The eCommerce ecosystem is experiencing a significant transformation in how returns are managed and processed. As online retail popularity grows year by year, businesses are confronting an unprecedented increase in return volumes, with certain industries like fashion reporting return rates exceeding 40% of total sales. This shift represents more than an operational challenge – it's a critical business factor that influences both bottom-line results and customer relationships. Research conducted by Klarna demonstrates that the quality of the returns experience directly correlates with customer retention, as evidenced by the 84% of consumers who indicate they would reconsider future purchases from retailers following a negative returns experience.
The common reliance on manual returns management software presents numerous challenges for eCommerce businesses. These traditional approaches not only consume substantial resources but also introduce considerable risk of making errors.
Considering that, today’s blog aims to thoroughly explain the key role of managing returns in eCommerce and highlight the role of automated returns. Lastly, we will describe how Sylius handles the return process.
Let’s start with answering the crucial question.
Why should eCommerce businesses prioritize returns management?
Nowadays, returns management has evolved from a side business function into a core strategic component that significantly influences eCommerce success. Today's consumers expect returns to be a natural part of online shopping, similar to browsing, purchasing, or delivery. Rather than seeing returns as a problem or failure in the shopping process, they view the ability to easily return items as a standard service feature that influences their initial purchase decisions.
The financial implications of returns significantly impact eCommerce operations and profitability. Direct expenses encompass the entire reverse logistics process - moving products from customers back through inspection, processing, and restocking - along with labor costs and warehouse storage needs. Beyond these visible costs, businesses face hidden expenses from inventory depreciation and tied-up capital. These combined costs typically amount to 8-10% of total revenue, making effective returns management crucial for maintaining profitable operations.
Nonetheless, a disorganized returns management process has far-reaching consequences that affect the entire business ecosystem. In today's digital era, where consumers readily share their experiences across social platforms and review platforms, poor returns handling can quickly damage brand reputation and customer trust. What’s more, other eCommerce stores that offer superior returns processes gain a significant advantage in customer acquisition and retention.
Considering that, let’s take a look at the best eCommerce returns practices that would minimize the risk of dissatisfied customers and streamline the return process.
Best eCommerce returns practices
Creating an effective returns management system is crucial for any eCommerce business. Here are five essential practices that can help optimize your returns process and improve customer satisfaction.
1. Simple returns policy
A clear returns policy is the backbone of returns management. Your policy should be easy to find and written in plain English that customers can understand. When you write your policy, make sure you specify the timeframes for returns, like a standard 30-day return window. Include the conditions that make a return acceptable and step-by-step instructions on how to initiate and complete the return process. Your policy should also outline the refund options — whether store credit, full refund, or exchange option—and clarify which side pays for shipping. Place your policy in strategic places across your digital platforms: website footer, product pages, and order confirmation emails. This transparency builds trust and sets expectations from the start.
2. Customer communication
Communication is key throughout the entire customer returns process. A good communication strategy should have several elements that work together to keep customers informed and engaged. Start by setting up automated notifications that trigger at each stage of the return process. These should be backed up by regular status updates so customers know what’s happening with their return. This process can be automated, but more about that is the last point.
Have multiple communication channels, such as email, SMS, and app notifications, so customers can get updates through their preferred method. Have a system in place to respond quickly to customer questions about returns. Gathering feedback on the returns experience through strategic surveys helps you identify areas to improve and shows you care about customer satisfaction.
3. Customized returns experience
Customers are different and recognizing this with a customized returns experience can make a difference. To boost customer satisfaction, create a flexible system that accommodates different return methods, in-store returns, courier pickups, and convenient drop-off points. Consider location-based returns solutions that take into account customer geography and accessibility. Offer different refund methods that match customer preferences and consider priority processing for loyal customers to reward their loyalty.
Also, the process can be simplified by providing customized return labels with pre-filled information so customers have less typing to do.
4. Product information
Preventing returns starts with accurate product information at the point of sale. Your product pages should be filled with valuable information that helps customers make informed decisions. Include product specifications and dimensions that leave no room for doubt. Show your products through high-quality photos from multiple angles so customers have a complete visual understanding. Provide size guides and measurements so customers can choose the right product the first time. Include material descriptions and care instructions to set the right expectations around product maintenance. Lastly, business owners can add real customer reviews and photos to give customers authentic views of the product.
5. Automation
Automating the processes in returns management can transform your operations and the customer experience. However, this topic may be too broad for a simple subsection, so let us create a separate section for it.
How to leverage return automation in eCommerce?
Let’s start this section by introducing the RMS. A Return Management System (RMS) is a specialized software solution designed to streamline and automate the returns process in eCommerce. The main task of RMS is facilitating everything from initial return requests to final refund processing, turning a traditionally complex process into a “simple” operation. These systems have become essential tools for modern eCommerce businesses, helping them manage returns efficiently while maintaining high levels of customer satisfaction.
Integrating RMS with an eCommerce platform
The integration between RMS and the eCommerce platform is necessary to leverage several key automated functionalities that enhance operational efficiency within the eCommerce platform. First of all, automatic shipping label generation eliminates the need for manual processing, reducing both time and the number of potential errors. Second, real-time package tracking provides customers with continuous updates throughout their return journey, increasing transparency and reducing support inquiries. Finally, the system automatically updates inventory levels as returns are processed, ensuring accurate stock management and preventing both overselling (promising more products than available) and understocking (running out of inventory when there's actual demand).
Together, these automated features create a simplified returns process that benefits both the business and its customers.
Automated tracking and reporting
It is worth mentioning that the power of returns automation goes beyond operational efficiency. Modern RMSs provide detailed analytics to help businesses understand return patterns, identify product issues, and optimize their returns process. These systems track key metrics such as return rates, common return reasons, and processing times to help businesses improve. With automated data collection and analysis, businesses can identify trends that may indicate product quality issues, unclear product descriptions, or other areas that need attention.
Benefits of automated returns in eCommerce
Before explaining the return processes in Sylius, let’s summarize the main benefits of implementing automation in returns management.
Time and cost savings
First and foremost, automating the return process saves manual labor, which means valuable time and cost savings. The automated system processes return requests, generates shipping labels, and updates order status without requiring any manual data entry. This results in cost reduction and minimizes the risk of human error that can add to the expense and disrupt the workflow. By automating the return process, our team can focus on, for instance, customer service and marketing efforts.
Customer satisfaction
As mentioned earlier, effective returns management has a direct impact on customer satisfaction. Thanks to the automated system, customers get instant return request confirmation and regular updates on the process. The speed and transparency of the whole process build brand trust and increase the chances of repeating the purchase at the online store. Returns also come with an opportunity to collect customer feedback, optimize internal processes, and provide more customer value. 92% of shoppers say they will buy again if the entire process of returns is easy.
Better inventory management
Additionally, returns automation works perfectly for inventory management. The system updates stock levels when returns are registered, ensuring the information about product availability is always updated. This results in better order planning and avoiding situations where products are out of stock or overstocked. Precise return data also allows for trend analysis and identifying products that generate the most returns so you can optimize the offering and reduce future returns. Furthermore, Automatic categorization of returned products makes it easier to put them back into sales or redirect them to the right departments. If you're experiencing a high volume of returns, it worth to invest in a good inventory management software, which can help you manage inventory in real-time.
Managing returns in Sylius: Returns Management (RMA) module
The Returns Management module is one of nine Sylius Plus powerful features that are a valuable addition to Sylius-powered eCommerce platforms. At its core, the module provides an integrated solution that can easily fit into existing processes and systems while offering both merchants and customers a user-friendly interface for managing returns.
What are the Sylius Plus RMA module features?
The Sylius Plus RMA module makes returns management a breeze with several key features. The system has three return resolutions and smart warehouse selection, so the whole return process is optimized. Automated return requests are in a separate category; you can manage returns across different channels and domains and staff can adjust customer chosen resolutions as needed. After-sale support has a direct return chat so customers can chat with support staff. You can add free products to replacement orders to increase customer satisfaction, and the automatic generation of shipping labels reduces processing time and errors.
This dedicated workflow ensures consistent returns processing across all channels, and the system's integration with other Sylius Plus modules creates a comprehensive solution for modern eCommerce businesses.
When should businesses choose the Sylius Plus RMA module?
- High return volume operations
This module becomes crucial for businesses handling significant numbers of returns by automating and optimizing the entire returns workflow.
- Customer-centric businesses
Companies prioritizing customer relationships benefit greatly, as the module enhances satisfaction and loyalty through efficient returns handling.
- Growing eCommerce operations
Large-scale online retailers seeking operational efficiency will find this module indispensable for automating their returns processes.
- Complex return scenarios
Businesses requiring multiple return resolution options to meet diverse customer needs will particularly benefit from the module's flexibility.
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Summary
With eCommerce return rates hitting up to 40% in some industries, efficient returns management has become crucial for business success rather than just a nice-to-have feature. A well-designed returns management process helps to maintain customer loyalty while managing the costs and logistics of handling returns. The Sylius Plus RMA module offers a strategic solution by automating the returns process, helping businesses turn a troublesome task into a competitive advantage. For companies dealing with high return volumes or focusing on customer satisfaction, an automated approach is the clear answer to managing returns in today's digital world.
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