For online retailers, returns management can be a challenging and costly part of the supply chain. From customer service inquiries to returns merchandise authorisation (RMA) initiation and reverse logistics, there are many moving parts to consider. That's why many businesses are turning to returns management software to streamline their operations and improve their bottom line. In this blog post, we'll explore key factors to consider when acquiring returns management software to help you manage returns, reduce costs, improve customer loyalty, increase sales and revenues, and stay ahead of the competition.
1. Identify Key Features
Returns management software should include features such as automated returns processing, customisable 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.
