Powerful Return Policies Save Money and Earn Business

If there’s one thing that each and every online retailer hates and fears, it is returns. Many excellent stores fight to maintain return rates below 2% of total shipments. Those merchants work together with the carriers and shippers, alter their sites, and deliver customer satisfaction surveys–all of which are great–but one often overlooked factor that assists in reducing unwanted returns would be to have better return policies.

By some estimates, returned orders will cost online retailers over $20 billion in 2008. Providing customers with better and more return coverage information can avoid undesirable returns and discourage baseless yields.

It might be tedious to think about all facets of yields in your policies especially if you are selling numerous products that could differ in nature from one another. However, you can derive intelligent return policies depending on the sort of return. What follows are a number of practical pointers about special”Return Type” policies which may reduce your stores total returns.

Defective Item Policy

A faulty item means that the manufacturer is to blame. The policy should be written in this manner that the item can be easily returned back to the shipper before refunding or replacing the product for the client.

  • Differentiate between a faulty and damaged thing — Do not let your client be the best judge, deciding that a product is or isn’t defective. Have your policy encourage the client to contact customer service to be able to validate the item as a faulty piece.
  • Returning a faulty item– based on the nature of the flaw the coverage should advise the client. Should they anticipate replacement parts if that could fix the problem? Can you provide a replacement product? If they return the item in its original packaging or are you going to give a box for your return?
  • Send replacement or refund– The client should in all cases notify your customer support team before returning a product. This may avoid situations where the client hasn’t assembled the product correctly and assumes the product is defective. This item, if returned, will be a complete loss as the manufacturer won’t honor the return. Make it quite clear that a client must contact your service department prior to returning a product. Inform them that just sending an item back won’t guarantee a replacement or a refund.
  • Include Instruction Manual/Warranty newspapers — it’s extremely important to include instruction manuals for many SKUs, have the manuals available online for every single product. Warranty information can make your clients more comfortable and less likely to wrongly return an item that’s really not defective.

Returns Of Damaged Goods Policy

  • Refuse shipment– The safest and the most important education to the client needs to be to refuse shipment when they get a visibly damaged item. This will let you submit a claim readily with the carrier and simultaneously ease the customer with a replacement.
  • Notification of damaged item– You should instruct clients to keep the original packaging. In cases of hidden damage, photos showing the damage upon arrival could be very helpful in getting reimbursed from your provider. As clients to notify you of damage within 24 hours because most carriers have a cut off time and they won’t accept claims.
  • Contact customer support — Clients should call to report damage, confirming that the damage happened in transport and isn’t the result of use or abuse of the item.
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Wrong Item Shipped

This might be a win-win situation for the client; the sole point is to affirm that the client did get the incorrect item.

  • Order confirmation e-mail– It’s compulsory to send an order confirmation email which substantiates the item number and the quantity ordered. The policy should ask the customer to mail in the order confirmation email or fax in if they obtained a physical copy.
  • Notification– oftentimes, customers claim the thing to be wrong because of a minor difference in the colour or packaging. This is very common in online retailing. In such situations a talented customer support team could work together with the client, helping with relevant choices.

Client Satisfaction Returns

This is a fantastic way to bring in customer appreciation by allowing the end user to test the item and return for refund if not happy.

  • Specify time period/condition of thing — Allowing a client to test out a product for a specific time period is a fantastic way to improve business. But it’s a fantastic idea to make it clear that after a certain date, the client has effectively determined to keep the merchandise.

Non-Returnable Products

Some items can not be returned after using them, for instance a CD or items which come in direct contact with the body (chest strap). Such items have to get an indication that they have to be returned .

Low Value Items

There isn’t any use returning an item worth less than $50, the entire returns process could eat all of your costs increasing the reduction on that product. The customer support team could play a fantastic part in convincing the client to keep the product or have him discard and lower the loss. Shares its Fulfillment Strategy

The old-school approach to order fulfillment does not fly for many Internet retailers. Warehousing, packaging, transport, and return-order processing are labor-intensive and time-consuming. This has resulted in a trend among online vendors to outsource its fulfillment operations.

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This isn’t drop shipping or outsourcing to a conventional warehouse. I am talking about ecommerce fulfillment providers (EFPs). They take the”friction” from order fulfillment. In a typical situation, a consumer will purchase merchandise from a corporation’s website. This purchase triggers an arrangement that’s delivered electronically to a EFP who processes the order. A shipper like FedEx or UPS is then automatically notified. Upon shipment of this order, an automatic notification is delivered to the user and to my company. There’s almost no human intervention. To put it differently, it’s a genuine online fulfillment model.

Avoids capital investment

From a strategic standpoint, among the most significant advantages of this model is that the merchant doesn’t need to make a capital investment in infrastructure. My own site,, is a good example. is a”deal of the day” site that provides different products every day, at very low prices. The website has grown by almost 500 percent in the previous year. Previously, such expansion for a retail operation would have required a huge investment in processes, systems, personnel, and physical space. Apart from the obvious truth that it is hard to raise capital, this investment may be quite risky because there’s no guarantee that the company will continue to grow or even sustain its current sales rate. By eliminating the need for a capital investment, EFPs eliminate a substantial barrier to entry for prospective online retailers.

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Needless to say, EFPs do over ship orders. With advances in web technology, EFPs may add value in a lot of ways. By way of instance, our EFP provides automated inventory management. We get alarms from the EFP when inventory levels fall below certain thresholds. Restocking can be done with no employee doing a physical count. This means online retailers can sell and market their goods without needing to physically handle the merchandise. And even though our EFP retains the stock, we still manage and track everything via a web-based dashboard. We’ve got access to historical reports and we’ve got real-time visibility into order status, shipment tracking, inventory quantities, and item-level sales information.

EFPs do for fulfillment what Google has done for advertisements. They’re taking cost out of the equation. Google has enabled companies to reach targeted audiences for only pennies per advertisement clicked. It is a highly automated process that can fit into almost any business model. Likewise, EFPs are taking cost out of order fulfillment. The cost of the EFP is covered by shipping and handling charges that customers pay. And just as Google has almost perfected online marketing, and has certainly improved marketing efficiency by orders of magnitude, EFPs are built from the ground up to make order fulfillment as effective as possible. It would be practically impossible for a merchant to match an EFP’s degree of efficacy with an in-house fulfillment operation.

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EFPs serve different client types

EFPs can support a number of business models. is a deal-of-the-day site. We market directly to many thousands of consumers monthly. However, I understand that our EFP also has customers who sell through other channels, such as Amazon, eBay, Yahoo! and affiliate networks. Some online merchants also sell through TV infomercials and many even have brick-and-mortar shops. EFPs fulfill orders for each one these channels. They could provide continuously updated reports which allow multichannel retailers to monitor the sales volume of each channel.

There are various EFPs. Ours is Webgistix. Amazon is the greatest EFP, although most individuals think of Amazon just as a merchant. Both of these companies take different approaches to fulfillment services. Webgistix delivers a customizable solution that’s integrated with a merchant’s order-entry system. Amazon provides a self-serve solution which enables retailers to plug into Amazon’s fulfillment infrastructure. Other EFPs attempt to differentiate themselves in many different ways, like focusing on small retailers or focusing on fulfillment in certain countries.

Effortless to scale

I can tell you from my firsthand experience that using an EFP is a game changer. We’re a lot more scalable now than we could ever be without an EFP. When I say scalable, I am not just referring to capacity. It is also timeliness. Having an EFP, growth of satisfaction capacity is instantaneous. We can send a hundred orders daily and a thousand orders the following day. We don’t need to rent our own warehouse area, or employ shipping/receiving clerks, or purchase supplies and equipment.

And I’d be remiss if I did not mention the effect that EFPs have on client satisfaction. The precision and speed of order fulfillment is outstanding, which is exactly what you would expect when you use a business that only does order fulfillment. We’re good at sourcing and marketing retail product. We want to concentrate on that and keep getting better at it. We don’t need to divert time and resources to order fulfillment. That is not our area of expertise.

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