The presentation discusses how online retailers can effectively manage product returns to enhance customer satisfaction and loyalty while maintaining profitability. Key strategies include offering hassle-free return processes, such as free shipping and convenient drop-off options, which significantly influence customer purchasing decisions. Successful return logistics not only improve efficiency but also drive sales and reduce customer service workloads.

1. How to turn returns
into your advantage
Jan Denecker, UPS
E-Shop Expo – Brussels - 20 March 2014

2. 2 PROPRIETARY AND CONFIDENTIAL: THIS PRESENTATION MAY NOT BE USED OR DISCLOSED TO ANY
PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
Have returned an online purchase:

3. “A world without returns would be nice,
but it’s unrealistic.
The question for us is: Can we be profitable with returns?
We are certain that we can be”.
CEO of a leading online retailer
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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.

4. 4 PROPRIETARY AND CONFIDENTIAL: THIS PRESENTATION MAY NOT BE USED OR DISCLOSED TO ANY
PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.

5. 5 PROPRIETARY AND CONFIDENTIAL: THIS PRESENTATION MAY NOT BE USED OR DISCLOSED TO ANY
PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.

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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
“If they expect me to read a book for a
return policy, I probably won’t order from
them.”
Online shopper in survey

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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
Free returns shipping
57%
No questions asked
37%
Return label in package
34%
Quick turnaround time
34%
What makes
the returns experience
positive?

8. 8
76%
of online shoppers likely to complete sale
if free return to store OR prepaid return shipping

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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
If an online retailer offers a hassle-free returns policy,
I will...
shop more with that retailer: 61%
recommend the retailer: 58%
drop another retailer: 48%

10. 10 PROPRIETARY AND CONFIDENTIAL: THIS PRESENTATION MAY NOT BE USED OR DISCLOSED TO ANY
PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
Returns logistics:
The online shopper expects convenience
Pre-printed returns label
or easy process to request return
and get label.
Options for pick-up or drop-off.
Possibly exchange with new
package.

11. The online retailer perspective
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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.

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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
An effective
returns program
Convenience Efficiency
Sales ↑
Profit ↑
 Customer service time ↓
 Warehouse staff time ↓
 Inaccurate returns ↓
 Ease of returns ↑
 Customer satisfaction ↑
 Customer loyalty ↑

13. Convenience: Evaluate returns logistics options
Pre-printed
return label
Electronic
return label
1 & 3
return
attempts
Returns
pack &
collect
Returns
exchange
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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
Increasing
convenience and
control

14. Convenience to collect/drop off a package
Location and opening hours are key

15. Convenience to collect/drop off a package
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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
68% in less than 5 minutes
97% in less than 10 minutes

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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
Think international
11,000
collection points
in Europe in
2014

17. Efficiency: Streamline the returns process
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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
An easy way to provide
labels and answer
customer questions
Track packages to
manage warehouse,
customer service and
billing
Customer enquiries ↓
Returns follow up ↓
Inaccurate returns ↓

18. Free returns or fee for return?
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PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.

19. 19 PROPRIETARY AND CONFIDENTIAL: THIS PRESENTATION MAY NOT BE USED OR DISCLOSED TO ANY
PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
“A good returns process is all about the consumer and
needs to be hassle-free. From the retailers perspective
the process needs to come as close as possible to the
simple action of returning a rejected item on a store shelf
whilst remaining commercially viable.”
Frucon²

20. 20 PROPRIETARY AND CONFIDENTIAL: THIS PRESENTATION MAY NOT BE USED OR DISCLOSED TO ANY
PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS.
Make the difference...
Make the returns process as convenient as
possible for online shoppers and establish
long-term relationships.

21. Thank you
ups.com/be
Or google: UPS Pulse of the online shopper Europe