Why is Automated Return Reconciliation a Major Requirement for Online Sellers?
In the eCommerce industry, along with the various benefits, sellers mostly have to face the issues related to returns as well. It is one of the major pain areas for online sellers as it is threatening their overall conversion rate. In the current scenario, almost every seller on multiple marketplaces faces the return issue of their products. At this point, as an online seller, you can feel the need for an automated return reconciliation system.
In this manner, implementing automated reconciliation software can help you efficiently. If we talk about the stats, the returns rate has increased up to 35% in the past few years. In the year 2021, customers have returned products worth 445 billion dollars worldwide. It is bizarre, and you as a seller must be able to handle these issues.
To minimize the return rate, you can take advantage of eCommerce reconciliation software such as eVanik OWS. Their return module is highly efficient to centrally managing Courier Returns and Customer Returns effectively, ensuring smooth and quick turnaround time.
In this blog, we have covered why an automated return reconciliation is required for online sellers. Along with this, you will also get to know other aspects of this essential eCommerce component.
An Elaboration of Returns Reconciliation
Return reconciliation is a significant eCommerce process through which a seller confirms that they have received the returned orders from customers either through courier returns or customer returns. Now the thing is, if you are an average seller and want to avoid miscalculations in this process, you should adopt an automated return reconciliation software. If your monthly eCommerce order quantity is more than a thousand, then miscalculations are more likely to increase.
As an eCommerce seller, you must be able to track down the exact number of all the returned products you have received from eCommerce platforms and those on their way to the warehouse. You can not do this manually as the number is high. By any chance, if you are doing this, it involves sure chances of miscalculations. On the other hand, automated return reconciliation software can help you provide you with all the essential information regarding this. You can easily trace all the returned orders and certify if deductions applied by marketplaces are reasonable or not.
Types of eCommerce Returns
In the eCommerce business, there are three significant types of returns that you must know about being a seller.
Courier Return: When the orders get returned by your courier partner due to the customer’s unavailability is called courier return. It can happen if the customer is not available to receive the order, if the courier partner finds the door locked and if he cannot contact the customer. In this scenario, the order can get returned to the primary source.
Customer Return: When a product fails to satisfy the customers in terms of quality, color, size, style, and design, they simply initiate a return. Return rates are high in selling online clothes, and customers can usually return the product if it doesn’t conquer the level of their expectations.
Canceled Order Return: It mostly happens when a customer cancels a placed order. If they cancel it immediately after placing the order, it can be a relief for you, but if they cancel the order after shipping, it can be a huge pain for you.
What are the Benefits of an Automated Return Reconciliation Software?
Enhance the Customer Relationship
Automated reconciliation provides a deep insight into the entire order fulfillment process. You can get to know the main reason behind the return if it is related to the product’s quality or the marketplace’s service. It can help you rectify all these issues effectively and provide you with an immense chance to resolve the issues related to every return. Once you can rectify the issue and compensate your customers, it can help you develop a good relationship with your customers.
Clarity on Reverse Logistics
Reverse logistics are conducted after a product’s sale to recapture the value and end the product’s entire life cycle. Typically, it involves returning a product to the manufacturer or distributors. Return reconciliation keeps an entire record of the order lifecycle from dispatch to return. Now, if you do this process manually, there is the possibility that you won’t be able to rectify whether the return is because of the manufacturer’s fault or your fault. However, automated software provides you the advantage of saving you from paying the extra money on those products that are unsuitable for resale.
Helps to Relocate your Products
Have you ever thought about what you will do if you don’t receive a returned order? Well, you will get no profit, and it can impact your conversion rate drastically. There is the possibility of an accidental or prudent case of product damage and theft. Without an automated return reconciliation system, you won’t be able to locate your items. Receiving your product’s entire lifecycle can make it easier to relocate a returned product.
Hence, you can get along with return reconciliation software such as eVanik OWS to automate this process. It can help you analyze all types of returns by automating the entire return process. It can also minimize the time taken to process online returns and provide your returns reports as well.
If you are not new to this industry, you may face several challenges in the process of return and must be aware that it is not at all good for your eCommerce business. If you want to upgrade your conversion rate, you must get automated return reconciliation software such as eVanik OWS to minimize returns-related issues. Apart from that, you must implement several ways to help you diminish the return rate.
It will be best if you focus more on product quality and presentation. As a seller, it should be your responsibility never to disappoint your customers at any cost. If your manufacturers are making mistakes, you must be aware and stop buying products from them. Always try to buy products from a reliable manufacturer only.
Time is the money, so as much as time you will save in delivering a product without any mistakes as much as revenue you can generate. If returns are your daily issue, then it is undoubtedly a matter of worry because, in such a way, you won’t be able to expand your business. So it will be best if you get along with automated software and try to delight your customers by meeting their requirements and expectations on time.