May 30, 2024

What is eCommerce Return Management? Is it Effective for Your Business?

Returns may be a main pain or headache for ecommerce retailers. Though in-store purchases don’t really get returned so often, there are approximations that customers return up to forty percent of the goods purchased online. 

Now, it is especially the case in the realm of Fashion & Apparel industry. Of course, online or web store customers cannot simply touch the product, hold it nor just feel it during online shopping. Some customers even deliberately resort to the practice of over-ordering. This is something that enhances the quantity of returns and their negative types of environmental footprint. Now, as the Covid-19 pandemic turned the web store into the only sales channel for many types of retailers, the issue with returns is somewhat more crucial than ever. Here, proper ecommerce returns management tool can be of great assistance. Once you walk through the points below, you would have a better idea about it all.

You know returns management can actually rack up costs swiftly, and in case not really done efficiently, it would result in tarnishing the reputation of your business, always affecting customer loyalty. Here you would know how good returns management software can help your business:

Creating an Exact Returns Policy

A return policy is the type of terms of conditions that apply for returning or that of even exchanging products. This policy can easily cover return, refund, exchange, and even that of shipping policies for products returned by the customers. In case, as a business, you can set a clear as well as concise returns policy, reverse logistics can get managed efficiently in the absence of any hassle. With over seventy percent of customers looking for a returns policy, some of the n necessary aspects of returns policy might be:

  • Mention returns policy particular to products on discount.
  • What are the specific products that are covered under proper returns policy?
  • Does the seller include shipping?
  • How quick is the refund process projected to be?
  • Reimbursement, no matter it will be offered in payment or that of credit.
  • The number of days any return policy is applicable after that of final delivery.
  • If of an exchange, how many days will it take?

Knowing the cost included in returns management

Basically, you should be thorough about your overall product costing so that it even includes the possibility of prices for the return or exchange of products. The extra costs involved in reverse logistics is going to be picking, packing, and that of even reverse logistics for returning the product to that of the origin warehouse. In case not appropriately calculated, your business would be dispelling money through your returns management, and that of even your profit margin would take a heavy blow. As for customer service, offering proper product tracking and attending to customer queries would also be of massive importance in managing reverse logistics.


To sum up, being an ecommerce business, you must invest in a good product returns management to ensure you manage it all in a tactful and effective manner.

Aditya Shahi

Aditya Shahi is a BSc Agriculture student and an avid blogger, passionate about sharing his knowledge and experiences with his readers.