For e-commerce retailers, managing returns is a complex and costly aspect of the supply chain. From addressing customer inquiries to initiating returns merchandise authorizations (RMA) and handling reverse logistics, numerous factors come into play.
Recognizing the significance of this challenge, many businesses are turning to advanced returns management software solutions. In this post, we'll delve into 5 crucial considerations when choosing a new returns management software solution.
According to a report done by IMRG in 2021, a quarter of all consumers return between 5% and 15% of everything they purchase online, underscoring the significance of returns in the e-commerce landscape.
What is Returns Management Software?
Returns Management Software, commonly known as reverse logistics, serves as a powerful solution for efficiently handling return processes across various industries. Ideal for manufacturers, online sellers, retailers, and third-party logistics (3PL) businesses, this software streamlines communication with consumers through user-friendly self-service platforms. It facilitates the management of shipping options, inventory, tracking, replacements, credits, refunds, swaps, and the hassle-free generation of prepaid return labels.
This software constitutes a suite of solutions designed to control and oversee the reverse flow of items. The overarching goal is twofold: either reintegrate returned goods into the supply chain to recapture their value or efficiently dispose of inventory.
E-commerce businesses benefit from returns software to maintain and ensure customers' return experience by implementing customized return policies, defining return timelines, and automatically approving specific return requests.
Types of Returns Challenges Examples
As previously mentioned above, managing the returns process can bring a lot of challenges, including:
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High return rate and costs
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Maintaining return rules and policies
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Keeping customers informed of their return, refunds, or product exchanges
- Tracking and managing inventory
The good news is that there are several software solutions in the market to assist businesses by automating the process, such as nShift's Returns.
But what do you need to consider when exploring the option of switching or investing in a fully automated returns management system? Keep reading to find out:
1. Identify Key Features
Returns management software should include features such as automated returns processing, customizable workflows, real-time inventory tracking, and analytics and reporting. Look for software that analyses returns to help you make informed decisions about restocking and purchasing and that can help you deal with returns in a way that improves the customer experience.
2. Evaluate User Experience
Returns management software should be user-friendly and intuitive to ensure that your team can use it effectively. Evaluate the software's user interface, training and support options, mobile compatibility, and customisation capabilities to ensure that it fits your workflow. Look for software that allows for free returns to improve customer satisfaction and loyalty.
3. Check Integrations and Compatibility
Ensure that the returns management software integrates with your existing systems, such as your e-commerce platform or ERP. Look for software that has an API available for custom integrations, offers data migration options, and is compatible with your hardware and software. This will help you manage returns more efficiently and effectively.
4. Optimise Inventory Management
Returns management software can help you optimise your inventory management by identifying items that can be restocked and returned to inventory or recycled or disposed of. Look for software that provides analytics on returned items to help you make informed decisions. This will help you reduce costs and improve your bottom line.
5. Improve Customer Retention and Increase Sales
Returns management software can help you improve customer retention by providing a seamless and hassle-free returns process. According to a McKinsey report, customers with a positive return experience are 70% more likely to shop with that retailer again. By offering free returns and making the process easy and efficient, you can improve the customer experience and increase customer loyalty. This, in turn, can help increase sales and revenues as satisfied customers are more likely to make repeat purchases and recommend your business to others.
Royal Design Group reduced their customer service costs by a whopping 30% by automating their returns. - See for yourself
According to a report by Accenture, returns can cost retailers up to 20% of their total revenue. By implementing returns management software, you can reduce these costs and stay ahead of the competition. Returns management software can also help you identify trends and patterns in returned items, allowing you to make informed decisions about product quality and customer satisfaction.
In conclusion, returns management software is valuable for online retailers looking to streamline their returns processes, reduce costs, and improve customer retention, customer experience, and sales and revenues. By identifying key features, evaluating user experience, checking integrations and compatibility, optimising inventory management, and calculating the total cost of ownership and ROI, you can make an informed decision when acquiring returns management software that meets your business needs.
