As we transition to more online shopping and more online orders without buyers to touch and feel, a product increases the likelihood of returns. Just how should returns be processed? What does your organization do?
In a short video, Wayne Belisle, Founder & Pres. of Wayne J Belisle, CPA LLC, gives a few tips on managing product returns.
- Don’t make it hard for a customer to return an item.
- Potential customers who know you have a full refund, no questions asked, are more likely to buy from you.
- You must manage your returns
- What factors are driving returns?
- You must have a product video
You can watch Wayne’s video here.
In a recent article (February 11, 2020), Gary Forger, Contributing Editor to Modern Materials Handling, discusses the problem of returns, otherwise known as reverse logistics.
In a survey reported in the article the following was found:
- Every company surveyed managed returns differently
- Returns processing for even the most efficient is chaos at best
- All are trying to figure out the optimal way to manage returns
- The average time to process returns was 5 days, with 14 days the worst case
The article makes two key points:
- Returns are not the reverse of forward logistics
- Managing returns effectively requires an organized process dedicated to inspecting and processing returns prior to their final disposition
You can read Gary’s article here.
In an older related article (February 1, 2014) Patrick Burnson, Executive Editor of Logistics Management covers the topic of Improving Reverse Logistics with a Returns Management Strategy.
- A good reverse logistics strategy can cut operational cost while increasing sales and securing customer loyalty
- Know your Net Recovery Value
- NRV=Total Liquidation Revenue + Recycling Revenue – Repair Costs – Processing Costs – Transportation Costs – Cost of Parts
- 81 percent of online shoppers surveyed said that they would complete the purchase if they could return the item to a store or have return shipping.
You can read Patrick’s article here.