Customer Service

Rethinking the retail return

Why the overall retail return process could use an overhaul in 2023.

Adobe Stock

May 11, 2023 | Tobias Buxhoidt, co-founder and CEO of parcelLab

Returns are a billion-dollar operation, and as we see retailers start to implement return fees along with many other changes that don't seem to be sitting well with shoppers, the overall process could use an overhaul in 2023.

NRF found that a whopping $816 billion worth of merchandise was returned in 2022 and according to parcelLab's recent returns study, 62% of consumers are unlikely to shop with a retailer that provides a poor returns experience, meaning there's a lot on the line for retailers.

An effortless self-service returns process is one solution retailers are implementing to address customer experience frustrations, in addition to streamlining warehouse operations and managing the increased shipping costs including that of pre-printed labels — of which millions go to waste each year.

Returns shouldn't wreak havoc — on customers or retailers

There is nothing more frustrating to a customer than endlessly waiting on hold for a representative or trying to find a convenient drop-off location. These slowdowns not only frustrate the customer returning the product, but also delay it from re-entering the inventory cycle, causing longer term inventory issues.

Access to return labels through an online customer portal, for example, is just one way retailers can provide an upgraded customer experience, ultimately offering a more convenient process that meets consumers' needs.

A streamlined process for returns encourages brand loyalty and a better chance for future repurchase. For example, by encouraging an exchange or store credit instead of a return or refund, retailers are able to keep the customer in the purchasing funnel. Another way to build customer loyalty is with the option for early refunds, which entails issuing the refund before the return is processed. This shows that the retailer is invested in the relationship and encourages the customer to keep the brand in mind for another purchase.

Returns aren't one-size-fits-all

Just as customers don't all purchase the same items, return policies and procedures that work for one retailer may not work for another. The difference between returning a pair of shoes and returning a treadmill are vast, so retailers need to find a solution that fits their unique business strategy.

For example, the ability to customize return rules and collect data on the reason for a return, help to not only analyze data for future purchases, but also allows retailers to reinforce policies that reduce invalid returns. By collecting and analyzing returns data quickly, retailers can better understand why customers are dissatisfied with the product and find solutions to reduce future returns. For example, if customers continue to list the reason for returns as items being "too small" or "too large" there could be an opportunity to adjust sizing.

It could also be that product photos don't accurately reflect the item's true dimensions or fit. The social media phenomenon of "what I purchased vs. what I got" shows customers today will publicly share when products don't meet expectations, showing how crucial returns data can be to avoid these public callouts.

Reducing call center interactions

The "where's my refund?" call to the call center is probably one of the easiest issues to eliminate with a clear self-service returns process and consistent customer communication. Hosting an online returns portal with proactive information about the current processing status of their returns allows shoppers to access this information without having to contact customer service.

A streamlined and uncomplicated process of returning items sets the stage for an excellent returns experience for your customers, encouraging brand loyalty and increasing the chance for repurchase.

For many customers, return policies deserve a 'return to sender.' Retailers must reimagine their returns processes to meet their ultimate goal: reducing returns whenever possible. Retailers ultimately all have the same goal: to reduce returns where possible.

By implementing a platform with detailed information throughout the customer journey — for both the consumer and the retailer — and providing customers with the information they need in an easy format, retailers will not only streamline their returns process but accelerate repeat purchases and build customer loyalty.