5 ecommerce returns management hacks to boost efficiency

Are you looking for ways to fix delays or complicated return processing that frustrate customers? This article will teach you how you can fulfill real-time returns and refunds in 3 to 5 business days to keep your customers happy. We’ll be sharing practical strategies and tools to streamline your ecommerce return management process. We also share examples from popular ecommerce brands, showing how they successfully apply these techniques and best practices to reduce your product returns.

5 essential hacks to optimize ecommerce returns management

Explore these 5 actionable best practices and see how and where you can apply them to streamline your returns process, save on operational costs, and enhance overall customer satisfaction.

Understanding the product return laws that matter

When running an ecommerce business, know all your location’s product return laws and regulations. This helps you understand the online shopper’s rights to return items (item conditions to meet, exclusions) and avoid potential legal issues. Here’s what you should watch out for:

Product return laws differ per location

Product return laws work differently per country, region, or state. Each creates specific return policies to ensure all online retailers follow fair business practices. Here are sample product return laws per country:

Return Law	Description	Country	How It Improves Efficiency
Consumer Rights Act 2015	Returning faulty goods, digital content, & services	UK	Resolve issues effectively & provide the right compensation for damaged goods/digital content/services
Consumer Rights Directive	Right to cancel (Cooling-Off Period)	European Union	Minimize disputes & customer frustration
Magnuson-Moss Warranty Act	Create clear return policies for warranties with specific conditions about returns	The U.S.	Standardizes return procedures to eliminate confusion
Consumer Guarantees Act	Goods should meet their advertised description & purpose (fit for purpose)	New Zealand	Reduces defective return rates & ensures product descriptions are accurate

Ecommerce product return exclusions

Regulatory entities acknowledge that there are certain products that online shoppers cannot return. So, they specify and include several product types in standard return policies to help manage customer expectations. This ensures that ecommerce businesses will never waste resources processing unnecessary return requests.

Here are Connecticut (US) law‘s exclusions to give you an idea:

• Used products
• Custom-made products
• Perishable products, including live plants

Products that are sold “as is” or as a “final sale” are also not eligible for returns. The as-is (as available) transaction encourages customers to inspect the products before making a buying decision. Pergola Kits USA is one excellent brand that offers an as-is basis for their ready-to-assemble pergola kits.

The brand explains in their Terms of Service Agreement (TSA) the coverage of their as-is transaction. They also clarify their legal responsibilities and maximum liability to prevent confusion or disputes later on. So, once the customer (in-person or online customers) decides to purchase the item after inspection, they should agree to these terms.

On the other hand, the final sale often refers to deeply discounted products. Green Supply offers this type of transaction for its sale promotion and custom wholesale orders. Since the price they offer is low, the brand is only breaking even on the sale. For their custom bulk order, they can’t easily be resold to others because they are made specifically based on the client’s requirements. On top of that, these orders are discounted based on their quantity.

Key Takeaway

Understanding product return laws helps you create a clear and fair return policy that both protects your business and customers. Make sure to search for the appropriate laws and regulations on government sites to make sure everything checks out.

Create a no-questions-asked returns policy

65% of online customers prefer shopping at an eCommerce store that offers a no-questions-asked return policy. As the name describes, it’s a type of policy that allows online customers to return products and get a refund without providing any explanation. 

Tailored Athlete is an excellent example of a brand successfully providing a no-questions-asked return policy. The brand gives customers 35 days (starting on the order received date) to return the item and get a full refund. Here’s what they set:

The key is writing a clear policy guideline. The brand defines what products are eligible for return and set conditions for the returned items, such as:  

• No damage
• Still in a resellable condition
• Must be unwashed and unworn

They also provide an ample amount of time (35 days) for the customer to return a product. So, they can do it whenever they have free time. When setting your return window, consider the industry standards first. It will tell you what the norm is and what the customer expectations are. You can decide later whether you want to meet or exceed industry standards to stay competitive.

You should also base your return window on your product type because of their different characteristics. Here’s a glance at different product types and average return windows for your reference.

Product Type	Return Window	Reason	Brand Examples
Electronics	14-30 days	Short return windows to limit the risk of fraud or damage	Apple Inc. (14 days)
Clothing & apparel	30-60 days	Customers require time to try them out & see if they fit	H&M (30 days)
Software & digital products	7-30 days	Encourage customers to make a quick decision while having ample time to explore the product	AppScenic (30 days)
Medical equipment & devices	7-30 days	Much shorter return time frame because of safety & hygiene reasons	Henry Schein Medical (30 days)
Greenhouse construction materials	30-90 days	Longer window because the materials can easily be resold	Greenhouse Emporium (30 days)

Key takeaway

Many consumers often hesitate to shop online because they are unsure of the product’s quality. But having a no-questions-asked return policy will boost their confidence and trust in buying. Make sure you communicate the return policy and time frame to your customers so they can do it with minimal effort.

Remember to assign an exceptional customer service team to make a positive return experience. They can also collect customer feedback about their experience and use it to improve your policy and identify any issues or concerns.

Automate returns process for speed and accuracy

50% of daily work is automatable. That’s why ecommerce businesses make automation their go-to tool to save both the time of their customers and employees.

Automation works solely based on your requirements. Pick the task and it will guide you on how to create an automated workflow. Here are the common tasks you can automate:

• Inventory updates
• Return request approval
• Generating return labels
• Sending notifications at every stage of the return process
• Tracking progresses (from initial request to refund confirmation)

Always consider your business platform when choosing an automation tool. An ecommerce platform like Shopify often provides an automation tool to make your life easy, so use it well. With a few clicks, you can set up your entire automated workflow.

However, if you’re a multi-channel ecommerce retailer, an all-in-one ecommerce platform like Linnworks is a much better option. Linnworks specializes in automating order and inventory management. But using integration, you can seamlessly sync all your business systems (sales, marketing) and create a centralized hub.

Let’s say you’re using FedEx as a shipping carrier. Integrate it to Linnworks and you can automatically generate return labels. Go to configuration setting to set it up: Shipping > Integrations > Config > fill up the form:

Key takeaway

67% of businesses are already reaping the benefits of automation—boosting efficiency (time and cost) and simplifying complex processes across multiple platforms. It can also minimize human error in tasks and handle increasing volumes of returns without adding extra staff or resources. This will improve your customer experience and turn you ecommerce returns management strategy into opportunities for brand loyalty.

Develop a feature-focused product page

One goal of a product page is to instantly capture consumers’ attention. A feature-focused product page will ensure consumers will get the information they are looking for. This is where Best Buy excels at. Let’s break it down.

Vital page elements to add above the fold

All critical information about the product is placed above the fold to help consumers make fast decisions. First, they select descriptive and concise product titles: brand name + product type + color. It may be simple, but it’s enough to help your product page be more visible online.

If you want to make it more recognizable and consistent, adopt the product naming convention approach. It’s a set of guidelines that ensures each product name follows a specific format.

For electronic and medical equipment, most brands follow this naming format: brand name + product type + key feature/attribute + product model/version/year launched. This makes it easy for consumers to understand what the product is. Other than the product name, here are other key elements you should add above the fold of your product page:

Above The Fold Elements	Reason To Add	Hacks To Improve
Price & discounts	Create a sense of urgency & make it easier for customers to assess the product’s value	Show both the original price & discounted price to show the savings they are getting
Trust badges & guarantees	Assure that product quality is high & payment methods are secure (Money-Back Guarantee, 100% Secure Payment)	Add brand credibility logos like those ‘featured in Forbes’
Call-to-Action (CTA) buttons	CTA gives product descriptions clear direction & converts prospects to paying customers	Use contrasting colors & sizes so it stands out
High-quality product images	Give a 360-degree view of the product	Include zoom function for detailed inspection & add interactivity
Shipping & availability options	Minimizes cart abandonment caused by hidden fees or unexpected delays	Highlight shipping restrictions for any regions or countries & offer free return shipping when needed

Create detailed product descriptions below the fold to reduce return rates

The average ecommerce return rate is around 20-30%. The entire process is both costly and time-consuming, but writing a detailed product description can lower it. It describes every crucial detail about the product concisely so the customers know exactly what to expect, which means they are less likely to be disappointed.

Use your opening paragraph to highlight the key selling point. Best Buy delivers the same with brief details of how it works. Since they use simple language, the customer can immediately tell if the product fits their needs or not.

Medical equipment comes with tons of information. You can break them down into small, digestible information and select up to 5 most valuable details. Highlight them all using a bullet list so customers can quickly grasp the key features.

Bullet lists have their advantages, but they might end up with infinite scrolling. Best Buy added collapsible tabs to solve this potential issue and avoid information overload as well. With one smooth click, it will show all the essential details it contains. Here are other key elements you should consider adding:

Below The Fold Element	Reason To Add	Hacks To Improve
Social proof	Add customer reviews & testimonials so customers see others’ experiences using the product	Feature a gallery of user-generated content (UGC) to see proof that others are using it as advertised.
FAQ section	Address customers’ popular questions about the product to increase their potential to buy	Add relevant short videos to demonstrate product use

Key takeaway

When building a feature-focused product page, focus on the word ‘easy’. It should be easy to read, understand, view (all screen resolutions and sizes), and navigate. Add clear labels and headings for each section so that consumers will know what they are all about at a glance.

You can add visual cues too. Arrows and icons are the most popular options because they can easily guide the eye to important parts of the product page.

Offer refund alternatives

A cash refund provides a quick resolution for customers who are dissatisfied with their purchased products. However, a cash refund isn’t a one-size-fits-all solution. There are specific instances where a store credit or exchange makes more sense.

Store credit

Store credit is given when a product is not eligible for return like custom-made or clearance items. However, online stores most commonly give out store credits for frequent returners.

Every online shopping store has at least one customer who makes excessive returns. You want to discourage this behavior without alienating them. So, it’s better to offer store credit than a cash refund.

If you’re using WooCommerce, you can create a reliable crediting system. After you verify the return request, you can issue the credits directly to the customer’s account. This makes it simpler for them to use in future purchases, boosting customer loyalty.

Exchange

For products with high return rates, like clothing and electronics, offering exchange is the best option. When exchanging, make sure the new product has an equal or lesser value than the original purchase value. This will prevent revenue loss and increase your customer lifetime value.

If the reason for the exchange is defects, present suitable replacement options as well. This will keep your dissatisfied customers from escalating into complaints or leaving your product and business pages with negative reviews. Here are the options you should explore:

• Gift cards
• Same item, different color or size
• Alternative product (same, but different brand)
• A refurbished version of the same product at a discounted price 

When none of the options work or the customer no longer wants the product, offer them a product from a different category. The product still aligns with the customer’s preferences or needs to keep them satisfied.

For example, they bought a defective medical alert watch. Instead of losing a customer, offer them a portable medical alert system that provides similar safety features. This alternative still addresses their original concern, even though it isn’t a wearable watch.

When giving out alternatives, provide a catalog or a buying guide. The catalog will present all products similar to the defective medical alert watch and compare their prices. While a buying guide provides a detailed review of medical alert wearable devices (different brands) based on their hands-on testing.

Replacement for services

Replacement for services works similarly to a product replacement. You should just make specific adjustments to fit the nature of your services.

A redo is one of the common types of replacement for services. If the customer is unhappy with the results you provided, redo the service at a reduced rate or for free.

Genius, a headhunting agency, sets an excellent example for this service. They will conduct a second hiring round for free if the first hire fails to meet the client’s (employer) expectations within the first 3 months. They also provide them with free resources to optimize their job boarding post and interview questions to ensure a fair evaluation process. It’s their way to show their commitment to client satisfaction and strengthen their relationship.

Here are more types of replacements you can offer:

• Offer a different service
• Extend the service period
• Upgrade to a better service
• Free follow-up service or consultation

If you handle these replacements successfully, it will strengthen your relationship with your customers. No matter what issue they face, they have full confidence that you can solve it.

Key takeaway

Offering refund alternatives helps keep customer satisfaction, protect profit margins, and better manage returns. Some brands only offer 1 so they do not overwhelm their customers. But if you want flexibility, add 3 to 4 options e and offer them at the same time.

When you do so, make sure to describe your offers clearly in the return policy so that customers will know your options and what conditions they should meet to be eligible.

Get your ecommerce returns management right with Linnworks

Returns are an inevitable part of business. It may be overwhelming but using the right ecommerce return management strategies and tools, you can create a hassle-free return process. You can start with these hacks. They are simple, yet effective in improving your bottom line, reducing manual effort, and enhancing the overall customer experience.

Ready to optimize your returns management? If so, explore Linnworks and see how we can help you improve your efficiency and optimize your store for better ROI.