What Customers Really Want From Their Returns Experience

The retail buying experience has completely transformed over the past several years due to the rise of e-commerce. As a result, the way that retailers and e-commerce companies engage their customers has also shifted dramatically. While customers were once willing to wait 7-10 business days for a package, many now expect same- or next-day shipping, in addition to real-time tracking and a frictionless delivery experience.

Although many companies have risen to the occasion when it comes to ensuring exceptional customer experiences, the returns process often is not factored into the final mile experience, yet in many cases, it is just as important. Returns are no longer viewed by customers as exceptions, but rather a built-in part of the buying journey. This is why it’s critical for companies to create convenient, flexible and transparent reverse logistics processes to set themselves apart and deliver competitive advantage.

The Old Returns Model

With the traditional in-store buying process, retailers handled all returns in store, where the purchases were made. Under this model, returns were relatively infrequent because people could see and touch their items before making a purchase, and customers assumed most of the burden associated with a return because they had to physically make the trip back to a retail location.

With the shift to e-commerce, this has completely changed. While in-store return rates are still below 10 percent in most cases, e-commerce returns account for nearly 20 percent of online purchases — and even higher for apparel, which can reach as high as 50 percent for luxury goods. Customers can’t physically inspect items before making online purchases, and as a result, many customers order multiple sizes or colors of the items they purchase with the intent to return some of them from the beginning. Because they consider the returns process to be part of their everyday purchasing habits, it’s critical for companies to follow their lead.

What Customers Expect

In addition to customers’ expectations for real-time tracking, accurate delivery windows, instant notifications, fast shipping and seamless mobile experiences for the items they purchase, they now expect the returns process to be just as seamless as the original delivery. However, building the reverse logistics process into supply chain operations and treating it as an expectation rather than an exception can put companies on the right track.

Above all, customers now expect:

• Convenience and flexibility: While the onus for returns was previously on the customer for in-store purchases, they now expect flexible pickup windows, easy rescheduling and multiple return methods to be available. Inconveniences or added steps in the process are likely to deter a purchase altogether.

• Visibility and real-time communication: While companies have improved when it comes to providing real-time visibility into the status of deliveries, once a customer drops off a return package, they often lose visibility completely. Unclear pickup scheduling, poor communication once items are handed off and long refund timelines are the top frustrations for customers looking to make returns. In fact, 60 percent of customers will avoid making a purchase if the returns process isn’t clear, while conversion rates increase for companies with generous return policies. In the end, companies that provide live tracking, status notifications, confirmation of receipt and transparent refund timelines are more likely to secure purchases and create repeat business while building customer lifetime value in the process.

• Speed of resolution: Customers care less about the physical return journey and more about when refunds are issued, how quickly exchanges are made and having minimal required effort on their part. Today, 85 percent of customers expect their refunds within a week or less, with more than half of those expecting them within three days.

• Simplicity: Making the returns process as seamless as possible for customers can help to drive positive experiences and repeat purchases. Customers appreciate minimal packaging requirements, QR code-based returns, fewer labels/forms to print or fill out, and an overall frictionless experience. Every added step in the process increases the potential for abandonment and frustration, which can lead to negative experiences and keep customers from returning in the future.

Reverse Logistics as a Competitive Differentiator

Because the reverse logistics process is now considered a standard part of a customer’s interaction with a brand, it also influences their likelihood to make additional purchases in the future, which directly impacts retention, brand trust, lifetime value, reviews and brand reputation. The most successful final mile home delivery solutions will be designed with reverse logistics built in rather than treated as an afterthought.

This includes:

• Route optimization: Ensures predictable timelines and clear tracking milestones while providing transparency into the status of a return

• Predictive returns management: Enables faster, smoother returns and reduces variability in the returns process for the customer, creating a more predictable and consistent experience

• Flexible options for pick-up/drop-off: Gives customers a sense of control and choice in the process, allowing them to select the option that is most convenience for them

• Tracking visibility: Allows customers to know when a return is received and when they can expect to receive a refund or exchange while building confidence in the brand

• Clear timelines for refunds: Sets expectations, reduces anxiety and builds peace of mind for the customer while building trust with the brand and increasing the likelihood of future purchases

A Seamless Experience Through the Very End

Just as the customer purchasing experience has changed with the rise of e-commerce, it’s critical for companies to ensure that their reverse logistics process functions with the same level of ease, convenience, transparency and responsiveness that customers expect during their initial purchase and delivery. This helps to build trust, create transparency and eliminate customer frustrations by creating more predictable experiences.

At NXTPoint Logistics, we understand that the final mile extends beyond the delivery and includes every interaction between a customer and the brand, including when items are returned or exchanged. That’s why we offer complete returns management, even for large and bulky shipments like furniture.

Powered by Synoptic, our proprietary system built to streamline reverse logistics management, our returns management services make it easier to track, process and reroute returned items, even when haul-away or return services are needed. We also offer environmentally responsible solutions, including repackaging and cost-saving alternatives like local inventory holding, to reduce unnecessary shipping back to manufacturers or distribution centers. 

By operating as an extension of your team and using trained, highly skilled professionals to handle and manage shipments, we ensure better customer experiences and treat each reverse logistics request with the same respect, care and efficiency provided in the initial order fulfillment and delivery.

In the end, reverse logistics isn’t just about getting products back; it’s about earning trust. When returns are transparent, flexible and predictable, even a minor setback becomes an opportunity to strengthen the customer relationship and can be a stepping stone to building loyalty for years to come.

As a final mile home delivery partner with more than a century of experience, NXTPoint Logistics creates tailored solutions to accommodate your unique requirements and deliver exceptional experiences every time, including reverse logistics management. To connect with our team, click here to get the conversation started.