How omnichannel retailers can decrease refund-rates with Happy Returns' returns software and reverse logistics
Every day, retail executives ask me the same question: What makes Happy Returns’ returns software and reverse logistics solution better than its competitors? I’ve written this blog for them.
The returns challenge
Leading retailers know that over 87% of consumers are unlikely to shop with them again if they have a painful returns experience. They also know three of every four shoppers say exchanging and returning is the most painful part of buying online.
Over 87% of consumers are unlikely to shop with a retailer again after a painful returns experience.
Traditionally, retailers have outsourced portions of their reverse logistics. They spent money on multiple third-party solutions that only solved pieces of their problems, and quickly learned that a more holistic solution is necessary.
The exchange opportunity: A comprehensive strategy
Exchanges and returns become an opportunity when retailers implement an end-to-end strategy for initiating, accepting, and processing returns. Unlike most returns solutions, Happy Returns has years of expertise—and comprehensive solutions—for each part of the process.
1. Initiating exchanges and returns: At Happy Returns, we don’t just offer software to complete returns – we provide a user-friendly, best-in-class platform that encourages shoppers to exchange instead of ask for a refund. Our software optimizes exchanges with intelligent recommendations for shoppers to exchange in just one click. This invaluable feature is unique to Happy Returns. Over half of all returns are due to size or color issues, so why lose the sale when software can so easily suggest the right color or size instead?
Happy Returns is the only returns solution with software that optimizes exchanges with intelligent recommendations in just one click
After implementing our returns solution, men’s t-shirt retailer Cuts Clothing doubled its exchange rate, and it’s now over 50% higher than the industry average for ecommerce. Rothy’s also increased its exchange rate after switching to Happy Returns’ software.
2. Accepting exchanges and returns: If you want to increase shoppers’ loyalty, it’s important to let them exchange and return in whatever manner is most convenient – either by mail, at a retailer’s own stores, or in-person at third-party return networks across the country. Shoppers don’t want to worry about packaging items or printing labels. Instead they simply drop items off, and get their exchanges or refunds as fast as possible.
All of the above is possible at Happy Returns’ 700 Return Bars throughout the country, which all accept items without boxes, packaging, or tape—and offer immediate refunds from our retail customers. We’ve spent four and a half years building this network with brands shoppers already know and love: Paper Source, Cost Plus World Market, Simon Property Group, and more.
No other provider offers both software and in-person reverse logistics options, which is what makes it possible for our customers to save 20% on average with us. Even vendors who do offer in-person returns rarely make the process this easy. The secret is in the simplicity: Returning items without the conventional arts-and-crafts experience of reassembling a box, waiting in line at the Post Office, then waiting weeks for a refund. This experience goes a long way in raising a shopper’s lifetime value.
No other provider offers both software and in-person reverse logistics options, which is what makes it possible for our customers to save 20% on average with us.
3. Processing exchanges and returns: Using our low carrier rates, items are aggregated and shipped to our bicoastal Hubs for processing. While other returns solutions send items back one at a time, Happy Returns bundles the items in reusable, eco-friendly boxes to reduce shipping costs 20% on average—and eliminate cardboard waste. Over 61% of shoppers only buy from retailers with sustainable business practices, so this is just another way to make them happy. Our competition doesn’t focus on sustainability, but we hold it as one of our core values.
When items reach the Return Hub, we inspect and repackage them in preparation for resale. Our competition never comes in physical contact with items returned to them, nor do they refurbish them in any way. As an end-to-end returns solution, we think it’s vital to take a literal hands-on approach to ensure retailers know exactly what they’re getting back, and in what condition.
Over 61% of shoppers only buy from retailers with sustainable business practices. Our competition doesn’t focus on sustainability, but we hold it as one of our core values.
A holistic strategy of this caliber just happens to be Happy Returns’ specialty. Notice the word “holistic.” The reason forward-thinking retailers partner with us is because we offer a full end-to-end returns platform.
Not only do we power the return flow online, but we also manage reverse logistics on the back end. We do the heavy lifting, and you can focus your time on other priorities.
The benefits of an end-to-end solution
With a sustainable, holistic strategy for returns and reverse logistics, everybody wins: Retailers, shoppers, and the planet.
1. Retain revenue by increasing exchanges: No other returns solution offers one-click exchanges – a feature that will help you to optimize exchanges up to 36%. When shoppers sign on to start a return, our software offers them suggestions for new sizes or colors based on the return reason they provide. They simply have to click once on the item that solves their issue. Then they get the product they want, while you get to keep the sale.
Beyond reducing refunds and increasing exchanges, we also provide an option for site credit. You’ll retain revenue with this option by having shoppers reapply those dollars to a new product instead of simply offering money back.
2. Reduce shipping costs: Though we guarantee 10% savings in your first year with us, our customers reduce costs up to 20% on average—because of our industry-low carrier rates and our aggregated shipping. Collecting and shipping items in bulk, rather than shipping items one at a time, provides a huge cost savings.
3. Reduce customer service costs and call volume: Our customers also save money through the reduced labor costs associated with our efficient reverse logistics. The majority of major retailers receive customer service calls for two reasons: “Where’s my purchased item?” or “Where is my refund?” As returns experts, we relieve this burden on your associates by eliminating the second question with refunds that are initiated immediately.
Another thing that really separates us from our competitors is our ability to free up employee workload by taking care of the entire returns process on the back end. No matter what your employee workflow looks like today, we’re 100% confident that you won’t need that many heads assigned to reverse logistics duties with Happy Returns. Instead, customer service agents can focus on assisting shoppers with buying products, not returning them, and associates don’t have to refurbish items themselves. As we free up your labor costs, you can efficiently reroute employees to fulfill your other business needs.
Our competition never comes in physical contact with items returned to them, nor do they refurbish them in any way.
4. Increased loyalty: Happy Returns knows what shoppers want, and how to raise loyalty by giving it to them: presenting shoppers with options for hassle-free returns and initiating immediate refunds. Providing them with a seamless experience of their choice (whether in-person or by mail) is a distinct advantage of partnering with Happy Returns, and an unbelievably efficient way to increase customer lifetime value. Your shoppers will now rave to their friends that they completed an in-person return in about 60 seconds, and that their refund was initiated immediately.
5. Enhanced sustainability: We know that many retailers care about sustainability. Our cardboard-free, reusable packaging and aggregated shipments are the perfect solution for taking near-term action on their environmental initiatives. Because our competition simply provides the return flow, they pass the responsibility of sustainability to the Post Office or back to the retailer.
Happy Returns ensures that major retailers reduce their cardboard and carbon footprints.
Shoppers can’t try on clothes before purchasing online, which makes returns inevitable. To address returns and capitalize on the opportunity they present, forward-thinking retailers partner with an end-to-end expert who understands the entire process inside and out.
Why Happy Returns?
Our customers save an exorbitant amount of money because they don’t need to bring in other partners to help get the job done. Hiring Happy Returns means you get just that: a complete solution, not just a piece of one.
While we’re proud to take returns out of your hands, we understand the importance of total visibility. Our sophisticated retailer dashboard allows you to track every return in real time throughout each step of the process, showing every item’s location and condition.
Our sophisticated retailer dashboard allows you to track every return in real time throughout every step of the process.
The data is also a valuable way to gain insight into your shoppers and their spending habits. As an example, let’s say Jane spends about $500 at your store every month, but the dashboard shows she usually returns about $300 worth of those items. Having this kind of privileged information aids everything from inventory planning to marketing campaigns.
Want to learn more? Use the link below to schedule a demo.
Stephanie Lacey
Director of Enterprise Retail Partnerships
Stephanie Lacey is the Director of Enterprise Retail Partnerships at Happy Returns. Well-versed in the ever-changing retail and eCommerce landscapes, she previously worked for Google as both a Strategic Partnerships Lead and Account Manager.
