delivery times

Another factor that plays into the relationship of trust between you and your customers is adherence to the communicated delivery time. If you cannot meet the announced delivery window for various reasons, you should inform the buyers directly. As a compensation, you can, for example, send them a discount code for the next order or grant them a discount on the current invoice.

Tip 7: Offer after-purchase customer support

The care process by your company should not end with the delivery of the goods to your customers. In order to build a long-term customer relationship, post-purchase support is essential. Provide buyers with step-by-step instructions or tips and tricks around the ordered products, ask them for their opinion, and proactively offer assistance with any problems that occur. In this way, you can counteract returns through your customer support.

Which tools are suitable for returns processing?

To reduce the costs of your returns process, you have to optimize various areas of your fulfillment. Versand have proven to be useful helpers, as they can support you in optimizing all processes associated with your shipping process. With their help, you can document and manage returns, but also print shipping labels and returns labels, create notifications for shipment tracking, or transfer data to the carriers. As soon as you use a shipping tool, you will quickly recognize its advantages and not want to miss them anymore. You can check out detailed reviews and user feedback on the following and other shipping software on OMR Reviews to find the right tool for your company.

Shipcloud

Sendcloud

JTL

Pickware

VCE

Alaiko

Hive

Avoid returns, reduce costs, increase customer satisfaction

The handling of returns not only burdens the environment but also the purse of your company. Therefore, you should definitely optimize the processes around your returns process and try to avoid errors already in content creation and the shipping process. You can steer this by detailed product descriptions, high-quality photos, or the choice of the right packaging material.

If there should still be a return, it is important that you communicate appreciatively with your customers and make the return process as uncomplicated as possible for them. This way, despite the return of the last ordered products, you increase the likelihood that they will order from you again and recommend your company.