As more and more customers turn to eCommerce, analysts expect ‘return’ rates to increase along. In 2022, the eCommerce return rate in India is 14.90%, with the rates for the fashion segment being the highest. eCommerce markets in the US witnessed high return rates as well, with nearly 25% of the buyers returning clothing products.
In effect, eCommerce businesses need to make changes to lower the overheads they incur from ‘returns.’ Streamlining returns management should be the first step to ensure efficient returns handling. Creating return labels and shipping them with the product packages presents improved reverse logistics management.
Learn in Detail About Return Labels
‘Return shipping label’ or ‘return labels’ is an important digital asset to handle returns from buyers. But, what is a return label? It is a prepaid shipping label that customers use to return items that they are not satisfied with. The return label is prepared by the seller. It includes the return address of the warehouse for easy reverse logistics. The return label includes the sender’s address, the recipient’s address, and a tracking number.
eCommerce businesses can handle return labels in two ways:
- Generate the labels online
The business uses detailed shipping information to generate a return label that buyers can print and attach to the package for return.
- Purchase return labels from a shipping store
Alternatively, businesses can purchase a return label from a shipping store or shipping platform that has extensive return label handling services. Businesses feed the exact shipping details, so, the carrier prints the label and attaches it to the package for return at the pickup point. The shipping company will then return the package to the seller.
Creating a Return Label: Steps
To generate a return label online, you will need to follow these steps:
Step 1: Choose shipping software or shipping partner platform: You will need to choose a shipping partner to generate a return label. Then notify them of the class of the package for quick processing.
Step 2: Provide return shipping details: Since the shipping address of the seller is needed to reverse ship the product package, the business will have to provide the following details to the provider.
- Office address of the business
- Alternatively, the warehouse address so that returned items can be received
Step 3: Prepaid postage: In this final step, the seller-business will have to bear the costs of return shipping. Customers will not have to pay to return an item.
With these simple and quick steps, you will be able to rapidly manage returns, and service customers effectively.
How do eCommerce Businesses Provide Return Labels?
To streamline the return label processing, eCommerce businesses have two options:
- Include a return label in the original package
- The customer prints the return label at home
Return label in original package: You can include a return label for customers to easily pack and return the item. It simplifies the process of customers and in the long term helps in building great customer relationships.
Customer prints the return label at home: In this option, customers communicate their desire to return the product to the eCommerce business. The company then emails the customer a return label. The customer then downloads the label, prints it and attaches it to the package.
Many eCommerce companies are increasingly opting for the first option.
Including Return Labels in Product Package: The Idea Behind This Approach?
Between the two common return order options, customers printing the return label is very challenging. It takes longer processing time and is not very convenient for the customer. The ideal solution is for eCommerce businesses to offer a return label in outbound packages if there are very high rates of return that you are handling.
Four reasons why merchants and eCommerce retailers are comfortable with including return labels in product packaging:
- Save customer time and effort
- Select the lowest-cost mail option
- Ensure accurate returns
- No return costs, until they are used
For all of the above reasons, businesses find it an efficient and low-cost option to include return labels in the product package.
Shiprocket: Smooth Handling of Your Returns
Return labels can help customers return items without worrying about shipping costs or time. Online retailers can send return labels with every order to make the return process easier. Return labels can be prepaid to provide free shipping.
Shiprocket Engage can help businesses reduce Return to Origin (RTO) losses by up to 45%. It does this by:
- Automating order confirmation
- Improving Cash on Delivery (COD)
- Prepaid conversion
- Automating address verification and updation
- Identifying RTO orders
- Sending real-time updates
- Processing NDR quickly
As an all-in-one shipping solution provider, Shiprocket offers eCommerce business partners easy-to-use shipping software to ease return label creation. The business should follow these steps:
You can also create a return order using the forward Order ID reference:
- Go to Add Return
- Select Bulk Return
- Download the template
- Fill in the details, including:
- Forward Order ID
- SKU Name
- Return Reason
eCommerce businesses are assisted by Shiprocket to handle product returns better. It aids businesses to have an efficient returns handling process in place. Shiprocket Fulfillment further streamlines this process by offering end-to-end warehousing and inventory management solutions. With strategically located fulfillment centers, businesses can process returns faster and reduce logistical hassles. At the same time, the firms need to publish their terms and conditions clearly, make returns easy, analyze return costs, and automate returns using Shiprocket’s shipping solutions.
Conclusion
eCommerce companies need to focus on containing the return rate to 20-30% of delivered orders. They need to focus on reasons for customer dissatisfaction, offer proper sizing options, avoid inaccurate product descriptions and do not ship damaged/defective products. Businesses should improve product listings, add appropriate size guides and fitting tools for easy size selection. Online marketplaces should encourage reviews so buyers have further input on how useful the product or item would be if they buy it. Another tip is to prioritise packaging and design a fair returns policy.
For eCommerce sellers, the primary focus is to manage ‘returns’ efficiently. Partnering with a shipping carrier that uses an algorithm-driven platform helps businesses to automate the shipping process. It includes creating ‘return labels’ using shipping software for an end-to-end secure and seamless management of returns.
