2. This course will explain:
• How returns creates an opportunity of business growth for sellers
• How to manage returns
• How sellers’ interest is protected in case of returns
Learning Objectives
3. ✓ Lower rating for the seller
✓ Lesser chance of repurchase
✓ Reduced sales
✓ Repel new buyers
A good return policy can help a seller to avoid such situations.
Online Purchase Process
Need: Buy a
smartphone
Compare features and
finalize the product
Product delivered
to buyer
Make payment
(multiple options)
Research
and visit the selected
website
Product packed by
seller
Order Booked
Buyer not satisfied
with the product
4. ▪Set of rules or guidelines which govern the cases of returns:
Need: Buy a
smartphone
Compare features and
finalize the product
Product delivered
to buyer
Make payment
(multiple options)
Research
and visit the selected
website
Product packed by
seller
Order Booked
Buyer not satisfied
with the product
Seller provides a
return policy
✓ Happy buyer
✓ Chance of repurchase
✓ Better seller ratings
✓ Attract new buyers
What is a Return Policy?
5. ▪ Delivery of
▪ Missing items
Damaged item
Defective item
Wrong item
Causes of Returns
6. ▪Buyers are more comfortable buying from sellers who offer an easy return policy
▪In a recent study,
* Source: 2014 UPS Pulse of the Online Shopper Study
https://www.comscore.com/Insights/Press-Releases/2014/6/Study-Consumers-Demand-More-Flexibility-When-Shopping-Online
*
82%
respondents said that they would complete the
purchase if they could return the item to a store or
have free return shipping
66%
respondents said they view a
retailer’s returns policy before
making a purchase
Benefits of a Return Policy
7. ▪ Turn a poor experience into an incredible one that exceeds the customer’s expectation
Customer not
satisfied with the
product received
Clear
return policy
No/bad
return policy
Seller
provides
▪ Unhappy buyer
▪ Negative impact on
sellers’ business
Return request
received
Request
reviewed and
approved
▪ Happy buyer
▪ Positive impact on
sellers’ business
Buyer provided with a smooth and flawless experience
Benefits of a Return Policy
8. ▪ Buyers repurchase from the seller who has positive return process
▪ Based on an online study,
Thus, returns are an important feature for building long term customer relationships and
business growth.
About 95%shoppers will return to an online seller and make an
additional purchase after a positive return or
exchange experience
* Source: Time is Money Whitepaper: How To Maximize Your Business’ Shipping Efficiency, by Endicia
*
Benefits of a Return Policy
9. ✓ Help buyers take a purchase
decision
✓ Better buyer reviews/ratings
✓ Better seller ratings
Seller provides a return policy
✓ Customer feedback helps in
improvement of offering
✓ Repeat buyers
✓ Strong reputation
Higher sales
with business
growth
Benefits of a Return Policy
10. ✓ Help buyers take a purchase
decision
✓ Better buyer reviews/ratings
✓ Better seller ratings
Seller provides a return policy
✓ Customer feedback helps in
improvement of offering
✓ Repeat buyers
✓ Strong reputation
Higher sales
with business
growth
Benefits of a Return Policy
Do not view return as a hassle, but as an opportunity
11. Analyze
Explore the root cause of returns
✓Which products are returned
most?
✓Which region contributes to
highest returns?
✓Review customer feedback
Group Act
Group the identified root causes
✓Controllable (e.g., ensuring good
packaging)
✓Uncontrollable (e.g., buyer not
interested in the product anymore)
Targeted measures based
on grouping
Let us take a look at some measures which can be undertaken by sellers to reduce returns.
Managing Returns
12. Clear and transparent
policy
Descriptive catalog Proper contact details Proper packaging
Timely delivery of right
product
Gain competitive
edge over
competition
Attract new
customers
Also
helps
sellers to
Measures to Reduce Returns
13. Clear and transparent
policy
✓ Gain clear product
understanding
✓ Reduce indecisiveness
✓ Take better and informed
decision
Allow
buyers to
✓ Lesser chance of
returns for sellers
Results in
Descriptive catalog Proper contact details Proper packaging
Timely delivery of right
product
Measures to Reduce Returns
14. Provide convenient and easy to reach
options to the buyer
Clear and transparent
policy
Descriptive catalog Proper contact details Proper packaging
Timely delivery of right
product
Measures to Reduce Returns
15. Delights the customer even
before it is opened
Even is the product is good, bad
packaging creates a negative
impression on customer’s mind
Good
packaging
Bad
packaging
Clear and transparent
policy
Descriptive catalog Proper contact details Proper packaging
Timely delivery of right
product
Measures to Reduce Returns
16. ▪ Deliver exact product as provided in catalog
▪ Timely delivery
Clear and transparent
policy
Descriptive catalog Proper contact details Proper packaging
Timely delivery of right
product
Measures to Reduce Returns
17. Sometimes situations may arise where:
Such situations can also lead to disputes.
✓ Exact product as described in catalog
✓ The product in good condition with proper
packaging
✓ The complete product package along with
additional accessories/parts, if any
Seller delivers
Buyer still makes a return
request
Both buyer and seller
dissatisfied
Reasons for Disputes
18. Buyer raises an
issue/request
Dispute resolved in buyer’s
favour
Dispute resolved in seller’s
favour
▪ A dispute is a disagreement between a buyer and a seller over an order related issue
Request rejected;
dispute raised
Request accepted Issue resolved
• reviews the request
• mediates between
buyer and seller
Online Marketplace:
What are Disputes?
19. Ratings
OnlineSales
• When a seller denies the return request on
regular basis, it may impact business
• With negative ratings and reviews, online sales
get hampered
• So disputes should be avoided
Affects of Disputes
20. ▪ Sometimes, there can be cases of fraudulent claims by buyers
Fraudulent
claim by buyer
Seller reports this
to online
marketplace
online marketplace
carries out
investigation
If the seller is found innocent,
then his interest is rightly
protected
How Online Marketplace Helps…
21. Online marketplace offers seller protection fund to sellers, incase of any financial loss or fraud claims made by
buyers
Seller Protection Program
22. ▪ Sellers can claim the loss through Seller Protection Fund (SPF) if they are not at fault
Buyer orders a t-
shirt
Buyer is not
interested in the
product
anymore, raises
return request
Seller rejects the
request. Buyer
raises a dispute
on the same
If dispute is closed in
buyer’s favor, seller
can claim the loss
through SPF
Buyer receives
the correct order
Seller Protection Program
23. Returns are an inevitable part of online business.
Have a transparent and generous return policy, use it to attract
more buyers and grow your business.
24. In this tutorial, you learned about:
• How good customer experience can contribute to customer retention, sales and
business growth
• The causes of customer dissatisfaction
• How online marketplace helps in managing customer experience
• How sellers can contribute in ensuring good customer experience
Summary