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Managing Returns After Christmas Online 2006

Press Release

By: Zendor
18 October 2006

The Christmas season is one of the most dynamic in terms of online sales, with shoppers spending £4.98 billion online in the 10-week period leading up to Christmas 2005 and more expected in 2006. However, the knock-on effect of post-Christmas returns can often mean that retailers are just as busy in January as December. The average Briton returned 10% of their presents last Christmas - worth a staggering £926.4 million nationwide (ValueLink). It is vital that retailers take into account the amount of returns they will be experiencing come January both for management and cash-flow purposes.

Therefore, retailers need to make preparations in order to manage customer expectations effectively so they can provide an efficient returns service, maintaining high service standards throughout without damaging customer loyalty. Zendor, the distance shopping expert, provides the following advice to retailers on how best to manage customer expectations and deliver a first class returns service following the high peak season.

So what do customers want?:

• CONVENIENCE - Try and make the process as easy as possible for the consumer with a simple and convenient returns policy . For example, by providing customers with a number of different return options, such as in-store (for multi-channel retailers), by courier collection or via the post office, will help to make the returns process less time consuming for both the consumer and the retailer.
• COMMUNICATION - It is essential that the returns policy is clearly explained throughout all shopping channels, i.e. on the website, in the catalogue and in-store. By making sure that the customer is fully aware of the returns policy prior to purchase can help to reduce call centre costs by limiting enquiries.
• SPEED - By keeping carriers informed with forecast volume changes or increased parcel movement, they will be better prepared to cope and provide a faster, more responsive service.
• OPPORTUNITY TO FEEDBACK - Retailers should take the opportunity and obtain important customer feedback through returns. Listening to customer feedback - both positive and negative – can drive improvement. The information can be used to improve merchandising, product selection, packaging and pricing structures as well as cross-promotions of other retail channels.
• HASSLE-FREE REFUNDS - Compensating customers as soon as possible, without any delays, increases the likelihood of them returning for another purchase.

As returns can never be avoided completely, retailers should make as thorough preparations as possible. Firstly, forecasting should allow retailers to anticipate the volume of returns they may experience to ensure that they have adequate staff levels, sufficient stock, enough warehouse space and call centre staff. Secondly, a competent and effective returns handling process will mean that returns are uploaded, identified and processed for re-sale, refurbishment, return to manufacturer or disposal. Therefore, a high-quality infrastructure and skilled staff will be needed to handle the entire fulfilment process efficiently.