As Goes Amazon Goes the World

Unfortunately, customers are growing increasingly used to the way Amazon does business. Even though it’s a behemoth in its sector, there’s an expectation that even small eCommerce stores should follow in its path. This is known as the “Amazon Effect” and it absolutely impacts everything in the eCommerce world, from how packages are shipped to how the supply chain handles reverse logistics. But Amazon isn’t the only force influencing the rise of free returns across the eCommerce space. These trends are also raising the stakes:

• In-store Returns. Ordering online once meant having to return products through the mail. For many retailers with eCommerce divisions, the cost and hassle of mailing things back has been replaced by free in-store returns. These free in-store returns also allow customers opportunities to see what’s new and what’s on sale in the shop, spurring more purchases.

• The Explosion of eCommerce. eCommerce isn’t perfect, sometimes the blue shirt that a customer thinks they’re getting turns out to actually be black, or worse, green!
  Not being able to inspect products in person means that products may fall short of expectations, necessitating a return or exchange. Of course, customers are quick to blame the shop for not giving them a better way to judge the item, but they will generally accept returns with free return shipping for their trouble.

• Customer Demand. Even before there’s a problem with an order, customers are demanding free return shipping as a prerequisite to purchase. According to a Dotcom Distribution survey, a third of customers will only buy if there’s free return shipping offered. More than 90 percent of those same respondents say that free returns is very influential in where they ultimately purchase.

Just like free outbound shipping was once high stakes, the idea of free returns shipping for everything is becoming a live or die issue for eRetailers. Customers seem to want to treat eCommerce stores just like those in the real world, where they can breeze in and out, sampling merchandise and returning almost anything without paying as much as a restocking fee (remember those?).

eCommerce retailers have to continue to do their very best to keep up with these trends. Even if you can’t offer free return shipping, many consumers are willing to pay a small shipping fee when there’s a lot of transparency involved and you move quickly to process their returns.

The post 3 Trends Pushing The Rise Of Free Return Policies first appeared on Smart Returns.

The example cited was Burberry, the iconic British luxury brand, which destroyed $38 million worth of unsold and returned items in the last year, bringing its five year total loss due to destruction to $400 million. Burberry argues that this behavior protects the brand, but others would say that it’s an incredible waste of product and opportunity.

Burberry is far from the only retailer making decisions for its unsold merchandise that might be less than optimal. Maybe it’s time for you to re-evaluate your company’s returns policies to better identify where you’re missing chances to engage and re-engage your shoppers.

Your Returns Experience Optimizer

Reverse logistics is a difficult puzzle for most businesses.

You have to have a return policy of some sort, otherwise customers are less likely to take a chance on your products. But you also need to slow the backflow of goods because it’s costing you a fortune.

Don’t throw your hands up and despair, run down these checklists to ensure your returns experience is optimized:

My customers know that they:

• Can return their products within a window that’s neither too confining, nor too loose.
• Will get a refund quickly so they can then make another purchase, if so desired.
• Won’t be hassled, but will be asked why they don’t want to keep the item being returned.

My company always:

• Takes advantage of technology like smart label tracking to better anticipate returns volume day to day.
• Uses software solutions to determine what path of disposal is best for each returned item.
• Moves resellable items back to inventory swiftly and those sellable at a discount to a website for clearance of out-of-season merchandise that’s still like new.
• Analyzes data points to better understand reasons items are being returned in order to lower the overall return rates.

If any of the above items are big question marks in your ledger, you have work to do to make your returns experience all it can be. It might even help you to do a walk-through of the process so you can see it from your customers’ eyes. If you simply don’t have the time or staff to manage returns any faster, you should consider hiring a reverse logistics company. They can do all of this and more, helping your business grow by using returns as a loyalty builder while minimizing their financial impact.

The post Is It Time To Revisit Your Returns Experience? first appeared on Smart Returns.

The organization is looking at total sales of $717.5 to $720.9 billion, a 4.3 to 4.8 percent increase over last year, which itself was a 5.3 percent increase over 2016. Retailers everywhere, even those in cyberspace, are bracing for impact. They’re predicted to be hiring around 650,000 holiday workers, 11 percent more than last year.

But Are Retailers Investing Enough?

With all the preparation for the oncoming sales storm, it would seem that retailers are one step ahead. Unfortunately, they may not be. Many aren’t saying what they have planned for National Returns Day, the unofficial designation UPS has given the day it handles the most returns each year in early January.

Last season, January 3, 2018 meant 1.4 million return packages sent through UPS, with 1 million returns expected each day leading up to Christmas 2017. If that doesn’t scare you, then you’ve got a top reverse logistics team in place already. You are ready.

But for retailers who haven’t thought about what they’re going to do when up to 30 percent of their sales come back in early January, it’s not too late to invest more in returns.

Can Your Team Handle It?

It’s not a defeat to admit that your small company’s returns management team is going to be overwhelmed come National Returns Day.

Instead, today is the day to start planning for extra help. That might mean expanding into your empty warehouse so there’s more room for returns processing by more people, or it could mean working with a reverse logistics company.

This vital member of the supply chain doesn’t get the attention that forward-facing logistics does, but it’s just as important. Maybe more so. After all, reverse logistics is all that stands between you and chalking all those returns up to a complete loss.

Reverse logistics examines each and every product that comes through the warehouse, then optimizes its disposal or re-use. What can be sold for full price is rushed back to the sales floor or warehouse inventory. Those things that can be largely recouped will go to a secondary liquidator or auction platform. What can be recycled for the going rate is sent away for the procedure.

At the end of the process, the goal is to return as much money to your ledger as possible, while minimizing waste. It’s a fine line to walk, but one that can be a game changer for your retail company this year.

The post Are You Investing Enough In Returns, Returns, Returns? first appeared on Smart Returns.

Dealing with the nearly one-third of those sales when they come home to roost can be a cumbersome, expensive and time-consuming process. It’s an unfortunate reality that must be faced if an online retailer wants to succeed, however.

e-Commerce Returns Management Approaches

Your business has a unique relationship with its customers, but ultimately most shoppers with returns want transparency and speed out of your reverse logistics process. Your company, on the other hand, needs to cut costs as deeply as possible without damaging the customer experience.

Here are a few ways to make everybody happy:

• Ask the right questions. Have your customer print a custom shipping label from your website after answering a few questions.This way, your system can choose the right facility to receive the return, eliminating multiple trips (and added shipping costs) between your warehouses. Alternatively, this can also be used to direct the item to a order processing center that has a significant demand for it.
• Try smart labels. Smaller eCommerce companies may find themselves doing their own returns management.Taking advantage of tech like smart labels will keep your team informed as to how many packages they should expect to come in that day, allowing team leads to plan accordingly. If you only have a dozen or so returns one day, one or two people can probably handle them while the rest go work on the pick floor. If you have 100 returns the next day, though, it’s gonna be an “all hands on deck” situation.

  Either way, you don’t have to worry about any surprises from your reverse supply chain.

• Partner up. Even if you’re not working with a reverse logistics specialist, you can take advantage of some of the same tools these companies use to move products around the supply chain in bulk.For example, Happy Returns is a “returns bar” that allows shoppers to return items in person to participating virtual merchants. Happy Returns then packages your items, sorts them and sends them back to your company as a bundle to save on freight. From there, you could have a liquidation specialist like B-Stock break down the lots that you can’t resell as new and sort them so they’ll bring top dollar on the secondary market.

Although returns aren’t the most fun or profitable part of your business, it’s vital to stay on top of them or you put your operation at risk of serious financial trouble. These are just a few easy approaches for companies that want to handle their own reverse supply chain. Many choose instead to contract with a returns management company that does nothing but returns for a variety of companies.

The post 4 Important Approaches To Managing e-Commerce Returns first appeared on Smart Returns.

They didn’t amount to more than a few a day back then, but as you’ve grown, so has the volume of returned merchandise. You may think your reverse logistics process is as good as it can be, but it still could be a good idea to put it to the test. The supply chain is always changing, returns management has to do the same.

When is it Time to Review Processes?

Returns management can be a tricky process because of all of the variables involved.

Here are some of the reasons to do a thorough review of your reverse logistics processes:

• Speeding Up Processing Times. How quickly you process a return will ultimately be considered a cornerstone of your overall customer service commitment to your shoppers. Speed, accuracy and a little bit of data gathering should all be part of this side of the transaction.
• Improving Customer Credit Speed. Customers want their credits now. They’re well aware that they won’t get them now, but fairly soon is ok. Taking advantage of tools like smart labels ensures that you’re ready for action when a package containing a return arrives as expected.
• Maximizing Resale Value. You know returns can’t always be sold for full price, but it’s better to get something out of them rather than just forget about any return.The faster those returns show up, though, the better, so you’ve got to help your customers reduce the friction to sending products back. You may be able to return some items to inventory and repackage or refurbish others quickly enough to create another trickling income stream.
• Maintaining a Green Process. The green supply chain is the future, even though it’s not a requirement yet.Reduce your carbon footprint now, rather than being rushed when the day comes that you’re required to minimize your impact on landfills and the environment. That means more refurbishing, more recycling and finding more ways to reuse returns.

Evaluating your returns process is not just for growing businesses, though. Every company that has a logistics team needs to be constantly refining and upgrading its fulfillment centers. Speed and accuracy matter, both coming and going.

The post Time To Re-evaluate Your Returns Process? first appeared on Smart Returns.

This is the reason for UPS’s National Returns Day, the day of the year with the biggest backflow in the supply chain. Last year’s National Returns Day (Wednesday, January 3, 2018, in case you were wondering) moved 1.4 million packages back to the retailers that sold them initially.

Swimming Against the Tide

That many returned packaged on a single day is enough to give a retailer massive anxiety, but it doesn’t have to be a completely negative situation.

People return items for a lot of reasons, including that they just weren’t sure which size of clothing would fit them properly. It’s not always about your product or your prices, it’s often just one of those things.

Even so, there are a few ways you can prepare and better manage those customer returns, starting today. Give these a try:

Pre-return strategies. Even if you have a no-hassles return policy, ask your customers why they’re returning their item.

You may be surprised to learn that the navy blue top that seems to be universally hated looks like a plum shirt on your website and the returns are simply due to this item not being what they expected. This can be an easy situation to rectify, boosting sales and reducing returns.

Automated systems for sorting merchandise. When items come into your reverse logistics warehouse, do your people sort them by hand? Are they comparing notes with one another about the quality of the item that came back?

This might seem like a smart move, but it’s also a very inefficient one that leads to major bottlenecks in issuing credits and getting items ready to sell again. Pick up some software that will automate the grading of your products, it’ll save time and effort for everyone.

Auction marketplaces. There are plenty of secondary markets where you could be selling your returned products that just aren’t quite good enough to be sold as “new.”

The online auction is one outlet that’s gaining a lot of traction. Since you may attract multiple bidders looking for a deal, then getting caught up in the frenzy of the auction format, it’s possible to do quite well disposing of your returns this way.

Returns are inevitable, you need to be prepared. Now is the time, the holiday season is just around the corner. You know what that means, don’t you? It’s just about National Returns Day!

The post 3 Ways To Better Manage Inevitable Customer Returns first appeared on Smart Returns.

Without them you’d have no one to sell your products to, but at the same time, they can cost you a bundle when it comes to returns management.

Not only is the average online retailer now handling returns at a rate of about 12 percent, eCommerce shops that specialize in clothing and accessories may see return rates as high as 40 percent. It’s almost enough to make a business owner wonder if there’s any value in a sound customer return operation.

Should You Even Bother with Returns Management?

The answer, of course, is YES!

Without good customer returns, you’ll have no good customers, and as frightening their pile of returns may be, they’re also likely to be your best clients. According to a recent article on Business.com, 82 percent of your chronic returners are repeat shoppers. In addition, 95% of customers that are happy with your returns process will shop with you again.

In short: returns can ultimately make more money when handled properly.

Not only do good returns mean your good customers will likely buy more, those returns are getting easier and easier to deal with as secondary markets become a competitive advantage to businesses like yours. Now that more than 84 percent of U.S. firms are utilizing the secondary market, it’s becoming a richly layered place to sell goods that you can’t sell as new in your shop.

This is great for you, for your customers and for the future, where a circular and green supply chain may be the norm. If you’re dealing with returns by recycling, refurbishing or reselling rather than dumping unwanted items into a landfill, you’re already ahead of the game.

Reverse Logistics and the Future Environment

Regulations change almost daily, it seems, and that’s no different for disposal and transportation of goods.

Although you may find no value in a pile of old band tees that no one wanted, you might be surprised that there’s a market half a world away, where that band is doing gang-busters. Instead of tossing the pile, you might try to sell it on a secondary market with the use of specialized software.

Of course, you have to weigh that sale with the cost of transporting it to the fans in China who are demanding the product. If they’re in no hurry, multimodal transportation can get them to their final destinations at a cost to the environment that’s much lower than any one type of transportation alone, plus it’ll save you money, too.

Your customer returns operation is sound, you know this. Just remember that there’s a lot of value to be found in a process that keeps those returned items moving from cradle to grave to cradle to grave in a circular pattern until there’s no use left to squeeze out.

The post Yes, There Is Value In A Sound Customer Return Operation first appeared on Smart Returns.

Clothing, shoes and other accessories are unique in that the fit really matters a lot. In fact, it’s about the only thing that does. When a customer buys a shirt or a pair of jeans from your eCommerce shop, they’re not just buying a brand or a bargain, they’re buying a look. When that look fails to manifest in their mirror, that item has to go back, lickety-split.

Returns of clothing that didn’t fit properly have plagued apparel retailers long before eCommerce, though. Clothing catalogs were also forced to deal with the fabric menace.

“Try Before You Buy” as a Business Model

You may be drowning in returned t-shirts right now, but some companies, including that Internet giant, are developing business models around the “try before you buy” concept. They have their reverse logistics teams manned with sufficient numbers that it’s easy to handle all the products that are expected to come back.

Instead of offering free shipping labels, though, customers pay for the privilege of trying on clothing in the privacy of their home.

The loss from the herd of packages that the supply chain pushes back into the returns management center like a giant cardboard tidal wave is already figured into this business model. Theoretically, it’s covered by the subscription fee across all customers.

For upper-end retailers and those that already have teams in place to handle the load in a timely manner, a “try before you buy” model may work quite well. Others, though, may continue to struggle against the customer who orders three sizes of jeans to figure out what they really need to look their best.

eCommerce to Brick-and-Mortar Model

There’s always option number two, provided you have a physical location to go along with your digital one.

Customers don’t mind to return items to real stores, especially if that means faster credits. In fact, they may do a little browsing while they’re in the store, see something they definitely can’t live without and end up making an additional purchase. This is a far less expensive way for your shoppers to try before they buy.

Even if you don’t have a physical location, you may be able to strike a deal with a local brick and mortar retailer to rent a small corner of their store to display your wares. In addition, your customers would be allowed to return their items to this store. Workers there would then send them on to your reverse logistics department. Again, the customer gets a chance to try on additional items in the store, reducing the burden on your returns management team.

If your customers like to try before they buy, you’re going to need to proceed with caution. There are a lot of ways that you can lose the farm due to this practice, but there are also many ways to prevent the most common returns. Put it all together to sell more with fewer returns!

The post Do Your Customers Like To Try Before They Buy? first appeared on Smart Returns.

All the data manipulation you do in order to choose the best products to sell and who to market those products to can be used in loss prevention, too. This is truly service beyond free shipping.

Top Reasons for Order Returns

You might have been shocked to learn that the most common reasons that customers return their orders are, essentially, your fault. Hold on to your hat, because you’ll be even more surprised at the reasons they say they’re returning items and how easy these things would be to prevent.

1. You sent the wrong items. It’s true, 23 percent of those online returns are because you didn’t send the right thing to begin with. This should be an easy fix for your company. Streamlining processes, using tools like bar code scanners to ensure you’ve picked the right items and extra checks before the box is sealed will reduce your chances of sending the wrong item out again.If you’re not equipped for this, you should form a partnership with a third-party logistics company (3PL) that is already servicing eCommerce retailers like you.
2. The product doesn’t match the online description. Sometimes the dress is blue, sometimes it’s gold, but it’s your job to make sure that the customer knows what they’re buying, beyond a shadow of a doubt.Photos should be taken in neutral lighting and written descriptions should include measurements and other important information. The more detail you can provide, the more likely that you and the customer will see eye-to-eye.
3. Something was damaged in transit. This is another area where it may be worth it to bring in a third-party to help prevent these kinds of returns. The supply chain can be a pretty rough place, you have to pack items so they won’t break if they’re jostled, because they will be.Focus on packing products so they can’t move and so they will resist some amount of crushing. You can always test out your packaging by simulating some of the rough handling that your items might experience to better protect them in transit.

There’s no better return like the one that no one has to make. You save money on running products through your reverse logistics team and the customer saves the hassle of sending products back. Even with a pre-printed smart label, you’re both putting in extra effort that is just unnecessary. Use your data to go beyond free return shipping.

The post Beyond Free Return Shipping first appeared on Smart Returns.

For the last several years, it has showed consistent year-over-year growth in the double-digit percentages. The 2017 holiday season alone grossed over $119 billion, a 16.9 percent year-over-year increase, according to US Census data. Unfortunately, what goes up must also come down, and what’s sold through eCommerce platforms does, inevitably, come back, often as much as 15 to 30 percent of the time.

Customer Returns Rising Faster Than Sales

As much as an expanding eCommerce retail sector is a great thing for 3PLs and customers alike, returns are becoming a major wrench in the gears of the machine. Returns that can’t be sold at full price (or at all) are costing retailers an average of 4.4 percent of yearly revenues and adding a not insignificant amount of pressure on retailers that may not have a lot of margin to work with.

Customer returns are increasing for a variety of reasons, including things like:

• A huge increase in eCommerce sales. As eCommerce continues to expand at a rate that feels almost unchecked, the sector is still finding its feet. Products aren’t always represented in their best light, which then results in unhappy buyers and the need for a reverse logistics team to send the items backward through the system.With time, this may decrease as both eCommerce sellers and buyers develop better communication strategies.
• Customers feel safe buying multiple things online and sending back the ones that they don’t want. Because it’s difficult to know for certain if the item you’re looking at online is exactly what you think it is in real life, many online shoppers have adopted the practice of purchasing multiple items or multiple sizes of a certain item and sending back the ones that simply don’t work.This trend is epidemic among clothing retailers, especially. The ultimate solution is to have a good returns management team in place that can assess the problem with the returned items and another team that takes that information and uses it to improve customer satisfaction with the initial purchase, eliminating the need to buy several items when only one or two are actually desired.
• Large discount retailers are expanding into eCommerce, making it easy for customers to return items to brick-and-mortar stores. When big box stores can offer customers easy returns at convenient neighborhood locations, there’s no reason for a customer to not take a chance on a purchase they may be uncertain about.After all, if it doesn’t work out, they can simply drop the item off on their weekly shopping trip. This element alone has driven an increase in customer returns, increasing the demand for reverse logistics across the board.

Customer returns continue to increase, especially for retailers with dealings in the eCommerce world, putting more demand on 3PLs and reverse logistics departments across the country. Long term solutions, like improving customer purchase confidence, need to be found to help contain this problem as the industry expands.

The post 3 Reasons Customer Returns Continue To Increase first appeared on Smart Returns.