E-commerce sites: strategies for turning return processes into opportunities

How do we leverage a seemingly critical process such as returns on e-commerce sites into a successful opportunity? What strategies and technologies are most useful here?

According to recent studies, more than 30 percent of products purchased online are returned, with peaks reaching 40 percent in the clothing sector. This reality makes it imperative for e-commerce sites to develop innovative strategies that turn what is perceived as a critical issue into a real business opportunity. Although often seen as an unavoidable cost, an efficient returns management system can turn into a powerful tool for building loyalty and increasing sales.

The importance of an effective return policy in e-commerce

Returns management is no longer just an after-sales service, but a strategic element that directly influences consumers’ brand perception and propensity to purchase. A clear, transparent and customer-friendly returns policy can be a strength that should not be underestimated.

Impact of return policies on purchasing behavior

The data speaks for itself: 54% of online shoppers check the return policy before making a purchase, and 67% admit that it is an indispensable element in the loyalty process towards a brand.
This is what emerges from a report sponsored by nShift and conducted in 2024. These numbers highlight how a favorable return policy can reduce barriers to purchase, increasing the conversion rate of sites e-commerce.

A simple and intuitive return process generates:

• Increased trust in the brand
• Reducing trolley abandonment
• Increase in average order value
• Less hesitation in purchasing new products

Costs and opportunities in returns management

Although returns incur significant operational costs, including reverse logistics, product refunds and reprocessing, use of return personnel, and management costs, they can also generate real business opportunities. It is estimated that the average cost of a return varies between 15 percent and 30 percent of product value, but strategic management can turn this expense into a profitable investment.

Innovative strategies to optimize the return process

Transforming returns from a problem to an opportunity requires a strategic approach and the implementation of advanced technology solutions.

Digitization of the return process

Adopting digital tools for returns management greatly simplifies the customer experience and streamlines internal processes. An intuitive returns portal allows customers to initiate the process themselves, reducing the workload on customer service and speeding up processing time.

Essential elements of a digitized return system:

• Self-service portal for return request
• Automatic generation of shipping labels
• Real-time tracking of return status
• Integration with warehouse management systems
• Automatic notifications about the status of reimbursement

Data analysis to prevent avoidable returns

Data generated from return processes represent a treasure trove of valuable information for improving the shopping experience and reducing return rates. Systematic analysis of this data enables identification of recurring patterns and implementation of targeted corrective actions.

The implementation of advanced analysis tools enables:

• Identify products with high return rates
• Analyze the most frequent reasons for returns
• Improve descriptions and images of problematic products
• Implement more accurate sizing systems
• Optimize packaging to reduce damage during transport

Turning returns into sales opportunities

With the right approach, every return can turn into an opportunity to strengthen the customer relationship and generate new sales. The most innovative companies have developed strategies to convert the potentially negative experience of a return into a positive and profitable interaction.

Cross-selling and up-selling during the return process

The moment of return represents a unique opportunity to suggest alternative or complementary products. By implementing intelligent recommendation algorithms in the returns portal, more suitable items can be suggested to the customer’s needs, turning a return into an exchange or a new sale.

Effective strategies include:

• Suggestion of alternative products based on the reason for return
• Offering incentives for exchange instead of repayment
• Exclusive coupons to be used in a future purchase
• Specific loyalty programs for those who make exchanges instead of refunds

Creating a memorable rendering experience

A particularly well-maintained return process can turn into a powerful loyalty tool. Ninety-five percent of customers who have had a positive return experience say they are likely to purchase again from the same e-commerce sites. Key elements in creating a memorable experience include:

• Proactive communication throughout the process
• Flexibility in refund or replacement arrangements
• Personalization of interactions
• Quick and transparent management of practices
• Post-residency follow-up to check customer satisfaction

INGO services to revolutionize the management of e-commerce site returns

INGO offers innovative and customized solutions to transform return processes into real business opportunities. Thanks to its years of experience in the e-commerce sector, it has developed an integrated ecosystem for customer care that accompanies customers in need step by step.

INGO’s approach is based on three basic pillars:

1. Advanced technology: we use an omnichannel interaction management system that tracks purchase and return processes, integrated with leading e-commerce and customer logistics systems.
2. Strategic consulting: we analyze processes, identifying critical issues and opportunities for improvement, to develop strategies tailored to the needs of partner companies.
3. Continuous optimization: we constantly monitor the performance of operators and dedicated systems, implementing incremental improvements based on hard data.

Why choose INGO for your return processes

Rely on INGO to manage your e-commerce return processes allows you to:

• Reduce operating costs by up to 30 percent
• Increase customer satisfaction
• Increase the conversion rate of exchanges
• Have seamless integration with existing systems
• Scalable solutions that grow with the business
• Ongoing support from experts in the field

INGO’s perspective is to turn every customer touch point into an opportunity to strengthen the relationship and increase the value of the brand it works for.