Why Track Reverse Logistics Metrics?

Reverse logistics metrics are key performance indicators (KPIs) that measure the efficiency and effectiveness of your returns process. 

They help you track and analyze various aspects of your reverse logistics such as the return rate, the return-to-refund time, the return-to-resale time, the cost of returns, and the environmental impact of returns.

By monitoring and improving these metrics, you can increase profitability, improve the customer experience, and make your business more sustainable.

10 Reverse Logistics Metrics to Track in Your eCommerce Store

Here are some of the key reverse logistics metrics that are important to keep track of for your eCommerce business:

1. Return Rate

The return rate is the percentage of products returned by customers out of the total number of products sold. This metric indicates how satisfied your customers are with your products and how well they meet expectations.

What Should I Look For?

The average return rate for eCommerce is 19%, so if your return rate is far above that, it might mean that your products aren’t meeting your customers’ needs, or that your product descriptions, images, or sizing charts aren’t accurate or clear enough. 

You want your return rate to be as low as possible, as a low return rate likely means that your products are delivering value and quality to your customers, and they don’t feel a need to return things.

How to Calculate Your Return Rate

To calculate your return rate, divide the number of products returned by the number of products sold in a given timeframe. 

For example, if you sold 100 products and 20 products were returned in a month, your return rate would be 20%.

You can also segment your return rate by product category, channel, customer segment, or any other relevant factor to identify patterns and trends. For example, you may find that certain products have higher return rates than others, or that certain channels or customer segments have different return behaviors.

To reduce your return rate, you can:

• Provide accurate and detailed product descriptions and sizing charts.
• Display customer reviews and user-generated content.
• Use product recommendations and personalization.

2. Return-to-Refund Time

The return-to-refund time is the average number of days it takes to process a return and issue a refund to the customer. This metric reflects how efficient your returns process is and how quickly you can resolve customer issues.

What Should I Look For?

Ideally, your return-to-refund time should be as short as possible, as a long return-to-refund time can lead to customer dissatisfaction, frustration, and a higher churn rate. 

Customers expect to receive their refunds as soon as possible after they initiate a return, so a short return-to-refund time can improve customer satisfaction and trust. 

How to Calculate Your Return-to-Refund Time

To calculate your return-to-refund time, subtract the date when the customer initiated the return from the date when the refund was issued. 

For example, if a customer initiated a return on January 1st and received a refund on January 5th, the return-to-refund time would be 4 days.

To reduce your return-to-refund time, you can:

• Automate your returns workflow and processing using ReturnGO.
• Use pre-paid return shipping labels and QR codes.
• Offer instant refunds or store credit.
• Communicate with your customers throughout the returns process.

3. Return-to-Resale Time

The return-to-resale time is the average number of days it takes to resell a returned product after it is received back to your warehouse. This metric shows how effectively you can recover the value of returned products and reduce loss of inventory.

What Should I Look For?

Your return-to-resale time should be as short as possible, as a long return-to-resale time can result in lost revenue opportunities and increased inventory holding costs.

Returned products can be resold quickly to new customers or existing customers who are looking for discounts or deals, and a short return-to-resale time can increase revenue potential, decrease inventory holding costs, and maintain product quality.

How to Calculate Your Return-to-Resale Time

To calculate your return-to-resale time, you need to subtract the date when the returned product was received by you from the date when the product was resold. 

For example, if you received a returned product on January 1st and resold it on January 10th, the return-to-resale time would be 9 days.

You may find that certain products have higher or lower demand than others, or that certain channels are more successful for reselling returned items.

To reduce your return-to-resale time, you can:

• Use inventory management software to track and optimize your stock levels.
• Offer flash sales, discounts, coupons, or loyalty programs to incentivize purchases.
• Resell returned products through alternative channels, such as online marketplaces, outlets, or donation centers.

4. Cost of Returns

The cost of returns is the total amount of money spent on handling returns, including shipping, handling, inspection, repair, restocking, disposal, etc. This metric measures how much returns affect your bottom line and profitability.

What Should I Look For?

A high cost of returns can erode your profit margin by increasing your operational expenses, and returns can also reduce your revenue by lowering your sales volume and average order value. 

By lowering the cost of returns, you can improve your profit margin by decreasing your operational expenses and boosting your customer lifetime value.

How to Calculate the Cost of Returns

To calculate your cost of returns, add up all the expenses incurred by returns in a given timeframe. 

For example, if in a given month you spent $1000 on shipping, $500 on handling, $200 on inspection, $100 on repair, $50 on restocking, and $150 on disposal, your cost of returns would be $2000.

To reduce your cost of returns, you can:

• Optimize your shipping and packaging methods.
• Implement quality control measures to prevent defective or damaged products.
• Use data analytics to forecast demand and supply.
• Implement a reverse logistics strategy to minimize waste and maximize value.

5. Environmental Impact of Returns

The environmental impact of returns is the total amount of waste and emissions generated by returns, including packaging materials, carbon emissions from transportation, landfill space, etc. This metric assesses how much returns affect the environment and climate change.

What Should I Look For?

A high environmental impact of returns can harm the planet by increasing greenhouse gas emissions, deforestation, pollution, and resource depletion.

A low environmental impact of returns can benefit the planet by reducing greenhouse gas emissions, deforestation, pollution, and resource depletion. 

How to Calculate Your Environmental Impact of Returns

To calculate your environmental impact of returns, you estimate the amount of waste and emissions produced by returns in a given timeframe. 

For example, if you shipped 1000 returned products in a month using cardboard boxes and trucks, you can use online calculators or tools to estimate the amount of cardboard waste and carbon emissions generated by these activities.

ReturnGO tracks your carbon footprint and helps you reduce your environmental impact by offering sustainable return methods and printerless return labels.

To reduce your environmental impact of returns, you can:

• Use reusable or recyclable packaging materials.
• Partner with local or green shipping providers.
• Offer incentives for customers to keep or donate products instead of returning them.
• Calculate and offset the carbon emissions of your returns.

6. Return Reasons

Return reasons are the explanations customers provide for why they are returning a product. Tracking return reasons is crucial in reverse logistics for understanding the root causes of returns and taking proactive measures to reduce them.

What Should I Look For?

Pay close attention to the top return reasons provided by customers. Look for recurring patterns, such as common product defects, sizing issues, or inaccurate product descriptions. Identifying these patterns can help you pinpoint specific areas for improvement.

How to Calculate Your Return Reasons

To find your top return reasons, categorize returns by reason, see how often each reason appears, and calculate the percentage for each reason, and the reasons with the highest percentage are your top return reasons.

To calculate the percentage of a return reason, divide the number of returns with a specific reason by the total number of returns, then multiply the result by 100 to get the percentage. 

ReturnGO automates this process, providing in-depth analysis and valuable insights into your top return reasons and products to help you improve your products and processes.

To reduce returns based on your top return reasons:

• Address common product defects by improving quality control and testing processes.
• Provide accurate and detailed product descriptions to set proper customer expectations.
• Display user-generated photos and reviews to help customers make more informed buying decisions.
• Continuously refine your products and processes based on post-purchase customer feedback.

7. Return Volume

Return volume refers to the number of returns you receive within a specific timeframe, usually measured on a monthly basis. This metric provides insights into the scale of operations needed.

Plan staffing, warehouse space, and other logistics to handle your average and peak return volumes. Volume may fluctuate seasonally, with promotions, or as your business grows.

What Should I Look For?

A high return volume can have both positive and negative implications, depending on the context. 

On one hand, it could signify increased sales, as more products are being bought and therefore more are being returned. However, it could also indicate an increased return rate, suggesting potential issues with product quality or sizing. 

Therefore it’s crucial to consider the return volume in relation to the return rate.

How to Calculate Your Return Volume

To calculate your return volume, look at the total number of items that have been returned to your store within a specific timeframe. 

It’s worth noting that you shouldn’t need to manually figure this out, as both your eCommerce store and returns management system can provide you with the relevant information about your return volume.

To reduce your return volume, consider:

• Improving the accuracy of product pages to set customer expectations.
• Conducting thorough quality checks before shipping out orders.
• Collecting feedback to better understand customer needs and pain points.

8. Percentage of Supply Chain Costs from Reverse Logistics

The percentage of supply chain costs from reverse logistics shows you what proportion of your overall supply chain costs go towards reverse logistics activities like transport, warehousing, and processing returns.

What Should I Look For?

A high percentage of supply chain costs related to reverse logistics shows that a significant portion of your overall supply chain expenses are going towards dealing with returns, repairs, and other reverse logistics tasks. This could mean that your reverse logistics process isn’t as efficient as it could be.

The aim should be to strategically lower these costs as much as possible. By optimizing your reverse logistics process, increasing efficiency, and reducing returns, you can effectively control costs while maintaining a high level of efficiency and satisfaction among your customers.

How to Calculate Your Percent of Supply Chain Costs from Reverse Logistics

To calculate the portion of supply chain costs attributed to reverse logistics, determine the total cost of reverse logistics in a given timeframe, calculate the total supply chain costs for that timeframe, then divide the total reverse logistics cost by the total supply chain cost and multiply the result by 100 to get the percentage.

A simple formula would be:

Percentage of Supply Chain Costs from Reverse Logistics = (Total Reverse Logistics Cost / Total Supply Chain Cost) * 100

Here are some strategies you can implement to reduce the portion of supply chain costs from reverse logistics:

• Streamline your return process to quickly assess, categorize, and process returned items, reducing the time and resources needed for reverse logistics.
• Repair or refurbish returned items to bring them back to a sellable condition, which will lower disposal costs and increase the value recovered from returns.
• Set proper expectations for customers in order to minimize the number of unnecessary returns and associated costs.

9. Item Handling Costs

Item handling costs are the amount of money spent on receiving and processing returned items at your warehouse.

This sums up the costs involved in handling a returned item from start to finish, including:

• Shipping
• Inspection
• Storage
• Processing
• Disposal

What Should I Look For?

If item handling costs are high, your returns process may be inefficient. Aim to lower your item handling costs and make sure your process for receiving, inspecting, processing, and disposing of returned items is streamlined and cost-effective.

How to Calculate Item Handling Costs

To calculate the item handling cost, divide the time required to process a return by 60 and multiply it by the hourly wage of the employee who does it. 

For example, if it takes 15 minutes to process an item and the employee earns $10 per hour, then the item handling cost would be $2.50 per item. 

Keep in mind that this formula does not account for other costs such as packaging materials and equipment. Therefore, you’ll need to consider all the factors that affect their item handling costs and decide whether to charge a fee to customers or absorb it as part of your operational expenses.

To lower item handling costs:

• Train your staff well to ensure accurate and efficient processing and minimize errors.
• Automate as much of your reverse logistics process as possible.
• Work with an experienced third-party provider for efficient handling.

10. Pre-Paid Shipping Label Usage

Pre-paid shipping label usage is a metric that assesses the proportion of returns initiated through a pre-paid, automatically generated return shipping label versus customers shipping items back using any other method.

What Should I Look For?

Providing pre-paid return shipping labels drastically simplifies the process for the customer and gives you control over the shipping carrier and shipping costs.

The higher the rate of pre-paid label use, the smoother and more efficient returns are. A low percentage suggests that customers are using alternative shipping methods, which might result in longer processing times and higher costs. Encourage the use of pre-paid return shipping labels.

How to Calculate Pre-Paid Shipping Label Usage

To calculate the usage of pre-paid shipping labels, divide the number of returns initiated using pre-paid labels by the total number of returns and multiply the result by 100 to get the percentage.

For example, if 300 out of 500 returns this month were initiated using pre-paid labels, the return shipping label usage would be (300 / 500) * 100 = 60%.

A simple formula would be:

Return Label Use = (Returns with Label / Total Returns) x 100

To encourage pre-paid return shipping label use:

• Clearly communicate to customers the benefits and convenience of using pre-paid return labels.
• Offer incentives such as bonus credit or free return shipping for customers who use pre-paid labels.
• Integrate with shipping carriers through ReturnGO to automatically generate pre-paid return labels.

Track, Measure, and Optimize

You can’t improve what you don’t measure. Monitoring these key reverse logistics metrics provides the visibility needed for you to streamline your operations.

With an efficient, data-driven reverse logistics process, eCommerce returns become an opportunity rather than a liability. You’ll have happier customers, lower costs, and a higher profit margin.

When it comes to how you provide return labels to customers, there are a number of pros and cons to consider to see if it’s worth providing a return label in the box.

Pros & Cons of Including a Return Label With Orders

Here are some of the pros and cons of including a return label in the box of the original order. 

Keep in mind that the best decision for your business will ultimately depend on your specific needs and priorities.

Pros of a Label in the Box

Some advantages to including returns labels directly in the box when shipping out orders to customers include:

Convenience – Customers appreciate the convenience of having a return label already included in the package. This eliminates the need for them to track down a printer or go to the post office, making it easier for them to return their purchases.

Easy Returns – A return label in the box makes the returns process easy for customers. They can simply stick on the label, pack up the product, and drop it off at the nearest shipping location.

Cons of a Label in the Box

Providing return labels in the box also comes with several disadvantages that you should keep in mind:

High Costs – Including a returns label in the box can add to your costs, as you’ll need to print out a label for every order, even if they don’t return it.

For every order shipped, you’ll incur the cost of including a return label – even though only a percentage of customers actually end up using it. This reduces your profit margins and incurs extra costs that are redundant. 

Those unused return labels represent large amounts of wasted potential revenue which could have covered other business expenses. 

While return labels may provide a more convenient customer experience, the high-cost trade-off is one to seriously consider.

Environmental Impact – Printing out many return labels can have a negative environmental impact by generating a lot of waste. 

Global paper consumption is expected to double by 2060, along with the amount of paper waste. Paper makes up half of the waste generated by businesses.

Therefore, it’s probably not the best idea to be sending thousands of labels straight to landfill every month.

For eco-conscious businesses, these environmental impacts may outweigh the added customer convenience. It’s important to analyze the waste and emissions generated by return labels provided with every order.

Limited Customer Touchpoints – When you include a return label in the box, you’re losing out on an opportunity to interact with your customers. 

Missing an opportunity to re-engage with customers and bring them back to your website is a big sacrifice when using the label-in-box method. 

By receiving a return label in the box with their order, customers have no incentive to provide feedback or communicate about any issues with their order. This eliminates a touchpoint where you could potentially resolve problems, encourage exchanges instead, or rescue the sale.

Reduced Return Insights – You won’t be able to collect as much data about your returns when you include a return label in the box. This data can be valuable for understanding why customers are returning products and making improvements to your returns process.

Some stores include a slip where they encourage customers to share feedback or their reason for return before sending the product back. However, since customers don’t have any incentive to fill out the form, they often leave it blank. Even if they do fill it out, the data then has to be collected and inputted manually, creating a painstaking process to collect the information.

With a manual, offline returns process, you lose out on crucial insights into why items are being returned. Is the sizing off? Do the materials not match the product description? 

A lack of concrete return data makes it harder for you to pinpoint pain points and improve the customer experience.

Lack of Control –  When you include a return label in the box, you lose a level of control over the returns process. 

There’s no way to predict or prepare ahead of time for how many items will be returned within a given timeframe, leaving you to make reactive decisions. 

This lack of visibility into your returns workflows makes it hard to manage warehouse costs and control inventory dynamics.

Is it Worth Including a Return Label in the Box?

When weighing up the pros and cons of including a return label in the box, the cons seem to outweigh the pros.

The costs, environmental impact, lack of customer engagement, and loss of data provide compelling reasons for you to reconsider this strategy. 

While return labels in the box offer short-term convenience for customers, they can hurt your business in the long run through wasted resources and missed opportunities to improve the shopping experience. 

So what’s a better alternative? Print-on-demand labels.

The Solution: Print-On-Demand Labels

Generating return shipping labels on demand is a more sustainable and cost-effective way to handle returns. This way, you only print return labels when they’re needed.

With a print-on-demand return label process, a return shipping label is emailed to the customer when they initiate a return request. 

Advantages of print-on-demand return labels:

Cost-Effective

By generating labels only for actual returns, you avoid paying shipping for unused labels that end up in the trash.

With control over the shipping carriers and service level, you’ll know exactly how much it will cost and how long it will take to receive your returned items.

Generating return shipping labels in real-time significantly cuts label costs and makes returns much more cost-effective.

More Sustainable

Print-on-demand return labels are a far more sustainable option than pre-printed return labels.

Reducing the printing of return labels that aren’t used drastically decreases paper waste and carbon emissions, creating a greener, more eco-friendly solution for returns.

The environmental impact of online shopping is becoming increasingly important to customers, with 83% of customers considering sustainability when making purchases.

Better Customer Engagement & Insights

Offering print-on-demand labels through a return portal can help you boost customer engagement and insights, by collecting feedback from customers when they return products.

Understanding why customers initiate returns provides data that can help you optimize your products and improve the customer experience.

By collecting feedback from customers, you can also learn more about their customers’ needs and preferences, helping you create a better returns process.

How ReturnGO Can Help You Generate Return Labels

ReturnGO is a returns management system that can help you generate return labels on demand using a self-service return portal and a wide range of integrations with shipping carriers.

With ReturnGO, you can easily create return shipping labels, track returns, and collect data about your returns process.

Offer a self-service return portal through which customers can easily request a return or exchange and then receive an automatically-generated pre-paid return shipping label that they can print out and attach to their return package.

Using ReturnGO to automatically generate return shipping labels helps you keep track of your return shipments, collect return reasons and other returns data, and monitor the returns process from start to finish, all in one place.

Print-On-Demand Labels: The Future of Efficient Returns

Automatically-generated return labels are more sustainable, easier to track, and more cost-effective than in-the-box labels.

No matter which approach you choose, it’s important to make sure that you have a clear return policy in place and that you’re collecting data about your returns process. This will help you to improve the returns experience and reduce the number of unnecessary returns.

So if you’re looking for a more efficient way to handle return shipments, use print-on-demand return labels through ReturnGO.

Create a sustainable, convenient returns process that will boost efficiency, reduce return rates, and delight your customers.

What Are Printerless Returns?

With printerless returns, your customers no longer need to print out a physical return label.

The traditional way of returning items was that customers print out a return shipping label, tape it to the package, and drop it off – an inconvenient and wasteful process. 

Printerless returns are where instead of printing out a return shipping label, your customers receive a convenient QR code that acts as their return barcode. They can access it right on their smartphone – no printing, no fuss. 

And the best part? They can drop off their returns at a nearby USPS, Canada Post, or any other designated drop-off location, and the staff member can scan the return barcode right from the customer’s phone, enabling a completely contactless and paperless return.

The Power of QR Codes

QR code technology is truly revolutionizing returns in the retail industry, by storing a large amount of encoded data, so that a QR code can include all the relevant return shipping information.

Offering QR codes eliminates the need for printed return labels, while still providing the shipping carrier with the information necessary for processing the return.

In addition, they provide a mobile-friendly, omnichannel return option that’s ideal for the modern customer. Their flexibility and scalability make QR codes an ideal replacement for static, single-use printed return shipping labels. 

Why Offer Printerless Returns?

In order to fully understand the significance of printerless returns, let’s dive into the benefits of implementing QR code returns.

1. Reduced Barrier for Returns

Offering printerless returns makes it convenient for customers to return items without too much hassle. When the returns process is easy, you’ll gain more trust from your customers and keep them coming back to buy again.

By offering printerless returns, you eliminate the hassle of customers needing to find a printer and deal with printing. Your customers can initiate their return from the comfort of their home, then get their QR code and head straight to the drop-off location.

How to use a QR code for returns:

• After initiating the return, your customers receive an email with their QR code.
• They can open the email on their smartphone and display the QR code at the drop-off location.
• The staff there scan the return barcode, and the return process is set in motion. Simple as that!

2. Enhanced Sustainability

Switching to printerless QR code returns eliminate the need for printed labels and dramatically reduces environmental impact.

Printing shipping labels uses significant amounts of paper and ink, leading to considerable paper waste and contributing to carbon emissions. 

Make your return process more eco-friendly by adopting printerless returns. Eco-conscious customers will appreciate this sustainable approach.

Research shows that more and more customers are actively factoring sustainability into their shopping habits: 78% of customers say their purchasing decisions are influenced by a brand’s environmental practices. 

By offering printerless returns with QR return barcodes, you demonstrate your commitment to sustainability, which can attract environmentally-aware customers and boost your brand image as a socially-responsible company.

3. Convenient and Contactless Experience

In today’s fast-paced world, convenience is king. Customers expect seamless, user-friendly experiences, and that applies to the returns process as well. With printerless returns and QR codes, you can offer your customers the highest level of convenience.

Gone are the days of printing shipping labels and dealing with the logistics of returning a product. By simply accessing a return barcode on their smartphones, your customers can initiate returns effortlessly, without having to print anything. 

By providing a convenient and contactless experience, you can create a positive and memorable impression of your brand. Using QR codes for printerless returns will delight your customers and position your eCommerce store as a leader in customer-centric, forward-thinking practices.

4. Increased Customer Loyalty

Printerless returns with QR codes can play a significant role in enhancing customer loyalty. When the returns process is seamless, hassle-free, and efficient, customers develop trust and confidence in your brand, knowing they can easily return items if necessary.

Moreover, the eco-friendly aspect of printerless returns aligns with the values of eco-conscious customers. By offering sustainable returns options, you attract environmentally-aware customers who appreciate your commitment to making a positive impact on the environment.

Investing in printerless returns and QR codes improves customer loyalty and contributes to long-term customer retention. As you build a loyal customer base, you reduce customer churn and increase customer lifetime value, driving sustainable growth for your eCommerce business.

How to Implement Printerless Returns

ReturnGO seamlessly integrates with various carriers like USPS, UPS, FedEx, and other major carriers that support QR code return barcodes. This functionality enables you to generate QR codes instead of or in addition to traditional return shipping labels. 

When customers request a return or exchange via ReturnGO’s convenient self-service portal, eligible customers will receive a QR code and/or return label directly via email. 

Customers can bring their packages to a participating carrier location, where employees will scan the return barcode from their screen. Offering an omnichannel returns experience ensures maximum convenience, flexibility, and ease of use for your customers. 

By enabling you to provide both QR codes and return shipping labels, ReturnGO helps you cater to a broader range of customer preferences, granting them the convenience and freedom to choose their preferred method. 

Some customers might prefer the digital ease of QR codes, while others may still appreciate the familiarity of a physical, printed return label. 

Take your return management to the next level by offering printerless returns through ReturnGO’s seamless integrations, delighting your customers with flexible return options.

Adopt Printerless Returns for a Competitive Edge

In the rapidly evolving eCommerce industry, offering a frictionless returns experience is essential to maintain a competitive advantage. 

By implementing innovative solutions like printerless returns using QR codes, you can transform the post-purchase process to be more sustainable, convenient, and customer-centric. 

ReturnGO makes implementing a printerless returns solution simple and straightforward. Give your customers the hassle-free returns process they deserve while reducing your environmental impact.

Here’s how you can reduce the carbon footprint of your return shipments by implementing best practices and strategies in areas like packaging, reverse logistics, and product lifecycle.

The Environmental Impact of Return Shipments

Before diving into some of the solutions to carbon emissions from returns, let’s take a closer look at the environmental impact of return shipments. 

Here are some of the main factors that contribute to the carbon footprint of returns:

Volume of Return Shipments

Online shopping has grown exponentially in recent years. Global eCommerce sales reached $5.7 trillion in 2022, and are expected to grow to $8.1 trillion by 2026. The growth of online shopping, however, is accompanied by a high volume of returns. 

The average return rate for online purchases is 20%. The more returns are shipped back, the higher the carbon footprint and environmental impact.

Energy Consumption and Gas Emissions

Shipping products from warehouses to customers and back uses a lot of fuel and electricity, which generate greenhouse gas emissions that contribute to climate change and global warming. 

The biggest source of carbon dioxide emissions (CO2, the most common greenhouse gas) in the US is transportation, accounting for 38% of all greenhouse gas emissions.

Packaging Waste

Packaging materials are essential for protecting products during transportation, but they also create a lot of waste and pollution.

Most packaging materials are made from plastic or paper, which are derived from non-renewable resources and require a lot of energy and water to produce. 

Moreover, not all packaging materials are recyclable or biodegradable, and many end up in landfills or oceans, where they harm wildlife and ecosystems.

Air and Water Pollution

Return shipments have a negative impact on air and water quality by releasing harmful substances into the environment. 

For example, burning fossil fuels for transportation can emit pollutants such as carbon monoxide, nitrogen oxides, sulfur dioxide, and particulate matter, which can cause respiratory problems and acid rain. 

Packaging materials also often leach chemicals or microplastics into the soil and waterways, which can contaminate drinking water sources and aquatic life.

The Importance of Reducing Carbon Emissions

Return shipments have a significant environmental impact that cannot be ignored. 

Reducing the carbon footprint of your return shipments is socially responsible as well as being a smart business decision. 

Some of the benefits of reducing your carbon footprint include:

Mitigating Climate Change

By reducing the carbon footprint of your return shipments, you can help reduce greenhouse gas emissions and slow down the rise of global temperatures and sea levels.

Preserving Natural Resources

Reducing your return shipments’ carbon emissions can help conserve resources and protect the environment, support biodiversity, and ensure resource availability and security for future generations.

Meeting Customer Expectations

Customers are becoming more conscious and selective about the environmental and social impact of their purchases. 

In fact, 78% of customers say their buying decisions are influenced by a business’ environmental practices. 

By reducing the carbon footprint of your return shipments, you can demonstrate your commitment to sustainability, and differentiate yourself from your competitors.

Reducing Costs 

Taking steps to reduce the environmental impact of your return shipments can help you save costs and improve your profitability by optimizing your packaging, streamlining your reverse logistics, and redesigning your product lifecycle.

Strategies for Reducing the Carbon Footprint of Your Return Shipments

Now that you know why reducing the carbon footprint of your return shipments is important, let’s look at some of the strategies that you can implement in your eCommerce business. 

There are 3 main areas you can focus on to reduce your return shipments’ carbon footprint: packaging, reverse logistics, and product lifecycle.

1. Optimize Packaging

Packaging is one of the key factors that affect the carbon footprint of your return shipments. By making your packaging more eco-friendly, you can reduce the amount of materials, energy, and emissions involved in shipping your products back and forth. 

Here are some tips on how to optimize your packaging:

• Use eco-friendly materials – Instead of using plastic or styrofoam packaging materials that are harmful to the environment and difficult to dispose of, use eco-friendly materials that are made from renewable or recycled sources and can be easily reused or decomposed. 
• Minimize the size and weight of your packages – Instead of using oversized or multiple packages for your products, use boxes that fit snugly around your products and minimize empty space. This can help reduce the amount of materials used and the weight of your packages, which can lower your fuel consumption and emissions during transportation.
• Encourage customers to reuse packaging – Instead of throwing away packaging materials after receiving or returning a product, encourage customers to reuse or recycle them. You can also offer incentives for customers who use the original packaging for returns.

2. Streamline Reverse Logistics

Reverse logistics is the process of managing the flow of goods from customers back to merchants. 

By streamlining your reverse logistics, you can reduce the number and distance of return shipments, and improve their speed and efficiency. 

Here are some tips on how to streamline your reverse logistics:

• Use a centralized returns management system –  Instead of manually handling your returns, use a centralized returns management system like ReturnGO that tracks and analyzes your returns data across all channels and platforms. This can help you gain insights into your return rates and costs associated with your returns.

• Implement a flexible return policy – Create a return policy that enables customers to choose the most convenient and sustainable return method (e.g. free returns, prepaid labels, drop-off locations). This can help you reduce the number of return shipments.
• Work with eco-friendly carriers – Work with shipping carriers that offer low-carbon or carbon-neutral delivery services instead of fossil-fuel-based vehicles.

3. Redesign the Product Lifecycle

The product lifecycle is the process of managing the stages of a product from design to disposal. 

By rethinking your product lifecycle and creating a circular economy, you can extend the lifespan of your products, reduce waste and emissions, and create value from your returned products. 

How to make your product lifecycle a circular economy:

• Extend the lifespan of your products – Offer repair, refurbishment, or warranty services instead of discarding or replacing your products when they are damaged.

This can help you reduce the number of products that are disposed of and go to waste.

• Resell returned products – Instead of throwing away or destroying your returned products that are still in good condition, resell your returned products or donate them to charities that can give them a second life.
• Recycle your unsellable products – Recycle or upcycle your unsellable products into new products or materials instead of sending your unsellable products to landfills or incinerators. This can help you reduce the amount of waste and emissions generated by your returns and conserve resources that would otherwise be used to produce new products or materials.

Be Part of the Solution by Reducing Your Carbon Footprint

By implementing best practices in packaging, reverse logistics, and product lifecycle, you can reduce your return shipments’ carbon footprint.

In addition to helping protect the environment and mitigate climate change, you can save money, enhance your brand reputation, and retain customers.

ReturnGO enables you to manage your eCommerce return shipments in a green and efficient manner, reducing your carbon footprint while improving customer satisfaction and retention.

Contact us to learn more about how ReturnGO can help you reduce the carbon footprint of your return shipments.

Here are some things to keep in mind when handling returns of custom-made products on your eCommerce store.

The Challenges of Managing Custom-Made Product Returns

The popularity of customizable products is on the rise. The global custom manufacturing market is projected to reach $1,350.2 billion by 2031.

It is inevitable that with the rise of custom-made products, there also comes an increase in custom-made product returns, which need to be handled differently due to their unique nature.

Managing returns for custom-made products presents unique challenges, including:

Complex Product Specifications

When selling custom-made products, you must be prepared to handle returns resulting from errors in specifications or design.

Customers sometimes return custom-made products due to errors in the specifications or design, which may occur if the customer provides incorrect measurements or if there is a mistake in the production process. 

Correcting these errors requires additional time, labor, and materials, which can add to the cost of processing returns.

Limited Resale Value

Due to their unique nature, custom-made products often have limited resale value, making it harder to recover costs from returned products. 

Since each custom-made product is designed specifically for a particular customer, they can be harder to resell as they won’t necessarily appeal to or suit other customers.

High Production Costs

For custom-made products, production costs are often higher due to the fact that each product is unique. 

Since custom-made products are more personalized and require more attention to detail, they require more time, labor, and materials to create, which raises the cost of production.

As a result, you may find it more difficult to offer free returns to your customers. Free returns have become an expectation for many online customers, and they are often viewed as a competitive advantage in the eCommerce industry. 

Due to the higher production costs associated with custom-made products, offering free returns can be more challenging to sustain.

Complicated Returns Process

The returns process for custom-made products can be more complex than for mass-produced products. Each product is unique and requires careful handling and inspection to determine its condition and resale value, making it more time-consuming and costly to assess. 

The additional time and effort required to handle returns can result in longer processing times and higher costs for your business, and can also impact the customer experience as customers may have to wait longer to receive a refund or replacement product.

Best Practices for Handling Returns of Custom-Made Products

Planning and setting up your returns process strategically is key to effectively managing returns of custom-made products.

Here are some best practices for handling returns of custom-made products:

Set Clear Expectations

Setting clear expectations about the product is crucial for managing returns of custom-made products because it helps to reduce the likelihood of returns due to misunderstandings. 

Since custom-made products are unique and personalized to the customer’s specific requirements, make sure that your customers are aware of the product’s specifications, design, and expected delivery date before they place an order.

To do so, provide detailed product descriptions and images that clearly communicate the product’s features, design, and customization options. 

Check Quality Control Before Shipping

Before shipping a custom-made product, it’s important to conduct rigorous quality control checks, to reduce the chances of returns due to defects or errors. 

Have your team review the product’s design, measurements, and any other specifications provided by the customer, as well as test the product’s durability and quality, before shipping out the order. 

Provide a Clear Returns Process

It’s important to provide customers with clear instructions on how to initiate a return and what to expect during the returns process.

The returns process should be easy and user-friendly to reduce the likelihood of customer confusion or frustration.

Provide customers with regular updates on the status of their return to keep them in the loop and reduce customer support queries.

Create a Specialized Return Policy

Create a clearly-defined return policy that covers all aspects of the returns process, including the timeframe for returns, eligibility criteria, and any associated costs.

By setting a clear return policy, you set clear expectations and customers will have a better understanding of their rights and responsibilities when it comes to returning custom-made products, which can help reduce the likelihood of disputes or misunderstandings and improve customer satisfaction.

Automate the Returns Process for Custom-Made Products

One of the most effective ways to automate the returns process for custom-made products is by using a returns management system like ReturnGO. This can help streamline the returns process by automating tasks such as generating return labels, tracking returns, and processing refunds or exchanges.

Some of the benefits of automating returns for custom products include:

Streamlined Returns Process – Automating your returns helps streamline the returns process, making it faster and more efficient, reducing your team’s workload and freeing up time to focus on other tasks.

Improved Accuracy – Automated systems can help ensure that custom product returns are processed accurately, reducing the risk of errors and inconsistencies in the returns process.

Enhanced Customer Experience – An automated returns process can provide customers with a convenient and hassle-free way to return custom-made products, improving their experience and increasing the likelihood of repeat purchases.

Real-Time Tracking and Reporting – With real-time tracking and reporting, you can monitor the status of returns and identify any issues or trends, helping you optimize the returns process and identify areas for improvement.

By using technology to automate the returns process, you can improve the customer experience and save yourself time and money.

Streamline Your Returns Process for Custom-Made Products

While managing returns of custom-made products can be challenging, with the right tools and strategies it can be done effectively. 

By prioritizing customer satisfaction and using technology to streamline the returns process, you can effectively manage returns of custom-made products and maintain a positive relationship with your customers.

These suppliers hurt dropshippers as they often provide faulty or low-quality products, resulting in numerous returns and refunds. This not only hurts the business’s profitability, but also gives dropshipping a bad reputation.

The negative consequences of unreliable dropship suppliers are not limited to the dropshippers themselves; it also affects the customers who receive faulty products. These customers are often left angry and dissatisfied. This leads customers to leave negative reviews, undermines their trust in the brand, and discourages them from coming back to buy more. 

That’s why it is essential for dropshippers to have a reliable supplier that can consistently provide high-quality products and a positive customer experience.

To help dropshippers avoid returns and refunds caused by bad dropship suppliers, we have developed a research method to select reliable suppliers. By following our method, dropshippers can find trustworthy suppliers who can provide high-quality products and a positive customer experience, which will ultimately lead to greater success in their dropshipping business.

In this post, we will discuss in detail our research method for selecting reliable dropship suppliers and provide helpful tips and insights for dropshippers to avoid returns and refunds caused by bad suppliers.

How to Discover Dropship Suppliers

Before we dive into the research method, let’s talk about finding the right dropship supplier for your business. Before you select reliable dropship suppliers, you need to know where to find them. There are many ways to find dropship suppliers and we are going to reveal the best places to find them.

Method 1: Search Engines

One way to discover dropship suppliers is by using search engines like Google. When you use Google, enter keywords related to your niche so that you can find potential suppliers who offer the products you are looking for. 

You can then create a list of the suppliers that you have found on Google on a spreadsheet to keep track of who you can potentially work with.

Picking out a dropship supplier from the Google search results will allow you to find dedicated dropship suppliers in your niche. However, there are a few problems, such as:

• It is time-consuming – checking out each and every dropship supplier site in the search results is tedious
• You cannot integrate their product directly to your Shopify store – supplier sites normally do not have built-in tools to help you integrate their product directly into your store, so you would have to add their product to your store manually
• Fulfilling orders is manual – every time you get an order, you will have to manually go to the supplier’s site and place the order to dropship. Imagine if you are sourcing from the independent sites of multiple suppliers…it will be a nightmare.

That’s not to say that you can’t work with an independent dropship supplier site you found on Google. But there are certainly other alternatives to make your life easier when sourcing and fulfilling products from your dropship supplier.

Method 2: SaleHoo 

Using a dropship tool like SaleHoo Dropship can make your dropshipping journey a breeze. SaleHoo Dropship offers a pre-vetted list of AliExpress suppliers and allows for easy one-click integration for products to be added to your Shopify store.

Not sure what product to sell? No worries! You can use product research tools like SaleHoo Labs. SaleHoo Labs offers advanced search filters to find hot products to sell, so that you can decide on what hot dropship product to sell before finding your supplier on SaleHoo Dropship. 

SaleHoo Labs Advanced Search Filters

Method 3: AliExpress

Another alternative is Aliexpress. Aliexpress is like a marketplace full of dropship suppliers. So instead of scouring the internet for suppliers, you can just head to Aliexpress and find all of them there.

Aliexpress is a great site to use, but it is also infamous for having a lot of scammy suppliers that can send faulty products to your customers.

Hence, it is best you use Aliexpress alongside tools that filter out the scammy suppliers and leave you with the reliable ones. Tools like SaleHoo Dropship do this.

How to Evaluate Dropship Suppliers

Now that you know where to find dropship suppliers, it is time for you to learn how to evaluate their reliability.

Step 1: Look at Reviews

First, you will want to look at the Google reviews of the supplier. This is so you can check what the experience of others was like working with that supplier. If there are many good reviews, great! You can then proceed with checking out that supplier’s product offering.

When checking out the supplier’s product offering, ensure that the product photos are high quality with detailed descriptions of the product so you know what to expect in terms of product quality.

Step 2: Check Order Count

Take it a step further and take a look at their order count. Ensure that multiple people have ordered from them in the past. This can give you assurance that they have a track record of success fulfilling your particular product. You don’t want to be the first customer they are fulfilling the order for the product you want to sell.

Step 3: Compare Price

Price is also an essential factor in selecting a dropship supplier. Check if the supplier’s prices are reasonable and comparable to competitors. Some suppliers may offer discounts for larger orders, so it is worth exploring this option if it is available.

Step 4: Explore Shipping Options and Times

Timely and consistent shipping times are also essential in ensuring that your customers receive their orders on time. If you are getting a sample, make sure that it arrives on or before the expected shipping time stated by the supplier.

Also, check if the supplier provides multiple shipping options with transparent pricing. 

Step 5: Contact Supplier

The next step is to reach out to potential suppliers to ask questions and gather more information. Inquire about their policies and procedures for returns, refunds, and exchanges.

When in contact with the supplier, you should expect:

• Prompt and professional customer service
• Clear communication
• Quick resolution of issues

It is also essential to confirm their inventory level and their willingness to work with you.

Step 6: Order Samples

Next, you should order samples from suppliers you shortlisted to test product quality, packaging, and shipping times. Then you will know what the customer experience will be like if you dropship with that supplier.

How to Develop Your Brand and Ensure Customer Satisfaction

Transition from Dropship to Wholesale Suppliers

One way to reduce refunds and returns in the long run is to transition from dropshipping to wholesale suppliers. With wholesale, you will have more control over the quality of the products you sell and you can ensure that they meet your customers’ expectations. 

Additionally, private labeling products with dropship or wholesale suppliers can increase the perceived value of your brand and help you stand out from your competitors. If you are looking for Private Label Suppliers, you can find them in supplier directories like the SaleHoo Directory.

Dropship Supplier Offering Private Label Options in The SaleHoo Directory

Ensure Customer Satisfaction

Choosing a reliable dropship supplier is not enough to reduce refunds and returns if you don’t take care of your customers on your end. 

To ensure customer satisfaction, you should provide clear and detailed product information to set expectations with your customers. This can include accurate details of the product. 

You should also respond quickly to customer inquiries and issues and offer transparent return, refund, and exchange policies. 

Being transparent on shipping times is also important to set expectations with your customers. By prioritizing your customers’ satisfaction, you can build a strong brand reputation and increase customer loyalty.

Grow Your eCommerce Business With Reliable Suppliers

Selecting reliable dropship suppliers is crucial for the success of your eCommerce business. 

Doing thorough research and evaluation of potential suppliers is necessary to ensure that they meet your needs and standards.

It’s also important to consider the transition from a dropship supplier to wholesale suppliers as your business grows to reduce refunds and returns in the long run. You can even further increase perceived value by private labeling products. 

Taking these steps will help ensure customer satisfaction and the long-term success of your eCommerce business.

ReturnGO offers easy item validation to streamline the returns process, improve communication between teams, and minimize losses.

What is Item Validation? 

Item validation is the process of checking and verifying the accuracy and condition of returned items. This involves making sure the right product was returned and determining whether the returned item can be restocked.

ReturnGO’s item validation feature lets you have your warehouse team (whether in-house or outsourced) inspect the contents of incoming packages, document the results, and upload images as proof of what was received and its condition.

You can then see the item’s status in your ReturnGO account, enabling you to decide whether to refund and restock the item based on its condition. 

Why is Item Validation Important?

Item validation is an important step in the returns process because it helps ensure accurate returns and streamline communication between teams.

Here are a few reasons why it’s important to validate returned items:

Minimizes Losses

Validating returned items helps minimize losses caused by damaged or unsellable products. 

By verifying the condition of the returned items, you can determine whether they can be resold or need to be disposed of, to prevent losses and reduce the impact of returns on your bottom line.

Streamlines Communication Between Teams

Having a clear item validation process can help streamline the communication between your teams, so that your warehouse team can document the results of their inspection, and your returns management team can issue refunds accordingly.

Additionally, documenting everything in ReturnGO gives you a reliable record for future reference, easily accessible in the RMA details.

Using ReturnGO, you can also automate your returns process to automatically issue the refund or exchange as soon as the returned item is marked as validated.

Improves Inventory Management

Making sure that returned items are recorded accurately can help reduce errors and improve your inventory management.

Item validation can help you track your inventory more accurately, preventing refund and restock mistakes, as well as helping you make better business decisions.

Prevents Return Fraud

Return fraud can be a serious problem, with customers sometimes resorting to creative and deceitful tactics to take advantage of the return process. The item validation feature in ReturnGO can help prevent return fraud and protect your business from financial losses.

Some examples of return fraud include customers attempting to return items that weren’t actually purchased from your store or items that don’t meet your return policy requirements. 

In some cases, customers may even go so far as to send empty boxes, rocks, or completely different products in place of the items they received.

By verifying the condition and purchase history of returned items, you can reduce the risk of fraudulent returns.

“A customer ordered a product from us about two weeks ago. Then we received an email from them saying that our product was faulty. We handled the issue on an urgent basis and said that they would return the product and we would reimburse them accordingly. 

But what came in the package was shocking. It was a bag full of stones and junk that they found in their homes. This came as a concern to us, and we contacted the concerned party, but since then they are nowhere to be found.”

– Guillaume Drew, Founder, Or & Zon

Configuring Item Validation

When the item validation feature in ReturnGO is activated on your account, validating returned items is quick and easy. 

To validate a returned item, simply navigate to the relevant RMA and click the “Validate Items” button. This opens a screen where you can view detailed information about the returned item and mark whether it is the correct item and in good enough condition to be restocked. 

You can also include images and notes about the item to help document any incorrect items or the condition of the returned item. 

The item validation feature helps you make sure that only valid returns are processed and that your inventory is kept up-to-date with accurate information about the condition of returned items.

How Does Item Validation Work?

The item validation process involves verifying that the returned items match the RMA and validating their condition before restocking or disposing of the returned items. 

If you integrate with a warehouse management system (WMS), you can have the warehouse validate the returned items and see that information reflected in ReturnGO.

Here’s how the item validation process works:

1. Verify That the Item is Correct

Validating an item begins with verifying that the returned item matches the information in the RMA. 

Validate each item as it enters your warehouse to prevent items that aren’t what they claim to be from getting through your inspection.

By ensuring that the correct item has been returned, you can avoid processing fraudulent returns and minimize losses.

2. Validate the Item’s Condition

After you’ve verified that the correct item has been returned, it’s time to verify the condition of the returned product. This involves checking whether the item is in good enough condition to be restocked or whether it needs to be disposed of. 

Validating returned items helps make sure they comply with your return policy. Depending on your return policy, there may be different criteria for validating the condition of returned items. 

For example, some stores may require that the product be in its original packaging, not be opened, or not be damaged.

3. Add Images and Notes

After inspecting the item and verifying its condition, you can mark the item as validated and add notes and images as needed. 

You can update the item’s status, add notes about the returned item, and add any images or other documentation related to the validation process. 

By adding detailed notes and documentation, you can make sure to keep accurate records of returned items and improve the accuracy of the returns process.

Use Item Validation to Ensure Accurate Returns

By ensuring that the correct items have been returned and validating their condition, you can minimize losses, prevent return fraud, and manage your inventory more efficiently. 

Use ReturnGO’s item validation feature to streamline the process of receiving returned items and keep detailed records of returned items for more efficient returns management.

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.

ReturnGO enables you to provide a seamless, intuitive return process including convenient pre-paid return shipping labels.

What Are Pre-Paid Return Shipping Labels? 

Shipping back items with pre-paid return shipping labels is a type of return method, together with Return to Store Location, Ship With Any Carrier, and No Shipment Required. As part of your return policy, you can define the return methods you offer depending on customer, order, or item details.

Offering a variety of return options enables customers to choose their preferred return method and streamlines the return process.

With pre-paid return shipping labels, after a return request is submitted, customers receive pre-paid return shipping labels that include the store’s return address along with a barcode or QR code for easy drop-off at the post office.

Once their return request has been approved, you can send customers pre-paid return shipping labels, and all they have to do is print them out, attach them to the package, and send the items back to you.

ReturnGO enables you to generate pre-paid return shipping labels either through direct integration with a shipping carrier such as USPS, Canada Post, or Australia Post, or through a shipping aggregator such as EasyPost, Sendcloud, or Shippo.

Return shipping labels include information such as: 

• Shipping carrier and service type. 
• Sender and recipient information and their addresses. 
• Shipping barcode and/or QR code. 

The return shipping label is scanned at each stage of the delivery until the package reaches its destination. By integrating with shipping carriers and aggregators, ReturnGO receives tracking information about the status of the return shipment and keeps you updated.

Why is it Important to Provide Pre-Paid Return Shipping Labels?

Providing pre-paid return shipping labels has many benefits including convenience, accuracy, and customer satisfaction.

Pre-paid return shipping labels are important because they:

Provide Convenience for Customers

When a customer uses pre-paid return shipping labels, they don’t have to figure out how to ship their returned items, where to send them, or how much it will cost because they are provided that information in advance.

Improve Return Shipping Cost Transparency

Pre-paid return shipping labels provide customers with cost transparency, since the shipping price, including any return fees, is displayed to them at the end of the return request process.

Reduce Errors 

If you don’t provide pre-paid return shipping labels, customers may fill out your store’s return address incorrectly or put the incorrect postage when trying to return a product, which could cause the package to be sent to the wrong place. 

Simplify the Return Process

Providing pre-paid return shipping labels simplifies the return process for customers and makes it easy and simple for them to return items. 

Prevent Waste

Emailing customers pre-paid return shipping labels that are charged when used or generated is much more eco-friendly than including pre-printed return labels with the original shipment.

Pre-paid return shipping labels are a win-win for all sides involved:

• Your store can control which shipping carrier and service level are used for returns, so you’ll know exactly how much it will cost and how long it will take to receive returned items.

• Customers don’t have to worry about figuring out how to ship back their returned items to your location, making it convenient to return items and get updates on the status of their return shipments.

• Shipping carriers have fewer mislabeled return packages to cause issues, making the reverse logistics process more efficient and accurate.

Setting Up Pre-Paid Return Shipping Labels

When setting up your pre-paid return shipping labels in ReturnGO, you can define which shipping carrier is used, your return address (where returned items should be sent), and the package dimensions that must be used.

Connect shipping carriers with your ReturnGO account to generate pre-paid return shipping labels, ship back returns, and keep you updated in real-time on the status of your return shipments. 

Make sure to define under what conditions customers will be offered to ship back returned items with a pre-paid return shipping label. Some conditions you can add include:

• Categories of products.
• The weight of the product.
• The location of the customer.

How do Pre-Paid Return Shipping Labels Work?

Using ReturnGO’s self-service return portal, customers can easily initiate a return request for the items they want to return. Once their return request is approved, customers immediately get the return shipping label from the return portal and by email, which they can print out, attach to their package and send it back with the selected shipping carrier.

Pre-paid return shipping labels are automatically generated based on the weight and dimensions of the items, your return address, and customer information.

Who Should Pay for Return Shipping Labels?

There is no one-size-fits-all answer to whether your store should offer free return shipping labels or charge customers for return shipping. Base this decision on factors such as your store’s return policy, the type of products being returned, and the cost of return shipping. It’s important to consider your eCommerce store’s specific needs before making any decisions.

Unique Types of Return Shipping Labels

ReturnGO offers a lot of flexibility in return shipping labels in order to make the return process as convenient as possible for all sides involved. One of the ways it does this is by offering QR codes on return shipping labels.

QR Codes

QR codes make it easy for customers to return items they’ve purchased without needing to print a return label. Some shipping carriers provide the option of giving customers a QR code that they can scan at the shipping carrier’s office and the clerk will handle the rest.

Use Pre-Paid Return Shipping Labels to Simplify Your Reverse Logistics Process

Pre-paid return shipping labels can help simplify your reverse logistics by making it easy for customers to ship back returned items. Providing pre-paid return shipping labels makes returns easier, more efficient, and more accurate.

ReturnGO enables you to provide a seamless return process including self-service returns and convenient shipping options.

Consider factors such as packaging materials, size, and layout, and provide clear instructions on returns and exchanges. Optimizing your packaging can save you time and money, minimize waste, and improve the efficiency of your reverse logistics. 

Why Packaging Matters for Returns

Packaging is important for returns because it helps protect the product on its way to the customer and prevents customers from receiving damaged products that they would then need to return or exchange. 

Additionally, providing reusable packaging makes it easier for customers to ship back their returned items.

If your packaging is well-designed and easy to reuse or recycle, it can help reduce waste and improve the overall customer experience.

How to Optimize Your Packaging for Returns

Packaging plays an important role in preventing damage from the elements and human error, as well as making it easier to ship and store returned items.

Below are 4 things to consider when it comes to package optimization:

1. Packaging Materials

Consider the material your packaging is made of. Opt for reusable and eco-friendly materials that are durable yet lightweight.

Use reusable packaging – Customers can more easily initiate returns if they receive a product in reusable packaging, as they can simply repackage the product and return it, rather than finding new packaging.

• Reusable plastic containers: Using reusable plastic containers for packaging can make it easier for customers to return items. Just make sure to include clear instructions for how to properly package the items for return.

• Envelopes with peel-and-seal closures: Envelopes with peel-and-seal closures are easy to use and can be used to return small items.

Using packaging materials that are easy to reuse can make it more convenient for customers to send back a return and can also help reduce waste.

Choose lightweight materials – Using lightweight packaging materials can reduce shipping costs and make it easier for customers to handle the package. For example, bubble wrap is lightweight and provides excellent protection for fragile items, and it can also be easily reused or recycled.

Consider the durability of the packaging – Packaging should be sturdy enough to protect the product during shipping, without being excessively thick or bulky. A good example of this is corrugated cardboard, which is strong and lightweight and can also be easily recycled.

Use eco-friendly packaging – Choose materials that are easy to recycle or that have a low environmental impact. Eco-friendly packaging materials, such as recycled paper and biodegradable plastics, have a lower environmental impact than traditional materials and can help reduce waste. 

71% of customers say they’re more likely to buy from stores that package their products in paper or cardboard rather than other materials because they are better for the environment and less wasteful.

It can be helpful to test out different packaging materials to see which ones work best for your products and your customers.

2. Space Efficiency

Space efficiency in packaging is important for reducing shipping costs and minimizing waste. 

One way to ensure that return packaging is space efficient is to use packaging materials that can be easily folded or collapsed. For example, using a cardboard box that can be flattened when not in use can help reduce the amount of storage space needed for return packaging.

3. Packaging Sizes

When it comes to return packaging, it’s important to use packaging that is appropriately sized for the product. 

Using packaging that is too large can create unnecessary waste and increase shipping costs, while packaging that is too small may not provide enough protection for the product during shipping.

A simple way to determine the correct packaging size is to measure the product and add a few inches for cushioning material on all sides. This can help ensure that the product is well-protected during shipment.

4. Order Consolidation  

Multiple returned items can be consolidated into one package to reduce waste and create an eco-friendly return process. By reducing the number of boxes on a truck, transportation emissions are decreased.

Consolidating returns can help streamline the return process since you’ll only have to track and handle one batch of returned items instead of multiple smaller packages.

Benefits of Package Optimization

Package optimization can help you make your reverse logistics easier, more cost-effective, and more customer-friendly. Using packaging materials and design techniques that are appropriate to your product, customer needs, and business objectives will help you optimize your packaging for returns.

More Cost-Effective

Optimizing your packaging for returns and exchanges can lead to more cost-effective shipping and packaging materials.

Shipping costs can be reduced by using lightweight packaging materials and packaging sizes that are appropriate for the returned product.

Reducing waste and packaging usage can reduce the cost of packaging and make your return process more cost-effective. 

Easier Reverse Logistics

Reverse logistics can be made easier and more efficient by optimizing packaging and reducing the number of packages that need to be handled.

Additionally, customers can initiate returns more easily if the packaging makes it easy to repackage the returned items.

By reducing the number of packages that need to be handled and making it easy to repackage returns, your reverse logistics will be more efficient and streamlined.

Less Damage

Optimize the packaging of your products to reduce the chance of the items getting damaged on their way to the customer, which in turn reduces the chance that the items will be returned.

This can be achieved by choosing packaging materials that are both sturdy and able to protect the product during shipping, as well as having enough room for cushioning.

By ensuring your items arrive undamaged to your customers, you can reduce your return rates.

Additionally, providing strong, suitable packaging that customers can use for returning their items reduces the chances of returned items getting damaged on their way back to your warehouse. 

Reducing damage to returned items will reduce the amount of time and money spent on processing returns. 

Better Return Experience

Make it convenient for customers to repackage returns to make the return process easier. Reusable containers and clear instructions on how to package returned items will help provide a better return experience.

Offering prepaid return labels can further simplify the return process for customers and make it easier to return items. By making the return process more straightforward and convenient, you can increase customer satisfaction and loyalty. 

Optimize Your Packaging for Easier Returns

Optimizing your packaging for returns and exchanges can help you save time and money, improve the return experience, and minimize waste. 

Consider packaging materials, size, efficiency, and instructions for returns to streamline the return process and make it more convenient and cost-effective both for your team and your customers.

Take the time to optimize your packaging to increase the efficiency of your reverse logistics and make it easier for customers to send back returned items. 

How Does the Happy Returns and ReturnGO Integration Work? 

The integration with Happy Returns enables you to offer US customers the option to take returns to a drop-off location, known as a Return Bar, instead of shipping them back directly to the store. 

With the Happy Returns integration in place, the drop-off location return process will look like this: 

1. Customers initiate a return through your store’s ReturnGO return portal and choose to return the items at a nearby Return Bar. 

2. Once the return is approved, the customer receives instructions on how to return the items to a Return Bar location. The customer brings the item to a Return Bar of their choice, along with a QR code they receive by email. 

3. The Return Bar processes the return for you, including a Return Bar staffer validating the items being returned.  

4. ReturnGO automatically refunds the customer and/or releases an exchange once the returned items are received and validated at the Return Bar. 

5. The returns are aggregated and shipped to a Happy Returns Return Hub, where they are consolidated and shipped back to your store or warehouse. 

The Happy Returns integration makes it convenient for customers to return items and easy for you to process returns efficiently. 

Setting up the Happy Returns Integration 

You can configure your Happy Returns integration in your return methods settings, where you can create a return method that uses its Return Bars. You can then adjust your return policy to specify when customers are offered the option of returning items to a Return Bar. 

Offering free drop-off returns while charging for returns by mail can encourage customers to choose the return method that costs you the least while providing a positive customer experience. 

In fact, a survey of over 2,000 U.S. shoppers commissioned by PayPal in late 2022 showed that 72% of shoppers reported they are more likely to shop with a merchant that offers in-person returns¹. 

Benefits of Using the Happy Returns Integration 

By integrating with Happy Returns, you can streamline the return process, making it convenient for customers to return items, reducing your shipping costs, and helping to improve sustainability. 

Customer Convenience 

The integration with Happy Returns provides an easy and convenient option for customers to return items. This can lead to higher customer satisfaction, as they are able to return items in a way that is convenient for them.  

More than half of customers prefer an in-person drop-off return method to any other return method, so offering the option of drop-off returns can help increase customer loyalty. 

Many customers don’t have a printer with which to print pre-paid return labels, or don’t like the hassle of repackaging and shipping out returned items. 78% of Americans live within 10 miles of a Return Bar², helping to make the return process with Happy Returns convenient for customers. 

Reduced Shipping Costs 

The Happy Returns drop-off return method can help reduce the cost of shipping returns, as customers can return items in person rather than having to ship their returns back to you.  

By consolidating returns at a central location and shipping them from there to your warehouse, the number of shipments will be reduced. This can lower the overall cost of the returns process, as shipping costs can add up, especially for stores that handle a high volume of returns.  

Drives Sustainability 

Using Happy Returns’ Return Bars is a sustainable return method, as it can reduce the amount of shipping required for returns. This can help lower the overall carbon footprint of your returns process, as shipping contributes greatly to greenhouse gas emissions. 

The Happy Returns integration can also help you reduce packaging waste since customers can return items without cardboard boxes instead of repackaging them for shipping. 

Streamlined Return Process 

With the Happy Returns integration, you can reduce the amount of time and resources required to process returns.  

By having the Happy Returns team validate returned items at the Return Bars, you don’t have to spend precious resources processing mailed-in returns. 

The integration with Happy Returns can also help to improve the accuracy of the returns process, since customers can return items in person and they are validated right away by Return Bar staff who are accepting these pieces. This can help to reduce errors and misunderstandings, which can save time and resources in the long run. 

Using Happy Returns to consolidate your returns can make it easy to track and process them, improving the overall efficiency of the returns process. 

Integrate with Happy Returns to Streamline Your Returns 

ReturnGO’s new integration with Happy Returns makes it easy for you to provide your customers with a convenient and efficient way to return items. 

Given that 72% of customers are more likely to shop with a store that offers in-person returns ¹, integrating Happy Returns with your ReturnGO account can help make returns beautiful for retailers, shoppers, and the planet.   

Get started today to reduce shipping costs, streamline returns, and increase sustainability. 

Sources

1. TRC, commissioned by PayPal, September 8-19, 2022. The research was conducted by TRC, with fieldwork administered by Forsta across 2,002 U.S. consumers who returned an online purchase within the past year (n=2,002). 

2. U.S. Census Data, 2020

How Does the Shipedge and ReturnGO Integration Work?

ReturnGO integrates with the Shipedge warehouse management system (WMS) to sync restocking, receiving of packages, and available inventory levels with your ReturnGO account and online store. 

When ReturnGO creates an RMA, an open return request is generated in Shipedge, which is updated when the return shipment arrives at the warehouse and the returned items are validated and restocked.

The Shipedge integration enables your warehouse team to continue working with the system they’re used to, with return status updates being automatically synced with your ReturnGO account.

Setting Up the Shipedge Integration

Setting up the Shipedge integration with your ReturnGO account is straightforward and easy. Simply navigate to the integrations settings within your ReturnGO account and select Shipedge from the list of available integrations. 

From there, follow the prompts to complete the integration setup process. This includes entering your Shipedge login credentials and providing other relevant information.

Once you’ve completed the setup process, the Shipedge integration will be fully integrated into your ReturnGO account and you can start using it right away. 

Benefits of Using the Shipedge Integration

The Shipedge integration can help you streamline your returns process and improve the efficiency of your warehouse operations by providing real-time tracking, synced information, item validation, and restocking updates.

Return Shipment Tracking

When an item is returned to your warehouse, the shipment status is updated in ReturnGO so you are always in the loop on the status of returned items. 

This enables you to make sure that no items are lost or misplaced during the return process, and you can easily keep track of every returned item.

Item Validation

The integration with Shipedge enables real-time updates to the return status once your warehouse team has scanned and verified these items to ensure that they meet your return policy requirements.

Item validation can reduce the risk of return fraud by verifying each item before it enters your warehouse, preventing items that may not be what they claim to be from making it through your inventory checks. 

Integrating with Shipedge helps you validate returned items on arrival back in order to ensure they are properly accounted for and marked as received.

In the long run, item validation can save your business time and money by preventing return fraud and improving the efficiency of your return process. 

Updated Inventory Levels

The Shipedge integration with ReturnGO helps you update your store inventory when a returned item is restocked in your warehouse.

By updating your store’s inventory in real-time and tracking the status of returned items as they are validated and restocked, the Shipedge integration streamlines your return process and improves warehouse efficiency.

Synced Information

A major benefit of integrating Shipedge into your ReturnGO returns management account is the ability to sync information between your warehouses, ReturnGO, and your store. 

With the Shipedge integration, you can track the status of returned items as they move through your warehouses, from receipt to validation to restocking. This synced information can help you keep your returns process organized and efficient.

Integrate with Shipedge to Streamline Your Returns

With the new Shipedge integration, your store can track return shipments arriving at your warehouses and receive updates on restocking and item validation.

Shipedge enables you to keep everything in sync with the latest information about returned items which saves you time and improves accuracy.

Use the Shipedge integration with ReturnGO to streamline your returns process and increase the efficiency of your warehouse operations.

What’s the Difference Between Free Return Shipping and Free Returns?

While “free returns” and “free return shipping” are often used interchangeably, they don’t always mean the same thing.

“Free returns” means not charging customers for making a return, i.e not charging restocking or processing fees, while “free return shipping” means covering the cost of customers shipping returned items back to your warehouse or fulfillment center. Free return shipping is usually offered by providing customers with a pre-paid return shipping label to attach to their package.

It’s up to you to decide what your store offers. As you make a decision for your store, take into account the pros and cons of offering free return shipping.

Pros & Cons of Offering Free Return Shipping

When considering whether offering free return shipping is the right choice for your store, it’s important to weigh the advantages and disadvantages. On the one hand, 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. 

Consider all the pros and cons before deciding whether to offer free return shipping and if so, under what conditions.

Pros of Offering Free Return Shipping

Free Return Shipping Boosts Sales

Offering free return shipping is a great way to show your customers that you care about their satisfaction and are willing to go the extra mile to make sure they have a positive experience.

Customers are more likely to feel confident making a purchase if they know they can return items with no return shipping charge. This can lead to a higher conversion rate and more loyal customers in the long run. 

Customers Expect Free Return Shipping

79% of customers say that free returns are important to their purchase decisions, so offering free return shipping can help improve the customer experience.

Although 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 can put you at an advantage.

Offering free return shipping reduces friction in the returns process for customers, creating a smoother and more enjoyable customer experience.

Free Return Shipping Increases Customer Loyalty

Free return shipping helps increase customer loyalty and encourage repeat purchases, making it an effective way to boost sales and provide customers with a positive shopping experience.

With free pre-paid return shipping labels, customers can easily return and exchange items without having to pay for return shipping, increasing the likelihood that they will become repeat customers and recommend your store. In fact, 86% of customers say the option of free returns will make them loyal and more likely to keep coming back to a store.

Cons of Offering Free Return Shipping

Offering Free Return Shipping Costs Your Store

While offering free return shipping may help attract more customers and sales, it comes at a cost. 

Many online stores are hesitant to provide free return shipping because of the impact it can have on profit margins. 

Consider the associated costs when deciding whether to offer free return shipping. Depending on the item’s value and shipping costs, you might want to offer free return shipping on some items and not on others.

Free Return Shipping Can Increase Return Fraud

Offering free return shipping can be a potential risk, as customers may take advantage by engaging in return fraud such as bracketing, where customers buy several size or color variations to try at home and then return them, or wardrobing, where customers purchase an item, use it, then return it for a refund.

Return fraud can be costly, as it often results in lost profits, damaged inventory, and reduced customer loyalty. 

Return fraud can be reduced by limiting return conditions as well as identifying and mitigating fraudulent returns using an automated returns management system like ReturnGO.

When Should You Offer Free Return Shipping?

Free return shipping doesn’t have to be all or nothing. There are situations where offering free return shipping is beneficial for your store, and others where the costs might outweigh the benefits. 

Return shipping can be used to encourage exchanges rather than refunds, as a loyalty reward, or as an incentive during the holidays.

Offer Free Return Shipping as a Loyalty Reward

Free return shipping can be a great way to reward customer loyalty and boost customer retention. This kind of incentive encourages customers to stay loyal to your store, as customers recognize that their loyalty is being rewarded. 

Loyal customers are much more profitable to your store than new customers, as the average amount spent per purchase by loyal customers is 67% higher than by new customers.

Providing free return shipping to your most loyal customers is a way of acknowledging their continued support of your business, and is a good incentive for other customers to spend more in order to qualify for this added benefit.

Offer Free Return Shipping on Exchanges

Encourage customers to exchange their items by offering free return shipping only for exchanges. This keeps the revenue within your store and makes your customers more likely to return for future purchases.

Exchanges are an excellent way to maintain and enhance customer relationships, as they can help retain revenue. Customers who have a positive exchange experience are more likely to purchase more items from you in the future, as well as recommend you to their friends and family. 

Offering free return shipping exclusively on exchanges is a great incentive for customers to request an exchange instead of a refund.

Offer Free Return Shipping for Holidays

Providing free return shipping as a special offer during the holiday season can be a great way to increase sales. Limited-time offers of free return shipping could be just the incentive your customers need to make a purchase from your store. 

If you’re planning to offer free return shipping during the holidays, make sure to highlight that in your store’s return policy. 

When Not to Offer Free Return Shipping

It isn’t always worthwhile for your store to pay for return shipping. To mitigate costs, define clear conditions for when you offer free return shipping and when you don’t, based on the value of the item, the size of the item, or any other conditions.

Below a Certain Threshold

When determining which items to offer free return shipping for, consider the cost of the item to your store compared to the cost of return shipping. This can help you make the decision of whether free return shipping is worthwhile for items of that type.

Offering free return shipping on all orders, regardless of size, can be a costly expense that may not be worth it for low-value items.

To help keep costs down, set a limit on the value of items that qualify for free return shipping. 

Oversized or Heavy Items

Due to the high costs associated with shipping oversized or heavy items, offering free return shipping is often not worthwhile.

Oversized or heavy items require special packaging and handling, as well as additional labor and storage space, which can all drive up the costs of return shipping. It may be more cost-effective to offer a discount or credit to customers instead of absorbing the cost of return shipping for oversized or heavy items.

Boost Customer Satisfaction With Free Return Shipping

So should your eCommerce store offer free return shipping? That’s up to you to decide, after weighing up the pros and cons.

While there is an extra expense associated with covering return shipping costs, it can pay off in the long run since customers that feel secure and happy with their purchases are likely to come back and buy from your store again.

It’s important to consider all the factors carefully before making a decision for your store about who pays for return shipping. Fortunately, ReturnGO makes it simple to set up endless conditions for returns and return shipping, so that the return process is as convenient and stress-free as possible.

What Are Return Methods? 

Return methods instruct the customer on what to do with the products they’re returning or exchanging.

You can define a variety of return methods such as shipping back the products, returning them to a physical store, or donating them.

Return methods are part of your return policy, so you can define which return methods customers will be offered depending on the customer, order, or item details.

For return methods that involve shipping the items back, ReturnGO enables you to integrate with shipping carriers to manage your return shipments and generate return shipping labels.

Why Are Return Methods Important?

Defining your return methods is important for creating a smooth return process.

Different customers will prefer different methods of returning their items, and setting up a variety of options gives them the choice and streamlines the process.

Make the return process as seamless as possible for both you and your customers, to save you time and money and ensure that your customers have a positive return experience.

Transparency and clarity are essential for a smooth return process, so make sure that your customers know what to do with the items they’re returning and give them a choice of return methods. 

Setting Up Return Methods

You can define the different return methods as well as the conditions under which each return method is applicable.

Define how customers should return items to your physical store location, where they can donate the items, and how they can ship them back.

For shipping back returned items, you can set up integrations with shipping carriers and shipping aggregators such as Shippo, USPS, Shipstation, and Sendcloud which will be automatically notified about return shipping requests and can handle the return shipping for you. 

Each return method has information, conditions, and email notifications you can customize to match your store’s requirements.

You can encourage customers to select a particular return method by offering a bonus refund for choosing it, or by imposing a fee on return methods you don’t want them to select.

What Types of Return Methods Can You Set Up?

There are 4 main types of return methods you can set up. Each has its advantages and disadvantages as well as conditions that can be defined for its use.

Ship With Any Carrier

The Ship with Any Carrier return method lets customers ship the item back with a shipping carrier of their choice. 

When customers choose this return method, they will receive an email containing instructions for how to ship back the item (address, packaging limitations, etc). You can fully customize these emails with your brand colors, logo, customized texts, and return address.

Customers can bring the items they’re returning to the post office or send them back however they prefer.

When you receive the returned items at your location (warehouse, fulfillment center, store, etc), you can update the status of the return request in the ReturnGO system to reflect that the items have been received/restocked.

Ship With Any Carrier is the most flexible return method, enabling customers to ship back the returned items however is most convenient for them, while all you have to do is receive the items back at your location.

Ship With Pre-Paid Label

The Ship with Pre-paid Label return method lets you generate pre-paid return labels for your customers for shipping their items back. 

ReturnGO generates pre-paid return shipping labels through your 3rd party shipping carrier, which you can integrate and link with your ReturnGO account. 

Customers who select this return method option will receive an email containing a pre-paid return shipping label, which they can print out and attach to their package when returning the items. 

You can either charge your customers for the pre-paid label or offer free return shipping and absorb the cost. This return method is the best way to offer free shipping, which can be used as a reward, incentive, or compensation.

79% of customers say that free returns are important when shopping online, so providing free shipping on returns will make your store stand out and help you build customer loyalty.

Ship with Pre-Paid Label is a convenient return method for customers, as they don’t have to figure out getting a return shipping label; all they have to do is print it out, stick it on, and mail out the item.

Return to Drop-Off Location

The Return to Drop-Off Location return method lets customers bring returned items to a physical location instead of shipping them back. 

This return method can be particularly beneficial if you have a physical store location, as it saves the cost and hassle of return shipment and processing.

Return to Drop-Off Location is also a more eco-friendly return method as it reduces transportation and therefore carbon emissions for each return.

Integrating with a sustainable provider such as Happy Returns enables you to have customers drop off returns at designated Return Bars. Happy Returns enables you to consolidate return shipments and save customers the hassle of printing return labels and packaging the items.

More than half of customers prefer an in-person drop-off return method to any other return method, so offering the option of drop-off returns increases customer loyalty. 

By offering the option of drop-off returns, you can provide customers with a convenient and eco-friendly way to return items, while saving you the cost and hassle of return shipments.

No Shipment Required

The No Shipment Required return method lets customers keep the items with no need to ship them back. You can have customers donate the item they want to return, or just keep it. This return method is useful in cases where it’s not worth the cost and hassle of receiving the returned item.

By eliminating the shipping, processing, handling, and restocking of returned products, your store can save on reverse logistics costs and reduce the environmental impact of returns.

The No Shipment Required return method is useful for products you can’t resell and is based on customers’ purchase history, the value of the products, and the cost of processing the returned products.

As processing the return of bulky items like furniture, appliances, and mattresses is often not worth the expense, it can sometimes be more cost-effective to let customers keep them or donate them to a good cause.

Incentivizing Specific Return Methods

You can incentivize or disincentivize customers to choose certain return methods by giving them extra credit for choosing certain return methods and charging for others.

For example, providing an extra 10% for returning the product to your store location makes customers more likely to choose that return method, saving you the cost of handling return shipping and processing.

Use Return Methods to Streamline Your Reverse Logistics Process

Setting up different return methods and providing incentives to customers to choose certain ones will simplify your returns and streamline the return process.

Offering a choice of return methods can improve the customer experience and streamline the returns process, as each return method has its own benefits that will appeal to different customers.

Provide customers with information on their return options and what they will need to do to return items, so that they can enjoy a hassle-free return process.

There are a variety of reasons for split shipments, including having inventory stored in different places or not being able to fit everything into one box. Split shipments cost money, generate environmental waste, and are generally an inefficient way to ship out orders. 

Let’s take a closer look at split shipments and how to reduce them.

What are Split Shipments?

A split shipment is when an order of multiple products is sent in a few separate shipments. The customer receives multiple packages even though they ordered everything together.

Why are Split Shipments Used?

Sending out an order in separate shipments can happen for the following reasons:

Products are Sent From/To Different Locations

Products may need to be shipped from a few different warehouses/fulfillment centers or at different times, and customers may request to receive different parts of their order to separate addresses.

An order of multiple products may need to be fulfilled from two fulfillment centers if one doesn’t have enough stock to fulfill the entire order. This gets the products to the customers more quickly, instead of waiting for one fulfillment center to get more inventory.

Similarly, if the products for the order aren’t all ready at the same time, you can ship them in parts, starting with the items that are ready.

Another reason for split shipments is when customers want to split up their orders to be sent to multiple addresses. While many customers will create separate orders for each location, some customers may want to purchase a few products in a single order. This is particularly frequent during the holiday season when people are buying a lot of gifts.

The Items Won’t Fit into One Package

You might want to split your shipments when dealing with heavy or large products – equipment, furniture, etc.

For example, an order of four watch straps will usually fit into a single package. Conversely, if you order two couches, you wouldn’t expect to receive one huge box containing both. It would make more sense for them to come in two separate boxes because each product is so big and heavy. 

When calculating your packaging size and weight, you also need to make sure to leave space in the box or package for dunnage and protective materials, especially when shipping fragile items.

Another thing to take into account is that different shipping carriers have their own rules and limitations, such as maximum weights and heights for shipments. 

The Downside of Split Shipments

Some of the main reasons you would want to avoid eCommerce split shipments include:

Packaging Waste

Shipping a few boxes instead of one wastes packaging, which can be a big issue for brands who want to be eco-friendly.

Even when using eco-friendly packaging, regularly sending out split shipments isn’t environmentally conscious.

83% of customers consider the environment when making purchase decisions, and shipping multiple packages separately might not sit well with those customers who care about shopping sustainably.

Shipping Costs

Sending out split shipments ends up costing more since you (or the customers) are paying for transportation to the same location twice or more times per order.

Another factor to take into account is that depending on where the separate shipments are sent from, the final cost to the same destination may change based on shipping zones.

How to Reduce Split Shipments

Optimizing your supply chain can help you reduce the need for split shipments.

Here are some steps you can take to reduce eCommerce split shipments:

Have Enough Products in Stock

Making sure not to run out of stock will reduce your split shipments.

In order to make sure you always have enough inventory in stock, you can track:

• How much inventory you have at each fulfillment center.
• How much time you have to reorder each product before running out.
• How your inventory is affected by seasons and sales.
• How much money you can save on shipping by moving your inventory to a different fulfillment center.

In addition, you can ensure you always have the relevant products on hand by recommending products to your customers that can only be fulfilled from the same location as the main item in their order. By consolidating the order, you can reduce the packaging and shipping costs.

Spreading out your inventory across your different fulfillment centers can improve your shipping costs and times. Avoid running out of stock by planning ahead and tracking your inventory.

Understand Customer Behavior Patterns

Improve your eCommerce logistics process and provide a better customer experience by understanding your customers’ shopping behavior patterns.

Think through the following questions:

• Where are most of your customers located? 
• Can you distribute your inventory to multiple fulfillment centers?
• Which products are often bought together? 
• How often do customers come back and buy again? 

It’s important to understand how your customers shop in order to adapt your inventory and shipping processes accordingly.

If certain products are often purchased together, you can group them as bundles and increase your average order value. Or if you have repeat customers purchasing the same products frequently, it might be worth offering a subscription plan.

You can also consider giving customers a choice of consolidating all of their ordered products into one shipment. Customers may choose to wait longer to receive everything together instead of getting several separate shipments.

For example, Amazon lets customers choose to receive multiple orders together at a later time rather than automatically getting the fastest shipping method. 

Streamline Your Shipping

From packaging to inventory management, it’s important to understand why split shipments are used and how to reduce them.

Reducing split shipments saves you money, reduces waste, and makes your supply chain more efficient.

Many of the products that you get returned are probably in great condition and can be resold online as “used”. Reselling returned products online is called reCommerce. 

What is reCommerce?

Reselling used products online is known as reCommerce.

More and more eCommerce retailers are reselling used products online. In fact, 50% of second-hand sales are expected to come from online resale by 2024. 

There are many leading eCommerce companies that have online reCommerce outlets. For example, Best Buy has an online outlet where it sells open-box appliances, and HP has an online outlet with refurbished computers and more.

What are the Benefits of Reselling Returned Products?

The benefits of reselling your returned products include making money on otherwise wasted inventory and increased sustainability since products are reused rather than discarded. 

Affordability

Handling returns is costly – from return shipping to returned inventory handling. Reselling those returned products saves you money and makes your eCommerce store more profitable.

With return rates at an all-time high, and many eCommerce stores offering free returns, you lose money twice on shipping for every returned item, as well as on handling costs, warehousing costs, and more.

By reselling your returned products, you can help to offset the costs associated with returns and keep your online business running smoothly.

Customers often return products because they change their minds or receive an item that doesn’t match their expectations. Rather than throwing away the products and losing money, you can resell them if they’re in good condition.

For example, if a customer orders a pair of jeans that don’t fit right, and returns them for another size, those jeans are still in great condition. The jeans could easily be resold, regaining some of the money you lost on the processing and shipping.

So is it worth reselling your returned products? Think about it this way – if you don’t resell those returned products, where will they go? 

If the answer is to the garbage dump, or to sit on your warehouse shelves for an indefinite period of time, it’s definitely worth putting them up for sale again instead of losing money on wasted products. 

Sustainability

There’s a high environmental cost to eCommerce returns. “Easily, 25% of all these returns get destroyed,” says Jason Goldberg, chief commerce strategy officer at Publicis and founder of RetailGeek.com. By reselling returned products you contribute to sustainability and reduce the environmental impact of returns.

Product returns in the US generate an estimated 27 million metric tons of carbon emissions and 9.6 billion pounds of landfill waste each year.

Reselling returned products creates a circular economy that reduces a lot of the environmental impact of returns.

Demand for the production of new products can be reduced by recycling and reusing used products. Producing fewer new products reduces raw material consumption, factory energy consumption, and landfill waste accumulation.

Fashion is a particularly important industry in this regard. It’s no secret that fast fashion causes significant damage to the environment.

Although reCommerce doesn’t completely eliminate fast fashion, it can cushion it by reselling pre-owned clothing and accessories that are in good condition, preventing them from going to landfills and making your eCommerce store more sustainable. 

How to Resell Returned Products

70% of customers say it’s easier to shop second-hand than ever before, thanks to the growth of technology and online marketplaces.

There are many ways you can resell your returned products – in bulk, on third-party reCommerce sites, to liquidation companies, and more. 

Two of the simplest strategies for reselling your returned products are directly on your site or through a third-party reCommerce service.

Add a reCommerce Section to Your Site

An easy way to resell returned products is to add a reCommerce section to your online store. 

Resell returned items at a discount through a ‘sale’ or ‘used’ category on your website. This provides easy access for customers seeking used and discounted products.

For example, Best Buy has a section of its online store dedicated to used, clearance, and refurbished products.

When listing returned products on your website, be honest about the condition of the products, and include high-quality images so that customers know exactly what they’re buying.

Another thing to consider when reselling products is what your return policy is for returned products. Some online stores don’t offer returns at all for used products, some offer a restricted return policy, and some offer the same return policy as regular products. 

When defining your used products return policy, make sure your eligibility conditions for returns are clear and that your return policy is noticeably displayed on the product page, checkout page, and in confirmation emails to your customers.

Use a Third-Party reCommerce Site

An alternative to reselling returned products yourself is using a third-party reCommerce service. If you want to resell your returned products but don’t know where to start, third-party reCommerce sites can help you streamline the process by listing your returned products on all the best resale platforms and getting you the best price.

Track and manage your reCommerce listings in one place, with full transparency and control.

The Positive Impact of reCommerce

Take a moment to think about the way your online store handles returned products and consider whether it’s worth reselling returned products. 

Reselling returned products through reCommerce is becoming a more and more popular solution for returned inventory, and the online resale market is estimated to skyrocket in value to $50 billion by 2026. 

Start reselling the products your customers return to recover costs and make your online store more sustainable.

Processing returns can be expensive, time-consuming, and labor-intensive, but you don’t have to handle it all yourself. 

One way to make the eCommerce returns process easier is by outsourcing your reverse logistics to a company that specializes in transportation, handling, and restocking. These external logistics companies are called Third-Party Logistics providers (3PLs). 

Using a 3PL is becoming more and more prevalent – 40% of retailers use a 3PL to handle returns. Read on to see if using a third-party logistics provider might be a good idea for your business too.

What is a 3PL?

Third-Party Logistics (3PL) companies manage inbound and outbound shipments and fulfillment. 

With a 3PL you can automatically generate return shipping labels, track return shipments, and be sure that returned products are processed and restocked or disposed of appropriately.

When customers return an item, it arrives back at the 3PL warehouse. The 3PL team inspects the item and lets you know that the refund or store credit is ready to be processed on your end. Once they’ve assessed and confirmed the item is resellable, they place it back on the shelf to fulfill a future order.

Why Use a 3PL?

Using a third-party logistics provider to manage your Shopify store’s reverse logistics can save you both time and money.

Having an efficient reverse logistics solution facilitates fast and easy returns, making customers more likely to exchange or buy again. Efficient resell, recycling, and disposal solutions also help your store recover product value.

Since reverse logistics is such an important part of every eCommerce business, it’s a smart choice to assign this process to a fitting type of service provider.

Scalability

You don’t necessarily know how much warehouse space you’re going to need months and years down the line. 

A 3PL can relieve some of the guesswork that comes with the expansion and contraction of your business by offering flexibility as you grow or experience setbacks. Need more space? It’s there. Need fewer hands on deck? Consider it done.

When you use a 3PL you can easily scale your Shopify business while mitigating some of the financial risks.

Quality Control

Inspecting returned items can be delegated to a 3PL that provides dedicated staff members who decide if items should be discarded, recycled, or restocked, based on your store’s conditions.

3PLs are also responsible for maintaining your inventory through cycle counts, labeling, and reporting. By handing over your inventory to the care of a 3PL, you can relax knowing your products are being taken care of.

Fast and Easy Returns

When it comes to fast shipping and easy returns, Amazon is one of the first companies that come to mind. One of the reasons Amazon is able to offer easy and convenient returns is because they have strategically-located warehouses all over the world.

You too can streamline your returns process and make returns easy by having a 3PL handle your inventory using their network of warehouses.

Take Deliverr for example, a 3PL that Shopify recently acquired, which has an interconnected network of warehouses that enables you to easily receive returned items all across the country. Being able to quickly and efficiently receive and process returns anywhere in the country gives your eCommerce business a huge advantage over others.

A streamlined returns process encourages repeat business, brings down your expenses, and reflects well on your store. Just like fast shipping can increase sales, so can efficient returns.

Package Tracking

The best 3PLs provide you with a complete tracking system and comprehensive returns management abilities. You’ll be able to know exactly when items were received, assessed, and restocked.

Integrating a 3PL into your returns management system lets you efficiently handle the entire returns process from start to finish, and have all the relevant information synced up at all times.

Knowing what’s going on with your returns at any given time can give you peace of mind and enable you to focus your time and energy on other tasks.

How to Choose the Best Shopify 3PL for Your Store

When choosing a 3PL reverse logistics provider for your Shopify store, there are some key features to consider.

• Number of Locations
  Choose a 3PL that has multiple fulfillment centers strategically spread out across the country – the more the better. 
  
  Having a wide network of warehouses makes it quicker and easier to receive return shipments, making your whole process more efficient.

• Ease of Integration
  The best Shopify 3PLs will be easy to integrate into your store and other eCommerce management apps so that you can easily manage every aspect of your returns process in one place. 
  
  Integrating your 3PL with your Shopify store helps streamline your reverse logistics and simplify your workflow. 

• Usability
  Your Shopify 3PL should have an easy-to-use interface that provides real-time notifications and detailed reporting so that you can track all your return shipments and make sure everything is in sync at all times. 
  
  A user-friendly 3PL app saves you time and money and reduces human error.

Before starting to work with a 3PL, research Shopify 3PLs, read reviews, and compare information to make sure you’re choosing the best possible 3PL for your Shopify store.

How to Work With a 3PL for Returns Management

Effectively working with a 3PL provider for returns management requires a clear understanding of the process, the roles and responsibilities of each party, and the steps needed to establish and maintain an effective partnership. 

Here are the key steps of working with a 3PL provider for reverse logistics management, including defining roles and responsibilities, establishing clear processes and protocols, setting performance expectations and metrics, building collaborative relationships, and continuously improving processes. 

By following these steps, you can effectively work with a 3PL provider and ensure that your returns process goes smoothly:

1. Establishing Processes and Protocols with Your 3PL

To work effectively with a 3PL for returns management and reverse logistics, it’s important to establish clear processes and protocols upfront. Set expectations for the following:

• Define roles and responsibilities – Clearly define the roles and responsibilities of your business and the 3PL provider. This will help to minimize confusion and ensure that everyone understands their role in the reverse logistics process.

• Establish procedures for handling returns – Outline the procedures for how returns will be handled, from the moment the item is received by the 3PL to the point when the refund is issued. 

Be sure to include details on how items will be inspected, how refunds will be processed, and how customers will be notified of the status of their return.

• Detail the technology and tools to be used – Determine the technology and tools that will be used to manage the reverse logistics process, such as inventory management software and communication tools. 

Make sure that both your business and the 3PL are using the same tools to minimize errors and miscommunications.

2. Setting Performance Expectations and Metrics

To ensure that your 3PL is meeting your business needs, it’s important to establish clear performance expectations and metrics. 

Identify goals that you would like to achieve, such as:

• Identify key performance indicators (KPIs) – Identify the KPIs that will be used to measure the 3PL’s performance, such as the time it takes to process a return or the accuracy of the inventory tracking system. 

Be sure to clearly define each KPI and how it will be measured.

• Establish clear goals and expectations – Clearly communicate your goals and expectations to the 3PL, including what you expect in terms of turnaround time, accuracy, and customer service. 

Make sure that the 3PL understands your business’s priorities and how they can support those goals.

• Monitor and assess performance – Regularly monitor the 3PL’s performance against your established metrics, and be prepared to provide feedback and guidance as needed. 

Establish a process for addressing issues that arise and a plan for making improvements over time.

3. Collaboration and Relationship Building with Your 3PL

A positive and collaborative working relationship with your 3PL is key to effective reverse logistics management. 

• Establish open communication channels – Set up clear and effective communication channels with your 3PL, such as regular check-in calls or a shared project management tool. Make sure that both your business and the 3PL know who to contact with questions or concerns.

• Build trust and rapport – Invest in building a positive and collaborative relationship with your 3PL. This may include visiting their facility, attending industry events together, or hosting joint training sessions.

• Address conflicts and issues – Be prepared to address conflicts and issues that arise in the course of working together. Establish a process for escalating issues and a plan for resolving them.

4. Evaluating and Optimizing Your 3PL Partnership

To ensure that your 3PL partnership is meeting your business’s needs over the long term, it’s important to regularly evaluate and optimize the partnership. 

• Review and assess performance regularly – Schedule regular performance reviews with your 3PL, and be prepared to provide feedback and guidance. Use this feedback to make adjustments and improvements to the partnership over time.

Track metrics such as the number of returns processed, the cost of returns, and customer satisfaction levels. By identifying areas where performance can be improved, you can take action to address those issues and optimize your returns process.

• Identify and address bottlenecks in the process – To continuously improve your reverse logistics, identify and address bottlenecks in the returns process. This may include delays in receiving and processing returns, inventory management issues, or communication problems with customers or the 3PL provider. 

By identifying and addressing these bottlenecks, you can streamline the reverse logistics process and reduce costs.

• Stay up to date with industry trends and best practices – Staying up to date with industry trends and best practices can help you continuously improve your reverse logistics process. You can do this by attending industry conferences and events, reading trade publications and blogs, and networking with other eCommerce store owners and managers. 

By staying informed about the latest trends and best practices, you can identify new opportunities to optimize your reverse logistics process and stay ahead of the competition.

Outsource Your Returns Process

Why should you do everything yourself when you can simply outsource the hassle of handling returns?

Just as you pay to use internet service instead of going all around the world and laying down wires by hand, you can outsource reverse logistics.

Your eCommerce success is greatly affected by the extent to which you understand and anticipate trends and innovations in returns. The future of eCommerce returns undeniably relies on third-party logistics.

ReturnGO easily integrates with a variety of 3PLs such as Deliverr to optimize your reverse logistics and make sure returns are handled quickly and effectively.

Outsource your reverse logistics to a 3PL and focus on doing what you do best – running your growing business.

The big benefit of print-on-demand products is that every order is custom-made and tailored exactly to each customer’s needs. However, each order being unique also makes returns and exchanges an exceptional challenge, since products can’t easily be returned and resold to another customer.

Since print-on-demand returns pose such a unique challenge, it is important to learn how to handle them effectively, as returns play a key role in providing a positive customer experience.

The Challenge of Print-On-Demand Returns

Returns can be a hassle if you’re a print-on-demand seller because it can reduce your profits, especially if you can’t resell the product. 

Communicating clearly with your supplier and having a well-defined POD return policy can prevent a lot of return requests due to misunderstandings. 

6 Tips For Handling Print-On-Demand Returns

Knowing how to handle print-on-demand returns gives you a huge competitive advantage since they’re a type of return that has more elements to take into consideration.

Here are some tips to help you handle print-on-demand returns more effectively:

1. Clearly Communicate Your Return Policy

It’s important to have a clear and concise return policy in place for your print-on-demand products, to set expectations for your customers regarding the returns process.

Fit the Policy to the Product

Return policies for print-on-demand (POD) products are different from those for regular products. 

Your POD return policy should include:  

• Who is responsible for return shipping 
• Return conditions
• Supported return types
• Return time frame

Your return policy should be suited to the types of print-on-demand products that you offer. 

For example, you might decide that if your customer receives a damaged, misprinted, or faulty product you will refund or replace it, however, if your customer simply changes their mind after placing the order, they won’t be able to replace the item.  

Consider the types of products you sell and whether they can be resold. Make it clear how the POD product may look different from how it appears on the listing page. 

Clearly Display Your Return Policy

After creating your POD return policy, post it everywhere. Put it in the FAQ section of your site, in product descriptions, on the checkout page, and in confirmation emails.

Having a clear return and exchange policy for print-on-demand products helps your customers know what to expect in the case of an incorrect or damaged product, and reassures them that they are making the right choice by purchasing from your eCommerce store. 

According to a UPS study, 66% of customers will review a store’s return policy before buying, so it’s important to make it clear and easy to find.

2. Verify Your Supplier’s Return Policy

As part of creating your store’s POD return policy, find out what your print-on-demand supplier’s refund policy is. 

Supplier Refund Options

Check whether your supplier offers partial refunds for returned products and exchanges, whether they can resell returned products, and whether they accommodate exchanges and returns. Your return policy will be largely influenced by your POD supplier’s policy. 

Supplier Restocking Fee

Many POD suppliers don’t charge for returned products if they are undamaged. 

If your supplier does have a restocking fee and you choose to have your customers be responsible for that fee, make sure to communicate the restocking fee price and conditions in your POD return policy.

Supplier Shipping Policy

Your print-on-demand supplier may have different policies regarding shipping. Depending on the situation, they might prefer to send a replacement product before receiving the returned item, or delay sending the replacement until receiving the returned item.

Additionally, if the returned item cannot be resold, your supplier may not want to receive the item back at all. 

In such cases, you may choose to refund the customer or replace the product and have the customer keep the damaged or incorrect product since you won’t have anything to do with the returned product.

Make sure your store’s shipping policy is compatible with your POD supplier’s shipping policy and clearly communicated to your customers.

3. Define Return vs Exchange Options

Explain what return resolutions you offer, and under what circumstances. When do you accept exchanges, and when only refunds?

Specify Exchange Turnaround Time

Be clear on exactly how your print-on-demand exchange process works, how long the process is expected to take, and whether or not the return shipping is free.

Decide on Return and Exchange Conditions

Determine which POD products require a return and which can be handled through an exchange or store credit. 

Depending on the product, and whether it can be resold or not, you might decide to send a replacement product or issue a refund without requesting the old one to be returned.

4. Simplify Your Returns Process

Simplifying your POD returns process can help you provide a positive customer experience, increase customer loyalty, and reduce the costs associated with managing returns.

Automate Your Returns

Automating your returns process can be particularly beneficial when it comes to handling print-on-demand returns. 

Since each POD product is unique and custom-made for the customer, processing returns can be more complex and time-consuming than with regular products. 

Here are some ways in which automating your returns process can help you handle POD returns more efficiently:

• Self-service returns – Using a self-service return portal, you can let your customers select which item they want to return and how they want to handle the return, and then easily manage your returns on the back end using a returns management dashboard.

• Better accuracy – Automating your returns process can help you ensure that each return request is processed accurately, helping you avoid errors and reduce the risk of unhappy customers.

• Improved communication – Return automation can improve your communication with customers, with automated emails sent to customers to confirm the return request, provide updates on the status of the return, and notify them when the refund or exchange has been processed.

By automating your returns process, you can handle print-on-demand returns more efficiently and provide a better customer experience. 

5. Track Return Trends

Tracking your returns data can help you identify patterns and common issues with your print-on-demand products. 

By analyzing the reasons for returns, you can gain valuable insights into what customers are looking for in a product and where your products may be falling short. 

This information can help you improve your POD products in the following ways:

• Identify product quality issues – By tracking returns, you can identify recurring quality issues with your print-on-demand products such as poor material quality or printing errors. 

• Improve product descriptions – If customers are frequently returning products due to incorrect sizing or fit, it may be necessary to improve your product descriptions to provide more detailed sizing information.

• Identify design flaws – Tracking returns can help you identify design flaws that may be causing customers to return products. 

• Increase customer satisfaction – By improving the quality of your POD products and product descriptions, you can increase customer satisfaction and reduce the likelihood of returns. 

By using this information to improve your product descriptions and products, you can reduce returns, increase customer satisfaction, and ultimately improve your bottom line.

6. Reduce Return Requests

By implementing strategies to reduce returns, you can improve the efficiency and profitability of your business while retaining revenue, increasing customer loyalty, and reducing restocking and shipping costs.

Here are some tips for reducing the number of return requests that come in:

• Provide detailed product descriptions – Make sure your product descriptions are accurate and include all the relevant information about the product, such as materials, sizing, and customization options. This can help customers make informed purchasing decisions and reduce the likelihood of returns.

• Use high-quality materials – Use high-quality materials to produce your print-on-demand products. This can help ensure that the products are durable and meet customers’ expectations.

• Conduct quality control checks – Conduct thorough quality control checks on all of your products before shipping them to customers. This can help catch any defects or issues before the product is shipped.

• Provide clear customization instructions – If your print-on-demand products are customizable, make sure the instructions for customization are clear and detailed. This can reduce the likelihood of returns due to errors or misunderstandings.

• Offer samples – Consider offering samples or swatches of your products or materials to help customers make informed purchasing decisions. This can help reduce the likelihood of returns due to customers not liking the product or materials.

By implementing these tips, you can help reduce your return requests and improve the overall efficiency of your print-on-demand business. 

Streamline Your Print-On-Demand Returns Process

Managing print-on-demand returns can present a unique challenge. However, by implementing effective strategies and taking proactive steps to prevent return requests, you can reduce the negative impacts of returns and improve the overall efficiency and profitability of your business.

Whether it’s providing accurate product descriptions, using high-quality materials, automating the returns process, or tracking return trends, you have various options to manage returns effectively. 

By prioritizing customer satisfaction, providing an excellent customer experience, and incentivizing repeat business, you can maintain positive relationships with your customers and build customer loyalty.

While managing returns for print-on-demand products can be complex, investing in effective strategies and taking a customer-centric approach can create a positive and efficient business model that sets you apart from competitors.

Running a dropshipping business has the advantage of having lower costs and risks than a traditional eCommerce business. Nearly 33% of eCommerce retailers use the dropshipping fulfillment model. Even though dropshipping can be a great way to run your business, you must consider how not handling inventory hugely affects the returns process.

Refunds and returns are sometimes requested due to an order being fulfilled incorrectly or failing to meet a customer’s expectations. Knowing why returns happen, how to deal with them, and what policies to put in place can help you streamline your Shopify store’s dropshipping returns process.

Handling Dropshipping Returns

Having a process in place for handling returns as quickly and efficiently as possible is important when running a dropshipping business. Having a well-defined return policy helps customers know what to expect, and streamlines your returns management process.

Depending on the types of products you’re dropshipping, you may choose to have returns shipped back to your warehouse as opposed to straight to the supplier, or you may prefer customers to keep returned items instead of shipping them back.

Given that dropshipping returns can be more complex than standard eCommerce returns, it’s important to plan ahead and develop a policy that suits your business model.

Set Expectations with an Effective Return Policy

Having a clear and easy-to-find return policy is important to provide customers with all the information they need to be confident in buying from your Shopify store. 68% of online shoppers read the return policy before making a purchase, so having a clear return policy is essential.

Find Out Your Supplier’s Return Policy

Before you create your store’s return policy, check with your dropshipping supplier what their policy is. If they charge restocking or shipping fees or have a limited time frame for returns, those are important for you to consider when writing your store’s return policy.

Find out which products can be returned and under what conditions, any extra fees they charge, and how they handle the return process.

Working with several dropshipping suppliers can complicate things since each supplier will have a different policy. You can formulate a general return policy that covers everything, or alternatively, you can set up an automated Return Portal with all the different conditions and settings automatically in place.

Create Your Return Policy

Your store’s return policy lets your customers know what items they can return, how long they have to request a return from the date of purchase, and what kind of compensation they’ll receive. It’s important to specify any additional fees such as shipping fees and restocking fees so that customers know what to expect.

Important things to include in your return policy:

• Eligibility Conditions – The conditions items must be in to be eligible to be returned.
• Returns Solutions – The return solutions you offer – refunds, exchanges, store credit, etc.
• Return Time Frame – How long the return window is and how long to expect to wait before receiving a refund/replacement product.
• Return Instructions – The steps customers need to take in order to request a return.

Simplify the Returns Process

Dropshipping returns may be initiated because customers are unhappy with the order they received, or simply ordered the wrong item. It’s important to be prepared for the different situations you may encounter so that you can plan accordingly and take action to streamline your returns process.

Here are a few of the main reasons customers request a return:

Common Return Reasons

The customer ordered the wrong product or size/style

Customers will often order the wrong size or accidentally order the wrong product altogether. It might be a replacement part for the wrong model, or clothes that don’t fit. Since the customer can’t see and touch the products before purchasing when shopping online, it is easy to order the wrong thing.

It is not uncommon for people to purchase a few different sizes or styles of a product with the intent of returning anything that doesn’t fit. The best way to handle this is by having a good return policy that facilitates easy returns while offering incentives to exchange instead of just returning items for a refund.

The product doesn’t match the description

If a product doesn’t match its description, you might have made a mistake when writing the product description and uploading images, or your supplier may have given you incorrect information.

Regardless of whether the mistake was yours or your supplier’s, it’s your responsibility to offer a satisfactory solution to keep your customers happy.

The customer received a damaged or defective product

When you run a dropshipping business, you don’t have much control over the quality of your products. When a customer receives a defective product, it’s your responsibility to compensate them and make sure they remain satisfied. 

By exchanging their order or offering store credit plus an additional bonus, you can keep their business without giving them a refund and potentially losing them as customers.

The product arrived too late/the customer no longer needs it

Depending on how long it takes for the order to arrive, customers may no longer need the product. They might have purchased the product somewhere else, or a change in their circumstances may have made it no longer necessary.

For customers to know when to expect their orders, it is best to provide delivery estimates, real-time updates, and tracking codes.

The wrong product was sent

It may happen that a customer receives the wrong product. This might happen due to mistakes when manually inputting orders to be sent to dropshipping suppliers, or during dropshipping fulfillment. It’s possible that the supplier packed the wrong product, or the wrong shipping label was applied to the package.

In these cases, the customer is not at fault and it’s important to make up for the inconvenience by sending the correct item or providing a refund.

Coordinate the Return Process

When a customer wants to return a product, the dropshipping return process will look something like this: 

1. The customer contacts you and requests a return. 
2. Find out why they want to return the product. Assess the return reason and calculate the costs involved.
3. Determine a suitable solution, such as a full refund, product exchange, or store credit.
4. The customer sends the product back to your supplier and notes the RMA (Return Merchandise Authorization) number.
5. The supplier confirms the return and refunds your account for the cost of the product or sends out the new product if issuing an exchange.
6. You refund the customer or update them about the delivery of the replacement product.

Throughout the return process, always be polite to your suppliers and customers, as maintaining your relationship with them is important.

Streamline Your Dropshipping Returns

How your dropshipping store manages returns has a huge impact on both customer loyalty and sales. 

In summary, it’s important to: 

• Set expectations with a clear returns policy. 
• Coordinate with your dropshipping supplier to ensure that the return process goes smoothly.
• Communicate with your customer and do what you can to keep them happy.

Another great way to make your returns process more efficient is using a return management system. An automated returns system helps you keep track of returns, send automated updates to customers, and coordinate shipping labels and fees.

There is more to shipping than simply sending packages to customers. A good shipping process can drive more sales, improve your brand image, and increase customer loyalty.

3 Shipping Mistakes Many eCommerce Merchants Make

Shipping is one of the most important components of eCommerce. Due to the rapidly growing popularity of online shopping, customer expectations are rising. 

We’ve highlighted three common mistakes it’s easy to make when it comes to shipping, and how to avoid them in the future.

1. Not Paying Attention to Packaging

Your packaging is essential to pay attention to because it is your customers’ first physical contact with your store.

72% of customers believe that product packaging plays a crucial role in their purchasing decisions, with 81% seeing it as an important factor when buying gifts.

Show that you’re looking to be sustainable by avoiding mixed material packaging (such as plastics and paper) for easy recycling – something which is very important to customers.

Aesthetically-pleasing packaging can actually lead to more sales. Brightly colored packaging, tissue paper, and custom-printed boxes are more likely to be shared on social media, thereby reaching more people (aka potential customers).

1 in 5 customers admits to watching unboxing videos on YouTube or Instagram, which means many of your customers will see how your products are packaged before even visiting your website.

Another packaging issue to consider is the size of the boxes you use. One size does not fit all. Smaller packages are cheaper to ship, but if packaged incorrectly can compromise the contents’ protection. By adjusting the size of your packaging to the item you’re shipping, you save yourself money and reduce waste.

Using low-cost and low-quality materials can lead to breakages, resulting in your customers receiving a damaged product. Damaged products lead to more product returns and lost profit. Make sure your packaging will fully protect your products throughout the delivery process. 

By creating an exceptional shopping experience through your packaging, you build your brand and attract more customers that are looking for something special.

2. Not Regularly Comparing Shipping Costs

Save money by taking the time to research your shipping costs. Depending on the shipping carrier you use, you may be charged extra for things like weekend delivery, fuel surcharges, delivery signatures, and residential delivery charges. 

Understanding your shipping fees in advance ensures that you pay for exactly what you want.

You will find that shipping costs are constantly changing, and you may be able to find cheaper options as time goes on.

There are two ways to handle changing shipping costs:

1. Constantly switch shipping carriers to avoid overpriced shipments.
2. Speak to your current shipping carrier about matching the price you were offered.

Your current carrier is likely to want to keep your business and therefore is likely to match their competitor’s price. This is ideal as it’s much less complicated than constantly switching delivery services.

By keeping up to date with shipping costs, you can adjust your product prices accordingly, maintaining a good profit while offering your customers cheaper prices.

3. Not Outsourcing the Shipping Process

Efficiency is essential in the eCommerce world.

Many eCommerce stores choose to outsource order fulfillment to a Third-Party Logistics (3PL) provider. 3PLs can take over a wide range of your fulfillment services such as warehouse and inventory management, packing, shipping, and reverse logistics.

A full-service 3PL typically manages a network of warehouses and fulfillment centers, as well as supplying the labor, materials, and technological systems to fulfill online orders efficiently. 

Outsourcing your shipping process to a 3PL gives you access to advanced fulfillment capabilities that would be difficult or expensive to manage on your own.

Using a 3PL saves you time and money and provides higher-quality results.

Conclusion

Having a streamlined shipping process can help drive sales, create customer loyalty, and save time and money.

Everything from your package design to your shipping carrier can have a significant impact on your bottom line and on your customer experience.

Constantly keep looking for ways you can improve your shipping process and reduce costs.

To successfully manage cross-border eCommerce, you’ll need to understand the challenges, opportunities, and considerations associated with expanding your business into the international eCommerce market.

What is Cross-Border eCommerce?

Cross-border eCommerce is the movement of products across international borders to be sold and purchased online. 

Over the past few years, cross-border eCommerce has gained a lot of traction. The cross-border B2C eCommerce market was worth around $785 billion in 2021 and is estimated to reach approximately $7.9 trillion by 2030.

Managing cross-border eCommerce can be challenging as it involves numerous factors such as handling international payments, ensuring timely delivery, navigating complex regulations, and managing returns and refunds for international customers.

By understanding the complexities of cross-border eCommerce, you can successfully and sustainably expand your business to global markets.

How Does Cross-Border eCommerce Work?

Cross-border eCommerce involves selling products online to customers in different countries, which requires complex localization, marketing, payment processing, shipping and logistics, returns management, and customer support. 

It involves navigating various challenges, such as language and cultural barriers, shipping and logistics complexity, payment processing fees, and legal and regulatory issues. 

Successful cross-border eCommerce requires careful planning and attention to detail to meet the unique needs and expectations of customers in different markets.

Benefits of Cross-Border eCommerce

Cross-border eCommerce has many benefits, including the opportunity to increase revenue, gain a competitive advantage, and raise brand awareness.

Increased Revenue Opportunities

Cross-border eCommerce provides the opportunity to expand your customer base and generate additional revenue. 

By selling products to customers in different countries, you can tap into new markets and access a larger customer base. 

This can be particularly beneficial for businesses in saturated markets, as it offers new opportunities for growth and revenue.

Diversification of Revenue Streams

Cross-border eCommerce helps you diversify your revenue streams by reaching new markets and customer segments. 

This gives you the opportunity to explore new market niches and gain access to customers with different preferences and buying behaviors.

By selling to customers in different countries, you can reduce your dependence on any one market or customer segment, protecting you from economic downturns or other external factors that might affect sales in a particular market.

Increased Brand Awareness

Cross-border eCommerce can be a powerful tool for building brand awareness and recognition around the world.

By expanding your reach to new markets, you can increase your visibility and credibility on a global scale. 

Building global brand awareness can help you establish a strong brand identity and reputation, which can translate into increased sales and customer loyalty over time.

Competitive Edge

Cross-border eCommerce is becoming increasingly important for businesses that want to stay competitive in a global marketplace. 

With the rise of eCommerce and digital technologies, customers have more options than ever before. 

Through cross-border eCommerce, you can build a competitive edge by providing customers with a convenient and accessible way to purchase and return products from anywhere in the world.

Cross-Border Returns for eCommerce

Cross-border returns can be a complex and challenging aspect of cross-border eCommerce. In order to provide a positive customer experience, you need to have a clear and effective return policy in place that is designed to address the unique challenges of cross-border transactions. 

When creating your international return policy, make sure to consider factors such as the cost and logistics of shipping back products from different countries, as well as any regulatory or customs requirements that need to be met.

Automation makes a big difference when it comes to tracking returned products and managing inventory for cross-border returns. Use a returns management system such as ReturnGO to automate your cross-border returns and streamline your operations.

The ability to process international returns effectively can have an enormous impact on customer satisfaction and your bottom line.

Challenges of Cross-Border eCommerce

Cross-border eCommerce comes with its own unique set of challenges, such as processing returns, complying with international laws, and understanding the cultural nuances of the target markets.

Navigating International Laws

It is challenging to navigate international laws while complying with complex and varying regulations in different countries, including customs duties, taxes, and fees. 

To handle this challenge, make sure to find out what laws apply to your store, especially regulations regarding return policies, shipping laws, and payment restrictions.

You can also work with logistics providers and legal experts who can help you navigate these regulations and ensure compliance.

Language and Culture Barriers

Communication can be challenging when dealing with the language and cultural barriers of customers around the world, who may have different needs and expectations based on their cultural backgrounds. 

76% of customers prefer to buy products that have information in their native language, and 40% won’t buy from websites in other languages.

Offer multilingual support and tailor your marketing materials and customer service interactions to the needs and expectations of different cultures.

International Payment Processing

Accepting payments from customers located in different countries can be complex and expensive due to differences in payment methods, currencies, and regulatory requirements. 

To effectively manage international payment processing, use payment providers who offer secure and efficient payment processing solutions that comply with national and international laws.

Logistics and International Shipping

Cross-border eCommerce presents unique logistics and shipping challenges due to the complexity of managing and coordinating shipments across different countries, customs regulations, and carrier options. 

Shipping costs, transit times, and customs clearance processes can also vary greatly depending on the destination.

It’s important to use reliable and experienced international shipping providers or 3PLs that comply with the different shipping regulations, customs procedures, and delivery processes in different countries. 

Cross-Border Returns

Cross-border returns can be a challenge in cross-border eCommerce due to the additional complexity and costs involved in managing international returns. 

Unlike domestic returns, cross-border returns require the coordination of return shipping while international shipping costs, transit times, and customs processes can vary greatly depending on the location. 

In addition, different countries may have different regulations regarding return policies and customs duties, which can further complicate the process.

In order to address this challenge, create a clear cross-border return policy that outlines the conditions and costs associated with international returns. This return policy should be easily accessible and prominently displayed on your website. 

International Customer Service

It is challenging to provide international customer service in cross-border eCommerce due to language and cultural barriers as well as differences in time zones and communication preferences. 

Customers from different countries may have varying expectations for customer service and prefer different communication channels. 

Additionally, language barriers can make it difficult to understand customer needs and resolve issues effectively. This can lead to misunderstandings and delays in response times, resulting in a poor customer experience.

To handle the challenge of international customer service, invest in customer service resources that are specifically designed to support international customers, such as hiring multilingual customer service representatives or using translation software to improve communication. 

Expand Your Reach with Cross-Border eCommerce

Cross-border eCommerce is an excellent opportunity to expand your customer base, increase revenue, and gain a competitive edge.

It’s important to understand all of the complexities and nuances of managing cross-border eCommerce, such as international shipping, regulations, taxes, and payment methods.

Having the right strategies in place and the appropriate technology to support them can help you take advantage of the opportunities that cross-border eCommerce offers.

For those looking to start a dropshipping store in 2021, there’s good news and bad news…

The bad news is, you’re unlikely to become as rich as Amazon guru, Jeff Bezos. But the good news is that despite the dropshipping market being somewhat saturated, there’s still potential to make a decent income from it.

What actually is dropshipping?

Dropshipping refers to an order fulfillment strategy where you sell products on your site while the stock is held by the supplier elsewhere. The supplier takes care of everything after you’ve received an order; from packing the items to shipping the goods.

Why is dropshipping so popular?

There are so many benefits to having a dropshipping business, rather than buying in stock to sell. Here’s just a few:

There are no risk or start-up fees

The biggest draw to starting a dropshipping store is the limited risk that’s involved in setting up. With dropshipping, you don’t need to invest in stock beforehand, so there’s very little upfront cost. So, you can set up your store, find a dropshipping partner, and get selling. If it doesn’t work out, you don’t have to worry about getting rid of leftover stock or wasting money.

You can work from anywhere

As someone else is handling the logistics of your store, you can set up camp anywhere in the world. Take a trip to Dubai for a few months and work from the beach, or head out for a ski trip in the alps and keep your business ticking over while you’re away. Dropshipping gives people the flexibility to really live the life they want, while still earning money. It’s also a great business model for families or single parents who want to be able to work from home and save money on childcare.

There are endless niches to explore

Whether you start off as a small jewelry company and grow into an all-singing-and-dancing fashion store, or want to focus on tech gadgets, homeware or more, there’s a dropshipping partner for just about anything. It’s best to start off with a niche so that you can work on attracting a certain customer, and then build from there.

Two huge niches to consider if you’re starting your own dropshipping business is health or eco-friendly goods. The environment and sustainability are a huge trend that isn’t going to slow in momentum anytime soon, so this is a great niche to explore in 2021.

Are there any downsides to dropshipping?

Of course, with all good things, there are some downsides – especially after 2020 where many people set up their own businesses as a new source of income in uncertain times. So, what are the downsides to dropshipping?

Not everyone will succeed

In fact, Dropshiplifestyle suggests that almost 90% of new dropshipping businesses fail within the first three months. That’s a pretty scary number, so it might be worth having a backup plan just in case.

The industry is hugely competitive, especially with the likes of Amazon, eBay, and AliExpress only becoming more and more advanced. And the secret to their success? Always having the lowest prices. But when you’re just starting out, you need to build a good sales reputation with partners in order to unlock cheaper prices. So why would a customer buy from your store when Amazon is cheaper? This is why it’s crucial to have a niche and market yourself to your fullest ability.

Profit Margins Are Quite Low

Dropshipping products are typically quite cheap to buy, which means there’s not a lot of profit per product. If you mark up the product too high, you’ll likely deter customers. Too low and you’ll be losing profits. Both you and the manufacturer are looking to make a profit, so finding the right balance for cost efficiency is the key to success.

Take for example and an eco-friendly bamboo toothbrush holder. The manufacturer might make the product for $1.5 and charge you $3. If you want to make a profit, you’ll need to charge $4-6 which could seem pretty expensive considering other stores will offer it for cheaper.

Delivery Times Are Quite Long

While the manufacturer handles the logistics, you’ll of course need to pay for it. Many manufacturers will be based in China, which means you can expect long delivery times and expensive shipping. Often, the average time for delivery is 21 days, which is pretty long when competing with the likes of Amazon. If you want to offer your customers free delivery to compensate for the delay, you’ll also need to add the price of shipping into the product price, which could add a few dollars.

It’s difficult to fix customer complaints

If a customer doesn’t receive the item they’ve ordered, or it arrives broken, they’ll be looking at you for a refund – not the manufacturer. With dropshipping, you have very little control over quality assurance and shipping, so customer complaints can be hard to fix and will often end in a refund.

There are some dropshipping partners that will require you to pay to set up and access their product range. These suppliers tend to be more trustworthy; their products are of higher quality and their shipping is more reliable. If you have a small amount of money to invest in a dropshipping partner when starting up, this is highly recommended.

The key to dropshipping success

The real secret to dropshipping success is your brand image. Marketing and customer service will all tie into creating a great brand reputation that will help you build loyalty within your customer base. By handling complaints professionally and quickly, advertising your best products, and producing beautiful content that really sells your inventory, you’ll be able to build your own brand and grow your business.

What Is Reverse Logistics?

Reverse logistics is the process of return and disposal of products. When a customer returns an item to your eCommerce store, the reverse logistics process is what happens to the returned item, from receiving the returned item, inspecting it to ensure it meets the return conditions, and deciding how to dispose of or resell the item. 

Managing reverse logistics can be quite complex since it involves coordinating returns from all over and managing the logistics of getting the returned items back to your warehouse.

Optimize your reverse logistics process to improve the customer experience and handle returns efficiently.

What’s the Difference Between Reverse Logistics & Forward Logistics?

The difference between reverse logistics and forward logistics or traditional logistics is that forward logistics involves getting products to the customer, while reverse logistics deals with managing the return of products from the customer. 

Reverse Logistics Management

Effective management of reverse logistics includes managing returns and exchanges, reselling returned products, repairing items, disposing of or recycling items, and more.

Returns and Exchanges

One key aspect of reverse logistics is managing returns and exchanges of items. When a customer returns an item, the reverse logistics process includes receiving the returned item, inspecting it to ensure it meets the return conditions, and processing the return or exchange.

In order to ensure that your returns and exchanges are efficient and customer-friendly, use a returns management system like ReturnGO to establish clear return policies, provide a self-service return portal for customers to request returns and exchanges, track return requests, and keep customers informed about the status of their returns.

Reselling Returned Products

Reselling returned items that are in good condition can minimize waste and reduce return handling costs. 

When customers return items because they change their minds or receive an item that doesn’t match their expectations, you can resell them instead of throwing them away and losing money.

Some of the simplest ways you can resell returned products include:

• Reselling items on your site – Resell returned items at a discount through a ‘sale’ or ‘used’ category on your website. This simplifies the process for customers looking for used or discounted products. For example, Best Buy has a section dedicated to used, clearance, and refurbished products on its website.

• Using a third-party resell site – Resell returned items through a third-party resell service. Third-party services help you streamline the resale process by listing your returned items on various resale platforms and getting you the best price.

• Selling returned items to liquidation companies – Sell your returned items to liquidation companies, which are third-party companies that specialize in buying and reselling excess or returned inventory.

Reselling returned products is becoming a more and more popular solution for returned inventory, and the online resale market is estimated to skyrocket in value to $50 billion by 2026. 

Repairs

In some cases, returned items can be repaired instead of disposed of. For example, an electronics store may repair a returned smartphone and resell it. Repairs maximize the value of returned items and reduce waste.

The benefits of repairing damaged returned items include:

• Increased value – By repairing returned items, you can increase their value and generate additional revenue by reselling them. This can be especially helpful if you have a lot of returned items that are in good condition but don’t meet resale standards. 

• Reduced waste – Repairing returned items can help to reduce waste by ensuring that these items are put to use rather than being disposed of. By repairing items that don’t meet resale standards and reselling them, you can reduce waste.

Disposal and Recycling

Some returned items are not suitable for resale or repair. It’s up to you how your store will dispose of the items in these situations. Depending on whether the item is recyclable or not, it can be recycled or disposed of in an eco-friendly manner.

There are several ways your store can discard returned items, including:

• Landfill disposal – A common way to dispose of returned items is to send them to a landfill. However, landfill disposal can have a negative impact on the environment, as it contributes to pollution and waste.

• Recycling center – Another option is to send returned items to a recycling center, where they are processed and recycled. This is a sustainable and eco-friendly option, as it can reduce waste and minimize the impact on the environment.

• Incineration – In some cases, returned items may be incinerated, which involves burning them to produce energy. This can be an efficient and cost-effective way to dispose of returned items, however, emissions from this process are harmful to the environment.

Disposal and recycling play an important role in the reverse logistics process, as they help to minimize waste and ensure that returned items are managed in a sustainable way.

Should Reverse Logistics be Outsourced?

Many parts of the reverse logistics process can be outsourced to save you time and money and streamline your reverse logistics management.

Warehouse management systems (WMS) can help with everything from receiving, validating, and restocking returned items, to keeping track of your inventory levels, and more.

Third-party logistics (3PL) providers can help you manage all the logistics of returns, from return shipping to warehouse management and more.

A returns management system like ReturnGO is the number one way to outsource your reverse logistics process. ReturnGO enables you to easily track and manage every step of your return process, from self-service return requests to integrating with shipping carriers and warehouse management systems.

Benefits of outsourcing your reverse logistics:

Costs

When you outsource reverse logistics, you can often do so at a lower cost than if you managed it internally, as you can benefit from economies of scale and the expertise of specialized services.

Outsourcing your reverse logistics can help you save on operational costs by reducing the need to invest in your own warehousing, transportation, and other resources to manage returns. 

Capacity

If your eCommerce store doesn’t have the necessary resources or infrastructure to manage reverse logistics in-house, outsourcing may be a good option. 

Expertise

Reverse logistics can be a complex process, and it can be beneficial to work with platforms that have specialized knowledge and experience.

When considering whether to outsource reverse logistics or handle it in-house, make sure to take into account the costs and benefits of each option.

Challenges of Reverse Logistics

Reverse logistics can present a number of challenges, including complexity, coordination, and environmental impact, especially when dealing with reverse logistics in eCommerce. 

Careful planning and consideration, along with the use of specialized systems, can help you streamline the reverse logistics process and effectively manage these challenges.

Complexity

Reverse logistics can be a complex process, as it involves coordinating the logistics of getting returned items back to your warehouse or fulfillment center, as well as managing customs and other regulatory requirements for international returns.

To reduce complexity in reverse logistics, consider:

• Automating your returns – Automate your returns with a returns management system such as ReturnGO to streamline the reverse logistics process by automating key tasks and reducing the complexity of the reverse logistics process.

• Implementing standard processes and procedures – Establish clear and consistent processes and procedures for managing returns to reduce complexity and ensure that everyone involved in the process is on the same page.

Coordination

Managing reverse logistics also requires coordination among multiple parties, including the customers, warehouses, shipping carriers, and more. Ensuring that everyone is on the same page and in sync can be challenging, particularly when dealing with a large volume of returns.

To handle the challenge of coordination in reverse logistics, try:

• Using a returns management system (RMS) – Manage returns in a centralized manner using an RMS such as ReturnGO. This ensures that everyone involved in the process, including warehouses, shipping carriers, and customer service agents, has all relevant information and is on the same page.

Environmental Impact

Reverse logistics in eCommerce can present a challenge when it comes to the environmental impact of returns. 

The disposal of returns can have a negative impact on the environment, contributing to pollution and waste in landfills. There is a growing awareness of the importance of sustainability in recent years, with 83% of customers taking the environment into account in their purchasing decisions.

Find sustainable alternatives for the disposal of returned items to minimize the environmental impact of your store’s returns. Consider investing in recycling infrastructure, partnering with environmental partners to find eco-friendly disposal solutions, or encouraging customers to keep or donate items instead of returning them.

To minimize the environmental impact of return shipping, consider options such as:

• Offering multiple return options – Provide customers with multiple return options, such as in-store returns or drop-off locations, to reduce the distance that returned items need to travel.

• Using eco-friendly return shipping options – Encourage customers to use eco-friendly shipping options, such as recycled or biodegradable packaging materials, to reduce the environmental impact of return shipping.

• Offsetting carbon emissions – Invest in carbon offset projects, such as renewable energy and reforestation initiatives, to offset return shipping emissions.

By taking steps to reduce the distance that returned items need to travel and by encouraging the use of eco-friendly shipping options, you can reduce the environmental impact of reverse logistics.

The Importance of Having a Reverse Logistics Strategy

Reverse logistics strategies are important for increasing customer satisfaction and sustainability and reducing costs and risks.

• Saved costs – By streamlining your reverse logistics process and finding ways to reduce the number of returns, you can save money on shipping and handling costs.

• Improved customer satisfaction – A convenient and easy returns process can improve customer satisfaction and encourage repeat business.

• Increased efficiency – Putting into place a reverse logistics strategy can help you process returns more efficiently, reducing the burden on your customer support team and freeing them up to handle other tasks.

• Improved sustainability – Implementing a closed-loop supply chain, in which returned products are processed and resold rather than disposed of can help reduce waste and make your business more sustainable.

• Reduced risk – Having an effective reverse logistics process can help you mitigate the risk of return fraud and other legal issues.

Overall, a well-designed reverse logistics strategy can help your store save money, improve customer satisfaction, and reduce risk.

How to Improve Your Reverse Logistics

Improving your reverse logistics is important because it can help reduce costs and increase customer satisfaction. Using the right technology and resources, you can streamline the returns process and make it easier for your customers to initiate returns. 

There are several reverse logistics strategies your eCommerce store can use to improve your reverse logistics process.

Implement a Clearly-Defined Return Policy

Write a return policy that sets clear expectations about how they can return items. Clearly communicate your return policy to your customers to reduce the number of returns you have to process and improve customer satisfaction.

Use Data to Improve Your Reverse Logistics Process 

By analyzing data on returned products, you can identify trends and patterns that can help you improve your reverse logistics process. For example, if you notice that a particular type of product is frequently returned, you may want to investigate the issue and see if there is a way to prevent those returns from happening.

Streamline Your Return Process 

Make it easy for customers to initiate a return by providing them with a clear set of instructions and an easy-to-use return portal. You should also consider offering multiple return options, such as in-store returns or returns using pre-paid return shipping labels.

Invest in the Right Technology 

Automation and the use of technology can help you process returns more efficiently. For example, using reverse logistics software can help you track returned products and manage the returns process.

Work with a 3PL

If you don’t have the resources or expertise to handle reverse logistics in-house, you may want to consider working with a third-party logistics provider. These companies specialize in managing returns and can help you streamline your reverse logistics process.

Resell Returned Products

Reselling returned products can help reduce waste and generate additional revenue for your eCommerce store. By repairing and reselling returned products, you can increase the number of returned products that can be resold, which can help reduce the overall cost of your reverse logistics process.

Optimize Your Reverse Logistics to Streamline Returns

Optimizing your reverse logistics process is important for a positive customer experience and effective reverse logistics management. 

Make sure you consider all the aspects of reverse logistics and see how you can optimize them to save costs, be more efficient, and be more sustainable.

Streamline your reverse logistics process with a returns management system like ReturnGO, which integrates seamlessly with warehouse management systems and shipping carriers so that you can manage your returns conveniently and efficiently.