5 ways operations leaders reduce returns and reverse logistics costs during COVID-19
To better understand how retailers are achieving operational post-purchase goals in our altered landscape, we ran an informal survey with supply chain leaders to collect returns-related best practices. Here are some of their top suggestions:
1. Extend return windows.
Shoppers are adjusting to new store hours and closures, and many want to stay safe at home right now. Many retailers are extending their return windows in an effort to relieve shoppers from immediate return worries. The adjustment allows operations teams additional time to more-carefully process items—and goes a long way in increasing loyalty and encouraging purchases from first-time buyers.
This table features Happy Returns’ customers and Return Bar partners who recently increased their return windows.
2. Lower shipping rates.
As returns by mail temporarily replace in-person returns as the method shoppers prefer—and more companies choose to encourage hesitant consumers to purchase by offering free shipping—operations leaders are focused on reducing shipping rates, in two primary ways:
Renegotiate rates with carriers directly.
Partner with third-party logistics companies that use low shipping rates, due to their economies of scale.
For example, retailers access the industry’s lowest carrier rates when they use Happy Returns’ returns software and/or reverse logistics services.
3. Increase efficiency by automating returns.
By automating returns with an online exchange and return flow, teams greatly increase supply chain efficiency and start to put a process around understanding and addressing common reasons that shoppers exchange and return. With a returns management platform, they can also:
Reduce customer service calls and emails, since questions about returns are generally a top question
Improve their exchange ratio with one-click suggestions based on return reasons provided
Search by order#, express code, email or tracking number
Filter by item status, location, date range and manual returns
Display manual returns directly without confusion
When you automate returns, refunds happen without any manual intervention and your team can focus on other, more important priorities.
4. Provide shoppers with safe shipping tips during COVID-19.
Many retailers are reaching out to their shoppers to recommend that they wait before opening packages, in order to avoid potential contact with the virus.
How long should customers let packages sit? Here’s what a study from the New England Journal of Medicine says:
The article notes that the amount of the virus found on each surface decreased rapidly over time, which means the risk of infection lessens over time as well. A best practice is to wipe the packages down before bringing them into the house, and then wiping the contents of the package after it’s opened. Anti-bacterial wipes are meant to kill bacteria, not viruses, so they may not be as effective at removing COVID-19 from surfaces. Instead, recommend that your customers use diluted bleach, or cleaners with at least 70% alcohol.
5. Support COVID-19 efforts.
If you’re looking for a little positivity amidst the chaos of the coronavirus, you can find it in communities stepping up to help each other get through this together. Many retailers are using their supply chains to produce items that help those affected by the pandemic, including the emergency workers risking their own health to help others.
Here are some examples from Happy Returns’ customers and partners:
Mothership freight services is offering complimentary and discounted shipping to companies donating essential goods to hospitals, healthcare workers and food banks combating COVID-19. Supported donations include medical supplies, personal protective equipment, and food items, all of which are helping our communities during these difficult times.
Clove surprised nurses treating COVID-19 patients at Thomas Jefferson University Hospital with free sneakers before the start of their shift.
FIGS plans to donate 30,000 medical scrubs to hospitals that have been severely hit with patients affected by the coronavirus.
Ministry of Supply recently launched a Mask Donation program with its manufacturing partners to produce and procure face masks for the medical community. The company is also donating 20% of all sales to the effort.
These strategies are just some of the ways retail experts are reducing costs and strengthening supply chains right now. What tips would you add?
Caitlin Roberson
VP of Marketing
Caitlin Roberson is the Vice President of Marketing at Happy Returns. Previously, she served as Director of Enterprise Marketing at Lyft and Partner at top-tier venture capital firm Andreessen Horowitz. Before that, she started and sold a content marketing agency.
