Return process refers to the steps involved when a customer returns a purchased product. The process includes receiving the returned item, checking the condition, and processing a refund, replacement, or repair. This process helps businesses manage returns smoothly and satisfy customers.
The Ecommerce business is rapidly increasing at an alarming rate, especially after 2020. Most companies focus on delivering products in proper condition and within time to the customer. However, the companies neglect returns management service, which is one of the most critical aspects of the supply chain management process.
Unfortunately, 30% of purchased online orders are returned to the Company. Customers always prefer to buy products from a Company with a simple and easy return management process. Companies need to optimize their return process to run a profitable online business.
What Is the Return Process?
Similarly, The return process involves all the steps, From picking the product from customers to returning the amount or another product whenever a customer initiates the product return.
Return process is one of the most essential factors in building trust in the customer’s mind. It involves a series of steps to manage return goods from the end customer to the warehouse.
The Company arranges to pick up from the end buyer and then returns the product to the 3PL warehouse. It is checked thoroughly, and if it is in good condition, it is restocked by the Company. But if it is in bad condition, the Company decides to dispose of it in a way that will not harm the environment. According to the return policy, the company has to resend the new product or refund the customer.
Sometimes, the Company dismantles the product and extracts all the valuable materials for another new product. So, the returned product is either recycled, discarded, reused, or restocked depending upon the product’s condition.
Major Reason for Returns and Return Process In Ecommerce Business
Let’s Understand the Reasons for Returns
Customers return to Ecommerce businesses for various reasons, which are listed below.
- Receiving The Wrong Product Size – Sometimes, a customer orders a kurta of M size but receives a kurta of L size. So, in such a case, the customer wants to return the product to the Company.
- Change mind – Customers sometimes order a product from the Company and receive it within time. But after receiving it, the customer can change his mind and want to return the product.
- Improper Quality – A customer orders a dress from a particular Ecommerce store, but the dress quality is not as good as expected, so she wants to return the product.
- Late Delivery – If an Ecommerce business delivers a product after the expected delivery date, then the customer wants to return the product.
- Better prices found on other Sites – A customer orders a product from a particular company but later finds the same product at a lower price on another e-commerce site and wants to return the product.
- Received Damaged Product – If the customer receives a damaged or defective product, he wants to return the product.
- Product Is Not As Described – Sometimes, the product as described on the website does not come at the time of receiving. Hence, the customer wants to return the product.
Ecommerce Return Process
1. Initiation Of Return Request To The Customer
The process starts when a customer initiates a return request to the e-commerce company’s website. The customer places the request through the order tracking page or by contacting customer care. He even has to select the reason for returning the product.
There will be various options, such as receiving damaged products, improper packaging, etc.
2. Acceptance Or Rejection Of The Return Request
The seller then reviews it and then either accepts or rejects it. The request is accepted or rejected based on various factors like the reason for return, product condition, and return policy.
3. Pick Up And Product Inspection
If the customer’s return request is accepted, the seller will assign a particular date and time for the product pick up. The logistics partner will assess the product’s condition and inform it back to the seller.
The logistics team usually finds it a daunting task to manage the forward and reverse logistics process. Hence, most e-commerce companies do this work with a third-party logistics Company.
4. Product Returned To The Warehouse
The returned product goes back to the warehouse or storage facility. The product goes through a strict quality assessment, and whether to refurbish or discard it is decided.
5. Restocking The Product in Inventory
If the product passes the quality test and is in 100% good condition, then the product is restocked in the warehouse and is ready to resell.
Major Reasons for Returns and Return Process In B2B Business
Return Reasons in B2B Business
The return process in the B2B business means returning products from one Company to another. It can happen for various reasons, which are underlined below.
1. Improper Quality Of Product Delivered – A business may return the goods or products because of improper quality or specifications.
2. Incorrect Items – If a business receives the wrong products, it will place a return request.
3. Non-Compliance With Standards – If the product does not match the standard specification, the business returns the product.
4. Late Delivery – If the business gets products later than the expected date, they return the product.
Return Process In B2B Business
- The buyer places a return request to the supplier and mentions the order details and reasons for the return. He may include some photographs while placing a request.
- The seller checks it correctly and then arranges for pick-up. The buyer keeps the product in proper packaging and hands it to the shipping company.
- The goods are returned to the warehouse and are inspected thoroughly.
- If the goods are damaged or defective, they are recycled, repaired, or discarded.
- If the goods are in good condition, they are restocked to be sold again.
- The buyer is notified, and the refund is done.
Challenges In The Return Process
Improper Space
Many e-commerce companies don’t have enough space to store the returned products. Hence, they store numerous returned items in a small warehouse space, which can result in breakage of certain items. The warehouse even gets overcrowded.
Return Fraud
Return fraud refers to utilizing company return policies for one financial benefit. For example, let’s talk about the fashion industry. A customer sometimes uses the ordered product once at a party or photoshoot, claims it is bad quality, and returns the product.
Again sometimes customers swap the good products with bad ones while returning. These things are pretty common in the B2C (business to consumer) Industry.
High Operational Costs
Managing reverse logistics can raise the operational costs of an Ecommerce business. The company has to spend extra logistics costs while picking up the product from customers and restocking in the warehouse.
How to Reduce Return in Ecommerce and B2B Business – 2025 Guide
1. Provide Detail Product Descriptions
Online shoppers cannot touch or feel the product before buying. This increases the chances of returning products.
However, you can minimize it by providing detailed product descriptions. Research says more than 80% of online shoppers like buying products with detailed product descriptions. It gives better information about the product.
Again, include high-quality images of the product from various angles. You can describe its features and benefits in detail. It will help customers to understand the product in a better way and how it can meet their requirements.
2. High Quality Images
Customers usually return a product when the products look much different than the picture on the website. It shows the importance of using high-quality, authentic product images on the website.
Try to include numerous images of the product. Upload even the zoomable photos to have a close view of the product. Always click the product image in natural light so that the product color and texture look real.
3. Provide Detailed Size Information
Customers return the product when they receive inappropriate sizes of apparel or shoes. This explains the importance of providing a detailed size guide to the customers.
You need to include the exact height of the models and the size of the clothes or shoes they wear. You can put the size in product descriptions so customers cannot find the product.
4. Provide Live Chat Support Options
Imagine a customer is having issues with the product and wants to return it. A live chat can be a fantastic tool at that time to solve the problem. Customers can discuss their issues immediately with the company’s live chat team.
It can convert the potential returns to a satisfied customer. The team should be friendly and professional while answering the queries.
Again, customers can ask their queries before purchasing. It reduces the chances of a return to a greater extent.
5. Encourage Customers To Leave Reviews
Customer review is the best tool for reducing returns. You should encourage your customers to write reviews. It helps a new customer to better understand the product before purchasing.
6. Provide Sturdy Packaging
The products can get damaged during the logistics operations, which can be a reason for return. You cannot always protect products from damage during shipping. But you can lessen it by using sturdy packaging and clear labelling.
Try to provide transparent information about the product and storage instructions to the shipper, especially if the product is fragile.
Benefits of Optimizing Return Process
- Customer Satisfaction – Most customers want a smooth and easy return process while returning their ordered product. A smooth and easy process makes customers happy.
- Brand Image – A simple and hassle-free return process can build trust in the customer. It will help to build a good brand image in the market.
- Build Trust – If customers face hassle-free returns in the past. That will build trust between customers and the brand. He will be more likely to purchase from the e-commerce site once again.
- Increasing Sales – When consumers develop trust in a company, they are more likely to recommend it to others and make repeat purchases from the brand. Research says an ecommerce brand can increase sales by 20% by simplifying the return process.
Conclusion
Are you running a B2B or B2C business? If yes, then you have to take the return management process seriously. But this does not mean you need to invest huge money in returns management. Try to make the process simpler to develop trust in your customers. You should analyze the e-commerce returns data and then take action accordingly.
AAJ Supply Chain Management
