Many online sellers find eCommerce returns management difficult to handle. Most eCommerce order fulfillment operations focus on getting products out the door and into the hands of customers without much consideration for what happens when a customer sends the order back. In many distribution centers, returns get piled into unused corners of the loading dock or warehouse until someone has time to process them, but this practice can get expensive quickly.
Though it varies by retailer and product type, up to 30% of eCommerce orders get returned by the customer. That number increased around 70% in 2020 due to the pandemic and the associated increase in online shopping. That’s a lot of product to handle – especially when consumers still expect two-day shipping.
Rather than retooling distribution to integrate better reverse logistics capabilities, many e-Tailers have turned to third-party logistics (3PL) providers to manage eCommerce returns on their behalf.
3PLs have expertise in managing both inbound and outbound shipments. This experience makes it easier for logistics providers to affordably handle virtually any volume of eCommerce returns without investing additional resources in new equipment, technology, or training. Some of the primary benefits gained by using a 3PL for eCommerce returns include:
The above factors ultimately create smarter, more efficient returns processing operations. As an online seller grows, eCommerce returns only get messier. A 3PL can help you straighten out your reverse logistics to make sure items return to inventory quickly while keeping costs under control.
An online retailer’s primary focus is on sales, marketing, and other revenue-generating activities. It’s easy for a sub-optimal product returns process to escape attention and invisibly drain profits.
Here are some signs that it’s time to look for a 3PL that can handle returns management on your behalf:
If you already use a 3PL for order fulfillment, then it makes perfect sense to include reverse logistics services as part of the package. The best time to talk about returns is when you enter into the relationship with your fulfillment 3PL, but this service can be implemented later by your provider if needed.
Be sure that there is an established procedure for returning items to inventory and disposing of damaged or expired items. The more you and your 3PL plan ahead of time, the less tedious and expensive returns management will be for everyone involved.
To discuss order fulfillment and returns services with a fulfillment expert, contact Staci Americas Fulfillment today to start a conversation.