Return processing times in ecommerce fulfillment can vary based on several factors, including the ecommerce platform, the fulfillment center’s efficiency, and the nature of the product.
Here’s a breakdown of the key stages and typical timeframes involved in returns processing:
Ecommerce Returns Management Best Practices
Handling returns is an intricate process that has many steps. Many pitfalls in returns management for online shopping can be dealt with upstream, before the customer even gets to the returns process.
Once you’re ready to speed up your returns processing time, look at the following aspects of your returns process. Automate as much of it as possible, especially when it comes to communication and setting customer expectations.
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1. Initiating the Returns Process
Customers initiate the return by submitting a return request. It’s important to make your returns policy very clear for the customer to easily start a return. This process is usually instantaneous but can take up to a few days if manual approval is required.
Depending on your ecommerce platform or any returns management software, a return label will need to be generated for the customer.
Return initiation can take anywhere from 1-30 days.
2. Return Shipping
Reverse logistics is a challenging aspect of handling returns. To keep customers happy and improve their returns experience, it’s important to make the return shipping process simple and easy.
To streamline product returns for online shoppers, choose a return shipping solution based on your customer needs and product type.
- For lighter packages and small items, you’ll likely want to offer cheap or even free return shipping.
- For higher value or heavy items, you might be able to charge your customer some shipping costs.
No matter what strategy you take, you’ll need to factor it into the overall cost-of-goods-sold COGS so you’re not losing money on return shipping. And make sure the shipping costs are clearly stated in your ecommerce return policy.
Consider how long it will take to receive the returned items at your warehouse. You’ll need to factor in the shipping service’s estimated transit time, and the time it will take for the customer to ship the item back.
Return shipping can take anywhere from 3 to 20 days.
If you are a retailer with brick-and-mortar stores, you can forgo the shipping costs and offer online returns to be taken back in-store.
3. Fulfillment Center Receiving Returns
The receiving process you implement will help determine how fast you are processing returns. Set a strict process to identify, inspect, and process all returned items efficiently.
Collect returns data on why and how products are coming back. This will help make upstream changes—which may inadvertently help limit the number of returns all together if you have high return rates.
Be sure to connect your overall inventory management strategy to your ecommerce returns processing flow. This will be the best way to get items back into “good” stock quickly and recoup any lost revenue. This will also help with customer retention because it will limit backorders and stockouts.
Receiving and identifying returns should take between 1-3 days.
4. Inspection and Processing
After a return shipment drop-off, all items will need to be inspected to determine how they are dealt with—this may include disposal, refurbishment, or repackaging.
Once a determination is made on the next steps, processing the item includes restocking the item, updating inventory, and processing the refund or exchange. The speed of restocking is important for brands interested in re-commerce, or reselling used items.
For ecommerce retailers working with a third-party logistics provider, be sure to get real-time tracking for when returned items are received at the fulfillment warehouse.
This can take 1 to 5 days, depending on the workload and complexity of the inspection process. Any rework or refurbishment will likely add time to your returns processing time.
5. Refund or Exchange for Customer Returns
After the return is processed, a refund is issued. The time it takes for the refund to reflect in the customer’s account depends on the payment method. For optimal customer experience try to handle this aspect as quickly as possible. Be sure your return policy is clear if they will be receiving store credit or any pricing difference due to shipping costs.
This can take 1 to 7 business days.
If an exchange is requested, a new item needs to be picked, packed, and shipped, which can take 1 to 5 days, followed by standard shipping times.
Bottom Line
Many ecommerce businesses don’t fully think through all aspects of their returns management process until they run into issues.
Before trying to improve your returns processing time, first take a look and ensure you have a clear returns policy, include returns information in your checkout or product pages, and streamline your order fulfillment process. Many pitfalls in returns management for online shopping can be dealt with upstream, before the customer even gets to the returns process.
Customer expectations are high when it comes to hassle-free returns, and one of the best ways to improve customer loyalty is to process returned products quickly and efficiently.
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Tags: KPIs & Metrics, Reverse Logistics Articles
