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๐Œ๐š๐ง๐š๐ ๐ข๐ง๐  "๐‘๐ž๐ญ๐ฎ๐ซ๐ง๐ฌ" ๐Ÿ๐จ๐ซ ๐›๐ž๐ญ๐ญ๐ž๐ซ ๐‚๐ฎ๐ฌ๐ญ๐จ๐ฆ๐ž๐ซ ๐„๐ฑ๐ฉ๐ž๐ซ๐ข๐ž๐ง๐œ๐ž (๐‚๐—)

By UMESH AGARWAL posted 08-04-2022 01:36 AM

  
The "Product Returnsโ€ is a subject which retailers feel agitated about mainly because of the huge costs atatched to it. As per a study the cost of a return is approximately 17% or more of the prime cost, 72% of which is due to the costs associated with handling and logistics. Whether the retailers like it or not; the fact remains that returns are an unavoidable part of the retail business.

Returns tend to be higher in the online segment due to reasons known to us. A survey by NRF conducted in 2021 found that in USA alone, on an average, retailers expect to receive returns upto over $761B worth of merchandise. Majority of the returns are from product categories such as Auto parts, Apparel, Housewares and Home Improvement products etc.
 
In the quest to keep the cost of returns low many retailers have adopted different policies over the years which have impacted the overall Customer Experience (CX). Therefore; here I am providing a 3-point strategy which will not only enhance the CX but also increase profits and customer loyalty:

๐Ÿš€ ๐”๐ฌ๐ž ๐๐š๐ญ๐š ๐ญ๐จ ๐ค๐ง๐จ๐ฐ ๐ฐ๐ก๐ฒ ๐œ๐ฎ๐ฌ๐ญ๐จ๐ฆ๐ž๐ซ๐ฌ ๐š๐ซ๐ž ๐ซ๐ž๐ญ๐ฎ๐ซ๐ง๐ข๐ง๐  - The data related to returned items and the customers can provide crucial insights to help you fix the reasons for return. It could be product description, size, defects, quality, seller competency etc. This was the retailers would be able to bring down the returns and enhance customer expectation and experience.

๐Ÿš€ ๐๐ฎ๐ข๐œ๐ค ๐œ๐จ๐ฅ๐ฅ๐ž๐œ๐ญ๐ข๐จ๐ง ๐š๐ง๐ ๐ซ๐ž๐Ÿ๐ฎ๐ง๐๐ฌ ๐ฉ๐จ๐ฅ๐ข๐œ๐ฒ - Retailers must have a clear policy where returns are not discouraged and completed in the quickest way. To do so, make the pick-up and refunds/exchange as quicker as possible. This way you can keep the customers happy, encourage them to reorder and also take quick calls on what to do with the returned items.

๐Ÿš€ ๐‚๐ซ๐ž๐š๐ญ๐ž ๐š ๐ฌ๐ฒ๐ฌ๐ญ๐ž๐ฆ ๐ญ๐จ ๐ญ๐š๐ค๐ž ๐š๐œ๐ญ๐ข๐จ๐ง๐ฌ ๐จ๐ง ๐ซ๐ž๐ญ๐ฎ๐ซ๐ง ๐ข๐ญ๐ž๐ฆ๐ฌ - While talking of managing the returned items, its known that the agieng of the inventory is a killer for any retail business. Therefore; there has to be a clear set of guidelines and systems in place to manage the returned items. Once the item has been returned, depending on the product and the situation, decision has to be made whether to recycle, repair, refurbish, resell or destroy it.

All of the above will ensure that inventories are kept low, overhead costs are controlled, customers stay longer, buy more and remain loyal. All of it will certainly help in a better, enhanced and delightful Customer Experience (CX).

Do you agree that return could be an converted into an advantage? Please leave with your comments.
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