Here’s everything you need to know about returns automation and how to use it for your eCommerce store.

What is Returns Automation?

Returns automation refers to the strategic implementation of technology to automate various aspects of the eCommerce returns process. 

By automating your returns process, you can increase efficiency, reduce costs, and improve customer satisfaction.

Returns automation can help you:

• Generate return labels – Streamline return shipping label generation and make it easier for your customers to receive return labels.

• Approve and reject return requests – Automate the verification and approval of return requests.

• Track returns – Track and monitor the status and location of returned items in real-time.

• Issue refunds – Automate the process of calculating and issuing refunds or store credit.

• Verify returned items – Automatically update inventory levels and statuses when items are returned.

• Notify customers – Keep customers updated on the status of their return by sending automated email notifications.

• Collect returns data – Collect and analyze data on returns to gain valuable insights and make data-driven decisions.

Using an automated returns system, you can minimize manual work, increase accuracy, and save time and resources. 

The use of automation in returns management has become increasingly popular in recent years, as eCommerce stores increasingly look for ways to optimize workflows and improve the customer experience.

Benefits of Returns Automation

Here are some of the main benefits of automating your returns process:

Increased Efficiency

One of the biggest benefits of returns automation is that it simplifies and speeds up the returns process for both you and your customers. 

By automating returns, you eliminate the need to manually handle each return request, print labels, update inventory, or issue refunds. This simplifies the process and means that customers don’t have to wait for your approval, fill out forms, or contact customer service to request a return, as everything is done automatically and efficiently.

65% of customers say the speed and ease of refunds affect where they choose to buy from, so streamlining your returns process can make a huge difference in conversion rates and customer retention.

Manual processes are often prone to human error, which can result in mistakes such as incorrect refunds or mislabeled items. By automating the returns process, you can minimize these errors and ensure that returns are processed accurately and efficiently.

Returns automation leads to a more efficient returns process that saves time, reduces errors, and improves the customer experience. 

Reduced Costs

Returns automation can help reduce the costs associated with handling returns. By automating the process, you can eliminate the need for additional staff or resources, ultimately reducing costs and increasing efficiency.

The following costs are reduced by returns automation:

• Shipping – Lower your return shipping costs by using pre-paid return labels or offering incentives for customers to keep their items.

• Labor – Reduce your labor costs by automating the returns process and requiring less manual work.

• Lost revenue – Decrease your refund costs by offering store credits or exchanges instead of cash refunds.

Improved Customer Experience

Automating your returns process can significantly improve your customer experience, ultimately leading to increased loyalty and higher customer lifetime value. 

Returns are a critical touchpoint in the customer journey, and how you handle them can make or break your relationship with your customers. A hassle-free and streamlined returns process shows customers that you value their time and money and are committed to providing a positive experience.

By automating your returns process, you can boost:

• Satisfaction – Automating your returns process can improve customer satisfaction by making the returns experience easy and convenient. 

When customers can easily initiate a return request, print a return label, and track the status of their return, they feel empowered and in control of the process. 

• Trust – A transparent and consistent return policy can help build trust with your customers. When customers know what to expect from the returns process, they feel more confident in their purchase decisions.

• Engagement – Automating your returns process provides opportunities to engage with your customers. 

Offering personalized incentives or recommendations during the returns process shows your customers that you value their business and are committed to their satisfaction. 

• Loyalty – Building customer loyalty is essential for the long-term success of your business. Automating your returns process can help show your customers that you appreciate their business and care about their satisfaction. 

By handling returns efficiently and effectively, you can create a positive experience that encourages customers to return for future purchases.

The longer the relationship with an online store, the more customers spend, so putting in the effort to create an exceptional customer experience can increase your customer lifetime value and overall revenue.

Higher ROI

Returns automation is a game-changer for any eCommerce store looking to maximize profitability and ROI. By automating the returns process you can reduce costs, retain revenue, and even generate more revenue.

Some of the ways returns automation can increase your store’s ROI:

• Reduced fraud and errors – Automating the returns process reduces the likelihood of fraudulent returns and human errors, saving your business significant amounts of money in the long run. 

• Higher efficiency – Additionally, by reducing costs and improving operational efficiency through automation, you can process returns faster, resulting in higher profitability.

• Retain and generate revenue – Returns automation also provides an opportunity to offer store credit or exchanges instead of refunds, which can help you retain revenue and generate additional revenue. 

For example, enabling customers to exchange an item for a different product gives you a chance to upsell or cross-sell and increase the customer’s overall order value.

By automating your returns process, your business can improve its efficiency, retain revenue, and generate additional revenue, leading to increased profitability and ROI.

Key Features of Returns Automation Systems

Depending on your business needs and goals, you might want to look for different features and functionalities when choosing a return automation system. 

Here are some of the key features that you should consider:

Automatic Label Generation

Automatic return shipping label generation is an essential feature of returns automation systems that can save time, reduce errors, and improve the customer experience. 

This feature enables customers to receive a pre-paid return label instantly when they initiate a return request online, which they can print out and use to ship back the returned items.

Automatic return label generation is done through integrations with shipping carriers, which saves time and improves accuracy by eliminating the need to manually generate return shipping labels each time.

Integrating with shipping carriers to generate return shipping labels enables real-time tracking and updates on the return shipment’s status, streamlining the returns process and providing peace of mind.

Seamless Integrations

Returns automation systems offer seamless integrations with other business software and service providers such as warehouse management systems (WMS), helpdesk software, shipping carriers, and third-party logistics (3PLs) providers to streamline the returns process.

• WMS – By integrating with a WMS, you can improve inventory management, reduce errors in tracking returns, and improve processing times. 

• Helpdesk – Integration with helpdesk software can help manage customer inquiries and provide real-time updates on the status of returns.

• Shipping integration – Integrating with shipping carriers enables automatic label generation, real-time tracking, and updates on the return shipment’s status, simplifying the returns process. 

• 3PL – Integration with 3PLs can help manage returns and processing times, especially for businesses with high-volume returns.

Seamless integrations with third-party software and service providers can automate the returns process even more, making it more accurate and improving the customer experience.

Customizable Return Portal

A customizable return portal provides a self-service platform for customers to initiate a return request. 

Through the return portal, customers can easily initiate a return request, select the reason for the return, and choose their preferred return method.

By creating a branded return portal that reflects your store’s brand style, you can provide customers with a sense of continuity throughout their shopping journey, leading to increased customer satisfaction and loyalty, and a higher likelihood of repeat business.

Providing customers with an intuitive self-service return portal reduces the number of customer service inquiries and complaints, freeing up your team to focus on other tasks.

Real-Time Tracking Updates

Keeping customers informed of the status of their return is an essential part of delivering a positive customer experience. 

Returns automation systems provide the ability to send automated notifications to customers throughout the return process, keeping them informed and reducing the need for manual follow-up.

Send automated return email notifications and customize them to include relevant information such as return status updates, shipping information, and expected refund dates. This level of transparency can help build trust with your customers and enhance their overall experience with your store.

By automating your notifications, customers can receive immediate confirmation of their return request and a pre-paid return shipping label via email. Once the returned item is received at the warehouse, customers can be notified that the item has been received and is being processed. And then when the refund has been issued, customers can be notified of the details of the refund.

Return Automation Rules

Return automation rules enable you to automate actions within your returns process based on criteria that you define. By automating your team’s processes and workflows, you eliminate the need to perform repetitive manual tasks, saving time and improving efficiency. 

Return automation rules follow a Trigger > Condition > Action workflow.

• Trigger – An event that triggers the activation of the automation rule.

• Condition – Requirements that must be met in order for the automation rule action to happen.

• Action – The part of the automation rule that completes a task.

Return automation rules can be set up to automatically perform various actions in your return process, such as refunds, exchanges, approving, and marking as done. 

For example, you can set up an auto-refund rule to automatically issue a refund when an item is returned due to being damaged or defective.

Here are some return automation rules you can set up to help streamline your returns workflow:

• Auto-Refund – Automatically issue a refund under certain conditions, such as when an item is returned due to being damaged or defective. 

You can configure the rule to be initiated based on triggers such as item validation, RMA approval, shipment in transit, or shipment receipt.

• Auto-Exchange – Automatically release an exchange order when a certain condition is met. 

For example, you can set up an auto-exchange rule so that when an item is returned and is in transit back to your store/warehouse, the exchange is released and a new draft order is generated in your Shopify account, which you can then fulfill and dispatch to the customer.

• Auto-Approve – Automatically approve return requests based on criteria that you define. 

You can set up the rule to automatically approve refund requests in the form of store credit, for example, or for customers who have not previously returned an item.

• Auto-Mark as Done – Automatically mark the RMA (return merchandise authorization) status as Done once all required actions are completed for each item. 

The RMA status will automatically be marked as done only once all the steps of the return have been completed.

By implementing return automation rules, you can simplify and streamline your returns process, making it more efficient and improving the customer experience.

Return Analytics and Insights

Returns analytics and insights are essential components of returns automation systems, providing valuable data that can help optimize the returns process and enhance the overall customer experience. 

With returns automation, you can track and monitor various metrics related to the returns process, including:

• Return rates – You can track how many returns are being initiated and processed over a given period and identify any spikes or trends.

• Return reasons – Understanding the reasons behind returns can help you identify common issues with your products or shipping process and make necessary improvements.

• Processing times – By tracking how long it takes to process returns, you can identify bottlenecks in the returns process and take steps to speed up the process.

By analyzing these metrics, you can gain valuable insights into your returns process and make data-driven decisions to improve efficiency, reduce costs, and enhance the customer experience. 

For example, if you notice a high number of returns for a specific product due to sizing issues, you can take steps to adjust the product description or talk to the manufacturer. 

Similarly, if you identify that processing returns is taking longer than expected, you can streamline the returns process and improve the turnaround time.

Returns analytics and insights are an integral part of returns automation, providing real-time data to help you stay on top of your returns process and make informed decisions. 

By leveraging the power of data analytics, you can optimize your returns process, reduce costs, and provide a better customer experience.

How to Implement Returns Automation

Now that you know what returns automation is and why you should use it, you might be wondering how to implement it for your eCommerce business. 

Here are some steps to help you get started:

1. Review Your Current Return Policy and Process

The first step to implementing returns automation is to evaluate your current return policy and process. Take a look at how the current process is working for both you and your customers and identify any pain points, gaps, or areas for improvement.

Consider the following questions:

• How easy is it for customers to initiate a return?
• How long does it take for customers to receive their refund or exchange?
• How are returns currently being processed?
• Are there any frequent customer complaints about the returns process?

Answering these questions will help you identify the pain points in your current process and set goals for improvement.

2. Choose an RMS that Suits Your Needs and Budget

Once you have evaluated your current return policy and process, you will need to choose a returns management system (RMS) that suits your needs and budget. 

Take into account the following factors when choosing an RMS:

• Integrations – Does the system integrate with your eCommerce platform, shipping carrier, and other relevant systems?

• Customization – Can you customize the return process to fit your brand and return policy?

• Pricing – How much does the system cost? Are there any additional fees or charges?

• Support – What kind of support does the system offer? Do they have a knowledge base, customer support chat, or training resources?

Research and compare different return automation systems to find the best fit for your needs.

3. Set Up and Test Your Return Automation System

After choosing a return automation system, it’s time to set it up and test it. 

Follow the instructions and guidelines provided by the RMS to ensure a smooth set-up process, and then test the return portal and automation rules thoroughly to ensure that everything is working properly.

Here are some key steps to setting up and testing your return automation system:

• Integrate – Integrate the system with your eCommerce platform and shipping, helpdesk, and warehouse management integrations.

• Customize – Customize the return policy, return portal, and customer communications to fit your brand and return conditions.

• Test – Test the system by initiating a return and following the process through to completion. Check that everything is working correctly and that all data is being recorded accurately.

4. Launch and Promote Your Return Automation System

Once you’ve set up and tested your return automation system, it’s time to launch and promote it. 

Inform your customers about the new system and how it benefits them. Highlight your return policy and return portal on your website, email, social media, and other channels.

Use the following tactics to promote your new return automation system:

• Return policy page – Add a dedicated return policy page to your website.

• Email announcement – Send an email to your customers announcing the new return portal and explaining how to use it.

• Educate – Include information about the returns process in your packaging and order confirmation emails.

5. Monitor and Optimize Your Return Automation System

The final step in implementing returns automation is to monitor and optimize the system. Track and measure the results of automating your returns using return analytics and customer feedback, and make adjustments as needed.

Track return metrics such as:

• Return rate – How often are customers initiating returns?

• Return processing time – How long does it take for customers to receive their refund or exchange?

• Return reasons – Why are customers returning items? Is there a pattern of common return reasons for specific products?

• Customer satisfaction – What are customers saying about the returns process? Are there any common complaints or issues?

Use returns data to continuously adjust and improve your returns process as needed to offer your customers the best experience and be as efficient as possible.

Case Studies

Here are some real-life examples of how stores have successfully used returns automation to improve their returns process, increase customer satisfaction, and increase their ROI.

One Project

One Project, a global eCommerce fashion platform, faced the challenge of enabling quick and efficient item exchanges for their customers. After evaluating various returns management solutions, they chose ReturnGO for its ability to facilitate easy exchanges, automate processes, and handle complex return policy rules.

Here’s how they used returns automation to streamline their returns management:

• Customized refund and exchange rules – One Project implemented tailored return rules based on customer profiles, item types, and product categories. This enabled them to prevent returns of custom products, restrict frequent returners, and provide a VIP experience.

• Automation and integration – By integrating their logistics and ERP systems with ReturnGO, One Project achieved seamless communication and synchronization of data, enabling them to automate a wide range of processes and significantly reduce manual intervention.

• Efficient handling of edge cases – With automation in place, One Project’s team focused on addressing exceptional situations that required individual attention, such as cases where customers failed to return items. This increased overall efficiency and reduced workload.

• Data-driven insights – ReturnGO’s comprehensive analytics and reporting provided One Project with valuable insights into key metrics such as refund value, exchange value, and gift card value. They used this data to optimize the refund process and improve business operations.

“The process is fully automated, from the customer request to the refund.”

– Shmulik Konforty, CTO, One Project

ReturnGO’s returns automation and streamlined processes resulted in significant improvements for One Project, including:

• Enhanced returns management workflow efficiency.
• Increased customer satisfaction through easy exchanges.
• Positive impact on the store’s ROI.

By leveraging ReturnGO’s features, One Project successfully transformed their returns process, providing a seamless experience for customers while achieving operational efficiency.

Check out the full One Project case study here.

Travelpro

Travelpro®, a leading luggage manufacturer known for its focus on innovation, faced challenges with a manual return handling process. Customers had to request returns on the website, and the customer service team manually generated return labels, leading to inefficiencies and delays.

Here’s how they used returns automation to streamline their returns management:

• Automation and integration – By implementing ReturnGO’s returns solution and integrating it with their shipping carrier, Travelpro® eliminated the manual process of generating return labels and reduced return processing time from 20 minutes to just 90 seconds per return.

• Easy return initiation – Customers can quickly initiate a return by entering their order number and ZIP code in the self-service return portal, which will generate a pre-paid return label, creating a seamless return experience.

• Efficient refund processing – With ReturnGO, Travelpro® can issue refunds quickly, even during peak seasons, increasing efficiency and reducing backlogs. 

“The return process is completely customer-centric. They fill out the request, generate the label, and get a refund.”

– Mark Costigliola, eCommerce Operations Manager, Travelpro

By automating the returns process, Travelpro® achieved the following:

• Streamlined returns management and reduced processing times.
• Increased customer satisfaction by offering easier returns.
• Improved customer retention through a focus on enhancing the return process.

By automating the returns process with ReturnGO, Travelpro® successfully streamlined their returns management, reduced processing times, and improved the customer experience.

Check out the full Travelpro case study here.

Future of Returns Automation

The future of returns in eCommerce lies in returns automation. As technology continues to advance, returns automation is revolutionizing the way returns and exchanges are handled.

80% of companies are already using or planning to use automation software and tools, a trend that is expected to become pretty much universal in eCommerce in the next few years.

By embracing returns automation, you can stay ahead of the curve, meet evolving customer expectations, and unlock new opportunities for growth in the dynamic eCommerce landscape.

Here are some emerging trends and predictions for returns automation:

Artificial Intelligence

Artificial intelligence (AI) is rapidly transforming the world of returns management, and the trend towards AI-powered solutions is on the rise. With AI, businesses can automate their returns process more intelligently and efficiently, resulting in reduced costs, increased customer satisfaction, and improved operational efficiency.

Returns automation systems like ReturnGO are excellent examples of AI-powered solutions that help businesses reduce return rates, automate returns, and increase customer loyalty. 

By leveraging the power of AI, you can analyze vast amounts of data, provide insights into customer behavior, and offer personalized recommendations and incentives to customers, resulting in a seamless and hassle-free returns process.

The trend towards AI-powered returns management is on the rise, and businesses that adopt these solutions will be well-positioned to reduce costs, improve customer satisfaction, and drive operational efficiency. 

Circular Economy

Among the newest trends in returns management, the circular economy aims to eliminate waste and promote the continuous use of resources.

In the context of eCommerce returns, circular economy means that returned products are not seen as waste, but rather as valuable resources that can be reused, refurbished, or recycled.

Returns automation plays a crucial role in facilitating a circular economy by making the returns process more efficient, cost-effective, and sustainable. 

By automating returns, you can:

• Streamline return processing – Streamline the processing and handling of returned products to reduce waste and damage.

• Refurbish and resell items – Quickly identify products that can be refurbished or resold, maximizing their value and reducing their environmental impact.

• Use sustainable packaging – Integrate sustainable packaging and shipping practices into the returns process to reduce carbon emissions and waste.

• Create closed-loop supply chains – Build strong partnerships with suppliers and logistics providers to create closed-loop supply chains that prioritize sustainability and circularity.

By embracing circular economy principles in your returns management, you can create a more efficient and resilient supply chain that benefits both your bottom line and the planet.

Omnichannel Returns

Omnichannel returns management is an emerging trend that leverages technology to seamlessly track and manage returns across different channels. As 78% of customers use multiple channels to start and complete a transaction, they expect to be able to return products through any of those channels as well.

Returns automation plays a vital role in enabling an efficient omnichannel returns process. By providing a centralized platform to manage returns across multiple channels, you can enhance customer satisfaction, reduce costs, and improve operational efficiency.

Provide a positive customer experience by providing multiple return methods for returning items purchased online such as return to a physical store or drop-off location, and providing clear and consistent communication throughout the return process.

Omnichannel returns management is one of the key trends of returns automation that you should embrace to stay competitive and meet the evolving needs and preferences of your customers.

Unlock the Power of Returns Automation

Returns automation is not just a solution; it’s a game-changer that can turn your returns process from a headache into a competitive advantage. 

By streamlining your returns, reducing costs, increasing efficiency, and improving the customer experience, returns automation has become an essential tool for eCommerce success.

If you’re ready to take your eCommerce business to the next level, it’s time to make the switch to automated returns management.

ReturnGO specializes in returns automation and offers a comprehensive returns management platform to lower return rates, automate the entire returns process, and increase customer satisfaction. See for yourself how ReturnGO can transform your returns process with automation.

While reverse logistics may not receive as much attention as forward logistics, it is just as important, if not more so, for maintaining customer satisfaction, reducing costs, and increasing sustainability. 

Here’s everything you need to know about reverse logistics for eCommerce, along with tips for optimizing your process for maximum efficiency.

What is Reverse Logistics?

Reverse logistics is the process of getting a returned product back from the customer to the store or warehouse. 

When a customer returns a product, reverse logistics manages the flow of the product back to the store or warehouse, including return shipping and tracking, item validation, and restocking or disposal.

Understanding the ins and outs of reverse logistics helps you stay competitive and keep your customers happy. 

What’s the Difference Between Traditional Logistics and Reverse Logistics?

The difference between traditional logistics and reverse logistics is that traditional logistics, aka forward logistics, refers to the process of getting products from the store to the customer. Reverse logistics, on the other hand, refers to the process of returning products from the customer back to the store. 

Reverse logistics involves managing the logistics of shipping returned products, receiving them, evaluating their condition, determining whether they can be resold, and processing refunds or exchanges. 

In comparison with traditional forward logistics, reverse logistics involves additional challenges such as tracking returns, processing returned products, and restocking or disposing of returned products.

How to Build an Effective Reverse Logistics Strategy

For reverse logistics to be effective, it is essential to have a well-defined process, to communicate clearly with customers, and to utilize technology to improve efficiency.

Building an effective reverse logistics strategy requires careful planning, with a lot of things to take into consideration. Let’s break down what you need to know to create an effective strategy for managing reverse logistics.

1. Identify the Scope of Your Reverse Logistics

Understanding the scope of your store’s returns is the first step in managing reverse logistics effectively.

The scope of your reverse logistics includes the types of returns you receive, the frequency of returns, the condition of returned products, and the channels through which they are returned. 

By identifying the scope of your reverse logistics, you can tailor your reverse logistics strategy to maximize efficiency and minimize costs. 

If you know what your reverse logistics process looks like now, you can design a strategy to maximize efficiency and reduce costs.

2. Invest in Technology and Automation

Many aspects of your reverse logistics can be automated so that you can manage returns more effectively. Use technology such as returns management systems, warehouse management systems, and third-party logistics providers to streamline your reverse logistics.

Returns Management Systems (RMS)

A returns management system (RMS) is a software solution designed to streamline the returns process for eCommerce businesses. An RMS can automate the entire process, from receiving the return request to processing the return and issuing a refund or exchange. With an RMS in place, eCommerce businesses can:

Reduce Processing Time – An RMS can automate the process of receiving returns and tracking their progress. This eliminates the need for manual tracking and data entry, saving time and reducing errors.

Improve Customer Experience – With an RMS, eCommerce businesses can provide their customers with a hassle-free returns process. Customers can initiate returns online, track the progress of their return, and receive timely updates on their refund or exchange.

Increase Efficiency – An RMS can help eCommerce businesses optimize their returns process by identifying patterns in returns and identifying areas for improvement. This can help reduce the number of returns and improve the overall efficiency of the process.

Using a returns management system such as ReturnGO can significantly streamline your reverse logistics by enabling you to efficiently manage the returns process, providing you with real-time visibility into the status of each item, from receipt through inspection, disposition, and final resolution. 

These systems can help you automate key tasks, reducing the risk of errors and speeding up the entire returns process. 

Warehouse Management Systems (WMS)

A warehouse management system (WMS) is a software solution designed to optimize warehouse operations and manage inventory. 

Using a WMS will help you manage the process of receiving returned products back to your warehouse, and you can integrate it with ReturnGO to manage your reverse logistics all in one place.

By implementing a WMS, you can:

Optimize Inventory Management – A WMS helps you track returned products, optimizing inventory management and ensuring that returned products are processed quickly and accurately.

Improve Order Fulfillment – A WMS can help you fulfill orders faster by identifying the location of returned products and making them available for resale.

Increase Efficiency – A WMS can optimize your returns process by tracking item validation, restocking, and disposal of returned products.

By automating and streamlining your reverse logistics process, a warehouse management system (WMS) will make managing and tracking returned items easier.

3rd-Party Logistics (3PL) Providers

3rd-party logistics (3PL) providers are companies that specialize in logistics and supply chain management. 3PLs provide logistical services such as order fulfillment, inventory management, and warehousing.

Using a 3PL can help you streamline your returns process and save you money by:

Providing Expertise – 3PLs are experienced in managing logistics and supply chain operations and can provide expert guidance on optimizing reverse logistics.

Offering Scalability – 3PLs can help you scale up and manage the volume of returns as they increase without having to invest in additional resources or facilities.

Reducing Costs – 3PLs reduce the costs associated with managing returns by offering a more cost-effective solution than managing the process in-house, saving you money on labor and other expenses.

There is a growing trend towards using 3PLs – 40% of retailers use a 3PL to handle returns. By outsourcing reverse logistics to a 3PL, you can focus on other tasks while being confident that your returned products are being handled efficiently.

3. Develop a Process for Handling Returned Products

Set up a clearly-defined process for how your store handles returned products. Determine who is responsible for what, and what the protocol is for different types of products, conditions, and situations.

Establish clear rules for what products will be accepted and what happens to them.

Define what condition products must be in in order to be restocked, and what happens if they are not in good condition.

Elements to Define in Your Reverse logistics Process

Define the following aspects of your reverse logistics process and how you want to handle them:

• The conditions for a return – Which products can be returned or exchanged? Does the original tag need to be attached? What other conditions apply?

• How customers can return items – What shipping carriers do you use? How do you track return shipments?

• Who is responsible for validating returned items – Do you use a WMS? Do you have a dedicated returns team? What do they look at when validating returns?

• What happens to returned products – Are they restocked and resold? When do they get discarded or recycled? Do you resell them at a discount?

Follow the 5 “R”s of Reverse Logistics

When developing your reverse logistics process, it can help to consider the 5 “R”s of reverse logistics:

1. Returns – How are returns handled and processed?

2. Receiving – How are returned products received and validated?

3. Refurbishing – Do you refurbish returned products and if so, what’s the process for that?

4. Reselling – Do you resell returned products and if so, how?

5. Recycling – What happens to products that can’t be resold, can you recycle or repurpose them?

By taking into account the 5 Rs of reverse logistics, you can make sure that your returns process is optimized at every stage, from receiving and processing returns to restocking, refurbishing, or recycling products.

4. Establish a Clear Return Policy

A clearly-defined return policy helps set expectations and clarify the returns process for customers. This transparency helps increase customer satisfaction and reduces the likelihood of return fraud and returns that don’t meet your requirements. 

Establish a clear return policy that outlines the acceptable reasons for returns, the timeline for returning products, acceptable product conditions, and the types of returns and exchanges offered.

When creating your return policy, consider the following:

Return Window

Define how long customers have to return products. The average eCommerce return window is 30 days, but what makes sense for your store may vary depending on the type of products you sell, your target market, and your industry.

For example, products with a short shelf life or expiration date, such as food or beauty products, often have a shorter return window to prevent customers from returning expired or unusable products that can’t be resold. 

On the other hand, expensive items or items that require more time to evaluate, such as furniture or clothing, usually require a longer return window so that customers can try and test the item before deciding whether to keep it. 

It’s important to clearly state your return window on your website and anywhere you sell your products, so customers know what to expect.

Condition of the Product

Be clear about the condition of the products that you will accept for returns. This helps to prevent misunderstandings, as customers will have a clear understanding of what is expected of them when returning a product.

For example, if you sell apparel, you may only accept returns on unworn, unwashed items with tags still attached.

Alternatively, if you sell electronics, you might accept returns only for items that are still in their original packaging and have not been opened or used.

Make sure that your team members are trained to inspect returned items to make sure they comply with your return policy. This will help you avoid accepting items that don’t meet your requirements, and help you process returns more efficiently.

Who Pays for Shipping

Specify whether your customers will be responsible for paying for return shipping or if you offer free return shipping in certain circumstances.

Despite the fact that customers increasingly expect not to be charged for returning items, less than half of eCommerce stores offer free return shipping, so offering free return shipping gives you a competitive advantage.

You can use free return shipping as an incentive during the holiday season, as a loyalty reward, or to encourage exchanges over refunds.

Refund or Exchange Options 

Clearly outline what options customers have for refunds, exchanges, store credit, or gift cards.

There are different types of returns you can offer, depending on your business and the types of products that you sell. Some common options include:

Refunds – Refunds are the most commonly requested type of return. You can refund customers in various ways, such as back to the original payment method, or directly to their bank account.

Exchanges – Exchanges enable customers to exchange an item for a different size, color, or product. This can be a good option for customers who received an item that didn’t fit, or who changed their mind about the product.

Store credit or gift cards – Store credit and gift cards can be offered to customers instead of giving them a refund. This keeps the revenue within your store and encourages customers to purchase again.

It’s important to clearly outline the refund or exchange options that you offer to customers, including any conditions or limitations that may apply.

Shipping and Handling Fees

Clarify whether customers will be charged any fees associated with their return. Provide an estimate of the cost so as to set expectations in advance.

Some types of fees commonly associated with returns include:

Restocking fee – A restocking fee is typically a percentage of the product’s original price and is intended to cover the costs of inspecting, repackaging, and restocking the returned item. 

Processing fee – A processing fee may be applied to cover the administrative costs associated with processing a return. 

Return shipping fee – A return shipping fee can be charged in cases where the customer is responsible for paying for return shipping. 

Whatever fees you choose to charge, it’s important to clearly communicate these fees to your customers in your return policy to avoid any confusion or misunderstandings.

Return Instructions

Give customers clear instructions on how to initiate a return, including what information they need (i.e order number), how long to expect the process to take, and how they’ll be expected to return the item.

Make sure that your return policy is clearly displayed on your website and that it’s written in easy-to-understand language.

Add a link to your return policy on product pages, in emails, and on your website header or footer to make it easy for customers to find. 

Having a clear return policy will help reduce misunderstandings and prevent customers from trying to return unsuitable items or contact customer support, thus streamlining the reverse logistics process.

5. Analyze Returns Data for Opportunities to Improve

Returns are a valuable source of data that can provide insights into customer behavior, product quality, and process efficiency. 

By analyzing your returns data, you can identify opportunities to reduce returns, improve product quality, and streamline your reverse logistics process.

Some metrics to track include:

Product Return Rate

The percentage of products that are returned. This can help you identify patterns such as specific products or product categories that have a higher return rate.

Return Reasons

Distribution of reasons that customers give for returning products. This can help you identify recurring issues with a certain product or areas where product descriptions can be improved.

Reverse Logistics Costs

The costs associated with processing a return, including shipping, handling, and restocking. This can help you identify opportunities to reduce costs and improve the efficiency of the reverse logistics process.

Tracking these reverse logistics metrics will give you a better understanding of your reverse logistics process and help you pinpoint opportunities for improvement.

“ReturnGO’s analytics provides more than basic statistics such as how many products were returned and what the return rate is, it also provides other interesting insights from which you can really conclude which products are more profitable and which are less so.”

– Felix Leshno, Co-Founder and CXO, Underoutfit

6. Monitor and Improve Your Strategy

It’s important to continually monitor and improve your reverse logistics to ensure that it remains effective over time.

Each stage of the reverse logistics process, from receiving and processing returns to restocking, repairing, or disposing of products, presents opportunities for optimizing the process and reducing costs.

To monitor the efficiency of the reverse logistics process, you can:

Track Return Metrics

Keep track of your returns data and the efficiency of your logistics to keep an eye on how things are going and make improvements where necessary.

Collect Customer Feedback

By asking customers for feedback on the returns process, you can identify areas for improvement and make changes to boost customer satisfaction and loyalty. 

For example, customers may provide feedback on how easy the return process is, how clear the return policy is, or what kind of customer service they received throughout the returns process.

One way to gather actionable feedback from customers is by hopping on a call and having them walk you through their return process. Record the call and revisit it later to gain valuable insights into areas for improvement. 

Conduct a Process Audit

An audit of your reverse logistics process can help you identify inefficiencies and areas for improvement. This can be done internally or with the help of a 3PL that specializes in reverse logistics.

Best Practices for Successful Reverse Logistics

Follow these best practices to create and maintain a successful reverse logistics process.

Automate Your Reverse Logistics Process

Implementing automation can be a game-changer for streamlining your reverse logistics process. Automating your reverse logistics can help reduce labor costs, speed up processing times, and improve accuracy. 

Use a returns management system like ReturnGO, together with warehouse management systems, 3PLs, shipping carriers, and other logistics partners to streamline your reverse logistics process and manage returns more efficiently.

Implement Circular Economy Practices

A circular economy is one where resources are kept in use as long as possible, waste is minimized, and materials are continually reused. This can be applied to reverse logistics by implementing practices that prioritize sustainability and reduce waste. 

Sustainability is becoming increasingly important for customers, who are increasingly aware of the environmental impact of shopping and are looking to buy from stores that are committed to sustainability. 

In fact, 78% of customers say their purchasing decisions are influenced by a brand’s environmental practices.

Some examples of circular economy practices you can implement:

Reselling – Consider repairing and reselling returned products instead of discarding them. This reduces waste and extends the life cycle of the product.

Recycling – If a returned product can’t be repaired and resold, you can recycle it to recover valuable materials and cut down on waste.

Donating – Donate returned products to charities or nonprofit organizations instead of throwing them out to keep the products in use. Besides reducing waste, this is an opportunity to give back to the community and create a positive social impact.

By implementing these circular economy practices into your reverse logistics process, you can reduce waste and minimize your environmental impact while creating new opportunities for revenue and customer engagement.

“We have a dedicated team that assesses the condition of returned flowers and prepares them for resale at a discounted price. In addition, we have partnered with a local charity that collects and repurposes used flowers. This not only helps us to reduce waste but also supports a good cause in our community.”

–  David Cohen, CEO, Love Rose

Communicate Clearly With Customers

Make sure your customers know exactly what to expect from the returns process and that they receive prompt, professional responses to any queries or concerns they have.

Provide clear return instructions – Give clear instructions for returning products, including information on how to issue a return request, where to send returned products, and the requirements for returns.

Keep your customers updated – Provide customers with regular updates throughout the returns process on the status of their returns, tracking information, and notifications when their refund or exchange has been processed.

Respond promptly to customer concerns – Address customer concerns promptly and professionally and offer solutions or alternatives to resolve issues and show customers that they are valued and supported. 

Communicate clearly with customers throughout the return process to make sure that they have a positive return experience.

Most customers say that efficiency, convenience, knowledgeable help, and friendly service are the most important factors for a positive customer experience.

Train Your Team

Make sure that your team understands the process for handling returns and is familiar with the software or systems used. This will help ensure that returns are processed quickly and accurately.

Warehouse staff should be trained on how to properly inspect returned products, including identifying any damage or defects, checking that all components are included, and verifying that the product is in good condition for resale. 

Train your customer support team to communicate effectively with customers during the returns process. This includes providing customers with clear and timely information on the status of their returns, answering any questions or concerns, and resolving issues as they arise.

Having a competent team is one of the best ways to ensure an efficient, streamlined reverse logistics process and a positive customer experience.

Challenges of Reverse Logistics

Managing reverse logistics can be a challenging process. Some of the common challenges of reverse logistics include:

Meeting Legal Requirements

Part of managing reverse logistics involves ensuring compliance with legal regulations related to product returns, disposals, and recycling. These laws can be complex and vary by location, making compliance challenging.

Consult with legal professionals to make sure your business meets all applicable legal requirements and follows protocol.

Keeping Down Costs

Reverse logistics can be costly, and managing these costs can be a significant challenge. Costs such as shipping, processing, refurbishing, and disposal costs can quickly add up, especially if you receive a high volume of returns. 

It’s important to find ways to minimize your reverse logistics costs while still maintaining high-quality service.

Managing Inventory

Returns often include products that have been opened, used, or damaged, which can complicate inventory management and make it hard to determine which products can be resold or refurbished and which need to be discarded. 

Using a warehouse management system (WMS) can help you keep an eye on inventory levels and ensure that returned products are processed efficiently.

Addressing Customer Concerns

Returns can be a frustrating experience for customers, and a poorly managed reverse logistics process can exacerbate the issue. 

Ensure a positive customer experience by being responsive to customer concerns, having a clearly-written return policy, and offering refunds and exchanges in a timely manner.

Examples of Successful Reverse Logistics in eCommerce

Here are a few examples of eCommerce stores that have implemented a successful reverse logistics process.

Apple

Apple is one example of successful reverse logistics. Customers are encouraged to trade in their old devices for discounts on new products. 

Returned products are sent back to be broken down and recycled into new parts that are used to manufacture new products. 

In recent years, Apple has worked to minimize the impact of its products on the environment. Its first sustainability policy was created in 1990, and since then the company has designed new ways to be more energy-efficient and reduce environmental damage.

By offering a trade-in program for repurposing and recycling used products, Apple has an eco-friendly reversal logistics process and saves money on production costs.

Brava Fabrics

Brava Fabrics has created an efficient reverse logistics process that enables them to manage returns smoothly and automatically.

By automating reverse logistics through ReturnGO, Brava Fabrics now manages returns more efficiently and saves thousands of dollars a month.

Automating the process and eliminating manual work enables Brava Fabrics to focus on its core mission of creating durable and iconic apparel.

One of the key components of Brava Fabrics’ efficient reverse logistics process is its integration with multiple shipping carriers. By integrating with various shipping carriers in different regions around the world, they can efficiently handle returns from customers in different locations. 

The automation and scalability of the reverse logistics process enable Brava Fabrics to efficiently manage returns as volumes increase, without incurring additional costs or adding staff. This ensures that Brava Fabrics can continue to provide its customers with the highest level of service, even as the business expands.

“We choose carriers according to price and time. So, the best thing about ReturnGO is being able to change these carriers according to our priority, whenever we want.”

– Gabriela Meyer Torres, Senior Operation Executive, Brava Fabrics

H&M Group

H&M Group aims to recirculate clothing and textiles through repair, reuse, and remake, taking action to increase sustainability and circularity in the reverse logistics process.

To maximize the resources in existing products, H&M offers garment collection points in nearly all of its stores. Over 140,000 tons of textiles have been collected since the garment collection program began.

Collected items are sorted and recirculated according to their condition: items that can be worn again are resold as second-hand clothing, worn clothes and textiles are turned into new products, such as cleaning cloths, and anything that can’t be resold or reused is shredded into textile fibers and used for things like insulation materials. 

In 2021, H&M recycled around 500 tons of textile waste from garment production factories back into products.

By sharing clear, accurate, and relevant information about its supply chain, products, and business standards and policies, H&M demonstrates its commitment to sustainability and circularity. 

Streamline Your Reverse Logistics for Smoother Returns

Efficient reverse logistics is crucial for any eCommerce business looking to provide the best possible customer experience while also saving time and money. 

By implementing best practices such as automation, using circular economy practices, and establishing a clear return policy, you can save time, reduce costs, and improve customer satisfaction. 

With the growth of eCommerce and the movement towards sustainability, it’s important to be proactive in managing your reverse logistics process.

Whether you’re just starting to think about sustainability or you’re looking to take your efforts to the next level, this guide is for you. Learn about ways you can make your returns process more sustainable, from reducing packaging waste to shipping returns in bulk, offering in-store returns, or reselling returned products. 

In this guide, you’ll find tips for how to become a more sustainable business, how to communicate your sustainability efforts to your customers, and examples of eCommerce stores that have implemented sustainable returns strategies.

Table of Contents

• The Importance of Sustainability in eCommerce Returns
• How to Make Your Returns More Sustainable in 5 Steps
  • Step 1: Evaluate Your Current Practices
  • Step 2: Set Sustainability Goals
  • Step 3: Implement a Sustainable Returns Process
  • Step 4: Communicate Your Commitment
  • Step 5: Monitor and Measure Your Progress
• The 5-Step Process to Sustainable Returns
• Best Practices for Sustainable Returns
• 4 Examples of eCommerce Stores With Sustainable Returns
• Conclusion

The Importance of Sustainability in eCommerce Returns

Sustainability is becoming an increasingly important issue in the world of eCommerce. With the rise of eCommerce, the number of returns has grown significantly, and this has led to an increase in the environmental impact of returns. 

From transportation emissions to natural resource depletion and landfill waste, eCommerce returns have a significant impact on the environment.

Meanwhile, customers are becoming more eco-conscious, and are increasingly looking for more sustainable shopping options. 78% of customers say a business’s environmental practices influence their buying decisions – customers want to know that the stores they buy from are committed to working towards a more sustainable future. 

The Environmental Cost of Returns

Returns cause significant environmental damage due to transportation, packaging, and processing, which cause carbon emissions and waste.

Products that can’t be resold are often discarded, which adds to waste and natural resource consumption. Returns generate billions of pounds of landfill waste and create huge amounts of carbon emissions. 

• Carbon Emissions – The transportation of returned products can generate significant carbon emissions, which contribute to climate change and pollute the environment.

• Waste – Returns can generate large amounts of waste, both in packaging materials and discarded products that cannot be resold, putting a strain on landfills and natural resources.

• Energy Consumption – Return processing requires energy and resources, such as electricity and water, which adds to consumption and environmental impact.

By understanding the environmental damage caused by returns and taking steps to minimize that impact, a more sustainable future can be achieved.

Customers Want Sustainable Shopping Options

Customers are becoming increasingly eco-conscious and looking for ways to make more sustainable shopping choices, and they seek out online stores that share their values.

Environmental awareness has risen to the point where 72% of customers are willing to pay more for sustainable products and are more likely to buy from stores that are committed to sustainability. 

Customers are looking for clear and transparent information about the environmental impact of products and how stores are working to mitigate it. By clearly communicating your sustainability efforts you can build customer trust, set yourself apart from your competitors, and increase customer retention.

How to Make Your Returns More Sustainable in 5 Steps

Use this 5-step process to identify areas for improvement and take action towards a more sustainable future. 

From assessing your current returns process and setting goals to implementing a sustainable returns process and monitoring the results, these steps will help you reduce the environmental impact of your returns while aligning with your business objectives and customer expectations.

Are you ready to make your returns more sustainable? Let’s dive in.

Step 1: Evaluate Your Current Practices

The first step towards improving your store’s sustainability is to take a look at your current returns process and see where you can cut down on waste and be more eco-friendly. 

How to Measure Your Level of Sustainability

Measuring the sustainability of your eCommerce returns process can be a complex task, but there are a few key areas you can focus on to get a sense of how sustainable your current process is.

• Resource consumption – One key aspect of sustainability is the impact that your returns process has on natural resources. This includes the energy and water used to process returns, as well as the materials used to package and transport them. 

You can measure resource consumption by tracking the amount of energy, water, and materials used during the returns process, and comparing it to industry benchmarks or to your own past performance.

• Waste generation – Another important aspect of sustainability is the amount of waste that is generated during the returns process. This can include packaging materials, damaged or defective products, and other waste. 

• Carbon emissions – Return shipping can also have a significant impact on the environment, as it often involves shipping products long distances. 

Tracking the distance your returns are shipped and the mode of transportation used, and then calculating the carbon emissions resulting from those, can help you determine the carbon footprint of your returns process.

• Efficiency – Evaluate how efficient your eCommerce returns process is. You can address bottlenecks in the return process by tracking your return processing time, return rates, and the cost of handling returns.

Evaluating your current returns process can help you determine what areas your store can focus on to make its returns process more sustainable.

“Our eCommerce store evaluates our returns process in terms of sustainability by measuring how much of the returns process can be reused or recycled. We track the amount of materials used in packaging and shipping, the number of returns that are successfully reused or recycled, and the amount of energy consumed in the returns process. 
Additionally, we measure customer feedback and satisfaction to ensure that our returns process is easy and efficient for customers. Through this data, we can identify areas for improvement and make changes to be more sustainable.”

Umit Kemal, MD and Manager, DK Klinik
www.en.dk-klinik.com.tr

Step 2: Set Sustainability Goals

It’s time to start planning your sustainable returns process. In order to do that, you’ll need to decide what you’re going to focus on and then set measurable goals accordingly.

Planning out your approach is important to help you to make the most of your efforts and achieve the best results while avoiding potential roadblocks and ensuring that your sustainability efforts are efficient and effective.

Decide What You’re Going to Focus On

To plan your sustainability goals, decide what you want to focus on first.

There are many different aspects of the returns process that you could address, such as packaging sustainability, return shipping emissions, return rates, and what happens to returned products. Rather than trying to tackle all of these areas at once, it can be helpful to start by focusing on just one or two areas and working on making those more sustainable. 

By taking a step-by-step approach, you can keep from overwhelming yourself and your team, and build momentum and success as you go. After making improvements in one area, you can move on to other areas and keep improving your returns process.

Some of the areas you can focus on are packaging, return shipping, return rates, and returned items. Choose the areas of your store in which you want to be more sustainable and set goals accordingly.

Let’s take a closer look at some of the areas in which your store could focus on sustainability, why they’re important, and how they can be improved.

Eco-Friendly Packaging

Packaging is one area you can focus on in your sustainability goals. Using less material and adopting eco-friendly alternatives can reduce your environmental impact and appeal to customers who value sustainability.

Improving the sustainability of your packaging is important for a few reasons:

• Packaging waste – A major reason for focusing on sustainable packaging is to minimize packaging waste. Returns often generate a lot of packaging materials that end up in landfills. 

Use eco-friendly packaging materials and designs to reduce waste generated during returns.

• Shipping efficiency – Another reason to focus on packaging is to make the shipping process more efficient. By using lightweight, compact packaging, you can reduce the amount of fuel required to ship returns and exchanges, thus reducing your carbon footprint.

Additionally, reducing the number of boxes on each truck by consolidating orders reduces transportation emissions.

• Brand image – Your packaging is the first experience your customers have with your products. Using eco-friendly packaging demonstrates the commitment your store has to sustainability and attracts eco-conscious customers, as 67% of customers consider sustainable packaging to be important when buying products.

How to Make Your Packaging More Sustainable

When looking to use more sustainable packaging, it’s important to consider the materials that you use and the products they are best suited to. 

Make sure that your packaging is durable and will last for a long time, and consider how it can be recycled and reused.

Take into account the environmental impact of the packaging, including emissions, energy use, and toxicity. 

Taking these factors into consideration will help you choose the most effective and sustainable packaging for your products.

To make your packaging more sustainable, consider using:

• Recyclable materials – Choose packaging materials that can be easily recycled, such as cardboard, paper, or corrugated plastic.

Recycling plastics or cardboard gives them another life, reducing the amount of waste generated by landfills, decreasing landfill waste, and preventing pollution.

• Reusable packaging – Invest in packaging materials that can be reused, such as sturdy boxes or resealable mailers.

Using reusable packaging can make returns more sustainable since customers can easily repackage a product and return it instead of having to find new packaging.

• Biodegradable materials – Use compostable materials made from organic materials that break down naturally over time and do not release harmful chemicals.

A popular type of biodegradable packaging is bioplastics, which are plastics made from renewable resources. Bioplastics help reduce fossil fuel use for plastic production and are made from natural materials such as corn, wood, algae, and sugarcane. 

• Less packaging – Reduce the use of packaging whenever possible. Avoid the use of excess packing materials such as bubble wrap, Styrofoam, and other single-use materials. 

Use materials such as cardboard, paper, and reusable containers, and consolidate orders into fewer packages to reduce waste and create a more eco-friendly return process. 

By improving the sustainability of your packaging, your store can demonstrate its commitment to sustainability and make a positive impact on the environment.

“At our online store, we try to be as eco-friendly as possible. We minimize our usage of excess packaging and ship in bulk whenever possible. We also make use of a large box that can be reused for several shipments. This allows us to lower our carbon footprint and pass on the savings to our customers.” 

Henffrey M. Muthama, Head of Marketing, Ledask
www.ledask.com

Sustainable Return Shipping

You can focus your efforts on sustainable return shipping by reducing carbon emissions associated with the transportation of returned products.

The environmental impact of return shipping can be reduced in a few ways:

Offset Your Carbon Emissions

Offset your carbon emissions from return shipping by investing in renewable energy and reforestation projects. 

Carbon offsetting is a way to compensate for your store’s carbon emissions by investing in projects that remove or reduce an equivalent amount of greenhouse gases from the atmosphere.

There are a few ways in which you can offset your carbon emissions:

• Purchase carbon offset credits – When customers initiate a return, you can offer them the option of purchasing carbon offset credits to offset their return shipping carbon emissions.

• Use a sustainable shipping provider – Work with a shipping provider that reduces the carbon emissions from transportation through carbon credits, consolidated delivery routes, green delivery vehicles, or other sustainability initiatives.

• Invest in sustainable infrastructure – Invest in sustainable infrastructure that enables eco-friendly return shipping, such as using electric vehicles instead of gasoline or diesel cars, using clean energy for shipping, and using biodegradable packaging.

Make sure to choose offset providers who adhere to international standards and whose projects contribute to sustainable development. By offsetting the carbon emissions caused by return shipping, you can reduce the environmental impact of your returns process and become more sustainable.

Ship in Bulk

One strategy you can use to reduce the environmental impact of your eCommerce returns is to ship returns in bulk. Consolidated returns reduce the number of individual shipments and associated transportation emissions. 

ReturnGO’s integration with Happy Returns enables you to have customers bring their returns to a Return Bar drop-off location, where multiple returns are consolidated and shipped back to your warehouse all at once. This reduces the number of shipments and helps lower the overall carbon footprint of your returns process.

In addition to reducing the environmental impact, shipping returned products in bulk can also reduce your operational costs. This can be a great opportunity to save money and be more sustainable at the same time.

Have Customers Keep or Donate Items

In most cases, you probably want to get back returned items so that you can restock and resell them. However, in some circumstances such as low-value or damaged products, it may be more cost-effective and eco-friendly to offer a returnless refund. 

A returnless refund is when customers don’t have to return the item to get a refund or replacement, and they keep or donate the item instead.

Having customers keep or donate returned items instead of shipping them back is a great way to make returns more convenient for customers while reducing your return handling costs and the environmental impact of returns.

Returnless refunds are becoming more popular as online stores look to reduce return costs and increase sustainability. Many leading eCommerce stores, including Amazon, Target, and Walmart offer returnless refunds, and more and more are following suit. 

Offering returnless refunds can be valuable for several reasons:

• Reduces transportation emissions – When customers keep or donate returned items instead of shipping them back, it reduces the need for transportation and the associated emissions, as the items do not have to be shipped back to your warehouse.

• Decreases waste – Having customers keep or donate items reduces the amount of waste associated with returns. When items are donated, it gives them a second life and keeps them out of landfills. 

• Reduces costs – Shipping items back can be costly for the business and customer. By having customers keep or donate items instead, you can save on transportation and return handling costs.

• Builds customer loyalty – By giving customers the option to keep or donate returned items, your store can build loyalty because customers feel like their return is sustainable and has a positive impact on the community.

Encouraging customers to keep and donate items instead of shipping them back can lead to a more sustainable and eco-friendly return process.

Implement a “Buy Online, Return In-Store” Policy

Have customers return online orders to physical store locations instead of shipping them back. By doing so, the emissions associated with returning products are reduced.

A “buy online, return in-store” policy is a strategy that enables customers to purchase items online and return them to a physical store location. 

By returning items in-store, customers reduce their carbon footprint associated with transportation, as there’s no need for shipping. 

As a bonus, when customers return items in-store they can bring back the items back with the original packaging and tags, which reduces packaging waste from additional packaging.

Use Eco-Friendly Shipping Methods

Reduce carbon emissions by using more energy-efficient shipping methods, such as ground shipping instead of air shipping.

The use of ground shipping instead of air shipping can significantly reduce carbon emissions. Since ground shipping is often more energy-efficient and consumes less fuel, the carbon emissions per package are lower. 

Return shipping carbon emissions can also be significantly reduced by using electric or hybrid delivery vehicles as opposed to traditional gas-powered ones.

When choosing a return shipping method, it’s important to consider the trade-offs involved, such as delivery time, cost, and the types of products being shipped.

Use On-Demand Return Shipping Labels

Take advantage of technology such as on-demand printing of return shipping labels to minimize waste and ensure that accurate information is included on the label. 

Offering on-demand pre-paid return shipping labels is a great strategy that can help make the returns process more sustainable by having customers print out their own return shipping labels as needed instead of including a pre-printed label with every order.

By having customers print out their own return shipping labels, you can reduce the number of pre-printed labels that are shipped to customers who don’t need to make a return. 

You can use ReturnGO to generate pre-paid return shipping labels. When a return request is approved, the customer receives an email with a pre-paid return shipping label they can print out, attach to their package, and ship back.

Taking steps to make return shipping more sustainable will help you make your return process more efficient, cost-effective, and eco-friendly.

Return Rates

High return rates can negatively impact the sustainability of your store, as they contribute to more transportation emissions.

Here are a few ways to reduce return rates and make your store more sustainable:

Provide Detailed Product Descriptions

One of the most common reasons for returns is that the product received does not match the product described or shown online. 

By providing accurate and detailed product descriptions you can help reduce the number of returns that happen due to miscommunications.

Product descriptions should contain information about the product’s features and benefits, as well as answers to common questions.

Make sure product descriptions include:

• Descriptive product title to hook your audience, clearly stating what the product is.
• Detailed paragraph that explains and tells a short story about the benefits of the product.
• Bulleted list of technical product features.

It’s important to clearly describe your products, including the materials they’re made of, how they’re packaged, what to expect of the fit, and how long shipping will take.

Write a Clear Return Policy

Having a clear and easy-to-understand return policy can help reduce the number of returns by setting customer expectations and providing a straightforward process for returning items.

Your return policy should clearly answer questions such as: 

• How long do customers have to return items?
• What condition do items need to be in?
• Do you charge any fees for returns?
• What steps do customers need to take to request a return?
• What types of returns do you offer?

Encourage Customer Feedback

Collect customer feedback to identify and address issues with your products or website that may be leading to a high return rate.

Sending customers an email survey after a purchase or asking them to leave a review on your site can provide valuable insight into the shopping experience and product quality.

Provide Size Charts and Fit Guides

Provide size charts and fit guides to help customers choose the correct size and reduce the number of returns due to wrong sizing.

In categories such as clothing, sizing issues are often a major contributing factor to returns. Reduce your return rates due to sizing issues by offering clear and easy-to-use sizing charts and guides so that customers are more confident in their purchases.

Show High-Quality Product Images

Multiple high-quality images of the products from different angles can help customers get a better sense of what they’re buying.

When customers can see detailed and accurate images of a product, they can be more confident about their purchasing decision, which can reduce the likelihood of items being returned due to misunderstandings. 

Analyze Return Data 

Use a tool like ReturnGO to analyze your return data to identify trends and patterns in the products that are being returned and return reasons. 

Analyzing your return data can help you identify areas to improve, such as tweaking your return policy or updating product descriptions, which can reduce your return rates and make your store more sustainable.

Returned Items

One of the biggest challenges in eCommerce is figuring out what to do with returned items, as they can take up warehouse space and contribute to landfill waste. 

The best way to handle your returned items sustainably is to repurpose them instead of letting them go to waste.

The three “R”s of sustainable management of returned items are:

1. Resell 

Reselling your returned products enables you to make money on otherwise wasted inventory and increases sustainability since products are reused rather than discarded. 

Two of the simplest strategies for reselling your returned products are in a resale section of your site or through a third-party reCommerce platform. 

By reselling returned items, you can recoup some of the cost, as well as offer these items at a lower price to customers.

2. Refurbish 

Refurbishing returned items can extend their life, reduce waste, and save money.

Inspect, clean, and test returned items to ensure that they are in good working order and then resell them as “refurbished.” 

Refurbishing returned items is an effective way to reduce the amount of returned items that go to landfills.

3. Recycle 

Some returned items may not be in a condition to resell or donate, but many materials can be recycled, reducing the environmental impact of these items. 

You can recycle your store’s returned items by finding a local recycling facility that accepts the types of materials they’re made of, or by working with a recycling company that specializes in returned items.

Recycling returned items’ materials and repurposing them for new products can reduce waste and the environmental impact of returns.

Ultimately, how you handle returned items depends on your products and business. Consider all your options and pick the one you see as most sustainable, cost-effective, and manageable for your store.

Set Measurable Goals

Establish measurable goals based on the areas you decided to focus on first. Setting specific, measurable goals will enable you to track your progress and adjust accordingly.

Your sustainability goals should be aligned with your overall business objectives and be challenging but achievable. 

SMART goals are a widely used framework for setting and achieving goals. The acronym stands for Specific, Measurable, Achievable, Relevant, and Time-bound. 

Using SMART goals can help to ensure that your goals are clear, achievable, and effective, which can in turn increase the chances of success, and it can help to focus efforts and resources, establish priorities, and measure progress.

Specific – Goals should be clear and specific, stating exactly what is to be accomplished.

Measurable – Goals should be quantifiable, so progress can be tracked.

Achievable – Goals should be realistic and achievable, given the resources and constraints.

Relevant – Goals should be relevant to your industry and business objectives.

Time-bound – Goals should have clear deadlines for completion.

To set SMART goals for your sustainability efforts, follow these steps:

1. Decide which areas of your returns process you want to improve, such as increasing the use of sustainable shipping methods or reducing packaging waste.

2. Define what you want to achieve in each area. Put together specific and realistic targets for each goal. 

3. Plan how you’ll achieve this goal, and determine what steps you need to take.

4. Set a timeframe for achieving your goal, such as by the end of the next quarter or the next year.

Setting measurable goals will help you keep track of your progress and ensure that your sustainability efforts are having the desired impact. This will enable you to stay on track to achieve your sustainability goals by making any necessary adjustments.

“Our goal-setting process involves mapping out specific objectives, timelines, and resources needed. We break these down into smaller steps or goals and check in periodically to review progress made using KPIs and metrics. With this method, we are able to continually adjust our strategy so that we meet our short-term and long-term goals for increased sustainability.”

Grace Baena, Director of Brand, Kaiyo
www.kaiyo.com

Step 3: Implement a Sustainable Returns Process

Once you’ve set your sustainability goals and decided which area of your business you want to focus on making more sustainable first, it’s time to take action.

In order to effectively implement your sustainability goals, you’ll need to set up a system for tracking and recording returns data and work with reliable service providers to ensure that the right incentives and processes are in place to manage returns sustainably. 

Use a Returns Management System (RMS)

Using a returns management system can greatly help in implementing a sustainable returns process by automating and streamlining the returns process. 

An RMS like ReturnGO enables you to track and monitor your returns. Another advantage of using an RMS is that it provides you with data about your returns that can help you improve your returns process and make data-driven decisions. 

The ReturnGO returns management system also includes features like pre-paid return shipping labels, consolidation of return shipments, and incentives to encourage certain return methods, which can help reduce waste, emissions, and costs.

Using a returns management system can make it easier for you to implement sustainable eCommerce practices because it simplifies the process and integrates with your shipping carriers, warehouse management systems, and helpdesks. This makes it easier to manage, scale, and track the sustainable practices you implement.

Work With Reliable Service Providers

It’s important to make sure that you are working with reliable service providers, whether that’s shipping carriers, warehouse management systems, or packaging suppliers. Work with companies that share your commitment to sustainability and have proven track records.

Some of the most important things to look for in a service provider are reliability, expertise, and experience. Ideally, a service provider will deliver on their promises as well as provide excellent customer service and support.

When choosing a service provider, look for service providers who have experience working with other eCommerce stores in your industry and who are familiar with the challenges that come with handling returns, and make sure your service providers have solid reputations by reading online reviews and asking for references. 

Do your research when choosing service providers for a sustainable returns process, and make sure the companies you choose have relevant experience and knowledge. It can be helpful to evaluate several options in order to determine which is the best fit for your store’s needs.

Put in Place the Sustainable Practices You Decided On

Take the steps you laid out in your sustainability goals, whether that’s switching to eco-friendly packaging, setting up a carbon-offsetting program, reselling returned items, or any other changes you decided to make.

When implementing your sustainability efforts, pay close attention to the details of the process. Define clear steps and assign responsibilities, and make sure the necessary resources are available. 

Know that once you begin to implement your sustainable practices, there will be roadblocks and unforeseen challenges, and you’ll need to adapt your goals as necessary. That’s completely normal. Just review your sustainability goals and see where you need to make adjustments.

Step 4: Communicate Your Commitment

Once you’ve implemented sustainable practices in your eCommerce store, it’s important to communicate your sustainable efforts everywhere you can, including on your website and social media channels as well as in your return policy and product pages. 

Communicating your sustainability efforts is an essential part of building trust and creating transparency with your customers. 

Where to Communicate Your Sustainability Efforts

Clearly communicating your commitment to sustainability is essential for inspiring change and gaining support. Promote your sustainability efforts everywhere from your product pages to your return policy to email marketing.

Return Policy

Reflect your sustainability efforts in your return policy. A well-crafted return policy can help to reduce the environmental impact of returns by encouraging customers to keep items instead of shipping them back or explaining how you repurpose returned items. 

When writing your return policy, make sure to include clear information about your sustainable returns process, and make sure it’s easily accessible to customers. Display your return policy on your website header or footer, on product pages, and in confirmation emails. 

A clear return policy can help educate customers about the steps you are taking to reduce waste and emissions, and also make it easy for them to see the impact they are making when they choose to shop with you.

Website

Include information about your sustainability efforts on your website, such as on your “About Us” page or on a dedicated “Sustainability” page. 

This helps educate customers about the sustainable practices you have in place and shows them the impact they have when they choose to buy from your store.

Product Pages

Include information about the sustainability of your products on your product pages, such as the materials used, the environmental impact of production and shipping, and what happens to the products when they are returned. 

Clearly communicating your sustainability efforts on your product pages helps build customer trust and reassures customers that their purchase is sustainable.

Marketing

Use marketing channels such as social media and email marketing to effectively communicate your sustainability efforts to a wide audience. 

Through marketing your sustainability efforts, you can increase awareness about sustainability and educate customers about the impact of their purchases.

Making your store stand out through sustainability initiatives and products can create a sense of community and loyalty among your customers, helping them feel part of something important, which can lead to repeat purchases and increased customer retention.

Employee Communication

Involve your employees and support agents in your sustainability efforts and ensure they know their role in helping your store achieve its sustainability goals.

Mission Statement

Make sure your sustainability efforts are reflected in your store’s mission statement. Your store’s mission statement communicates who you are, what you stand for, and why you’re doing what you do.

Incorporating your sustainability efforts into your mission statement helps you align your efforts with your overall business goals and values. It also helps customers understand why sustainability is important to you and how you aim to make a difference.

Regardless of where you decide to communicate your sustainability efforts, it’s important to be consistent, transparent, and honest in order to build trust with your customers.

“We created an Instagram campaign in which we included what we’ll introduce. Our company collectively decided to share the campaign on the platform that already had a promising following – Instagram. We posted videos and Reels to inform our audience that we’d introduce climate-neutral shipping processes. An in-depth video was made highlighting the entire journey.”

Melissa Collins, Food Scientist and Director of Content, Jupiter
www.getjupiter.com

Step 5: Monitor and Measure Your Progress

Once you’ve implemented your sustainability strategy, it is essential to monitor and measure your progress so that you can make adjustments as needed.

Review your return data regularly to identify patterns and make adjustments as needed. Identify and track key trends over time so you can see how your efforts are impacting overall results.

Tracking your progress helps you stay on track to achieve your sustainability goals. Then, once you achieve your sustainability goals, you can set new ones and continue improving and making an impact.

Making your online store more sustainable is a never-ending process, and it’s important to keep updating, adjusting, and adding sustainable practices to keep reducing your environmental impact.

“We track metrics like energy consumption, recycling rates, water usage, carbon emissions, waste production across every process involved in production as well as product lifecycle analysis (LCA). We also monitor customer feedback about their experience with us versus other stores to identify areas where we can improve toward achieving greater sustainability goals. 

From there, we adjust our goals according to what data is telling us; this could mean investing more resources into certain parts of the supply chain or product design that consume larger amounts of energy or emit higher levels of carbon dioxide during manufacturing.”

Eric Sornoso, CEO, Meal Fan
www.mealfan.com

The 5-Step Process to Sustainable Returns

After breaking down each step, here’s a recap of the process of making your returns more sustainable:

1. Evaluate your current practices

• Measure your carbon emissions, waste generation, and efficiency.
• Identify areas for improvement.

2. Set sustainability goals

• Decide what areas to focus on first.
• Set specific, measurable goals.

3. Implement a sustainable returns process

• Use a returns management system.
• Work with reliable service providers.
• Put your new sustainability practices into action.

4. Communicate your commitment

• Clearly communicate your sustainability efforts through your website, product pages, return policy, and marketing channels.

5. Monitor and measure your progress

• Track your returns data.
• Adapt and adjust your sustainability practices as needed.

By implementing these steps, you can reduce waste, emissions, and costs, and create a more sustainable eCommerce business. 

Best Practices for Sustainable Returns

As you take action to make your returns more sustainable, keep these best practices in mind.

Avoid Greenwashing

Avoid greenwashing by being transparent about your efforts, practices, and process. Make sure not to make misleading claims about the sustainability of your products or return process.

In addition to weakening trust and credibility, greenwashing can have negative effects on the environment and on your reputation.

To avoid greenwashing, be transparent about your efforts, and make sure that any claims you make are supported by data and evidence. Openly communicate your sustainable efforts and be ready to provide more details upon request.

Constantly Look to Improve

Regularly evaluate and reassess your returns process, and make sure to consistently set new goals and implement new strategies as needed to reduce waste, emissions, and costs. 

It’s important to constantly be looking to improve your store’s sustainability in order to remain relevant and effective over time and to keep up with customer preferences and industry developments.

“Educate yourself constantly about current trends and solutions on how you could improve your sustainability efforts when dealing with product returns – there’s always room for improvement, so don’t feel like once you’ve started down this path there’s no more work left to be done here!”

Carlos Barros, Director of Marketing, Epos Now
www.eposnow.com/us

Be Open to Customer Feedback

Make use of feedback from customers to improve your returns process, meet expectations, and improve your store’s sustainability over time.

Customer feedback is important because it helps you better understand how your business and sustainability efforts are perceived by your customers, identify areas of improvement, and make informed decisions. In addition to building trust and improving customer relationships, accepting feedback shows that you value customers’ input and are committed to improving.

In order to receive customer feedback you can set up surveys, create a customer feedback box, and encourage customers to leave reviews on your site. Make sure to put a process in place to regularly review and respond to customer feedback.

Make Use of Technology

Use eCommerce software and tools such as shipping carriers, helpdesk software, and returns management systems to optimize your returns process.

With today’s advanced technology, you can easily increase efficiency, and reduce costs and emissions as well as improve the customer experience.

By using ReturnGO’s returns management system you can automate your returns process, track and monitor returns, and also provide customers with options such as sustainable return methods, pre-paid return shipping labels, and a clear return policy. 

ReturnGO also provides valuable analytics and actionable insights to help you make data-driven decisions, identify areas for improvement, and improve your returns process. 

4 Examples of eCommerce Stores With Sustainable Returns

Let’s take a look at how some eCommerce stores are implementing sustainable returns practices. 

Seeing real examples can give you a better sense of the different strategies and tools you can use to reduce the environmental impact of returns while meeting the needs of eco-conscious customers. 

From innovative recycling programs to carbon offsetting programs, these examples show how online stores are finding creative and effective ways to be more sustainable. 

1. Hellovein

“We use biodegradable packaging whenever possible and recycle or repurpose all materials that can’t be reused. We also strive to reduce our environmental footprint by utilizing carbon offsets and renewable energy sources to power our operations. 

We communicate the sustainability efforts of our business through multiple channels including our website, email campaigns, and social media posts. 

On each platform, we feature stories about how we are minimizing waste, investing in renewable energy solutions, and creating sustainable partnerships with suppliers and customers alike. 

We’re committed to being an environmentally responsible company, and we want shoppers to know that their purchases are making a positive impact on the planet.”

Kreisel Jaquish, Owner and CEO
www.hellovein.com

2. Kate Backdrop

“Our packaging is made from 100% recycled materials, which we source from post-industrial waste. 

Our return process is designed to minimize our environmental impact. Any returned items are inspected for damage, and any damaged items are donated or repurposed by us. We then ensure that all of our packaging is reused as much as possible before it goes into the recycling bin. 

Furthermore, we communicate our sustainability efforts to customers through various channels, such as our website and social media pages. We post regular updates about the steps we take to reduce our environmental impact, including details about how we package products and process returns. 

We also hold special events where customers can come in to learn more about sustainability initiatives that our company is involved in.”

David Zhang, CEO
www.katebackdrop.com

3. Soxy

“We make use of biodegradable materials for product packaging to make the returns process as sustainable as possible. We use recycled fabric for our packaging. The use of plastic packaging for the return process can be detrimental to the environment. 

Our e-commerce store focuses on sustainability as an objective. Our vision for a greener future is communicated through our social media posts, email newsletters, and product sourcing and packaging. 

The sales and marketing department of the store actively communicates our sustainability efforts to the target audience on these platforms.”

Jessica Kats, eCommerce and Retail Expert
www.soxy.com

4. Aimvein

“We’ve put in place several measures to ensure that our returns process is as eco-friendly as possible. 

We use recycled materials wherever we can, such as paper and cardboard, and all of our plastic packaging is made from recyclable materials. 

We also offer an option for customers to return their goods using a pre-paid postage label, so that goods don’t have to make multiple trips back and forth between the customer and our warehouse. This helps us reduce emissions associated with transportation.”

Robert Leonard, Owner
www.aimvein.com

Take Action Towards a More Sustainable Future

The environmental impact of eCommerce returns is a growing concern, and it is important to take action to reduce your store’s environmental impact. 

By implementing sustainable returns practices, you can minimize your impact on the environment while meeting the evolving expectations of eco-conscious customers.

This guide explored the importance of sustainability in eCommerce returns and looked at various strategies and tools to make your returns process more eco-friendly. 

It’s important to note that sustainability is a journey, not a destination, and that it’s important to constantly look for ways to improve and to be open to feedback. 

Now is the time to get started on making your returns more sustainable. Every small step can make a big difference.

Return policies help you give your customers all the information they need about the return process before they make a purchase, including how long they have to return items, what condition the items need to be in, and how they should go about requesting a return. 

Use the tips, best practices, and steps laid out in this guide to write an effective return policy that increases customer trust, reduces return fraud, and improves the customer experience.

Table of Contents

• What is a Return Policy?
• Why is it Important to Have a Return Policy?
• How to Write a Return Policy in 7 Steps
• Step 1: Prepare to Write Your Return Policy
• Step 2: Write Down Your Return Conditions
• Step 3: Draft Your Return Policy
• Step 4: Edit and Proof Your Return Policy
• Step 5: Publish Your Return Policy
• Step 6: Implement Your Return Policy
• Step 7: Review and Update Regularly
• The 7-Step Process of Writing a Return Policy
• Conclusion 

What is a Return Policy?

A return policy outlines the specific requirements as to how, when, and under what conditions customers can return purchased items to your online store.

Use your store’s return policy to explain to customers how returns, refunds, and exchanges work, including the accepted returns, refund timelines, and any restocking fees that might apply. 

Why is it Important to Have a Return Policy?

Having a return policy is important because it lets your customers know exactly how your store’s return process works, reducing misunderstandings and return fraud. Most customers are unlikely to purchase a product if the store has an unclear return policy. 

Your return policy should be simple and straightforward, so that customers will have fewer questions, resulting in a better customer experience and increased customer trust.

• Improve the Customer Experience

Having a clear return policy can help improve the customer experience by setting expectations and promoting honesty and transparency.

Giving customers a clear understanding of the return process before they place an order can help reduce confusion and frustration for customers later on, and leave them with a positive shopping experience. 

• Prevent Return Fraud

A well-defined return policy can help prevent return fraud because having clearly defined conditions makes it harder for people to commit return fraud than if conditions are vague or unclear.

Return fraud is an ongoing issue for eCommerce stores around the world. There are many forms of return fraud, ranging from unintentional fraud to organized crime.

Common forms of return fraud include:

• Wardrobing – when customers buy an item planning to use it once or twice and then return it for a refund.

• Bracketing – when customers buy multiple items with the intention of returning the ones they don’t want once they receive them.

• Empty Box Fraud – when customers claim they received an empty box or never received the package at all, and request a refund while secretly keeping the item.

• Price Arbitrage – when customers buy two similar-looking but differently-priced items and return the cheaper item as if it’s the more expensive one. 

Customers will be deterred from fraudulently returning items if there is a clear return policy because they’ll know the conditions for returning items, and that they won’t be able to get a refund for items that don’t fit those conditions.

• Build Customer Trust

Having a transparent return policy helps build customer loyalty. Customers are more likely to trust stores that are open and honest about their return process, fees, and conditions.

Communicate your return policy clearly to your customers to make sure that your customers know exactly what to expect from the return process.

Be sure to explain what types of returns you accept, what fees they are responsible for, and the expected timeline for returns. By being transparent and upfront with your return policy, you can build a customer base that trusts you and will come back and buy again.

• Reduce Customer Support Queries

Making it clear to customers what to expect from your store’s return process can reduce the number of customer support queries your team has to handle about returns.

Your return policy should answer all questions customers might have about the return process, so they won’t need to contact your customer support team.

The more customers know about the return process, the less likely they are to feel frustrated or confused later on when trying to return an item, and the fewer customer support queries your team will need to handle regarding returns, freeing them up to focus on other tasks.

How to Write a Return Policy in 7 Steps

Write a return policy for your online store following these 7 steps that will take you from defining your return conditions to formatting, editing, and publishing your return policy.

This guide will help you write a return policy that is effective, clear, and reflects your brand.

Are you ready? Let’s dive in.

Step 1 – Prepare to Write a Return Policy

Before you start writing your store’s return policy, it is important to take the time to think, plan, and decide what will be included in it.

Questions to Answer Before Writing a Return Policy

Decide on answers to some basic questions before writing your return policy. These answers will help you define your return policy and set customer expectations.

It’s important to understand what your store requires, how it handles returns, and what the return process looks like before writing a return policy.

Some of the essential questions you need to decide on answers to include:

• How long do customers have to return items?
• What condition do items need to be in?
• What types of returns do you offer?
• What steps do customers need to take to request a return?
• Do you charge any fees for returns?

Your answers to these questions will be based on considerations such as your costs, processes, item value, customer base, and brand values.

The decisions you make at this stage will be used to define your return conditions later on in the process.

What to Consider When Writing a Return Policy

When deciding on what to include in your return policy, there are several factors to keep in mind. 

Depending on your business considerations, your store may prioritize some of these over others. For example, while some stores may be more concerned with standing out from their competitors, others may be more concerned with meeting customers’ expectations. 

Review the list below and take these factors into consideration when creating a return policy for your store.

1. Competition

When writing your return policy, it’s worth taking a look at your competitors’ return policies. Your return policy should aim to create a competitive advantage and help you stand out from other eCommerce stores in your industry.

While staying competitive, it is also important to create a return policy that meets the specific needs and requirements of your store.

2. Shipping Costs 

Take into account your shipping costs when deciding whether to offer free return shipping or not.  Your return shipping costs may vary depending on the size and weight of the products. 

For example, offering free return shipping on large, bulky, or heavy items may not be worth your time since shipping can be expensive for those items.

3. Customer Expectations 

Consider customer expectations when writing your return policy. A clear and straightforward return policy will help customers feel secure in their purchases and encourage repeat business.

Create a customer-centric return policy that offers a reasonable return window, provides a range of return methods, and is easy to understand. 

By taking into account customer expectations when writing your return policy, you can provide a positive customer experience that will help drive customer satisfaction, loyalty, and trust.

4. Profit Margins 

Consider your profit margins when deciding what return fees to charge and what types of return resolutions you offer for each product or category.

Look at factors such as the impact the return rate has on your profits, and think about whether you should charge customers the cost of returns or cover them yourself.

Your return policy should help your online store stay profitable while meeting customer expectations.

5. Reverse Logistics 

When writing your return policy, take into account how your store handles reverse logistics.

Consider how you process returns, how return shipping works, and how customers are refunded, as well as your costs of processing and restocking returned items.

Take a look at how your store handles returns and see if that process can be streamlined and scaled. Consider using an automated returns management system to streamline your returns process, reduce logistics costs, and save time and energy.

6. Laws and Regulations

Many countries and states have laws regarding return policies, so make sure yours meets the requirements in your country.

Some laws address cancellations, while others are focused on making sure customers see the return policy on the store’s website.

For example, in New York, stores are legally required to advertise their return policies, and if they don’t, they must accept returns within 30 days.

Review your country or state’s return policy laws to ensure you are following them properly.

Step 2 – Write Down Your Return Conditions

Once you’ve decided on your return conditions, it is important to put them into writing. Writing everything down in one place will help you to organize and refine your return conditions, and ensure you’ve covered everything. 

Break your conditions down into different categories, such as: which items can be returned, how long customers have to return them, what documentation is required, etc. This will make it easier for you to structure your return policy. 

What Should a Return Policy Include?

When writing down your return conditions, make sure to include the following elements. This will help you make sure you’ve covered everything customers need to know to request a return.

Return Window

Specify the return window, that is, the timeframe within which customers must return their items.

The return window should be clearly defined and long enough to provide customers with enough time to try out the product, decide if they want to keep it, and initiate a return if it does not meet their needs or expectations. 

While there is no right or wrong length of time for a return window, many eCommerce stores use 30 days as a standard. However, every eCommerce store should take its own considerations into account when deciding on a return window. This can include the types of products, how often they are returned, and anything else that might affect your return window length. 

There are stores with 14-day return windows, stores with 365-day return windows, and everything in between. ReturnGO data shows that the most common return window is 30 days, and that very few stores have a return window smaller than 14 days. 

It’s important to remember that you get to define your store’s return window based on your business needs and considerations.

You may want to experiment with different return windows in order to strike a balance between establishing trust and preventing return fraud.

Whatever length of time you choose to define for your store, make sure to be clear about the definition of your return window. When does the return window begin? When an order is shipped or once it’s delivered?

For example, Zappos is an eCommerce brand that is known for its generous 365-day return policy. In spite of the higher return rates this leads to, customers end up spending more money and staying loyal to the brand since they know they can easily return anything that doesn’t fit.

Return Fees

Return fees are the costs associated with returning an item, such as return shipping costs or restocking fees.

Be clear about what types of fees your store charges and under what conditions. This will help ensure that customers understand what they are responsible for when returning an item.

For example, you may want to specify that there are no return fees if the item is returned within a certain amount of time or under a certain condition. 

Offering free returns or free return shipping can lead to increased sales and customer loyalty. On the other hand, it may also lead to an increase in return fraud and cost your store a considerable amount of money. 

86% of customers say they’re more likely to come back to an online store that offers free returns, and 75% say that free returns will make them buy more from a store over time.

When deciding whether to offer free returns, consider the associated costs. Depending on the value of the item and the size of the item, you might want to offer free returns on some items and not others.

While it can be costly for your store to cover the return shipping, handling, and restocking costs, it can pay off in the long run since happy and confident customers are more likely to buy from your store again.

Return Methods

In your return policy, define how customers can return their items.

There’s a variety of return methods you can offer, such as shipping back the products, returning them to a physical store location, or donating them.

• Ship With Any Carrier – customers ship items back with a shipping carrier of their choice. 

• Ship With Pre-Paid Label – customers ship items back using pre-paid return labels you provide.

• Return to Store Location – customers bring items to your physical store instead of shipping them back. 

• No Shipment Required – customers keep or donate the items instead of shipping them back. 

Different customers will prefer different return methods. Offering a range of options gives customers the ability to choose their preferred return method, but on the other hand, offering too many options can make it hard to choose.

By offering bonus credits or fees, you can encourage customers to choose the return methods that are most convenient and cost-effective for your store.

• Incentivize customers to choose certain return methods by giving them bonus credit for choosing a certain return method. 

For example, offering an extra 10% for returning products to your store location encourages customers to choose that return method, saving you the cost of handling return shipping and handling.

• Disincentivize customers from choosing certain return methods by charging fees for a certain return method. 

For example, charging a shipping fee for returning products with a pre-paid label can discourage customers from returning products that way, leading them to choose another method that is better for your store.

You can specify return methods in your return policy based on product, location, or customer. 

For example, if your physical store location is in California, you can define that only customers in California will be offered the option of returning their items to a store location.

Return Resolutions

Depending on your store policy, you can choose to offer refunds, exchanges, store credit, or gift cards as return resolutions. Define which option you will offer under which circumstances, as each has its benefits and downsides.

• Refund

The simplest and most common form of return resolution offered by online stores is a refund, which involves refunding your customers for returned items. Refunds are direct and straightforward and are what many people think of first when considering returns.

• Exchange

A great alternative to a refund is an exchange, where customers return their item and get a different one – either a different variant (size, color) or a completely different product. Exchanges can help retain revenue and keep customers.

• Store Credit

Store credit is a return resolution that can keep customers with your store by giving customers account-based store credit which they can use to purchase another item from your store. Store credit keeps customers loyal and retains revenue that might have been spent elsewhere.

• Gift Card

Offering a gift card as a return resolution means that customers receive a virtual gift card with the refunded amount on it, which they can use for future purchases and combine with other gift cards and discount codes. Gift cards are a great way to keep customers loyal to your store without being account-based.

Visit our blog to learn more about refund and exchange resolutions you can offer your customers and the pros and cons of each.

Special offers can incentivize and disincentivize customers to choose certain resolutions. For example, to encourage customers to ask for an exchange instead of a refund, you can offer free return shipping exclusively for exchanges.

Defining exactly what return resolutions you offer and under what conditions lets your customers know exactly what they will receive if they request a return, and what their options are.

Conditions for Accepting Returns

Set clear expectations for your customers by defining what condition items must be in to be returned. Do the products need to be undamaged? With the original tags on?

Make it clear which items are and aren’t eligible to be returned, and what conditions they must be in to be returned.

Specify if products must be returned unopened, in their original packaging, or with the tag still on, and if customers need an authorization number, a shipping address, or a receipt to request a return.

Additionally, define which items are not eligible for a return, such as clearance items, undergarments, or customized items.

Clearly defining the conditions for returning items can help reduce return fraud because people will know that if they try returning something that doesn’t meet those conditions, they won’t receive a refund.

Process for Requesting a Return

Lay out the steps customers will need to take to request a return and what the return process will look like so that customers know what to expect. 

Use a self-service return portal so that customers can easily request returns and you can process them without manually handling emails or phone calls. Within your return policy, include a link to your return portal or explain exactly how customers should request a return. 

Clearly outline all the steps customers need to follow to request a return, as well as what to expect once their return request has been approved, how long it will take for them to receive their refund or replacement item, and what they will need to do with the returned item.

Being transparent about your return process will help build trust with your customers and prevent misunderstandings.

Step 3 – Draft Your Return Policy

Once you’ve decided on and written down your return conditions, it’s time to draft your return policy and put those conditions into a format.

There are two main ways to create a return policy:

1. Use a free return policy generator to automatically generate a return policy.

2. Manually input your return policy into a template.

1. Automatically Generate a Return Policy

ReturnGO’s return policy generator takes the information you give about your return conditions and automatically generates a return policy in a suitable format. 

Automated return policies are quick and convenient, and save you time while ensuring everything has been covered with minimum effort.

The downside to using an automated return policy generator is that you don’t have much control over the layout of the return policy. If you want to customize your return policy to fit your brand style and language, you might prefer to write out your return policy yourself.

2. Write Out Your Return Policy Yourself

If you prefer to write out your return policy yourself instead of using a return policy generator, you can do so without too much difficulty.

The easiest way to write a return policy is to take a layout from a free return policy template. 

With a template as the basic structure, you can customize your return policy by adding relevant sections and adjusting font and color styles.

Make sure to include all your return conditions in a way that makes sense and is easy to understand. Format your return policy with headers and bullet points, and use a clear font that’s easy to read.

Once you’re done writing out your return policy, read through it one last time as if you were a customer, see if there are any questions left unanswered, and add any information that is missing.

Step 4 – Edit and Proof Your Return Policy

After you’ve drafted your return policy, it’s important to review it and make sure it’s clear, easy to read, and reflects your brand.

Use Easy-to-Understand Language

Write your return policy in simple language to make it easy to read. Help customers quickly and easily understand the return process. Customers should be able to look at the return policy and immediately know what to expect from the return process. 

To help customers understand the return process, don’t use confusing jargon or make it too complicated. Your return policy should be clear and concise, explaining your return process in detail without being too long-winded. 

Reflect Your Brand Values and Voice

When writing your return policy, make sure it reflects your brand values and voice. Keep your tone consistent with the rest of your brand, use the same words used on the rest of your site, and use your brand’s colors and fonts.

82% of customers want to buy from stores that share their values. Your return policy should convey your store’s values and priorities and reassure customers that they are in the right place.

For example, if your store has a focus on sustainability, make sure to reflect that in your return policy with green return shipping options or “donate the item” return resolutions.

Having a branded return policy instead of just a generic one makes customers trust your store more and keeps your messaging consistent throughout the customer experience.

Make Sure it’s Scannable

In today’s world of TikTok and Instagram, people’s attention spans are shrinking. If it takes more than a few seconds to scan and understand your return policy page, customers are likely to get discouraged and leave. 

Create a return policy that’s easy to scan. Use bolding, headers, and bullet points to break up the page and make it easy to skim.

Start with the most important information so that even if customers don’t read through the whole policy, they’ll understand the most important points.

Be Clear on the Next Steps

Make it clear what customers need to do in order to return an item. Provide a link to your return portal, and let them know what to expect during the return process.

Explain the steps customers must take to request a return, how long it will take them to receive a refund or replacement product, and what the return requirements are.

After reading your return policy, customers should know exactly what to expect from the return process, without any confusion or misunderstandings.

What to Avoid in a Return Policy

When writing a return policy, it can be easy to overcomplicate things and confuse customers. Here are some common mistakes to avoid when writing your return policy.

Don’t Be Too Technical

Make sure your return policy isn’t too technical. Write as if your customers have never returned an item before – don’t assume they know anything about returns. 

Use clear, straightforward language and break everything down into simple steps. Avoid using technical jargon or terms customers might not be familiar with.

Avoid Ambiguities

Be straightforward and transparent with your customers. Your return policy should be clear and without ambiguity.

Make customers fully aware of the terms and conditions associated with returning a product before they make a purchase. Your return policy should be straightforward with no ambiguity or confusion in what is expected of customers in order to return a product. 

Providing a clear and transparent return policy helps build customer trust and loyalty, as customers are more likely to feel confident in their purchase, knowing they can easily return items if necessary. 

Avoid Grammatical Errors

Make sure your return policy is grammatically correct, as a return policy with grammatical errors is likely to be perceived as unprofessional.

It can make your store appear less trustworthy if your return policy contains grammatical errors.

Use a grammar-checker such as Grammarly to ensure your return policy is error-free.

Make Sure There are No Formatting Inconsistencies

It is important to format your return policy consistently to make it appear professional and to make it easy for customers to understand.

Use consistent capitalization for headings and proper nouns, as well as consistent spacing and list types (bullet points, numbers, etc). You can use formatting such as bolding and italics to make words stand out, but make sure to use them consistently and in a way that makes sense.

Avoid formatting inconsistencies in your return policy as they will reflect negatively on your store.

Step 5 – Publish Your Return Policy

When your return policy is ready, publish it on your store site. Add links everywhere so customers can easily find it. Make it impossible to miss. 

Where to Display Your Return Policy

Display your return policy everywhere you interact with customers. 

Some of the places you can link to your return policy include:

• Website footer
• Website header
• Checkout page
• Emails
• Product pages

Include a link to your return policy in the footer and/or header of your website so that customers can easily find your return policy no matter what page they’re on. 

Additionally, consider including a brief summary of your return policy on each item’s product page, to make it clear what your return policy is before customers place an order.

Make sure that your return policy is clearly visible wherever you interact with customers.

By making your eCommerce return policy easily accessible, you can establish trust and transparency with your customers and ensure a smooth return process.

Step 6 – Implement Your Return Policy

Once your return policy is in place, you need to make sure that you have a system for implementing and upholding it.

An effective way to implement your store’s return policy is by using an automated returns management system such as ReturnGO.

ReturnGO automatically implements your store’s return policy using a self-service return portal, where customers are offered return methods and resolutions based on the return conditions you define in your policy.

Manually implementing a return policy can take a lot of time, effort, and manpower. By automating your returns process, you can uphold your store’s return policy conditions while freeing up your team for other tasks.

Step 7 – Review and Update Regularly

Lastly, it is important to review and update your eCommerce return policy on a regular basis.

Make sure that your return policy is up-to-date, accurately reflects your brand values, and accounts for any changes to your products or services.

By reviewing your return policy regularly, you’ll be able to keep up with changes in your store and customer behavior and ensure that your customers have a positive return experience.

The 7-Step Process of Writing a Return Policy

Before we wrap up, let’s take a moment to review the steps involved in writing a return policy:

1. Prepare to write your return policy

• Decide on answers to questions 

2. Write down your return conditions

• Make sure to include all the conditions

3. Draft your return policy

• Use a return policy generator or a template

4. Edit and proof your return policy

• Make sure it’s clear and formatted correctly

5. Publish your return policy on your site

• Clearly display your return policy anywhere customers will see it

6. Implement your return policy

• Use an automated return system to effectively implement your return policy

7. Review and update regularly

• Keep your return policy up-to-date

Set Clear Expectations With a Well-Written Return Policy

A clearly-defined return policy sets expectations with customers and shows that your business is professional and reliable.

Follow the steps laid out in this guide in order to write an effective return policy that is easy to understand and represents your store in the best way possible.

Include all the information customers need about the return process, including how long they have to return items, what condition the items need to be in, and how they should go about requesting a return.

Writing a return policy can be easier than it seems – by following a step-by-step process and thinking it through carefully, you can create a return policy that drives sales, increases customer trust, and prevents fraud.