{"id":22443,"date":"2021-03-19T18:33:41","date_gmt":"2021-03-19T13:03:41","guid":{"rendered":"https:\/\/mobisoftinfotech.com\/resources\/?p=22443"},"modified":"2025-11-23T12:59:09","modified_gmt":"2025-11-23T07:29:09","slug":"customer-returns-management-embraces-technology","status":"publish","type":"post","link":"https:\/\/mobisoftinfotech.com\/resources\/blog\/customer-returns-management-embraces-technology","title":{"rendered":"How to Optimize Customer Returns Management with the Right Technology?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Offering a seamless return experience has become the cornerstone of successfully running a retail business. For companies that completely rely on e-commerce and offer free-of-cost returns, managing higher rates alongside controlling customer returns becomes too difficult. As such, handling outbound logistics is already a major challenge, but if one out of every five dispatched products is returned by the customer, it becomes a more costly and complex operational task.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">On the other hand, businesses believe that the reverse logistics process shall adversely impact your business which is not at all true. If you manage your returns management process rightly, you can keep its business impact to a minimum. Many companies have managed to generate profitable outcomes even after having an exclusive <\/span>customer service returns policy<span style=\"font-weight: 400;\">.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">So, how can you make your <\/span>customer returns management<span style=\"font-weight: 400;\"> process more efficient and turn it into an actual profit driver for your business? Let\u2019s find out.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Challenges Faced by Businesses in Managing Customer Returns<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Businesses often make this mistake. They focus significantly on the forward logistics and often end up overlooking reverse logistics. The reverse logistics process can be complicated, and if you don\u2019t have the right technology, it can hurt your business in many ways.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Let\u2019s look at some common challenges faced by businesses in managing customer returns and reverse logistics.&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><br><h5><b>Value Tracking<\/b><\/h5><br><p><span style=\"font-weight: 400;\">When it comes to forward logistics, value tracking is simple. Let\u2019s say a customer has ordered a piece of machinery, so you dispatch a technician to install it. Suppose the machine&#8217;s price is $1,000, and you charge an extra $250 for installation. Simple, right?<\/span><\/p><br><p><span style=\"font-weight: 400;\">Now, let\u2019s say the machine you had installed turns out to be defective, and you need to dispatch a technician to replace it. The technician will install a new device and bring the defective one back. This machine isn\u2019t worth $1,000 because it\u2019s faulty. But it isn\u2019t worth $0 either because you can get it up and running after making some repairs. Determining the value of units in reverse logistics can be challenging.&nbsp;<\/span><\/p><\/li>\n\n\n\n<li><br><h5><b>Tracking Routing Status and Warranty<\/b><\/h5><br><p><span style=\"font-weight: 400;\">The <\/span>customer returns management<span style=\"font-weight: 400;\"> process gets even trickier if the returned product is under warranty or includes a third-party repair by an origin equipment manufacturer (OEM). Sometimes, the warranty you offer may be longer or shorter than what the OEM provides. In such cases, tracking warranty durations and handling the corresponding reimbursements can be challenging.&nbsp;<\/span><\/p><\/li>\n\n\n\n<li><br><h5><b>Working with Contractors and Dealers<\/b><\/h5><br><p><span style=\"font-weight: 400;\">You\u2019re likely to face more troubles with reverse logistics if you work with third-party contractors or distributors that extend beyond your own service organization. Distributors usually buy subassemblies and build them into a product of their own. Contrarily, they may sell the subassemblies directly to customers.&nbsp;<\/span><\/p><br><p><span style=\"font-weight: 400;\">Keeping track of how your dealers, contractors, and distributors go about their distribution process is critical to reverse logistics efficiency. Additionally, you also need to track if the defective units were sent back to the dealers after you had advanced the replacement parts to them. Manually monitoring reverse logistics on such a scale is impossible and is often prone to errors.&nbsp;<\/span><\/p><\/li>\n\n\n\n<li><br><h5><b>Poor Customer Experience<\/b><\/h5><br><p><span style=\"font-weight: 400;\">The entire point of having a return policy is to provide your customers with a seamless experience. However, an ineffective reverse logistics process can hinder your efforts. All the challenges mentioned above, when combined, result in a not-so-smooth return experience for your customers.&nbsp;<\/span><\/p><br><p><span style=\"font-weight: 400;\">In a business landscape where&nbsp;<\/span><a href=\"https:\/\/www.invespcro.com\/blog\/ecommerce-product-return-rate-statistics\/\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">92%<\/span><\/a><span style=\"font-weight: 400;\">&nbsp;of customers won\u2019t buy from a company if the return process isn\u2019t hassle-free, an ineffective reverse logistics process can hurt your business in terms of both reputation and revenue.&nbsp;<\/span><\/p><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><b>How Can Technology Optimize the Returns Process?<\/b><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><noscript><img decoding=\"async\" width=\"855\" height=\"363\" src=\"https:\/\/mobisoftinfotech.com\/resources\/wp-content\/uploads\/2021\/03\/how-can-technology-optimize-the-returns-process-1.png\" alt=\"how can technology optimize the returns process?\" class=\"wp-image-22476\"><\/noscript><img decoding=\"async\" width=\"855\" height=\"363\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20855%20363%22%3E%3C%2Fsvg%3E\" alt=\"how can technology optimize the returns process?\" class=\"wp-image-22476 lazyload\" data-src=\"https:\/\/mobisoftinfotech.com\/resources\/wp-content\/uploads\/2021\/03\/how-can-technology-optimize-the-returns-process-1.png\"><\/figure>\n\n\n\n<p><span style=\"font-weight: 400;\">The cost of return deliveries is&nbsp;$642 billion&nbsp;worldwide and $363 billion in the US alone. While businesses can take several steps to reduce customer returns, there\u2019s no way to avoid them entirely. In fact,&nbsp;30%&nbsp;of shoppers deliberately buy more items to return them afterward.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">However, customer returns optimization doesn\u2019t have to be an obnoxious process. While some challenges may arise, implementing the right technology can help you optimize your returns process.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Let\u2019s look at how technology can help you make your <\/span>customer returns management<span style=\"font-weight: 400;\"> process more efficient.&nbsp;<\/span><\/p>\n\n\n\n<h5 class=\"wp-block-heading subtitle-list\"><span>1<\/span> <b>Implementing a Clear Returns Policy<\/b><\/h5>\n\n\n\n<p><span style=\"font-weight: 400;\">Implementing a clear <\/span>returns policy<span style=\"font-weight: 400;\"> is essential to improve the reverse logistics process. When customers buy from you, they should know how the returns process works and what to expect.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">If you\u2019re an eCommerce business, you already have a website. Make sure you mention the return policy there in detail. Even if you don\u2019t sell online, make sure to have a website for your business. It\u2019ll build your digital presence and will add value to your business in the long run.<\/span><\/p>\n\n\n\n<h5 class=\"wp-block-heading subtitle-list\"><span>2<\/span> <b>Knowing Why the Returns Happened<\/b><\/h5>\n\n\n\n<p><span style=\"font-weight: 400;\">It\u2019s essential to know why customers return products. If a particular product has a high return rate, knowing why customers are returning it can help you fix the problem and reduce return rates. A survey conducted by&nbsp;Chargeback&nbsp;highlights the main reasons why customers return a product. These include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Don\u2019t like the product \u2013 25%<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Defective product \u2013 24%<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Don\u2019t need the product \u2013 18%<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Product doesn\u2019t fit \u2013 10%<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Product doesn\u2019t match the description \u2013 9%<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Wrong product \u2013 5%<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Other reasons: 9%<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">Collecting data \u2013 a lot of it \u2013 is the key to knowing why returns happened.&nbsp;<\/span><a href=\"https:\/\/www.uspsdelivers.com\/use-technology-to-enhance-your-reverse-logistics-process\/\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">44%<\/span><\/a><span style=\"font-weight: 400;\">&nbsp;of companies to date have invested in automatic data capture. Leveraging <\/span>returns management technology <span style=\"font-weight: 400;\">allows you to collect customer data in real-time and identify the reasons behind the returns.&nbsp;<\/span><\/p>\n\n\n\n<h5 class=\"wp-block-heading subtitle-list\"><span>3<\/span> <b>Increasing Inventory Management Efficiency<\/b><\/h5>\n\n\n\n<p><span style=\"font-weight: 400;\">Investing in cutting-edge <\/span>inventory management technology<span style=\"font-weight: 400;\"> is the key to optimizing the <\/span>customer returns management<span style=\"font-weight: 400;\"> process. Customer returns affect the inventory, and not having an efficient reverse logistics process can cause inventory errors, which in turn can affect your supply chain.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Businesses need to implement handheld scanners and integrate them with <\/span>reverse logistics management <span style=\"font-weight: 400;\">software. Scanning product barcodes reduces the risks of errors. Every scan is recorded in the software, which automatically updates your inventory in real-time. It also allows you to process returns and facilitate refunds quickly.&nbsp;<\/span><\/p>\n\n\n\n<h5 class=\"wp-block-heading subtitle-list\"><span>4<\/span> <b>Consolidating Logistics Operations<\/b><\/h5>\n\n\n\n<p><span style=\"font-weight: 400;\">Redundant logistics operations between reverse and forward logistics can delay the customer returns process. Companies often work with different partners for forward and reverse logistics. Since these partners don\u2019t communicate or collaborate directly, the returns process gets unnecessarily prolonged.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Consolidating reverse and forward logistics operations presents a great opportunity for businesses to reduce returns costs and complexity. With the right <\/span>warehouse management technology<span style=\"font-weight: 400;\"> in place, you can centralize your logistics functions and largely enhance the efficiency of your returns. Investing in the cloud-enabled returns management process can allow you to consolidate forward and reverse logistics. That\u2019s why&nbsp;most companies are using cloud-based management applications.&nbsp;<\/span><\/p>\n\n\n\n<a href=\"https:\/\/mobisoftinfotech.com\/resources\/blog\/delivery-done-smarter-how-mobile-creates-efficiencies-from-order-to-delivery\"><figure class=\"wp-block-image size-large\"><noscript><img decoding=\"async\" width=\"855\" height=\"100\" src=\"https:\/\/mobisoftinfotech.com\/resources\/wp-content\/uploads\/2021\/03\/inline-cta-4.png\" alt=\"Cloud-based mobile applications are making your delivery business smarter\" class=\"wp-image-22474\"><\/noscript><img decoding=\"async\" width=\"855\" height=\"100\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20855%20100%22%3E%3C%2Fsvg%3E\" alt=\"Cloud-based mobile applications are making your delivery business smarter\" class=\"wp-image-22474 lazyload\" data-src=\"https:\/\/mobisoftinfotech.com\/resources\/wp-content\/uploads\/2021\/03\/inline-cta-4.png\"><\/figure><\/a>\n\n\n\n<h2 class=\"wp-block-heading\"><b>The Future of Customer Returns \u2013 What to Expect?<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Handling customer returns has always been a challenge for businesses. Furthermore, the rise of serial returners (who over-purchase only to return) has made it vital for companies to optimize their reverse logistics process.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Let\u2019s look at how the future of customer returns might look like.&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><br><h5><b>Evolution of Reverse Logistics to Meet Customer Expectations<\/b><\/h5><br><p><span style=\"font-weight: 400;\">Even though many companies are prioritizing reverse logistics, they\u2019re far from meeting customer expectations. Modern-day customers expect fast, hassle-free, and limitless returns. Or let\u2019s put it this way. Customers want to return a product whenever they want and for whichever reason. In the future, companies will try to fulfill these demands while ensuring that they keep their costs in check.&nbsp;<\/span><\/p><\/li>\n\n\n\n<li><br><h5><b>Automation of Reverse Logistics<\/b><\/h5><br><p><span style=\"font-weight: 400;\">Automation of reverse logistics processes can improve parcel auditing and reduce costs. In the upcoming years, reverse logistics automation is likely to be one of the major trends, as it can help businesses streamline tasks like routing return requests, labeling materials, and generating packaging. Many companies have already implemented <\/span>returns management software<span style=\"font-weight: 400;\"> to automate their reverse logistics operations.&nbsp;<\/span><\/p><\/li>\n\n\n\n<li><br><h5><b>Traceability within Reverse Logistics<\/b><\/h5><br><p><span style=\"font-weight: 400;\">Another future possibility to look out for is increased traceability within reverse logistics. Companies worldwide are focusing on enhancing their tracking and tracing capabilities. This has led to the rise of blockchain in the supply chain. Blockchain allows you to achieve more transparency, which reduces the risk of fraud.&nbsp;<\/span><a href=\"https:\/\/www.uspsdelivers.com\/use-technology-to-enhance-your-reverse-logistics-process\/\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">14%<\/span><\/a><span style=\"font-weight: 400;\">&nbsp;of companies have already implemented blockchain technology to increase traceability.&nbsp;<\/span><\/p><\/li>\n\n\n\n<li><br><h5><b>Smart Planning to Enhance Sustainability<\/b><\/h5><br><p><span style=\"font-weight: 400;\">Another trend that could make its way in reverse logistics is smart planning. Shipping companies and retailers are investing in the Internet of Things (IoT), robotics process automation (RPA), smart analytics, artificial intelligence (AI), and machine learning (ML) to enable better and smarter planning in reverse logistics.&nbsp;<\/span><\/p><\/li>\n\n\n\n<li><br><h5><b>Circular Supply Chains<\/b><\/h5><br><p><span style=\"font-weight: 400;\">Circular supply chains&nbsp;is a relatively new concept, but it\u2019s likely to be a big thing in the reverse logistics space in the upcoming years. Since reverse logistics involves the flow of products from customers to shippers and manufacturers, the use of unopened products for fulfilling extra orders can reduce restocking and reshipping costs.&nbsp;<\/span><\/p><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Wrapping Up<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">In this retail era, where customer experience is the new marketing, having a seamless return process is crucial. But it doesn\u2019t have to hurt your business. By implementing the right <\/span>reverse supply chain solutions<span style=\"font-weight: 400;\">, you can optimize your reverse logistics and turn customer returns into a profitable business endeavor.<\/span><\/p>\n\n\n\n<a href=\"https:\/\/mobisoftinfotech.com\/contact-us?utm_source=blog_cta&#038;utm_campaign=customer-returns-management-embraces-technology-cta1\"><figure class=\"wp-block-image size-large\"><noscript><img decoding=\"async\" width=\"855\" height=\"363\" src=\"https:\/\/mobisoftinfotech.com\/resources\/wp-content\/uploads\/2021\/03\/cta-5.png\" alt=\"Want to make your customer returns management process more efficient? Get in touch with us now.\" class=\"wp-image-22457\"><\/noscript><img decoding=\"async\" width=\"855\" height=\"363\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20855%20363%22%3E%3C%2Fsvg%3E\" alt=\"Want to make your customer returns management process more efficient? Get in touch with us now.\" class=\"wp-image-22457 lazyload\" data-src=\"https:\/\/mobisoftinfotech.com\/resources\/wp-content\/uploads\/2021\/03\/cta-5.png\"><\/figure><\/a>\n\n\n<div class=\"modern-author-card\">\n    <div class=\"author-card-content\">\n        <div class=\"author-info-section\">\n            <div class=\"author-avatar\">\n                <noscript><img decoding=\"async\" src=\"https:\/\/mobisoftinfotech.com\/resources\/wp-content\/uploads\/2020\/11\/Nitin.png\" alt=\"Nitin Lahoti\"><\/noscript><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" alt=\"Nitin Lahoti\" data-src=\"https:\/\/mobisoftinfotech.com\/resources\/wp-content\/uploads\/2020\/11\/Nitin.png\" class=\" lazyload\">\n            <\/div>\n            <div class=\"author-details\">\n                <h3 class=\"author-name\">Nitin Lahoti<\/h3>\n                <p class=\"author-title\">Co-Founder and Director<\/p>\n                <a href=\"javascript:void(0);\" class=\"read-more-link read-more-btn\" onclick=\"toggleAuthorBio(this); return false;\">Read more <noscript><img decoding=\"async\" src=\"\/assets\/images\/blog\/Vector.png\" alt=\"expand\" class=\"read-more-arrow down-arrow\"><\/noscript><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" alt=\"expand\" class=\"read-more-arrow down-arrow lazyload\" data-src=\"\/assets\/images\/blog\/Vector.png\"><\/a>\n                <div class=\"author-bio-expanded\">\n                    <p>Nitin Lahoti is the Co-Founder and Director at <a href=\"https:\/\/mobisoftinfotech.com\" target=\"_blank\" rel=\"noopener\">Mobisoft Infotech<\/a>. He has 15 years of experience in Design, Business Development and Startups. His expertise is in Product Ideation, UX\/UI design, Startup consulting and mentoring. He prefers business readings and loves traveling.<\/p>\n                    <div class=\"author-social-links\">\n                        <div class=\"social-icon\">\n                            <a href=\"https:\/\/www.linkedin.com\/in\/nitinlahoti\/\" target=\"_blank\" rel=\"nofollow noopener\"><i class=\"icon-sprite linkedin\"><\/i><\/a>\n                            <a href=\"https:\/\/twitter.com\/nitinlahoti\" target=\"_blank\" rel=\"nofollow noopener\"><i class=\"icon-sprite twitter\"><\/i><\/a>\n                        <\/div>\n                    <\/div>\n                    <a href=\"javascript:void(0);\" class=\"read-more-link read-less-btn\" onclick=\"toggleAuthorBio(this); return false;\" style=\"display: none;\">Read less <noscript><img decoding=\"async\" src=\"\/assets\/images\/blog\/Vector.png\" alt=\"collapse\" class=\"read-more-arrow up-arrow\"><\/noscript><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" alt=\"collapse\" class=\"read-more-arrow up-arrow lazyload\" data-src=\"\/assets\/images\/blog\/Vector.png\"><\/a>\n                <\/div>\n            <\/div>\n        <\/div>\n        <div class=\"share-section\">\n            <span class=\"share-label\">Share Article<\/span>\n            <div class=\"social-share-buttons\">\n                <a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fmobisoftinfotech.com%2Fresources%2Fblog%2Fcustomer-returns-management-embraces-technology\" target=\"_blank\" class=\"share-btn facebook-share\"><i class=\"fa fa-facebook-f\"><\/i><\/a>\n                <a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https%3A%2F%2Fmobisoftinfotech.com%2Fresources%2Fblog%2Fcustomer-returns-management-embraces-technology\" target=\"_blank\" class=\"share-btn linkedin-share\"><i class=\"fa fa-linkedin\"><\/i><\/a>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Offering a seamless return experience has become the cornerstone of successfully running a retail business. For companies that completely rely on e-commerce and offer free-of-cost returns, managing higher rates alongside controlling customer returns becomes too difficult. As such, handling outbound logistics is already a major challenge, but if one out of every five dispatched products [&hellip;]<\/p>\n","protected":false},"author":38,"featured_media":22451,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_s2mail":"","footnotes":""},"categories":[286],"tags":[1866,1868,1869,1867,1872,1871,1870],"class_list":["post-22443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-customer-returns-management","tag-customer-service-returns-policy","tag-inventory-management-technology","tag-returns-management-software","tag-reverse-logistics-management","tag-reverse-supply-chain-solutions","tag-warehouse-management-technology"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Optimize Customer Returns Management with the Right Technology?<\/title>\n<meta name=\"description\" content=\"Customer returns management optimization by using the right technology. 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