Seeing that unfortunate return request appear in your inbox is every dropshipper’s nightmare. But don’t panic – with the right policies and processes in place, you handle returns smoothly and retain happy customers in your dropshipping business.
Remember, anything you sell online will inevitably be sent back by some shoppers. It’s inevitable. Whether the product arrives badly, the sizing is off, or your customer(s) wants something different, prepare your mind for returns.
When that returns request comes in, take a breath. Avoid viewing it as a hassle or lost profit. Instead, see it as an opportunity to enhance customer satisfaction by making the process easy and transparent.
Handle it well and an exchange or refund strengthens buyer loyalty and reinforces your store’s credibility. But you handle it poorly; it generates negative reviews and deters future business.
So read through best practices to turn returns into a positive experience despite the extra work.
SUMMARY
- Review return policies
- Respond promptly
- Ship the replacement
- Issue customer refunds
- Incentivize exchanges
- Keep documentation
Recap
1. Review return policies
To handle returns in your dropshipping business, review return policies from your suppliers. Familiarize yourself with their specific processes. You may accept returns directly from customers too. Consider letting your customers keep inexpensive products. This means for a low-cost item, send a replacement and let them keep the original. It’s easier than managing the full return. Assess restocking fees for invalid returns. Ensure you outline policies upfront.
List the qualifying return reasons. Note which scenarios make returns valid – bad, incorrect, or defective products, shipping errors, among others. Highlight restocking fees and disclose if customers must pay fees if they cause the return reason themselves. 15-20% of the purchase price is typical.
Provide return shipping labels. Make returns convenient by providing pre-paid shipping labels for sending items back. Set return timeframes. State the number of days customers have to initiate a return after receiving an order.
Communicate proactively. Notify customers when you receive the return and at each stage of the process.
2. Respond promptly
To manage returns in your dropshipping business, respond promptly. Email customers back promptly when they ask about a return. Aim to respond the same or the next day. Provide return shipping details. Share the supplier’s or manufacturer’s address and any special instructions they require. Inspect returns carefully when you receive them to check for damage not originally present when fulfilling orders. Request a refund or replacement too.
For valid returns, contact suppliers to obtain an exchange or refund on the customer’s behalf. Issue a prompt replacement to your customers if applicable. When you receive refund confirmation from suppliers, immediately notify customers. Give estimates on when customers should expect the return resolution – exchanges or refunds. Keeping open communication and responding quickly to returns maintains trust and satisfaction.
3. Ship the replacement
To handle returns from your customers, ship the replacement for the original product. When it’s time to ship a replacement item for an original product, act swiftly. The sooner you get that replacement item out the door, the happier your customer will be.
For example, a customer returns a defective toaster. As soon as you get confirmation that the supplier processes the return and gives an approval for a replacement, spring into action.
Package up the new toaster carefully to avoid any shipping damage. Double check you have the right item and ship it out the same day if possible. The faster the customer gets their replacement, the more you have a good impression and they’ll be with your service recovery.
And don’t just ship it quietly – make sure to email the customer with tracking information and a delivery date. Give the customer updates at each step.
Then, follow up again once delivery is done to ensure the replacement is safely in the customer’s possession with satisfaction. Catching any issues early maintains your reputation.
Providing fast turnaround on sending replacement items demonstrates you take returns seriously and work hard to make it right. The quicker you get a functional product back in your customers’ hands, the more they’ll appreciate your commitment to excellent service. So ship those replacements ASAP!
4. Issue customer refunds
To avoid an ugly situation with returns with your dropshipping business, issue customer refunds. Act swiftly on customer refunds. As soon as the supplier processes a return request, issue the refund to the customer promptly.
Notify customers immediately. When you receive return approval and refund confirmation from suppliers, email customers right away. Refund customers within the time frame in your return policies to meet expectations. Follow up with customers to confirm the refund successfully has their original payment method. For an extra tip, provide pre-paid labels so customers don’t pay for return shipping costs. This prevents frustration. At your discretion, issue refunds even for invalid returns to foster goodwill and future business. Processing customer refunds quickly and communicating about them bolsters your customer service reputation. Smooth refund facilitation encourages future purchases.
Send any special instructions they require. Prevent an ugly customer relationship by using this next trick. Read on!
5. Incentivize exchanges
To ensure you take control of a return situation, incentivize exchanges. Offer customers alternative exchange options before refunds to retain them. Read some examples below:
- Provide prepaid return labels.
- Offer exclusive discount codes.
- Provide store credit. Issue store credit for the item value rather than an immediate cash refund. Consider giving a bit extra credit.
- Suggest product upgrades.
- Send gifts.
Following up on return requests with exchange incentives before refunds preserve customer relationships, promotes repeat business, and prevents losing customers outright. The small perks encourage future purchases.
6. Keep documentation
To avoid future problems including returns, Keep documentation of all return exchanges, refunds, replacement orders, and communications. Clarify product details like sizing and features to minimize confusion that prompts returns. Consider removing items from your store that have excessive return rates. Identify any recurring return triggers relating to product flaws, shipping issues, etc. Use return analysis to pinpoint problems and make changes to reduce future returns.
Thorough return documentation provides critical protection in case of disputes and aids continuous improvement. Careful tracking helps decrease future return rates.
Recap
First, check your suppliers’ return policies so you know the process. Consider just sending replacements for cheap items to avoid the hassle. When a return comes in, respond promptly to the customer. Keep them up-to-date throughout the process. Issue a refund or replacement quickly once the supplier approves. Try incentivizing exchanges first before refunds. Offer coupons or gifts so customers don’t leave completely empty-handed.
Carefully document each return request and give a resolution. This covers you in case issues arise later. Use your return history to pinpoint recurring problems. Adjust listings and remove bad products to reduce future returns. Turn returns into a positive experience through great communication and fast resolution. This will build customer loyalty despite the inconvenience of returns.
So take a deep breath when you see a return request. With some planning and strategic customer service, you can handle returns smoothly and even strengthen your business.
