Blog

How annoying are returns to deal with? Woah. There is no future in returns. Who wants those?

Any owner of a business which deals with returns can tell you how cumbersome they are to deal with. With multiple steps required to fulfil this process and undefined grey areas, there are just too many variables which can lead to confusion amongst staff, and as a result, customers. A clearly defined returns policy and process instills security in a clients purchasing decision, as well as strengthening the tangibility of a brand with commitment to great customer service.

WHAT YOU REALLY NEED TO KNOW

Current TOTECS clients

I called three different clients who are using the TOTECS platform to find out what their returns policies and processes are.

1. The first business currently has no real defined returns process. It often comes down to discretion, with variables such as the product’s value, whether it was a fault of the customer or the business, and whether a replacement product is required. The company is responsible for the cost of freight for returns, as well as the freight for sending replacement products, where required. If the product is considered low value, often, the customer is allowed to keep it, as the cost to the business for freight is greater. On a case-by-case basis, a 20% restocking fee may be charged to the customer if packaging has been thrown away. There is no paperwork for the customer to complete, only internal paperwork for the admin staff assigned to deal with the issue. This has an impact on the business by taking up time and creating extra work for staff.

1. Business number two also doesn't have a specific returns policy. Variables such as the product type, value and the location to which the order has been sent (logistics affects the cost of freight considerably), can make the process of returns confusing to staff and to customers. As there are so many variables, the business does not currently see an easy way to simplify this process.

1. You'd think that the third time's a charm but alas, the last business also doesn’t have a defined returns policy – more often than not, it’s a verbal agreement between the business and their customers. Generally, discretion is used, and change of mind returns are honoured. This business also mentioned that they have never even been asked about a returns policy.

Who Is Doing It Differently?

As usual, I did the hard yards research for you guys and identified two online retailers who, with clearly defined policies are really making a difference in the way they do business.

1. The first retailer who is hitting the nail on the head when it comes to getting their returns policies right is The Iconic, an online male and female clothing shop in Australia, which offers free returns for 100 days. Customers are easily able to log in to their accounts, select their latest order, and select from several options for each item that was included in that order – Keep, Exchange, Return (Refund) or Return (110% store credit). They are then given a personalised shipping label to print, stick to the original packaging (the packages sent from The Iconic are specially designed to be able to be reused for the purpose of returns), and Post, with no additional cost. The process from this point on is entirely trackable, with updates emailed to the customer as the return is received, processed and a refund/replacement sent. 2. Apple Australia is also another great example of doing returns right when it comes to their online business. Customers are able to log into their accounts and visit the online Self Service section 24 hours a day, or receive telephone support during business hours. In the self service section, products are divided into which are returnable online, and which are not eligible. The customer selects the item, a reason, and indicates whether the packaging has been opened or not. Email confirmation of the return request is received, and the customer is contacted by Apple’s courier to arrange a time for collection of the product. Upon receiving the item, Apple issues a refund.

Why am I telling you this?

First of all, having a clear and defined returns policy leaves your clients feeling safe and secure in their purchasing with you.

Secondly, we are considering developing a Returns Authorisation feature for the TOTECS platform. The purpose would be to minimise admin work, free up your staff for other tasks, to automate the process as much as possible for you and your customers. If you are interested in this feature please click here to go through to the topic on our TOTECS forums. If you have any questions about today's column shoot us an email or give us a call on 1300 123 500.

Til next week,
Kasia