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Posted By: Tripti Rijhwani

Returns management is an essential process for any eCommerce business. It manages customer returns, including receiving, processing, and repackaging products for resale. As eCommerce continues to grow, returns have become an increasingly important part of the logistics process for retailers. The average eCommerce return rate hovers around 20-30%, and according to a survey by Pitney Bowes, the cost of online returns can be as high as 21% of order value.

For online merchants, returns management involves finding cost-effective ways to manage the process while providing a stress-free experience for customers. To help manage returns, retailers are turning to technology solutions that can improve the returns process. These solutions can help retailers reduce the cost of returns, improve customer satisfaction, and create a better overall shopping experience.

Technology solutions for returns management include SaaS solutions that allow customers to quickly initiate returns and track the status of their returns, third-party vendors who manage the process end to end, and analytical tools that provide insights into customer behavior and help retailers prevent returns before they happen. By using technology solutions to streamline the returns process and gain insights into customer behavior, retailers can turn returns management into an opportunity to improve their bottom line.

Data on why returns happen is important

Returns are an inevitable part of eCommerce, but with a sound returns management strategy, you can design a pre-purchase and post-purchase process that will maximize the economic potential of returns.

Online merchants need to understand why people are returning products, such as if they purchased with the intent to return, the product didn't fit or work as expected, the product didn't match the description, they're returning a gift, and more. Returns management provides insights into customer behavior, allowing brands to understand their needs and preferences better. With this data, brands can create a personalized shopping experience that encourages customers to purchase items they will keep. Data can also recognize fraudulent activities and implement measures to protect your business.

Returns management gives you the power to make informed decisions that will positively impact your business. By leveraging data insights to design an optimal pre-purchase and post-purchase process, you can ensure customers have the best shopping experience while maximizing the economic potential of returns.

Building a solid returns strategy

Understanding the reasons behind returns is integral to building a proactive strategy focused on improving the pre-purchase and post-purchase processes. Brands can target online experience updates that prevent and simplify returns.

Here are two strategies that brands can implement to reduce returns:

Pre-Order Support: Product descriptions should be updated to include more missing detail and a symptom of returns for that product. Additionally, having helpful sizing charts and featured product reviews can help customers make informed decisions before they buy. Offering free and straightforward returns is also an excellent policy to have in place.

Post-Order Support: A live chat or a simplified customer support system is essential. Merchants should also consider offering alternative products to customers if their original choice needs to be revised. Live chat can be an excellent opportunity to engage customers to turn returns into opportunities for loyalty and upselling.

These recommendations are relatively simple to implement but will demonstrate to customers that an online brand is committed to their satisfaction. These updates can help build loyalty and excellent word-of-mouth referrals.


Brands should use data on why people are returning products to improve the pre and post-purchase experience. This data should be analyzed regularly to improve and continuously improve the online experience for your customers. Dreaming Code can provide strategy and product solutions that can help guide you through the solution's selection, implementation, and ongoing management. Feel free to contact us to set up a consultation with us today.

To learn more about how we can help your business, schedule an appointment with one of our solution experts today.

To learn more about the Dreaming code eCommerce platform visit: http://dreamingcode.com.


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