{"id":19111,"date":"2017-05-08T00:00:00","date_gmt":"2017-05-07T22:00:00","guid":{"rendered":"https:\/\/trilogi.com\/blog\/returns-in-ecommerce\/"},"modified":"2017-05-08T00:00:00","modified_gmt":"2017-05-07T22:00:00","slug":"returns-in-ecommerce","status":"publish","type":"post","link":"https:\/\/trilogi.com\/blog\/en\/returns-in-ecommerce\/","title":{"rendered":"Returns in eCommerce"},"content":{"rendered":"<h3><span style=\"color: #706c6c;\">Legal aspects, conditions, control and management.<\/span><\/h3>\n<p>Returns are still one of the biggest barriers to online sales in eCommerce, since users can\u2019t touch or try the product. Customers increasingly analyze and value the option and ease of returning a product when they buy. That\u2019s why at <a href=\"https:\/\/trilogi.com\/en\/\">TLG Commerce<\/a> we always advise communicating the online store\u2019s return conditions or policy clearly and directly.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-7873\" title=\"Legal aspects of eCommerce returns\" src=\"https:\/\/trilogi.com\/blog\/wp-content\/uploads\/sites\/2\/shutterstock_258562583.jpg\" alt=\"\" width=\"750\" height=\"500\" \/><\/p>\n<p>The study carried out in 2016 and recently published by Cetelem (<a href=\"http:\/\/observatorioecommerce.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Observatorio eCommerce<\/a>) highlights the <strong>\u201cdifficulty of making returns\u201d<\/strong> as one of the main problems or downsides of shopping online.<\/p>\n<p><img decoding=\"async\" class=\"wp-image-7810 aligncenter\" title=\"Downsides of shopping online\" src=\"https:\/\/trilogi.com\/blog\/wp-content\/uploads\/sites\/2\/observatorio.jpg\" alt=\"\" width=\"678\" height=\"730\" \/><\/p>\n<h3><span style=\"color: #706c6c;\">Here we need to distinguish between two concepts with the same consequence but different causes:<\/span><\/h3>\n<ul>\n<li><strong>Returns of damaged or faulty products<\/strong><br \/>\nIn this case, understandably, the user is fully entitled to return the product and request an exchange or a refund at no cost.<\/li>\n<li><strong>Returns for other reasons<\/strong><br \/>\nThis includes withdrawing from the purchase, the customer not liking the product, etc.<br \/>\nI\u2019ll go into more detail on this below.<\/li>\n<\/ul>\n<p>I make this distinction because in recent years there has been a major shift in <strong>reverse logistics<\/strong>, from occasional returns of defective or damaged products to returns being a normal stage of the purchase process. Obviously, this shift increases logistics costs.<\/p>\n<p>Bear in mind that, regardless of the sales conditions each company sets, there are <strong>legal aspects<\/strong> that must be included in the <strong>return policy<\/strong>.<\/p>\n<ul>\n<li><strong>Legal deadline for returning the product<\/strong><br \/>\nThe law requires offering customers the option to return the product within at least 14 days of delivery. Companies may extend this period but never shorten it. Also, if an order with several products is delivered on different dates, the 14 days start counting from the delivery date of the last product.<\/li>\n<li><strong>Information<\/strong><br \/>\nAs I mentioned earlier, it\u2019s essential to always clearly and directly communicate the conditions and return policy for purchased products. This gives customers credibility, transparency and trust.<br \/>\nLegally, if the company has never provided information on return conditions, it will be penalized, and the 14-day legal period will become 12 months.<\/li>\n<li><strong>Reason<\/strong><br \/>\nEven if the seller asks the customer for the reason for the return, the customer isn\u2019t obliged to give one. Nor can they be penalized for exercising their right of return within the set period.<\/li>\n<li><strong>Amount paid<\/strong><br \/>\nWhen a user expressly requests the return of a product or order within the stipulated period, they are entitled to a refund of the full purchase amount, including the original shipping costs.<\/li>\n<li><strong>Costs of returning the product<\/strong><br \/>\nReturn shipping costs may be charged to the buyer, but bear in mind that for the return to be accepted, the product must be in perfect condition and the customer must have proof of purchase.<\/li>\n<\/ul>\n<p>Some companies improve their return conditions, extending periods up to 360 days with no charges. These are important points to consider, but without neglecting the business side, since in many cases the wrong policy can cost us margin or even lead to losses.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-7922\" src=\"https:\/\/trilogi.com\/blog\/wp-content\/uploads\/sites\/2\/DESTACADA_wardrobing.jpg\" alt=\"\" width=\"750\" height=\"483\" \/><\/p>\n<p>Users are increasingly used to <strong>interacting with different sales channels<\/strong> and value the option to buy online and pick up in store, as well as to return or exchange the product at the physical store.<br \/>\nIn these cases, return costs are usually not charged and customers can try the product. Stores can also push cross-selling of complementary or higher-quality products, <strong>increasing the average basket value<\/strong>.<\/p>\n<p>Beyond defining a return policy that complies with the law and offers guarantees to users, it\u2019s very important to constantly measure the return rate of orders and\/or products so you can improve related aspects and, consequently, optimize and reduce it.<\/p>\n<h3><span style=\"color: #706c6c;\"><strong>Factors to consider to reduce an eCommerce\u2019s return rate:<\/strong><\/span><\/h3>\n<ul>\n<li><strong>Product images and videos<\/strong><br \/>\nUse excellent image quality that shows product details, textures and colors, and add 360\u00ba images and explainer videos. Bear in mind that the product image must be as true to life as possible so it matches the product the customer finally receives.<\/li>\n<li><strong>Size guide<\/strong><br \/>\nCreate a<a href=\"https:\/\/trilogi.com\/blog\/en\/how-to-get-the-size-guide-right-in-your-online-clothing-store\/\"> size guide<\/a> with measurements and details that give users extra information to know which size best fits their needs.<br \/>\nThis is very important for fashion websites, whether own-brand or multi-brand.<\/li>\n<li><strong>Product descriptions<\/strong><br \/>\nWrite a detailed description on the product page with composition, features, functionality, etc. The more quality information you give users the better, not only to help them decide but also to avoid returns due to missing or wrong information.<\/li>\n<li><strong>Stock<\/strong><br \/>\nTry to avoid physical returns caused by a product in an order being out of stock. This creates a significant administrative workload and a poor image with the customer. That\u2019s why real-time stock control is important and, in special cases, working with \u201csafety\u201d stock to avoid selling products we don\u2019t have.<\/li>\n<li><strong>Customer service and support<\/strong><br \/>\nOffer customers direct, easy contact to clear up any questions about the product (phone, chat, email).<br \/>\nThis way you can resolve questions up front and avoid future returns.<\/li>\n<li><strong>Customer reviews and ratings<\/strong><br \/>\nCustomer comments, ratings and reviews can help clear up doubts honestly and clearly before purchase.<\/li>\n<li><strong>Check orders<\/strong><br \/>\nReviewing orders is often skipped, yet it can help reduce the return rate and improve our image as a company.<br \/>\nFor certain products, a combination may flag an inconsistency that lets us head off a problem and a possible return.<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"alignnone wp-image-7825\" title=\"Size guide help\" src=\"https:\/\/trilogi.com\/blog\/wp-content\/uploads\/sites\/2\/esprit_tallas.jpg\" alt=\"\" width=\"750\" height=\"422\" \/><\/p>\n<p>Finally, I\u2019ll cover the implications for eCommerce management and administration, since <strong>return requests involve an internal process that needs coordinating<\/strong>.<br \/>\nWhen a customer requests a return, it triggers a series of actions that must be managed in a coordinated way.<br \/>\nIn the online store, we can let users manage the return themselves from their account area. They can do this without calling or emailing, or we can limit it to email only. eCommerce managers often think that making returns easier will make them grow. But they overlook that, in return, the conversion rate may grow even more and work in their favor.<\/p>\n<h3><span style=\"color: #706c6c;\"><strong>Internal returns process:<\/strong><\/span><\/h3>\n<ul>\n<li><strong>Receipt of the return request<\/strong>, either by email or automatically through the eCommerce.<\/li>\n<li><strong>Request review and validation<\/strong><br \/>\nCheck whether the product is within the return period, the reasons, etc. At this step it\u2019s important to keep statistics on the reasons so you can improve and reduce the return rate.<\/li>\n<li><strong>Product shipping request<\/strong><br \/>\nDepending on each store\u2019s options, customers can drop it off in store, have it collected at home, or deliver it to a pickup point or logistics operator, etc.<br \/>\nDepending on the option chosen, you\u2019ll proceed one way or another: coordinating reverse logistics, sharing or giving access to the information across all the company\u2019s sales channels, and finally inspecting the product\u2019s condition to definitively validate the return.<\/li>\n<li><strong>Managing order statuses in the eCommerce<\/strong><br \/>\nWithin our eCommerce\u2019s order status structure, we should include at least two: return request and returned.<br \/>\nFor each one, you can set up automatic actions such as email notifications to customers or to internal staff.<\/li>\n<li><strong>Stock update<\/strong><br \/>\nOnce we have the product back, if feasible, it\u2019s important to put it on sale again. To do so, assign the stock to the right warehouse, whether a physical store, central, online or other, depending on the internal policy for stock allocated to online sales.<\/li>\n<li><strong>Refund of the amount paid<\/strong><br \/>\nOnce the returned product\u2019s condition has been checked and validated, the purchase amount is refunded using the same method the customer paid with.<br \/>\nThis process is usually manual (depending on the payment method), but we\u2019ll soon add the option to the payment gateway so it can be automated.<\/li>\n<\/ul>\n<h3><span style=\"color: #706c6c;\"><strong>To sum up, we recommend:<\/strong><\/span><\/h3>\n<ul>\n<li>Having a return policy that meets legal requirements and, if possible, improves on them with better conditions than your direct competitors.<\/li>\n<li>Making the process easy for both customer and company (speed and effectiveness).<\/li>\n<li>Offering several logistics and omnichannel options to make returns easier.<\/li>\n<li>Conveying trust, credibility and transparency.<\/li>\n<li>Recording, controlling, tracking and optimizing the eCommerce\u2019s return rate.<\/li>\n<li>Managing the internal process and customer communication optimally, quickly and efficiently.<\/li>\n<li>Communicating and highlighting the benefits, bearing in mind that a good return policy will help increase the conversion rate.<\/li>\n<\/ul>\n<p>What do you think? Do you have a good return policy in your online store? Would you like us to<a href=\"http:\/\/www.tlgcommerce.com\/contact\"> help you <\/a>improve any aspect of it?<\/p>\n<h6>Image source: http:\/\/www.elle.mx\/moda\/2015\/09\/09\/el-fenomeno-de-comprar-usar-y-devolver-la-ropa\/<\/h6>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Legal aspects, conditions, control and management. Returns are still one of the biggest barriers to online sales in eCommerce, since users can\u2019t touch or try the product. Customers increasingly analyze and value the option and ease of returning a product when they buy. That\u2019s why at TLG Commerce we always advise communicating the online store\u2019s [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":12938,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2503],"tags":[1751,2329],"class_list":["post-19111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customer-experience","tag-ecommerce","tag-returns"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Returns in eCommerce | Blog Trilogi \u2013 The Digital Agency<\/title>\n<meta name=\"description\" content=\"Legal aspects, conditions, control and management. 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