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Zendor Advises on How to Manage Returns in Distance Selling

Press Release

By: Zendor
9 June 2005

Goods sold via the web or catalogue can produce very high return rates, as much as 50% or more in some sectors and at particular times of the year. Retailers need a strong policy in place to effectively deal with returns as they cannot be avoided completely. Those new to home shopping, or without adequate returns management, risk damaging their reputation, losing customers and, ultimately, sales. Distance shopping expert Zendor, offers the following advice to retailers on how to manage and reduce returns to ensure customer satisfaction and repeat sales:

Tips for returns management:

• Clearly communicate with customers - Making returns policies easy to find and understand on the website, or in the catalogue, will reduce call centre costs and encourage sales.
• Make returns convenient and easy - Provide options for customers to return their goods e.g. offer returns via the post office, in-store (for multi-channel retailers) or by courier collection.
• Establish an efficient returns handling process - Returns require unloading, identifying and processing for re-sale, return to manufacturer or disposal. The necessary infrastructure and skills will be needed to manage this.
• Implement effective product refurbishment - It is cheaper to refurbish an item and to use components already in circulation than to manufacture a new product. Returning products to the supply chain as quickly as possible cuts product costs and creates new revenue streams.
• Prepare for volumes - Anticipate returns volumes using a forecasting system and prepare a budget to plan for warehouse staffing needs.
Outsource to a specialist - Retailers may want to consider employing an expert fulfilment provider with an established infrastructure and knowledge to handle the entire fulfilment process.

Tips for returns reduction:

• Provide accurate, clear descriptions and pictures - Customers will then be able to make more informed decisions before placing an order. Misunderstandings or disputes when the goods arrive will be minimised and customers are less likely to be mislead.
• Implement effective quality control - Correct packaging reduces damage to goods and parcels and efficient quality control also alleviates incorrect stock picking or incomplete orders being sent to customers.
• Use ‘real-time’ stock availability - Manage all systems so they are integrated and updated simultaneously. This ensures orders cannot be taken for items that are out of stock.
• Select substitute products well - Inappropriate substitutes increase the rate of returns and sully brand reputation. If a substitute is dispatched in place of an out-of-stock item, ensure that it is appropriate.
• Keep delivery promises - If a customer is advised of delivery within 3-5 days and the item takes 3 weeks to arrive, the customer may cancel the order and purchase a replacement item from another source within that timeframe.

One of the benefits of distance selling is the opportunity for customer feedback on returns. On the high street, retailers are left with little more than a rack of clothes in a fitting room, but with distance selling, retailers can request that customers complete a returns slip. They can then analyse this data to improve their merchandising, packaging and forecasting of demand to ensure adequate stock levels stock, and increase and retain future sales.