Outsourcing will serve as the solution for many retailers that find it hard to deal with customers that send purchased items back to them, according to a survey.
The poll based its findings on 2,700 responses within the transportation, logistics, retail, and manufacturing sectors. Almost 90% believe that handling tasks such as return merchandise authorization (RMA) management can be difficult, while 44% of them expect to rely on outsourcing to manage product returns.
The survey also revealed some interesting trends for the logistics industry in the next years. Several companies have already chosen to complete e-commerce orders by turning to their in-store inventories. This trend will be more common by 2028, when 40% of logistics firms plan to deliver orders within two hours.
While rising online consumer activity bodes well for retailers, there is an underlying necessity to manage returns at the lowest possible cost. It may even be better to prevent them in the first place, by tapping into a third-party logistics company’s ability to offer troubleshooting help for customers.
This reduces a client’s chances of initiating an RMA process, which would be cheaper than handling a request for return.
Effective Return Policy
Most retailers know by now that an effective return policy not only keeps your customers satisfied and willing to buy again but also protect your bottom line. Hence, it is important for your business to determine what products have the higher return rates among customers.
For instance, clothing and jewelry purchases can have a 30% return rate compared to book and video returns, which could only reach between 2% and 3%.
Your strategy for managing strategy return will be crucial for your revenue stream, as a high return rate hurts your profit margin. Consider outsourcing RMA requirements to a third-party company that has an extensive background in many logistics services.