eCommerce Reverse Logistics & Returns Management
eCommerce reverse logistics refers to the process of managing the flow of
products, from the customer back to the seller or the appropriate point in the
supply chain. It involves activities such as, non-delivered orders, product
returns, Warranty services, ETC.
eCommerce returns management involves the systematic handling and
processing of non-delivered products and the product returns initiated by
customers in an online retail environment.
It includes activities such as receiving returned items, inspecting their
condition, Check the return reason, categorizing them based on return
reasons, processing refunds or exchanges, and managing inventory restocking
or disposal.
The goal of returns management is to efficiently and effectively handle
customer returns while minimizing costs, maximizing customer satisfaction,
and optimizing inventory and operational processes.
eCommerce
Project analysis slide 8 Returns
1- RTO shipment processing 2- CIR Shipment processing
- The goal of RTO processing is to efficiently - eCommerce customer-initiated returns (CIR) processing
manage the non-delivered orders journey of refers to the systematic handling and management of
products and it refers to the handling and product returns that are initiated by the customers
management of non-delivered orders that are sent themselves.
back to the original point of dispatch or the seller's
location. - CIR processing typically includes activities such as
receiving returned items, inspecting their condition,
- RTO processing includes activities such as updating inventory, and initiating appropriate actions,
verifying the shipped item's condition, updating such as issuing refunds, exchanges, or replacements
inventory, issuing refunds or replacements, and based on the customer's preferences and the company's
initiating any necessary actions to address return policies.
customer concerns.
- The goal of CIR processing is to streamline and facilitate
the return process for customers, ensuring a smooth and
efficient experience while maintaining transparency,
responsiveness, and adherence to established return
policies.
- By effectively managing customer-initiated returns,
eCommerce businesses can foster positive customer
Returns Team Main Tasks
Project analysis slide 4
Making the quality check for the
QC Team returned orders.
Sorting the Qced products based on
condition.
Non-Delivered “RTO” Updating the Qced items back to
Orders Shipments Put away inventory.
Team Updating the items with other
Receiving
statuses.
Team
Returning the marketplace items to
the vendors.
RTV / RTC Returning the (No Fault Found) items
Team to the customer.
Customer Receive the returned Handling all the communications
“CIR”
Initiated shipments ( RTO & related to the process.
Shipments
Returns CIR) from the middle Handling the orders need to be
mile team, Handling
sent to the warranty service
the Q. Warranty center.
Team Handling all the communications
related to the process.
Aftersales SOPs
Here’s the General SOPs for the aftersales operations flow
Receiving QC Team Put away “RTV/ RTC” Warranty
Team Team Team Team
Receive the returned Perform the quality Regular pulling the Sort the RTV items Handling the
shipments from the check for the received items from the QC for every seller. warranty claims for
middle mile (Sorted) shipments. area to the inventory. customers.
and update the Create the RTV job
delivery system. Sort the Qced items Updating the order on system for Solving product
based on the final products using the each seller. issues, and
Reply on the destination ( Inventory inventory system upholding customer
handover mail and put away – Damaged – from the Aftersales Packing the RTV satisfaction.
flag for any condition RTV – RTC - Warranty). location to the order and transfer it
issues, Supported shelve location. to the middle mile Involve efficient
with images. for delivery, Or to communication,
Updating the the RTV location for coordination, and
Hand the received ( Damaged – RTV - pickup sellers decision-making to
returned orders to RTC ) items in the (Central RTV). ensure that
the QC Team. specified locations. customers receive
Packing the RTC appropriate
orders and transfer it resolutions within
to the Middle mile for the warranty
delivery back to the coverage period.
customer.
Aftersales Monitoring KPIs
Project analysis slide 3
Return Cost Per Return By Most Returned Customer
Rate Return Reason
Typically, reasons for This KPISKUs
is the best way Satisfaction
Feedback surveys or
It’s the major indicator As a financial KPI, cost
for the eCommerce per return signifies the returns include damaged to remove products ratings provided by
business and the amount spent on the products, wrong failing to impress customers who have
customer satisfaction. reverse logistics process. products (size, color, customers. gone through the
This may include shipping appearance, weight), return process can
Rate of Return = charges, restocking costs, malfunctioning/defective measure the return
Number of Returned labor handling charges, products, change in team's ability to
orders / total number of recycling or reselling customer’s mindset, and provide a satisfactory
orders delivered. charges. Cost per return return fraud. experience. It helps
can be an insightful KPI, Therefore, monitoring assess customer
especially since it helps the recurrence of a satisfaction with the
you keep track of particular factor can be team's responsiveness,
finances. the key to solving communication, and
returns inefficiencies overall handling of
and product returns.
deficiencies.
Aftersales Performance KPIs
Receiving QC Team Put away RTV/RTC Warranty
Team Team Team Team
Count of received Count of QCed PKGs Count of updated Count of RTVs / RTCs Warranty Claim
PKGs Vs The Target. Vs The Target. products Vs The orders Vs The Target. Resolution Time.
Target.
Queue SLA. QC accuracy. RTV / RTC accuracy First-Time Resolution
Updating accuracy Rate.
QC accuracy. Process time cycle. Process time cycle.
Process time cycle. Warranty Claim
Process time cycle. Accuracy
FAQs:
1) What Is A Good ECommerce Returns Rate?
o On average, the returns rate for any eCommerce brand is around 20-
30%. Therefore, the ideal situation is to have a return rate with refunds
of around 5-10%.
2) What Are Some Common Mistakes Retailers Make With
ECommerce Returns?
o The first mistake is not having a clearly defined returns policy. This is
important since most customers like to have a predefined return window
and exchange policy.
o The second mistake would be not having a returns management system
that can automate the return process ( Tracking system – Fulfillment
Module) .
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