There are a few different ways to approach returns in your business. Some lean more towards maintaining control and the ability to gather feedback, while others focus on creating a seamless customer experience and making the process as simple and automated as possible.
Let’s look at these options, as well as when they may make sense, below.
Pre-Authorized Returns
As the name implies, pre-authorized returns require the customer to make a manual request to return an item before being able to go through with it. That way, the business can at least have some notice about a product that’s about to be returned and can make logistical and other types of preparations before it happens.
It also offers the ability to collect more information and even potentially solve the problem for the customer, avoiding the return in the first place.
The biggest issue with pre-authorized returns is that they can be a hassle, both for the customer and the company. On the customer end, it can seem like you’re forcing them to jump through hoops just to return a faulty item. For businesses, it demands extra resources to process, evaluate, and respond to such requests promptly.
Self-Service Returns
On the other end of the spectrum, there’s the option of implementing a self-service return policy, which allows the customer to return the items they want without having to interact with the seller in any way. This is an approach that your customers are likely to love, as they will feel much more confident shopping at your store when they know that they can get their money back.
At the same time, you’ll be able to minimize the oversight of the process, with the returns coming on without the need to interact with customers beforehand.
However, even though it can work well, there are drawbacks to consider. For one thing, you will need to make sure that the returns process is as simple as possible, since customers may have challenges figuring out how to return items on their own otherwise. You will also lose the opportunity to discover the reasons for the returns, address their concerns, and potentially prevent the return from taking place.
Hybrid Approach
The final option for handling returns combines both of the options outlined above, providing you with flexibility when you want to have more control over the returns process while still giving assurance to your customers.
Basically, it means that you implement a self-service process that your customers can use, but use built-in fail-safes for products that are at a higher risk of fraud. By maintaining authorizations for riskier products, you can avoid costly instances of customers abusing your returns policy, while also maintaining the flexibility that comes with offering a self-service return for other products that are lower risk.
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