Returns leave a significant dent in the retailers balance sheet. In this blog, we discuss the important things to consider while managing eCommerce returns.

2. Introduction
© 2015 i95dev
Remember that the underlying intention of every business should be loud and clear –
“We are here to help you, and make your overall shopping experience as smooth as possible”
When you consider brick-and-mortar stores, the return policy is pretty simple and neat –
• You buy a product
• If you don’t like it, you go to the store with your bill and get it returned (conditions apply)
• You get the cash back or a product of similar value
However, when it comes to eCommerce or online retail, the matter isn’t so simple, primarily
because of the following reasons:
• The geographic distance and non-personal interaction between the seller and the buyer
• Trust issues commonly associated with online retail
• Costs associated with returns (Logistics, Payment, etc.)

3. Introduction
Due to the stated factors, the responsibility of the e-retailer gets magnified by a substantial
degree when it comes to knowing what the customer wants. While ecommerce may be
booming, the e-retailer needs to elevate the customer experience to keep the momentum
going.
Some of the burning questions that might crop up when handling the returns include-
• What is the time period before which the product must be returned?
• How do you manage the return shipping (both costs and logistics)?
• Once the goods reach you where will you store it?
• What is the customer expectation around the returns?
Let us try to answer some of these questions in the context of customer servicing and its
essential enablers.

4. Managing returns
• Duration – The period within which the product returns are supported is an important
criterion for customers before making a purchase. Businesses must carefully evaluate the
nature of the product, industry best practices, company’s internal policies, and customer
expectations before arriving at this.
• Costs & Logistics – There are many logistic challenges and costs (bank charges, labor,
warehousing, and logistics) associated with returns – do you offer free returns or ask
customers to bear the cost of the returns, do you partner with logistic firms for returns or
let customers return through shipment provider of their choice (according to a research
by trueship.com, 86% of customers want a return label provided by the retailer), how to
handle return requests through your eCommerce store or customer representatives, and
more.
• Cost Saving Innovation – Shipping and logistics giants like FedEx have found a middle
ground between businesses providing free returns and customers bearing the cost of
returns – that of a low-cost returns shipping. Their program known as Return Saver (in
collaboration with the Clarus Marketing Group) helps customers return a product to any
eCommerce store for free for a subscription fee of $49 a year.

5. What do you do with returns ?
Another important consideration for businesses accepting returns is what do they do with
the product?
• Should you resell the product as a new product?
• Should you resell the product as a pre-owned/ open-box/ refurbished product?
• Can you return the product to your supplier?
• Where should you stock the product? And more

6. Managing Customer Expectations
The most important aspect of eCommerce returns is how the customer expectations and
experience are managed. As Tom Caporaso, Clarus’ CEO sums it up beautifully, “95% of the
customers become repeat customers, after a positive return experience”. The top
considerations include-
• Does the customer know the return policy and the process?
• If and when a customer returns a product, does the customer want money back or does
he/ she need an exchange?
• In case of an exchange, what if the product he/ she needs is not in stock?
• In the case of a refund, who handles the bank charges?
• Does the customer know how many days the refund processing takes place in? and more

7. Conclusion
eCommerce returns do not necessarily have to be a burden on businesses. There are
multiple sales enhancing choices that returns offer as an ironic after-effect. Yes, that’s true. It
has been proven that-
• Customers are more likely to suggest an eCommerce store to their network if they get a
great returns experience
• Customers are more likely to visit the site again once they’ve had a positive returns
experience
• So, there are definitely sales and engagement opportunities to be had when you provide
customers a smooth sailing with their goods returns. Most of the considerations
mentioned above are often part of a good return policy.

8. For more information
Visit : www.i95Dev.com
E-mail : info@i95Dev.com
Maryland : 3 Bethesda, Metro Center, Suite 700 Bethesda, Maryland 20814. Ph: (301) 760.7499
New York : 1430 Broadway, 7th Floor New York, NY 10018. Ph: (646) 259.3662
Texas : 5646 Milton, Suite 100, Dallas, Texas 75206. Ph: (214) 396-2121
Australia : Sydney, NSW – 2145, Ph: (02) 8015 5446
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