If you are engaged in the business of shipping goods to clients, especially if you are an online retailer, you'll certainly have some items returned from customers. As a matter of fact, most Ecommerce sales have a staggering volume of returns as a proportion of delivered goods.

It is for this reason that there is a growing interest in return parcel services. This growth also has led to the rising of specialized reverse logistics companies providing comprehensive package return solutions.

Due to the rising interest in parcel return services, we thought it wise to create a guide outlining what return parcel services are, why it is crucial, and all the relevant information about it.

Let’s delve in.

Parcel return services overview

In the traditional buying setup, when a client buys an item and later decides they don't need it, they return it directly to the shop where they bought it.

Besides, this nature of return is less frequent because in-store shopping allows the client to examine the item before making a conclusive purchasing decision. Such returns, however, arise from a faulty product or default or damage that was not eminent during purchase time.

On the contrary, online buyers are more likely to return their items, with return rates of ecommerce products ranging between 15 to 30% more than those of physical stores.

Managing returned products in online retail systems is much more complicated than brick-and-mortar stores since there is no physical store to take them back.

Instead, ecommerce products must be repackaged and transported from the client's business or house to the original warehouse or to the location of the company, which perhaps may be across the borders.

Benefits of third-party parcel return service providers

It is often difficult to separate returns that can be taken back to the inventory for resales and those that need scrapping, repair, and cheap disposal through black or secondary markets.

To help you manage parcel return services efficiently, you'll need to outsource these services to third-party package return solution providers. Let’s look at more benefits of these reverse logistics services providers in the section below;

Reduces product depreciation and obsolescence

Many items sold via ecommerce channels tend to get obsolete or depreciate faster. So, unless there is a fast and efficient process of getting products to the warehouse or taken to an alternative sales line, the returned products may reduce in value.

Return logistics service providers will help reduce the level of depreciation and revenues since they have facilities, processes, technology, and a workforce that support an efficient reverse supply chain.

As a result, you can get your return items as fast as possible before they get obsolete and hard to take through a different sales channel.

Reduce logistics cost

Running is reverse logistics service is an expensive task, whether you have a similar policy in your company or not. Despite being expensive, this operation can reduce business costs by separating activities involved in handling deliveries and return orders.

By dividing operations and delegating the return operations to a reverse logistics company, your business can improve its outbound logistics efficiency and minimize the associated operating costs.

Although there will be parcel return service charges to pay, they will be offset by the savings from efficient operating outbound logistics. Also, you'll have a clear view of where the business revenue is directed to.

Improved customer service

Outsourcing your package returns to a specialized company will allow you access to different facilities and resources that are available for a reverse supply chain system. This knowledge will enable you to create a flexible return policy, faster handling, and a straightforwardmail forwarding process.

The result of this policy flexibility is improved customer service as customers can confidently shop knowing that there is a return policy with minimal effort in place.

Generally, it is not a natural thing to encourage returns. However, a return service provider with a platform that provides comprehensive reporting can be allowed. With such infrastructure, you can have the visibility of clients returning packages on a repetitive basis.

And if this is against your policy terms and conditions, you can decide whether to take action against the culprits, including deactivating their shopping accounts with your online shopping platforms.

Enhances sustainability

Parcel return services are more or less similar to recycling process. A returned product in good shape with any fault can be repackaged and sold to a different client. On the other hand, if the item needs repair, it can be refurbished and sold at a lower price.

But still, if the product is damaged beyond the two reselling methods, it can be broken to get usable components for recycling. This will allow you to recapture value across different points of return goods.

Help reduce fraudulent returns

It would be much more challenging to stop fraudulent return cases if your business allows returns without a clear return and refund policy and a specialized reverse logistics service provider. You may inform your client that you track returns through a comprehensive return policy.

This should not intend to penalize honest customers but to prevent those who always think ofreturning products without clear reasons.

For instance, a client might buy an outfit from an online store, wear it to an event and return it to the agents complaining it is worn. It is crucial you track such fraudulent customers down and let them serve as an example, and support the warning in your policy.

Tips for effective parcel returns management

As discussed above, having a simplified goods return policy has great advantages for your business growth, but how can you manage it effectively? Here are some tips for effective parcel returns management.

Be proactive

With almost 30% of online products being returned, ecommerce businesses should get used to getting items returned to them. To help I this, you need a functional and specialized reverse logistic system.

Therefore, knowing how to handle incoming returned products will allow you to respond to clients effectively and efficiently, hence avoiding troubles before they actually happen.

Encourage flexibility

Customers want the return process to be easy and hassle-free as delivery, meaning that they should have multiple options.

For instance, provide an online and in-store return, avail the information via phone and online, allow downloading of return slip form through phones and PCs, and let tracking alert notifications messages on both digital devices.

Remember to make navigations on the options as simple and transparent as possible. This is what clients will value the most, even more than speed.

Create and avail the FAQs before customers ask them

Customers do not always wish to return their products immediately because they want to enjoy having their products. So, you should allow them to solve a few of the problems they might experience on your website before returning the products- if it reaches that point.

This can be achieved by having an FAQ section addressing different problems. A well-crafted FAQ can reduce the amount of low-priority queries your service teams receive by around 70%.

There is no need to send them to the FAQs first because most customers prefer asking questions after having their products with them.

Select your partners wisely

Logistics and supply chain are factors that require a lot of cooperation. If a client wants an item repaired or returned, you need to be able to send a relevant package to the rightful partner. So, knowing your third-party partners and what they are good at is important.

Know which partner deals with which types of product repairs, where you'll store the returned items, procedure or restoring returned products to sellable conditions, and how you process expired products, among other things.

Businesses need to optimize their return processes. This way, they will minimize costs, reduce losses, improve turnaround times, and build a satisfied customer and partner base.

Conclusion

With the knowledge and understanding of parcel return services discussed in this post, we hope you can now make an informed decision concerning your return service management.

Even if you have not set a clear package return and refund policy in your business, the tips outlined herein are standard and applicable for both start-up and established businesses. Remember to be proactive, flexible, have a ready FAQs section, and choose your partners wisely.