Returns in E-commerce business is like a ticking time bomb, unless there is timely control exercised on time. Returns Reconciliation is the most necessary step to check revenue leakges.
Every retailer or wholesaler faces the daunting challenge of managing product returns. In order to build stronger relationships with customers and create an opportunity to recover value from the reverse flow of goods, it is essential to establish an effective returns management policy and to conduct regular returns reconciliation.
Returns in e-commerce is expected to exceed 30% globally. (source). This number is shocking and depressing for most sellers as this has a direct impact on the balance sheets and inventory control. Unaccounted, Unreceived and Non-Saleable returns account for majority of the losses in ecommerce business for sellers and unless timely and accurately tracked, this could shut shops sooner than we may realize.
Returns in ecommerce are primarily classified into:
Courier Returns– In case a shipping package could not be delivered at the doorstep for a certain reason like, door found locked or location not found, etc.
Customer Returns– In case the customer has initiated a return after receiving the package.
Some of the factors contributing to the higher rate of returns for e-commerce stores are listed below:
Products not matching their online descriptions
Wrong product delivered
Issues with the fit and/or product quality
The customer no longer wants the product
eVanik OWS offers a centralized panel to manage account reconciliation for marketplaces returns and inventory against all the returns. Our return module is highly efficient to centrally manage Courier Returns and Customer Returns effectively, ensuring smooth and quick turnaround time. If returns are a pain point in your organization, check out our features with which we can offer to help.
Manage returns, update the shelf code and return reason, using eVanik OWS to capture complete information about returns. This way the returns can be managed faster and more accurately.
What Does Poor eCommerce Return Management Cost You?
For a small retailer, his return management system is often manual. You can handle returns much easier when the volume of sales matches the scale of the business. In this setting. You might have one or two return from the point of the contact requesting a return to the item being restocked and replaced or refunded.
But that approach isn’t scalable and as your sales volume increases so do the returns.
To oversee returns, eCommerce businesses typically add workers, increase or assign warehouse space for returns, and even build up discrete divisions just to handle returned products.
For bigger incumbent brands, the return cost as a percentage of revenue is just 2%. For smaller section entry-level brands and developing SMBs, that return cost as a percentage of revenue is 48%.
Aside from refunding the revenue from the sale of the item, there are various other costs at play that impact profit margins:
Conditioning items for resale
Obsolescence of returned items
Lost warehouse efficiency
Cost of shipping (return shipping and reshipping)
For the normal business, managing the return and repair process can account for around 10% of total supply chain costs. However, if your eCommerce return management process is poorly planned and inefficient, it can intensify the cost and diminish benefit by 30% (or more).
A lumbering eCommerce return management process is also guaranteed to baffle your customers.
Why worry about these costs and hurdles when we are here to help you, we make it easy for your customers to file a return and we make it easier for you to handle returns requests.
Online returns reconciliation and management also involves matching your inventory and account reconciliation from marketplaces for due payments. We offer a centralized panel to manage the returned orders for all sales channels. Even sellers can raise disputes to marketplaces in the case of bad inventory which is returned from customers.
eVanik OWS is bundled with tons of features. Some notable features are:
Analyze and handle both types of returns quickly
Automate Online Returns Management
Returns reconciliation to improve profitability
Improve overall Returns Management using user-specific roles
Visibility for entire return order life cycle
Reduce the time taken to process online returns
Supports partial return in case of multiple order item
Advanced Returns reports
eVanik OWS provides advanced and customized features to provide more visibility of the current status of the shipment to support vendors and their customer support to communicate well with the customer queries building higher customer experience.
eVanik OWS advanced returns management process provides clear visibility to the vendor about the returns received and thus eliminates the delay in managing the complexity of refunding a customer for an online return. It ensures that all the information for a return moves quickly between your systems so your customer can be assisted well with the return requests.
eVanik delivers satisfaction
eVanik OWS deliveres comprehensive returns management software. With its rich and convenient functionality, the implemented solution automates an array of processes involved with handling returned goods, starting from creating requests up to setting prices and generating resale reports. At eVanik, we have seamlessly integrated the solution with various marketplaces such as Amazon, Flipkart etc, making it easier for customers to manage returns reconciliation. It is one-stop-shop for full-cycle returns management according to Customer satisfaction