Be honest: successful e-commerce logistics requires a lot of time, sufficient resources and, last but not least, suitable specialised personnel. Only a few e-commerce companies or online shops have the necessary time, logistical and personnel capacities to manage the many and often complex processes in e-commerce. Incorrect order processing or late deliveries are common reasons for dissatisfied customers. If there are also problems with the processing of returns, this can damage your company’s image in the long term. Find out what the challenges of good returns management are in our following article. We have also summarised below how you can optimise returns management for your company and increase customer satisfaction with the help of an external fulfilment service provider such as Logistikkönner.
Why is professional handling of returns management important?
Returned goods are not uncommon in e-commerce. On the contrary: every day, online shop operators receive hundreds or more returns. The larger the order volume and customer base, the greater the effort required for returns management. In the age of online retail, competition is fierce: free return shipping and longer return periods ensure more positive check-out processes and are expected by shoppers today. It has never been so easy to order and return items online. However, this special service comes at a price: on the one hand, potential buyers are more willing to order products online due to the customer-friendly returns policy. On the other hand, free returns and extended return periods lead to an increase in the returns rate. As a result, professional returns management is becoming increasingly important for e-commerce companies. While (potential) customers benefit from the flexible return options, online retailers are facing ever greater challenges due to the large number of returned goods. With effective returns management in e-commerce, you can reduce the returns rate in the long term and cut costs. However, as most companies lack storage capacity, resources and staff, outsourcing returns management to a fulfilment service provider is increasingly in demand and often makes sense.
What are the biggest challenges for effective returns management?
Free and uncomplicated return conditions in e-commerce are almost indispensable for attracting new customers, increasing customer satisfaction and retaining customers in the long term. However, the simplified return of goods inevitably leads to increased effort in returns management, which is often associated with considerable costs for companies. Small online retailers in particular often have to dig deeper into their pockets for returns than large e-commerce companies. The lower the returns rate, the higher the processing costs.
But what are the biggest challenges in returns management? Incorrectly ordered goods, faulty or defective items and products that do not fit or are not to the customer’s liking are typical reasons for returning goods. Clothing and shoes are the most frequently returned items, followed by small electrical goods. Returned goods are checked for quality and any damage by the returns management team on receipt and then returned to the warehouse or, in the worst case, sorted out and professionally destroyed.
It’s not just the loss of goods that increases costs in e-commerce. The additional storage space required and the professional destruction of the goods also increase the process costs in e-commerce. Added to this are the tools and personnel required to process the returns, which require further expenditure. The often immense costs pose major challenges for small and medium-sized online shops in particular.
How can good returns management in e-commerce reduce costs and increase customer satisfaction?
The fact is that good returns management in online retail can optimise the customer experience and secure sales in the long term. However, this requires smooth and automated processing of goods returns. An external fulfilment service provider such as Logistikkönner has the necessary knowledge and resources for professional returns management. With our individual service packages in the areas of storage, order picking and shipping (including the returns process), we offer e-commerce companies and brick-and-mortar retailers customised all-in-one fulfilment solutions. In addition to the basic processes in logistics and shipping, our experienced team takes care of reactive and proactive returns management within the company.
What are the differences between reactive and preventive returns logistics? In reactive returns management, the focus is on the effective processing of returns – be it by refurbishing the products for resale or professional sorting of damaged items.s Preventive returns management serves to reduce the number of returned goods – e.g. by optimising packaging to prevent damage. With external returns management, the individual processes in the area of returns can be significantly improved, allowing you to reduce costs and increase customer satisfaction in the long term. As an experienced fulfilment service provider, the logistics experts are also a reliable partner for returns management in national and international e-commerce.
We ensure efficient management of returns and streamlined returns processes through the use of automated software solutions. From the precise control of incoming goods and the recording of returns to the successful processing and expert destruction of items, we optimise all e-commerce processes for returns. On request, we can also support you with our in-depth expertise to avoid returns in advance. We know from experience that a quality check on the origin, value and sustainability of the products, detailed product descriptions and high-quality product images in the online shop lead to fewer returns.
As a fulfilment service provider, we can also sustainably improve shipping and delivery times for goods. High-quality packaging and suitable filling material reduce damage to goods during transport. Thanks to our network, we have access to favourable shipping and packaging options and, thanks to our shipping network, we can support you with optimal solutions to guarantee fast deliveries to the customer.
As added value for our customers and to minimise returns, we offer you all relevant status information on your shipments throughout the entire process chain. In this way, we guarantee a continuous flow of information for you as the sender, but of course also for your recipients. Your customers will receive a dispatch confirmation as soon as the ordered products leave our warehouse and can use the parcel number to find out the whereabouts and time of delivery at home.
To summarise – outsourcing returns management secures long-term sales and success in e-commerce. The logistics experts will put together a customised offer for returns logistics and, on request, an all-in-one solution for all e-commerce processes in your company. We can provide e-commerce logistics with professional returns management: contact us now for a personal and non-binding consultation!
