SKU’d Thoughts 12: Can returns be improved for customers?

According to the National Retail Federation (NRF) consumers returned $369B worth of merchandise to retailers in 2018. I suspect this number would be higher if the return process was not a pain point for consumers. The process seems like an inconvenience whether you are physically going to a retailer or repackaging the item for shipping. The current return process for most retailers taints the overall customer experience. I have some simple initiatives on how to improve the process for e-commerce retailers.

Send notification about last possible day to return. More often than not customers are not fully aware of a retailer’s return policy; is it 15, 30 or 60 days? Is it the number of days from when you made the purchase or from when the item was delivered? Retailers can easily clarify their return policy with customers with an email or SMS on the day delivery is confirmed that thanks customers for their purchase and highlights the last possible day for a return if needed. This notification should be short and clear and include contact information in case the customer has further questions.

Include a return label in every shipment. Once a customer has decided to make a return, another hurdle is postage. Not everyone can quickly print out a label and the post office is the last place most people want to go so a retailer should accommodate their customers by providing a pre-paid shipping label with every order. The label cost can be deducted from the final refund amount so the financial loss to the retailer is minimized while ensuring they made life easier for the customers.

Partner with a logistics provider who will pick up. If you have gone as far as saving the customer a trip to the post office, the next logical amenity is to provide them with a home pick-up option for whatever they are returning. Logistics providers like UPS and FedEx provide pick-up services that can be leveraged by retailers.

These three initiatives will improve the customer’s experience with the dreaded return process. The effort is worth it, as 92% of consumers will buy again if returns are easy and will spend 50% more when they buy again following an easy return.

Cross-posted on Medium