Returns Management Playbook

For this reason, it's vital that you optimize your returns processes. It's not just about minimizing losses; it's also about maximizing customer satisfaction.

A smooth and efficient returns experience can increase customer loyalty and drive repeat business. Conversely, a poor returns process can result in lost sales and decreased customer retention. In fact, our data at parcelLab shows that 62% of shoppers will stop purchasing from a brand after a poor returns experience.

The question is, how do you optimize the returns process? With so many moving parts, streamlining returns can be daunting—which is where the playbook comes in.

This comprehensive resource covers every component of online returns. You'll learn how to streamline your returns process, improve your customer's experience, and ultimately boost your bottom line.

Specifically, we'll cover the following:

Chapter 1: What is Returns Management? Why is It Essential for Your Business?
Chapter 2: Ecommerce Returns Management: Industry Overview, Challenges, and Best Practices
Chapter 3: How to Reduce Your Return Rate: 11 Tips For Fewer Returns
Chapter 4: What is Self-Service Return? Why Should Retailers Care?
Chapter 5: Guide to Retail Returns Management: How Do Top Retailers Manage Returns?
Chapter 6: The Best Return Management Software: What to Look for in a Return Management Software
Chapter 7: Understanding B2C Europe Returns: Trends and Recommendations
Chapter 8: The Complete Guide to Retail Returns Marketing

What Is E-commerce Returns Management? Why Is It Essential for Your Business?

Chapter 1 sheds light on the fundamentals of returns management (aka reverse logistics). It tackles the importance of having a solid returns management strategy and explores the benefits of implementing smooth processes.

This chapter also provides guidance on how to streamline returns management in your business and ensure that customers can send back their products in the most efficient and cost-effective way possible. Finally, you'll see some real life examples of returns management processes done right and gain ideas to implement them in your business.

E-commerce Returns Management: Industry Overview, Challenges, and Best Practices

Online retailers face several challenges when managing returns, such as high return rates, reverse logistics, product condition, and cost. Fortunately, there are several ways to help you overcome these hurdles. You can reduce return rates by providing detailed fit information and ensuring your products are accurately represented on your site.

As far as the returns experience itself, you can streamline the process by implementing clear returns policies, utilizing automated solutions, and using data to analyze return trends. Chapter 2 teaches how to do all that (and more).

How to Reduce Your Return Rate: 11 Tips For Fewer Returns

Returns may be inevitable, but that doesn't mean you shouldn't strive to reduce them. This is particularly important if your return rate is high. (Regarding benchmarks, the average return rate in ecommerce is around 20%).

The good news is there are several ways to reduce returns; optimizing your product pages, improving your customer service, and offering virtual try-on options are just some methods to keep returns to a minimum. Read this chapter for detailed recommendations (and several examples) on reducing your return rate.

What is Self-Service Return? Why Should Retailers Care?

Self-service returns are a solution for ecommerce retailers to reduce customer service demand and costs while also delivering a better returns experience for shoppers. When you implement self-service returns, you're allowing customers to send back items using a returns portal or webpage. They can easily choose products to return or exchange and then print labels or receive QR codes to complete the process.

Self-service returns are here to stay, with many retailers planning to increase spending on keeping existing customers in 2023 and beyond. By making returns more convenient through self-service initiatives, you can be more in tune with their needs and create engaging and personalized returns experiences. Learn how to implement self-service returns like a pro in chapter 4.

Guide to Retail Returns Management: How Do Top Retailers Manage Returns?

This chapter provides strategies and examples for managing online returns efficiently to reduce costs and improve customer satisfaction. It sheds light on the common reasons for returns and includes action steps for navigating them.

Chapter 5 also discusses how you can make returns management easier—both for your teams and shoppers. It provides customer communication best practices, returns optimization tips, and examples of brands doing a great job handling returns. By the end of this chapter, you'll have a solid understanding of why ecommerce returns happen and how to manage them.

The Best Return Management Software: What to Look for in a Return Management Software

One of the best ways to minimize and optimize the returns experience is to use returns management software (RMS). RMS solutions automate various components of the returns process, such as customer communications and refunds. An RMS can also offer data and analytics into your returns so that you can make smarter decisions around product development and marketing.

The key, however, is selecting the right RMS—and this chapter covers how to do just that. It outlines the key features to look for when choosing a returns management solution. It also shares a few examples of brands putting their RMS to good use.

Understanding B2C Europe Returns: Trends and Recommendations

The ecommerce market in Europe is rapidly growing, with an expected market volume of $1,068 billion in 2027. However, this increasingly competitive landscape brings challenges such as increased returns, consumer sustainability concerns, and cross-border issues.

How do you stay competitive? A few things to consider are implementing clear return policies, offering cross-border returns, and emphasizing sustainability. Read chapter 7 to learn more about B2C Europe trends and what they mean for your business.

The Complete Guide to Retail Returns Marketing

No retailer wants to deal with customers sending back their purchases. Still, it's important to note that ecommerce returns do have a bright side: they give you an opportunity to connect with shoppers and win their business (and loyalty).

Enter returns marketing—a strategy you can use to turn product returns into a positive customer experience. Done right, returns marketing builds customer loyalty and brand reputation, even in the face of high return rates. Some tactics you can implement include using coupons, offering loyalty perks, and other post-purchase incentives. Check out chapter 8 to discover how to implement returns marketing effectively.

Bringing it all together

parcelLab's Returns Playbook shows you everything you need to know about ecommerce returns. Think of it as a handy resource you can consult for tips, real life examples, and industry best practices.

Here's a quick summary of what it offers.

Chapter	Overview
Chapter 1: What is Returns Management?Why is It Essential for Your Business?	Learn about the importance of returns management for your business.
Chapter 2: Ecommerce Returns Management: Industry Overview, Challenges, and Best Practices	This chapter provides fundamental information on ecommerce returns management practices.
Chapter 3: How to Reduce Your Return Rate: 11 Tips For Fewer Returns	Get actionable tips on how to lower your return rate. See real life examples of best practices done right.
Chapter 4: What is Self-Service Return? Why Should Retailers Care?	This chapter offers a detailed explanation of self-service returns and why retailers should offer them.
Chapter 5: Guide to Retail Returns Management: How Do Top Retailers Manage Returns?	Gain insights into how top retailers manage and optimize their returns process.
Chapter 6: The Best Return Management Software: What to Look for in a Return Management Software	This chapter sheds light on the critical features to look for when selecting return management software.
Chapter 7: Understanding B2C Europe Returns: Trends and Recommendations	In this chapter, we offer an analysis of B2C return trends in Europe—and how to navigate them.
Chapter 8: The Complete Guide to Retail Returns Marketing	Learn how to turn returns around. Here, we share strategies for using returns as a marketing opportunity for retailers.