Fifth Gear

Yes, it’s that time of the year when returns start coming in from customers who bought in haste during the holiday season (or those who got a gift they could live without!). January is the month when retailers traditionally expect the returns to start pouring in. Consider these stats on retail returns:

• Liquidation.com, a website that auctions off returned merchandise, return rates are predicted to be 2 points higher this year than during non-holiday times
• Return frauds supposedly cost American retailers $3.5 billion during the holiday season (that’s 24% of the total $14.37 billion projected for the entire year!)
• Retailers may refund back an average of 9.9 cents on every dollar they earned this holiday season – up by 1 cent when compared to last year, and way above the average of 7 cents during non-seasonal times.

Although it might seem crazy, online retailers need to use the returns process to increase customer loyalty while continuing to identify ways to streamline their “reverse” fulfillment process. Here are some quick tips:

• Make sure everyone knows your return policies: This applies equally to your customer care, warehouse, operations, and fulfillment services teams as well as your marketing and merchandising teams. Communicate effectively a common message that employees can share with customers across all channels – and be sure that everyone is prepared to answer customers’ questions, whether it’s via email, phone, social media, or live chat. It is not enough that just your customers know the rules of your returns process – the last thing you want is for your internal team to confuse a consumer. Nothing destroys brand loyalty faster than a lack of trust and confidence!
• Use returns processing time as an opportunity to sell more: Easier said than done, especially if the customer is angry or difficult to please! Training your contact center team to manage customer returns should also include ability to cross-sell, up-sell, and offer creative ways to replace or exchange with the right product. A perfect mix of communication and compassion is essential to encouraging a customer to purchase again after returning a product.
• Never say never: Ensure your customers can return the product with as little hassle and money as possible – aka, don’t make them jump through ridiculous hoops just to return something (sounds silly, but it does happen!) While it may be impossible to offer free shipping on all returns, see if you can offer it for product exchanges or for loyal customers, such as those who are members of your site or who belong to a loyalty program you offer.

Let’s face it. No retailer likes to process returns – or refund money. But processing returns is part of the sales process, and the more efficient you become in handling returns, the sooner you can return to your core business of selling more! An easier way, of course, would be to outsource your retail fulfillment needs to a partner who has the expertise and the experience. Talk to our fulfillment outsourcing team at Fifth Gear to find out how to make your products returns hassle-free for both you and your customers.

Do you have a returns process that keeps customers happy, or a top-secret tip that’s made processing your holiday returns super efficient? Share it with our readers in the comments!

Tags: 2011 holidays, customer care, customer contact center, direct-to-consumer fulfillment, ecommerce fulfillment, holiday planning, order fulfillment, retail industry trends, returns processing