Find the best Warehousing & Fulfillment company by filling out the form below, or Click Here to continue reading our page Reverse Logistics and Customer Returns Management Services
Let’s face it, if you sell something online, you are likely to run into scenarios where people want to return the product for a refund. The product may be perfectly fine, it is just a fact of retail that people will return things. If you want to make the return process run just as smoothly as the selling process, you need toย effectively plan for customer returns. Hopefully you will not need to handle many returns of your product (or the product that you sell), but by planning for returns ahead of time, the process of handling the returns when they happen will be much easier to deal with.
Nonetheless, managing warehouse returns can be a real headache for any business. When a customer sends back a product, it’s not just a hit to your sales, but it also affects your inventory, labor, and overall costs. Moreover, frequent returns can tarnish your brand’s reputation and make customers think twice before shopping with you again. That’s why it’s crucial to find ways to minimize these returns.
But before you can fix the problem, it’s important to understand warehouse returns in general, what they are, how they impact your business, and what the most common reasons are for returns.
Warehouse returns are when customers send back items they’ve bought from you. This can happen for many reasons. Maybe the customer didn’t like the product, it didn’t fit, or perhaps it arrived damaged. Sometimes, people change their minds after making a purchase, and that’s okay. What’s important to understand is that handling these returns isn’t as simple as putting the item back on a shelf. It’s a multi-step process that involves checking the returned item, updating the inventory, and often communicating with the customer to resolve the issue. These steps consume time, effort, and resources. So, what starts as a simple box coming back to your warehouse can ripple into a series of tasks that you need to manage efficiently.
You might be thinking, “Okay, returns are a part of doing business, so what’s the big deal?” The impact of returns is more significant than you may realize. Here’s how:
While returns are a part of any retail business, a high rate of them is often a symptom of deeper issues. Understanding the root causes of why customers are sending items back is key to fixing the problem. So, let’s break down three big reasons for warehouse returns and what you can do to tackle them.
Returns are a hassle for any business. Not only do they eat into your profits, but they also take up valuable time and resources. The good news is by adopting some best practices; you can significantly reduce the number of items that get sent back to your warehouse. Below are the most important practices to implement in your warehouse operation in order to reduce and minimize returns.
The biggest thing to worry about when planning for returns is to assume the customer is going to make a return. Until that return window has passed, the customer may very well decide they do not want the product and initiate the return process. If you assume they will make the return, you will be better prepared for the possibility that they do want to make a return. Now, you may be thinking that this frame of mind is rather pessimistic, and maybe it is. But isn’t it better to be prepared for a return and not have to worry about it, than to not be prepared and scramble when the call comes in? Being ready for a return does not mean not cashing the check, but it does mean taking the necessary steps to ensure that should a customer want to make a return, the process is hassle-free on both ends.
By clearly spelling out your returns policy on your website with relevant links on your shopping pages, you’ll not only provide users with the information they need to understand your policy, but you’ll also build credibility. Providing a point of contact for questions about returns, whether an email address, an instant chat, or a phone number will give them easy access when they do need to reach out to you. Some of the things that you’ll have to consider about your policy is whether or not a customer can return a product without a returns authorization by a company representative or if they need to get approval for a return, as well as how the customer will initiate the return, who will pay for the shipping related to the return, and how the customer’s account will be credited.
If you want to step things up, prepare for the return by issuing a return label. This is becoming more common among online retailers. By shipping the product with everything the customer needs to ship it back, you are welcoming them to return it if they are not 100% satisfied. This is the kind of customer service you want to provide, the kind that thinks in advance about the customers and what they may want. Hopefully very few of your customers will take advantage of prepaid mailing labels and return forms, but those that do want to return something are likely to buy again from your company thanks to the hassle-free return process.
If you do not want to pre-issue return slips and mailing labels, you need to make sure that it is easy for customers to obtain these forms – and where they need to go to obtain the forms online.ย Even if you are not going to pay for return shipping (make sure the customer knows this upfront), you still should make it easy for customers to print out the necessary forms for you to handle the return.ย Oftentimes, companies that don’t include a return slip and shipping label in the package will at least include an insert that provides a website address where returns information can be accessed.
The easier it is for customers to get what they need to make returns simple, the more likely they are to continue using your business. But seriously consider paying for return shipping as a courtesy for them not liking the product, especially if you have free shipping to the customer from your warehouse.
The better customers understand what they’re buying, the less likely they are to return it.
To summarize, you can make the process less painful for you and the customer.
Now, once you have the item back in your warehouse, what do you do? Hopefully you already have a process for processing returns, either automatically or manually, and then routing them based on whether they can be sold again. If the item is still “new” then put it back on the shelf and sell it again. If it is damaged in any way, then return it to the manufacturer, or write it off if you are the manufacturer. But if you don’t have a full game plan in place, here are some key areas you can address in order to improve your overall process.
People hate receiving damaged or defective products. Simple as that. Implementing rigorous quality control measures is a must. First, have a strict quality control process in place. Each product should be inspected for any defects before itโs packed and shipped. Second, use secure and protective packaging materials: Cheap, flimsy packaging can get damaged easily in transit, and that can damage the product, too. Invest in durable contract packaging materials that protect the product until it reaches the customer.
Confused about what’s in your warehouse? You’re bound to send out the wrong item. Investing in inventory management software is imperative to reduce returns. Good software can help you track what’s in your warehouse, where it is, and how many you have. This makes the whole process a lot more accurate. Conducting regular stock audits and cycle counts will also contribute to inventory accuracy and reduce potential issues. Manual checks are essential. Regularly counting what you actually have versus what the system says you should have can catch errors before they lead to a return.
Mistakes made while picking and packing orders can result in the wrong items being sent out. Implementing efficient picking and packing methods will significantly reduce the potential for picking errors. Use proven strategies like batch picking or zone picking to improve the efficiency of your warehouse staff. Using barcode scanning and automation technologies can assist in accurate order fulfillment and picking. Tech tools like barcode scanners and automation can significantly reduce human errors, making the process quicker and more accurate.
You can’t fix a problem if you don’t know it exists. Using data can help plan the best overall warehousing services and mitigate problems. The following are items to address regarding data and analytics improvements:
Your suppliers play a crucial role in the quality of products that reach your customers. Establishing clear communication channels with suppliers can have a positive effect on warehouse returns. Open, frequent communication can help nip potential problems in the bud. Implementing quality control measures at the supplier level should be done from the beginning. The earlier in the supply chain that quality is checked, the better. Working together to address issues and find solutions will foster a collative environment that will outperform a siloed partnership. When problems do arise, tackle them as a team. The quicker and more effectively issues are resolved, the less likely they will result in a return.
Reducing warehouse returns is not just an operational need but a strategic imperative for your business. At Warehousing & Fulfillment, we can be your trusted partner in achieving this by matching your with warehousing and companies and fulfillment services and software to run world-class logistics operations.
With our industry-leading expertise, we can help you minimize returns and drive customer satisfaction and your bottom line. Contact us today to learn more about how we can help you achieve operational excellence by minimizing warehouse returns effectively.
In a warehouse, returns are usually received in a designated returns area, where they are inspected for quality and condition. Based on the inspection, items are either restocked, repaired, or marked for disposal.
Managing return inventory involves assessing the condition of returned items and updating inventory records accordingly. Advanced inventory management software can automate this process, making it easier to restock items or flag them for further action like repair or disposal.
To reduce damages and return orders, focus on implementing rigorous quality control measures and using secure, protective packaging. Optimizing inventory management and order fulfillment processes can also significantly reduce errors, minimizing the chances of returns.
Your contact information is held in the strictest of confidence. We will contact you before we connect you with vendors so that we can learn about your situation, obtain any of your contact preferences, and answer any of your questions.
YOU have control over your contact details:
We Care About Your Privacy. Your information is shared with only pre-screened providers. You may opt out of communication at any time. View our Privacy Policy.
I want to say thank you for your help in finding a warehouse so quickly. Your service was amazing. I received replies the same day and have selected a company that will work well for us. I definitely recommend your services.
I wanted to express my gratitude for your services and let you know that it was a very enjoyable experience! We have selected one of the companies and they are awesome!
You are doing such a great job and this service that you provide is a life saver for people especially startups like me....We cannot spend budgets on researching as much as the big firms can...and you provide us one stop solution which will answer all our questions.
I just wanted to let you know that I selected one of your vendors as our fulfillment house. They can do what we need and weโre looking forward to working with them. They can handle our โspecial projectsโ fulfillment, which was key to our decision in bringing them onboard. I appreciate this service. It was great for our company.
I didnโt know there was so much difference in fulfillment companies โ this was my first time in need of this sort of service. After a Google search I luckily stumbled upon WarehousingAndFulfillment.com. They saved me an incredible amount of time and money. Within minutes I had a couple of emails from good companies that fit my situation. I am very appreciative of their help.
Warehousing and Fulfillment was the perfect matchmaker in finding us a fulfillment partner. They provided several great options, all of whom were very responsive and willing to take the time to talk through our needs. We ended up going with W&Fโs top match and we couldnโt be happier. I highly recommend W&F, particularly to anyone whose business relies on a strong fulfillment partner.
We were having multiple issues with our 3PL fulfilling warranty replacement parts. Our company needed to make a change and make one fast. I reached out to WarehousingAndFulfillment.com to facilitate my search for a reputable, service oriented 3PL that can handle the demands of a highly seasonal business to pick, pack and ship parts quickly. I received several qualified 3PL leads that matched what we were looking for. After reviewing and speaking with many one stood out from the rest, and we found a great partner. We could not recommend WarehousingAndFulfillment.com enough.
We found the perfect third-party fulfillment vendor through insightQuote. We never would have found them on our own. We canโt thank you enough and our customers thank you too.
Thanks for all of your help. This was a huge undertaking for us and your guidance was extremely helpful!
Thank you so much for your excellent service. We have chosen one to go forward with. This has saved us a great deal of time.
They really listened to our requirements and then matched us with great vendors that could meet our specific challenges.
I just wanted to say thank you so much for setting me up with these vendors. I have found pricing better than I ever expected to find.
Legit, this was such a good experience ... I was shocked how fast the vendors contacted me and got the ball rolling. This was such a pleasant experience
What an awesome service. A problem I fought with daily for over 3 weeks, solved in less than 24 hours.
Get fulfillment tips delivered to your inbox!