Top Retail Returns Management Startups
Navigating the Complexities of eCommerce Returns
Startups are synonymous with growth and innovation. Over the past five years, eCommerce startups like Hungry Panda, Boxed, Verishop, and Bellroy have reshaped customer expectations for quality products and services. However, these successful startups cannot escape one constant in the industry: returns.
As returns become more frequent across all eCommerce verticals, the critical question is: how do startups manage returns effectively? Returns often imply a loss of revenue and a complex system of reverse logistics to retrieve products from customers.
Yet, with a strategic process in place, startups can establish clear communication channels with customers, facilitate cost-effective returns, transform returned products back into inventory, and streamline the reverse logistics process.
In this article, we will explore the best practices and software solutions eCommerce startups can adopt to manage their returns efficiently.
Understanding eCommerce Returns
1. Customer-Initiated Returns
Customers typically initiate returns by making a request through the startup’s established channels, such as phone, WhatsApp, email, or the website. Once a return has been accepted, customers are prompted for a day and time when they’d be available to return the product. Many return startups even allow shoppers to return items in-store or drop them off at curbside locations.
2. Retailer-Handled Returns
In some D2C (Direct-to-Consumer) models, the retailer handles the returns process. Retailers can generate return labels, direct customers to ship items back to the warehouse, or collect items in bulk for later shipping.
Types of Returns
1. Controllable Returns
These returns result from issues like incorrect order sizes, misleading product images, or shipping errors. Reducing these returns involves optimizing product descriptions, incorporating customer reviews, hiring reliable fulfillment partners, and ensuring careful packaging.
2. Uncontrollable Returns
These returns arise from customer preferences, wardrobing practices, or habitual returning. While harder to control, implementing a clear returns policy, deterring returns with associated costs, and optimizing holiday season returns can mitigate these.
Why eCommerce Startups Need to Manage Returns
1. Cost Reduction and Time Savings
Automating the returns process helps startups save on labor costs and reduce delays in restocking inventory and reselling items.
2. Inventory Flow Management
A returns strategy enables better management of stuck inventory, particularly for apparel startups. Inventory management software can efficiently handle large volumes of data to track stock in real time.
3. Return Rate Reduction
Effective returns management can lower return rates by identifying quality issues and pain points, allowing startups to address these proactively.
4. Enhanced Customer Satisfaction
A well-managed returns process improves customer satisfaction. Speedy exchanges, multiple return options, and prompt refunds encourage repeat purchases.
5. Sustaining Profit Margins
With a robust returns strategy, startups can boost profits through excellent returns policies or by reselling returned products.
Top Returns Management Software
1. FedEx
Known for its extensive logistics network, FedEx also excels in reverse logistics. Their services include returns management, cold chain logistics, and handling of dangerous goods. FedEx ensures smooth customs clearance and expedited shipping, making them a reliable partner for managing returns.
Founded: 1971
Headquarters: Memphis, Tennessee, US
2. ClickPost
ClickPost has made its name as a post-purchase customer experience software because it believes catering to customers in the after-sales phase is just as important for brand loyalty and customer satisfaction. Its main services include — returns management, multi-carrier shipping, automated branded tracking, and notifications. It also offers Cash on Delivery depending on the chosen carriers.
Founded: 2015
Headquarters: Gurugram, India
3. USPS
The United States Postal Service provides affordable last-mile delivery solutions, leveraging its extensive network. USPS’s integration with FedEx and UPS for last-mile deliveries ensures a wide reach and reliable service.
Founded: 1971
Headquarters: Washington, DC, US
4. UPS
UPS offers comprehensive logistics services, including a returns management software. Their tools include a shipping rate calculator and specialized packaging options, ensuring efficient and cost-effective returns.
Founded: 1907
Headquarters: Atlanta, Georgia, US
5. OnFleet
OnFleet provides hyperlocal and last-mile delivery solutions, offering automated tracking updates, route optimization, and Proof of Delivery (PoD). Their auto-dispatch engine and RESTful API integration streamline the returns process.
Founded: 2012
Headquarters: San Francisco, United States
6. Track-POD
Track-POD uses a mobile app for delivery management, integrating with online marketplaces for real-time order tracking and digital PoD. Their green, paperless approach and dynamic ETAs enhance returns management.
Founded: 2016
Headquarters: Vilnius, Lithuania
7. StarShip Technologies
StarShip uses robots for last-mile delivery, providing immediate ETAs and secure, automated deliveries. Their app-based system is cost-effective and environmentally friendly, ideal for returns management.
Founded: 2014
Headquarters: Tallinn, Estonia
8. Purolator
Purolator offers on-time delivery guarantees and a QuickShip feature for expedited deliveries. Their extensive logistics network supports returns management for Canadian businesses and beyond.
Founded: 1960
Headquarters: Mississauga, Canada
9. DHL
DHL’s global logistics network ensures fast order fulfillment and reliable returns management. They offer around-the-clock customer support and international shipping expertise.
Founded: 1969
Headquarters: Bonn, Germany
10. Postmates
Owned by Uber, Postmates specializes in flexible delivery schedules and high-value item transportation. Their mobile app integration simplifies the returns process for eCommerce businesses.
Founded: 2011
Headquarters: San Francisco, California, United States
Conclusion
You cannot solve the problem of high returns or recurring returns by fixing your product line or website’s user-friendliness alone. Post-purchase customer experience plays a huge role in determining in whether customers will return or keep your items.
This means, notifying customers about the status of their order in real-time right from the time they finish purchasing till they have the product in their hand. It also means alerting customers of any delays beforehand and sharing realistic delivery dates. Our selection of the best returns management software will help you achieve all that more.
