E-Commerce Business Survival Requires Digital Return Processes

The world of online retail is facing a potential crisis due to its current refund process, which could become the «silent killer of profits» for the sector, writes Tom Bleach for the Fintech Times. However, delivery management software provider nShift has unveiled a solution that could save businesses from this predicament — implementing a digital returns process.

According to nShift, returns can cost an e-commerce business up to 66 per cent of the original item’s price, even if the item is returned in good condition. To combat this issue, nShift strongly advises businesses to adopt an easy-to-use digital returns process, which not only builds enhanced trust with customers but also has the potential to boost revenue.

nShift has released a list of strategies that retailers can utilize to grow their business with returns. The company emphasizes the power of converting returns into exchanges, suggesting that a consumer-friendly returns interface can make it easier for customers to exchange the item they are returning for something else from the same brand or retailer.

Through their Returns solution, nShift offers e-commerce companies the ability to automate the process of offering an exchange, resulting in an impressive 30 per cent conversion rate of returns to exchanges, thereby helping retailers retain revenue.

To support this effort, nShift recently introduced an ‘Essential’ tier to its Returns solution. This new tier enables retailers to centrally track each return, ensuring that resalable items swiftly return to shelves while also aiding in identifying root causes such as incomplete product descriptions.

The nShift Returns solution provides an automated platform that aims to facilitate exchanges at the point of return and automatic refunds.

According to Philipp Goldberg, returns product director at nShift, in today’s e-commerce landscape, providing a clear returns policy is essential. Shoppers may abandon purchases if they can’t see how to send back a product. On the other hand, if retailers can optimize their returns process, they stand to convert more returns into exchanges, open up new marketing opportunities, and reduce returns volumes in the long run.

nShift also highlights other benefits that digital return processes offer retailers in their battle to maintain profits. Manual returns processes make it difficult to gather valuable information about returns. However, digital processes generate a wealth of data that businesses can analyze to identify trends and patterns. This data-driven approach allows teams to pinpoint and rectify common problems causing returns, ultimately reducing returns volumes in the long term.

Furthermore, nShift points out that emails about returns have significantly higher open rates compared to other retail communications. By incorporating marketing messages into these emails, e-commerce companies can seize additional sales opportunities.

Digital returns processes also facilitate the option for customers to return items to a physical store. This interaction allows staff members to encourage customers to exchange the item and also exposes them to additional products and marketing messages in-store.

With the increasing challenges faced by online retailers in managing returns, nShift’s digital returns process emerges as a crucial solution for safeguarding profits and thriving in the e-commerce industry.