Handling returns is one of the more challenging aspects of running an e-commerce business, but it’s essential to get right in order to build trust and provide a positive customer experience. A smooth return process can lead to loyal customers, while a difficult one can hurt your reputation. Fortunately, there are several tools and best practices you can use to make this process easier.
There are various apps available that help streamline the returns process. Some popular options include Returnly, Loop, and AfterShip Returns Center, which allow you to automate many steps, such as generating return labels and tracking returned items. While these apps often come at a cost, they can significantly reduce the manual work involved in managing returns and improve the overall customer experience. We at DataZen highly recommend Redo as it is free, very simple to get setup, and their support and development team is responsive and extremely caring about your needs. The flows that can be set up for your customers are intuitive and can be specific at even the variant level.
If you prefer a manual approach, here’s a breakdown of the return process that will ensure you keep track of all moving parts:
Click “Return items” in Shopify
Start by navigating to the order in question and clicking on the Return items button. Select the items that the customer is returning.
Create a return label
During this step, generate a return label for the customer to send the items back. Many Shopify merchants offer free return shipping as part of their return policy, but this decision will depend on your business model.
Mark the product as received
Once the return arrives at your warehouse or designated return location, mark the product as received in your Shopify admin. This is an important step to track inventory and maintain an accurate product count.
Edit the order and add the new item
If the customer is exchanging the product, edit the order to add the replacement item. Be sure to discount the new item by the value of the returned product to reflect the exchange.
Click “Refund” on the returned item
Refund the original amount for the item(s) that were returned. Shopify’s system allows you to adjust refund amounts and specify which items are being refunded.
Return the item to stock with zero refund
While refunding the customer, remember to return the item back into stock, but ensure that the refund amount for this particular step is set to zero since the refund has already been processed in the previous step.
Create a new shipping label for the exchanged item
Finally, create a shipping label to send out the replacement product. This ensures that the exchange process is complete and the customer is kept satisfied.
Clearly Communicate Your Return Policy
A well-defined return policy helps set clear expectations. Make sure customers can easily find it on your website and understand the steps involved. A 30-day return window is a common standard, but this can vary depending on your industry.
Automate Notifications
Whether you're using a return app or handling returns manually, it's crucial to keep your customers updated throughout the process. Automating email notifications when the return is initiated, processed, and completed helps keep your customers informed and reduces potential frustration.
Analyze Return Data
Regularly review your return data to identify trends. Are certain products being returned more often than others? Is there a pattern to the reasons for returns? Use this information to make improvements in your product offerings or descriptions.
Navigating e-commerce returns can seem overwhelming, but with the right process and tools in place, it becomes much easier to manage. Whether you choose a paid app (like Redo) or handle returns manually, providing a seamless return experience will not only enhance customer satisfaction but also help foster long-term loyalty.