What is Return Labels?
Have you ever come across a situation where the product you bought online was slightly bent at the edges when you received it? Or did the T-shirt you were looking forward to arrive in a different color from the one you selected? If yes, you may have promptly returned the product.
If you recall the process you may remember fixing a small slip of paper like a shipping label onto the box after you pay for the postage in your carrier’s office. This is a return label, a major component in the returns protocol.
So knowing what return labels are and how they work is important to ensure you return the items accurately and the brand receives them without losing them.
What Are Return Labels?
Think of it as a ticket for your package to travel back to the retailer. It’s a type of shipping label that is required by a carrier to ship the product to where it originally belonged. Usually, that place is a warehouse or a return center.
It usually includes information such as the return address, a barcode tracking number, shipment details like weight, and any specific instructions for handling the product. A return label ensures that the shipment securely reaches the intended destination where it’ll be further processed.
How Does a Return Label Work?
A return label comes into the picture after a shopper files a return request with the seller on a return portal. Once approved, the retailer contacts their courier partner, pays for the shipping charge, generates the return label, and sends it to the customer via email. Alternatively, they can make the digital version available on the return portal.
Customers can print the label and stick it on the package with the item they’re returning. This is the typical pre-paid return label. They take the box to their nearest drop-off location or the carrier office where the item is dispatched to the retailer based on the details on the return label.
To save customers from this hassle, brands can also arrange a pickup from the customer’s doorstep after paying for the reverse shipping. Normally, the pickup agent will verify the condition of the product and take it back to the shipping center. Here, the staff will affix the label onto the box and ship it back to the retailer. There is no involvement of the customer with the return labels.
Why Are Return Labels Important for eCommerce?
For online businesses, return labels are a big deal. They take away customer anxiety and create a hassle-free return process for the customers. In case the brand decides to use a pre-paid label, it removes the strain on customers from paying the shipping fee. A happy customer guarantees their long-term engagement with the brand.
Return labels also help businesses keep track of returned inventory, especially in counting the number of items returned and analyzing the performance of different SKUs.
Return labels come with unique tracking numbers. Using this number, both customers and the business can monitor the shipment’s location in its reverse journey. This helps brands automate the refund process when the shipment reaches a specific milestone.
Moreover, offering easy returns sets you apart from competitors. If a customer knows they can return an item with minimal fuss, they’re more likely to choose your store over another.
What About the Cost of Return Labels?
The cost of return labels varies based on several factors. The most common ones include shipping rate, package weight, and delivery time. For example, an overnight return will incur more costs than a regular one that takes 5–7 days.
Many online retailers cover the cost of return labels as part of their customer service. However, some might charge a fee, especially for returns outside their return window or in cases of non-defective items.
Wrapping It Up
Return labels create a transparent and engaging way to shop online. They make return a simple step for customers. For a seller, return labels can be a customer touchpoint especially if they customize it with special messages to keep the impact of returning a product to the minimum.
