Return is an integral part of an eCommerce business, so much so that online shoppers are likely to abandon a purchase if it is not per their expectation. Find out the details of the simplified returns process – the why, and how.
eCommerce landscape broadens the spectrum of retailers and enables them to reach an almost unlimited number of customers over the internet. However, unlimited reach also has its own set of challenges in keeping customers happy in the dynamic world of constantly changing customer expectations and behavior. The three pillars of ensuring great customer experience are seamless logistics channels, faultless customer interaction, and on-time service.
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However, despite adopting all the best possible measures, sometimes eCommerce merchants fail to satisfy their customers simply because of their complex returns process or policy in India. Understandably, most eCommerce merchants in India are weary of returns, yet a hassle-free returns process is what you need to retain your customers for a longer duration. It is even more applicable during festive times when the rate of returns in India becomes almost 25 to 40%. After all, India experienced growth in reverse logistics at a CAGR of 10% (2020). The rise in returns rates and eCommerce penetration in Tier-2 cities were the major drivers of growth in the return logistics business.
What are eCommerce Returns?
Simply put, eCommerce returns denote the operations processes when an online consumer returns the product/s they purchased from an eCommerce merchant through their online store or app. Returns are a common incident for any business. However, it becomes an overhead for eCommerce merchants as not only do they lose revenue from the sale, but they incur additional costs to send the product back to the warehouse.
Also, an eCommerce merchant goes through additional costs in paying the warehouse charges while the product sits there or if the customer requests an exchange, in which case they need to bear the cost of delivering it to the customer.
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However, despite the lengthy reverse shipment processes, eCommerce merchants in India can’t restrict offering return options to the customers as it ensures a satisfying buyer’s journey for your customers. After all, not handling returns efficiently is likely to reduce your profits by 25%, especially if it involves a lengthy returns process.
Some Typical Reasons Behind eCommerce Returns in India?
Now that we know that returns are an integral part of the eCommerce landscape, let’s look at some of the typical reasons behind your customers returning the products purchased:
- Wrong Item Purchase. While shopping, consumers sometimes get influenced to buy some items they later realize they don’t require or can’t keep. So, the obvious answer to the problem is to return it.
- Changed Customer Needs. Sometimes, if a product purchased for a particular occasion gets delivered late, consumers lose interest in the development and the option remaining is to opt for returns. It is particularly relevant if the product purchased was supposed to be a gift.
- Damaged Product. Regardless of saying that, if a customer receives a damaged product, the only option is to return it. Sometimes an error in packaging can lead to leakages, thus damaging the product by the time it reaches the customer.
- Wardrobing. Wardrobing is a serious concern for eCommerce merchants in India. Online retailers feel that it is most liable to get misused by consumers. Due to the lenient return policy, sometimes online shoppers order a piece of some wardrobe item and then use them a bit before filing a return.
- Received Wrong Product. During the rush period, customers might receive the wrong product. In that case, returning it is the only valid option.
Multiple cost factors are involved when customers request product returns, such as logistics costs, cost of damaged goods, faulty products, and, most importantly, reselling the product.
Tips to Reduce eCommerce Returns in India
Though order returns are an integral part of eCommerce business, every merchant strives to reduce it as much as possible to grow their business in the long run. Here are some simple tips you will find useful to reduce returns:
Add Good Quality Product Images. Ensure you put clear pictures of your product in your online store. Indian customers are very particular about standards. If the product doesn’t match completely with the image on the website or online store, they will likely raise a return request immediately.
Clarity in Return policy. Be upfront about your return policy and ensure you put it on your website in a place that consumers can find easily. After all, you are doing business and need to make your customers aware of your norms and policies.
Easily Understandable, Crisp Product Description. Ensure that you stay true to your customers. After all, they are the ones who are buying your products and providing your business revenue. Add clear, easily understandable product descriptions that have no scope for ambiguity.
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With eCommerce order returns increasing in India, many supply chain and logistics companies are providing eCommerce merchants with an online platform to offer a seamless return channel for customers. To make returns work more efficiently, eCommerce merchants should partner with a professional supply chain and logistics partner with the expertise to handle return orders.
Conclusion:
To sum it up, we all know that eCommerce merchants need to deal with returns as a part of their business. However, it all depends on how they can simplify the process for their customers and themselves is the main challenge. To find a win-win solution to this inevitable part of their business, they should hire a strategic supply chain partner to help them grow their business without the logistics operations.
About XPDEL:
Headquartered in Los Angeles, California, XPDEL recently launched its supply chain logistics services in India. Our Fulfillment Technology Platform makes it effortless for our clients to improve their speed to market. With significant supply chain and logistics industry experience,we are on a growth trajectory for success in the Indian market.Our offerings cater to a wide range of customer experience-based fulfillment and logistics solutions for eCommerce powered by industry-leading technology platforms.