What is Reverse Logistics Management and How Does it Perform in eCommerce?
Reverse Logistics Meaning
Reverse Logistics or Return Order Management is the process of tackling and administering return requests placed by eCommerce customers with flexibility. The online retailer is supposed to bring the customer base close for not just purchase with reliability and ease in return policies. Sellers must design the operations in a manner that can happily manage the returns with continuity.
eCommerce is an area of filtered and flexible choice for sellers and buyers. It is an instant-to-access interface for buyers where chances of bulk orders are always available. It is essential to acknowledge the actual business potential to gain more without hardship when receiving multi orders. You need to add fast order processing and accurate fulfillment systems in the eCommerce retail business. Another aspect eCommerce marketplaces need to focus on is "Reverse Logistics Management."Â
It is unnecessary that every customer will be happy with every order fulfillment. They may not like the products' quality. Its color, the texture, or may not require the product anymore. In such cases, buyers need to have a scope of returning the product to the sellers. And if the seller is good with order processing and fulfillment management but misses out on instant return processing, the customer experience gets low.
In this article, we will bring the light on subjects related to improving sales efficiency and customer experience with reverse logistics management.Â
Process When Reverse Logistics Starts
Instant Order Return Request Acceptance
Easy applying for returns is as impressive as easy purchase steps. Yes, it encourages customers to trust you in buying things that may get returned without any struggle. Many eCommerce sellers offer an easy-return policy to facilitate buyers' purchase interest and take a trial of new sellers' products. Here, the customers who received an order that cannot satisfy their needs or wants can place a request to revert on it to sellers.Â
Tips: Try to keep the return application simple and accessible. It is essential to design the return form that can cut short the time consumption and formalities. A complex return procedure may lead to poor customer experience, and hence, they won't believe in you henceforth for purchases.
Understanding Reason of Return
This is where sellers' organizations' gatekeepers try to connect with the customers to understand why they have returned. The customer must give a valid reason for choosing to have a replacement or refund for the particular order. Under the organizational policies, clarify the terms and conditions in the product listing itself about the eligible criteria. If the customer does not give any reasonable return cause, you may dismiss the request. Or else, the seller must be ready with the subsequent step to perform on an immediate basis.Â
Tips: The gatekeeper must focus on understanding the customer's meeting of exchange or refund. They must also take care of details to be recorded to help better gatekeeping avoidance in the future. Additionally, try to design your return policy with a shorter return duration, e.g., within seven days. This reduces the chance of returns by the customers.
Pickup Processing
After confirming the return or exchange request, the seller should arrange the pickup logistics to take the product from the customer. This process is after the customer has been informed about the return and that they would be entitled to get a refund of the same, if possible. It would be good if the seller had planned different routes for delivery and reverse logistics. When the item is collected, the seller must ask the person to acknowledge the customer about the product pickup notification.Â
Tips: The seller also needs to have a strong command over order return customers' details. This means if the same product gets returned from other customers or some customers get comfortable excessively following a purchase-and-return request, they must know to identify strategies to optimize return effectively.Â
Stocking to Nearest Warehouse
The items collected from various customers need to be stored at the nearest warehouse to reduce the logistics cost. It helps the sellers stock items that can be transported cumulatively to other stock centers and help in one-time logistics investment. The nearest warehouse helps to encounter the total number of returned products from specific areas.Â
Tips: As product return increases sellers' business liabilities, they can smartly track pin codes of customers who want replacement or refunds and delegate the duties to several logistics persons. Try to establish standardized processing of returns just like your order processing through automated order management software that can bring you accurate information promptly and help you discard the loopholes of returns.Â
Items’ Reallocation for Resale
The items you receive back are the items you need to resale again. Indeed, returned products are a burden in your warehouse. Indeed, no seller would like to overload the warehouse with huge product bundles and hike the possibilities of damaged or dead items. Hence, start planning to filter out items that are good in condition and can be resold to other customers. As long as the old items are stored in the warehouse, plan to clear them out before obsoletion and increase your inventory management strength.
Tips: Do not procure fresh items if you have adequate items in stock. This does not hike your working capital and dilutes your transparent inventory monitor. If you are operating in multichannel, focus on conversion rates and analyze which channel can benefit you to sell out the current stock level.
Conclusion
Order processing fundamental rule is to follow such a system that can also assure accuracy and timeliness in handling bulk order data. Similar is the reverse logistics phenomena where the order is being returned, but still, sellers can put effort to retain their customers. Sellers get upset after seeing their return requests but take every eCommerce online marketplace challenge with a strong attitude and kick-start to gain competitive benefit even with returns. Make your customers realize that you are there for them even when they return the item. Make sure your return service gives you an advantage over your competitors and protects your customer base.
