- by Best Inc.
- September 1, 2020
Customer returns add up to so much every year that they could constitute a market of their own! Costing American companies millions of dollars every year, customer returns may be part and parcel of running a business but nevertheless can affect profit margins negatively. While it may be tempting to cut out a returns policy altogether, developing a customer-first approach can actually give your business a competitive edge. Read on to find out why.
With the advent of e-commerce, more consumers are buying with the mindset that they can always return an item if it doesn’t fit, and that’s exactly what happens a lot of the time. In order to combat this, many businesses have adopted a cost-first approach, attempting to limit purchases with high possibilities of a return.
However, an increasing number of companies are starting to embrace returns as a natural part of the shopping experience instead of trying to combat it. What can be learned from this customer-first approach, and why is it necessary?
The Rise of Social Commerce
Much like e-commerce, the rise of social commerce is anticipated to disrupt the retail market, paving the way for an entirely new shopping experience. Boosting sales through social media results in more customers making impulse purchases and as a result, more customer returns for businesses. Although consumers are more likely to make some genuine purchases, inevitably there will be returns as they find that some of their purchased goods do not fit.
Adopting A Customer-First Approach
Some retailers have gone ahead of the game and extended the customary 28-day return period. Giving customers more time to decide whether they would like to keep an item, this reduces the urgency in which an item has to be dispatched which can influence customers’ decisions. In the digital age, it is time to accept that trying on and returning items is embedded in the shopping experience and working against it will soon become an outdated strategy.
With a customer-first approach of handling returns, businesses can better work out what generates impulse purchases to improve their reverse logistics operations. Items will need to be processed and quality assurance checks carried out in order to ensure that that returned items are back on the market as soon as possible. This will aid in the visibility of stock movement, benefiting both businesses and customers alike: customers know where the returned item is at every stage of the process, whereas businesses can keep track of stock numbers and conditions.
Returns and Reverse Logistics Solutions for Your Business
If you are looking to revamp your business’s returns policy and reverse logistics operations, Best Inc., can help. An effective strategy can make a big difference in the shopping experience and improve the way your business runs. At Best Inc., we pride ourselves on being transparent throughout every stage of the returns process, keeping you up to date on the relevant information you need to manage your stock. If you have any queries or would like a custom fulfilment quote, please do not hesitate to contact us today.