Why should you consider outsourcing your returns process?

The high number of returns in e-commerce is a major cost driver. According to a study, 80% of retailers say that the costs are “significant to severe.” Of course, you are aware that the returns process must be quick and easy for your customers. Only then can you build trust and your customers will continue to buy from you.

To create a pleasant returns experience for the customer, it takes a lot of effort. Let’s take a closer look at the cost drivers:

High inventory and equipment costs

To process returns internally, space must be kept free, from receipt of goods to inspection and reconditioning. This can also mean that the equipment of partly very specialized workstations is required, in addition to replacement parts, new cartonage etc. Costs for your IT and general maintenance also add up and are charged

Returns processing leads to increased labor costs.

Returns processing can be a very labor-intensive manual process. Employees must receive, sort, transport, grade, restock, and relist goods. Customer service also dedicates a portion of its capacity to return inquiries. This high effort is usually disproportionate to the resulting revenue.

Returns lead to high shipping costs.

Returns may be free for customers, but it’s different for companies. Costs occur that could have been avoided in some cases. If you offer returns again, you must pay attention to excellent grading quality and description in the offer. Because many people buy used, but still expect the highest quality. In the worst case, the customer sends the item back again.

Returns lead to resource waste.

Many companies avoid traditional returns processing – it’s often too labor-intensive, too complex – they simply dispose of the products. Not with us – disposal is the worst possible way, as it incurs costs and does not fit into a holistic sustainability concept. A variety of customers now incorporate such sustainability concepts into their purchasing decisions.

CONCLUSION:

Returns are part of the everyday life of an online retailer! However, dealing with these returns should be efficient and smart, as it otherwise becomes a cost driver that significantly minimizes profit. That’s where we come in. Get in touch with us – let’s talk about it

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