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TiVo
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04.14.06
Reverse Logistics In ECommerce
 By
Craig Smith
It's no secret that a positive experience delivered to a customer determines whether that customer will come back.
Retailers must enhance the user experience prior to pressing the "buy" button but also focus on the post-purchase site experience to keep customer retention metrics at satisfactory levels.
This is where many online retailers drop the ball; specifically with the processing and communication management of consumer returns. By incorporating new strategies to optimize this process, retailers can increase customer retention and add new revenue streams to the direct business.
Here are some key metrics to support the return optimization business
case:
- 85% of customers say they will stop buying from a retailer if the
returns process is a hassle (Harris Interactive)
- 95% of customers say that they will likely shop with a catalog
or internet retailer again if the returns process is convenient
(Harris Interactive)
- 40% of shoppers don't buy online due to returns difficulty (Jupiter
Research)
- Customers who have their complaint resolved quickly have a re-purchase
intention rate of 82% (McKinsey)
The increased importance of online returns
Returns are an inevitable fact of online retail. As the depth of online product categories became apparent in the last three years, the importance of online return policies became painfully obvious. Provide a bad returns experience and you undoubtedly reduce the chance of a customer coming back for a repeat purchase.
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For example, sectors such as high-end apparel, consumer returns reach levels as high as 20% and an efficient returns process is critical to overall success. Quicker inventory cycles and fluctuating retail prices make it important to not only process the return effectively for the consumer, but also get it in the warehouse quickly for re-sale.
Reverse Logistics solve fundamental business problems
Retailers are now being proactive and turning these operational challenges into competitive advantages and incremental revenue streams. By investing in solutions that integrate key platform components and data, online retailers are able to offer self-service return capabilities to consumers.
A typical reverse logistics solution allows the consumer to more easily initiate the return by incorporating a pre-paid postage label within the box. This label can be integrated within the packing slip or it can be a separate stand-alone piece. Because the label generation is initiated by the warehouse management system, the label is able to capture key customer information for tracking purposes, both for CSR's and the end consumer.
Click here to read the full article.
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