On your mark, get set, here come the returns! If you think your holiday planning ends with Christmas, think again. Just like sales picked up during the start of the holidays, the number of returns consistently jumps at the start of the New Year. A practical approach to reverse logistics will keep the returns from being a drag on your business.
Be Proactive!
Communicate your returns policy clearly. Not only will this go a long ways towards preventing returns complications after the holidays, it is also a good way to build up customer service standing. Many purchases made leading up to holidays will be gifts, so be forward about gift return policies. Have this information easily available on your website for those who – gasp! – want to return gifts without going through the giver. Do you offer gift receipts? You should.
Be Nice To Customers!
There are a myriad of reasons why customers return products. Hopefully none are your fault, but you will probably deal with returns that leave you annoyed for one reason or another. Don’t let the customer sense this frustration. Turn the negative and often frustrating experience of returning a product into a positive experience likely to draw that customer back. Stick to your return policies without being aggressive or rude. Stay cordial and follow through in a timely manner. Ask them what you could have done differently. While you are losing a sale this time around, hopefully you are creating the reputation and relationship that will lead to more sales in the future. Sometimes it is better to be lenient in the short term to develop long-term customers.
Money Talk
You are going to get returns, so budget for them. Who will incur the cost of return shipping and will there be a restocking fee? Will you have space for this reacquired inventory? What is your plan for reselling it? These questions will impact your operating costs and profits, as well as the customers who buy from you. Don’t promise free return shipping if you can’t afford it.
Use the RMAs to gain insight into what went well and what didn’t work for the holiday season. Maybe an item sold really well, but it had a really high return rate. The RMA data will help you more identify the products that were most (and least) profitable.
Returns Aren’t the End of the World
A straightforward and well-communicated returns policy and head start on planning with make the holiday returns cycle a expected and routine part of your winter. Doing returns right eases the back-end burden on your business, and will help out the bottom line.
Don’t forget to send us any suggestions about how you handle returns!