Returns management definition
Returns management covers all the key steps required to efficiently process returns and reintroduce them into the sales cycle - from returns, including the inspection, reintegration or disposal of products.
Well thought-out returns management plays a decisive role in e-commerce in particular. Companies that optimise their returns processes not only benefit from increased customer satisfaction, but also from significant cost savings. In the fashion, lifestyle and beauty sector in particular, where returns occur frequently, fast and precise processes are the key to long-term success.
Studies show that a positive returns process increases the likelihood that customers will buy from a retailer again; in fact, over 90% of online shoppers expect returns to be processed smoothly and free of charge, which underlines the immense importance of well-organised returns management.
In the following article, we reveal what is important for successful returns management.
Returns management tasks and phases in online retail:
1. Returns note: Firstly, the customer initiates the return, often via the retailer's online portal, where they enter their order and the reason for the return. The customer then receives instructions for the return shipment, including a return label.
2. Incoming goods: The goods are sent back to the online retailer or fulfilment provider.
3. Acceptance of the return: the goods are checked for damage, correctness and completeness.
4. Inspection and decision: A decision is made as to whether the goods are to be processed, stored or disposed of.
5. Reintegration: new products are reintegrated into sales, while defective items are disposed of or repaired.
6. Customer service (e.g. refund, exchange of goods)
These phases are crucial for optimising the returns process and fulfilling returns management tasks efficiently. This particularly supports returns management in e-commerce, where fast and precise processes are essential.
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Goals of returns management:
The main goals of efficient returns management are to reduce the returns rate, save costs through optimised processes and increase customer satisfaction. By automating and improving their returns processes, companies can process returns faster and thus avoid unnecessary delays. At the same time, a transparent and smooth process ensures that customers retain their trust in the retailer and are more willing to shop there again.
Reasons for returns in returns management:
1. Incorrect or damaged goods: Products arrive defective or do not meet expectations.
2. Products that do not fit: Deviations in size, colour or model often lead to returns.
3. Quality defects or unfulfilled expectations: If the actual quality does not correspond to the product description, customers often decide to return the product.
By analysing the reasons for returns in detail, retailers can optimise their returns process and reduce the number of returns.
Avoiding returns in returns management:
1. Preventive management: A detailed and precise presentation of products, including improved descriptions, images and sizes, can significantly reduce incorrect purchases.
2. Customer support: Easily accessible and competent customer support can help to avoid returns by providing information and alternative solutions.
3. Logistics optimisation: Careful packaging and comprehensive quality controls prevent damage to the products and therefore unnecessary returns.
Effective returns management software can provide additional support for these processes.
Different types of returns management
Returns management can be divided into two main strategies:
1. Preventive returns management:
This strategy aims to avoid returns from the outset. This includes detailed product descriptions (e.g. through 360° videos), effective customer advice, the analysis of purchasing behaviour and the use of customer reviews to identify potential problems. Technologies such as algorithmic predictions can also help to reduce returns.
2. Reactive returns management:
The focus here is on the efficient processing of returns that have already been made. This includes return forms, the tracking of returns, the optimisation of return processes and the quality control of returned items. The aim is to reduce costs and improve customer satisfaction.
Returns management at MOODJA - Why you should outsource returns management
MOODJA specialises in customised returns management solutions for the fashion, lifestyle, beauty and accessories industries. The services include the professional inspection, processing and reintegration of returned products. These industry-specific services ensure that returned goods are quickly made available for sale again - whether as regular goods, in company sample sales, as B-goods or through donations.
Our optional services include repackaging, steam cleaning and lint removal, for example. We work together with an external cleaning company for coarse soiling.
With these customised solutions, MOODJA helps companies to design their returns processes efficiently, thereby reducing costs and increasing customer satisfaction. This allows you to concentrate on your core business.
Advantages of efficient returns management:
1. Cost reduction: Well-structured and automated processes can save resources and significantly reduce operating costs.
2. Customer satisfaction: Fast, transparent and smooth returns processing ensures a positive customer experience and strengthens customer loyalty.
3. Competitive advantage: Companies with flexible and efficient returns processes, supported by specialised returns service providers, benefit from a clear competitive advantage in the highly competitive world of e-commerce.
Good returns management is therefore crucial for business success.
Returns management software: smart tools for efficient processes
In today's e-commerce world, returns management software is indispensable. It automates the entire process - from registration and returns to restocking or disposal. Features such as automated return labels, real-time tracking and integrated data analyses ensure maximum transparency and efficiency. The seamless connection to merchandise management and shop systems not only saves time and resources, but also improves the customer experience. The decisive factor is a solution that adapts flexibly to your processes - and helps you to identify return trends and exploit optimisation potential.
Conclusion on returns management
Well-organised and efficient returns management is essential for long-term success in e-commerce. Outsourcing to a specialised service provider such as MOODJA enables companies to optimise their returns processes, reduce costs and increase customer satisfaction. By using modern software solutions and analysing the reasons for returns, the process can be further improved and future returns minimised. This offers a clear competitive advantage and at the same time relieves the company's internal resources.
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FAQ - Returns management
What is returns management?
Returns management covers all processes relating to returns in e-commerce - from acceptance and inspection to the re-storage or further processing of products. Good returns management helps to reduce costs, optimise processes and strengthen customer loyalty.
What does a returns management company do?
A returns management company handles the entire returns process for you - from acceptance to restocking, cleaning or disposal. Outsourcing is particularly worthwhile for fashion, lifestyle and beauty brands: it saves resources, offers professional service and creates more space for your brand growth.
What does returns management mean in logistics?
Returns management in logistics describes the targeted control of all logistical processes associated with returns. This includes the return transport, checking the condition of the goods, repackaging, cleaning or disposal and restocking. The aim is to handle returns as efficiently and sustainably as possible - with minimum effort and maximum transparency.
