With the fashion industry under scrutiny from consumers and regulators for its environmental impact, it’s important to minimise waste at every stage of the supply chain. And returns management is a key area for optimisation. By implementing digital returns solutions, your brand can streamline operations, enhance customer satisfaction and demonstrate your commitment to sustainability. Read on to discover the benefits of this innovative approach.
How can paperless returns reduce waste?
Pre-printed labels have long been used by brands in the fashion industry, offering customers a straightforward and familiar method to return items. It simplifies the returns process for customers, often with the added perk of free postage. However, with only 30% of e-commerce orders being returned, thousands of pre-printed return labels end up being thrown away almost immediately. Paperless, digital solutions can help to eliminate this waste – helping to target a more efficient returns process and an even better customer experience. Below, we explore some examples of these digital solutions and how they work in practice.
How to get started with a paperless returns process
The foundation of an efficient and integrated returns process is a digital returns portal. This can be set up in collaboration with your third-party logistics (3PL) provider, ensuring that customers benefit from a consistent and seamless experience. This online portal facilitates the returns process by offering customers a range of options for returning their products. It may also provide a tracking functionality to keep customers regularly updated on the status of their returns. The portal is usually hosted on your existing website or app for ease of access.
One of the simplest options for paperless returns is sending returns labels via email instead of including a pre-printed label with each order. These labels can then be printed off and attached to the parcel that’s being returned. This way, the customer only needs to print off their label when they decide to return the item, helping to minimise paper waste. However, not all customers will have a printer, meaning a digital-only alternative may be preferable.
Why use QR codes to streamline the returns process?
Using QR codes is one of the most user-friendly digital solutions for returns management. When a customer requests a return via a brand’s returns portal, they’re sent a QR code via email or on an app. They can present this QR code on their phone when dropping off the package with a courier or at a designated drop-off location. Once the code has been scanned, the carrier does the rest, ensuring an effortless process and a great customer experience.
QR codes are also valuable because they can store more information than traditional barcodes. This helps brands capture key data during the returns process. For example, customers can be asked about the reason for their return or the condition of the item(s) when submitting their request through the brand’s portal. This information can then be stored in the QR code that’s generated – which is extremely useful for both the brand and its 3PL.
Simply asking customers why they returned an item can provide valuable insights that can help brands identify recurring product issues and improve their offering. So, if many customers report sizing issues or problems with certain components (such as zippers), brands can take steps to address these concerns. This may involve working with suppliers to improve the manufacturing process or updating the sizing information on their website. In the long term, this can help a brand reduce its overall return rate by ensuring that products are more robust.
Meanwhile, asking customers to specify the condition of the returned item(s) enables 3PL providers to triage items and streamline the returns process. So, if a customer reports that an item is in ‘like-new’ condition, it can be quickly returned to stock – after a thorough inspection. However, if the customer reports a defect, such as a loose seam or missing button, the item can be sent directly to your 3PL’s repair zone. Then, once it’s repaired, it can either be returned to stock or resold at a discount as part of a brand’s dedicated ‘refurbished’ collection.
The omnichannel advantage: Why in-store box-free returns are the way ahead
For brands with an omnichannel strategy, physical stores can act as a return hub for online purchases. This functionality can be integrated into your returns portal, with a simple locator map directing customers to their nearest store. You can even encourage them to drop off returns in person by offering incentives such as store credit or loyalty points. Or, if your brand normally charges for returns, you could waive the fee for in-person returns.
This approach brings benefits for both brands and customers. First, it enables immediate customer refunds as the store employees can inspect returned items on the spot. This means that customers don’t have to wait for the item to be returned to the warehouse before they get their money back – improving the customer experience. Second, introducing box-free returns means that customers don’t have to repack the items themselves, for an even more effortless experience. It’s no wonder that 67% of shoppers surveyed for the annual ‘Returns Happen’ report cited in-person, box-free returns as their preferred returns method.1
This approach also has benefits for brands. Customers greatly appreciate the convenience of free, in-person returns. And with 88% of consumers saying they’ve stopped shopping with a brand because it had started charging for returns,2 the value of customer loyalty cannot be overstated. And don’t forget the valuable cross-selling opportunities available when customers visit your store. There’s nothing quite like the in-store shopping experience when it comes to immersing customers in your ‘brand world’ and inspiring additional purchases!
Digital returns: Maximising operational efficiency and customer satisfaction
Whichever digital returns solution is right for your brand, going paperless is also a great way to improve supply chain visibility. Digital returns methods enable you to track returns at different stages of their journey, helping logistics providers to plan resources accordingly, resulting in more effective inventory management. Increased visibility can also benefit the customer experience, helping to keep customers better informed about the status of their returns. As a result, customers are less likely to contact your customer service department to inquire about their refunds – freeing up your employees to deal with more complex requests.
Choosing the right paperless returns method for your brand
When deciding which digital returns process is right for your brand, it’s important to keep your target audience front of mind at all times. For example, if sustainability is important to your customers, in-store, box-free returns would be an ideal solution. For pure-play e-commerce brands, QR codes are a great way to provide a streamlined and effortless returns process. The key, as always, is to make sure that your returns process – like all elements of your brand’s strategy – contributes to an excellent customer experience.
Want to find out how paperless solutions could help optimise your returns process? Get in contact today for a free consultation with a Bleckmann expert!
