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Easily retain Customer Revenue with this Return Solution Hack

Picture this: a customer completes a purchase from your store. Your package arrives on time as promised, yet the customer is dissatisfied with the received product(s) and wishes to return it. You are losing revenue and, on top of that, you are dealing with return costs i. Now what?

Fortunately, there is a secret hack to retain revenue after a customer initiates a return. In this article, we’ll unveil this hidden strategy and how to seamlessly incorporate it into your store.

Traditional Return Proposals

Typically, return proposals boil down to two different options. In almost all cases merchants are obliged to refund the money. Only on special occasions, it’s not possible to return products, like personalized products.

Assuming a refund is mandatory, merchants can either request a return fee or offer free returns.

This leads to two options:

  • Refund & return fee
  • Refund & free return

However, if we take a closer look, a creative perspective can redefine the return proposal, turning it into a win-win situation for both the merchant and the customer.

The secret Hack: Store credit return solution

The key to success lies in psychology. By strategically presenting return proposals, you can guide customers toward a specific option that benefits both your store and the customer.

According to the German Civil Code (BGB) § 355, the consumer has 14 days to return the goods within the deadline. The retailer can use the original payment method for the refund or offer additional billing options, such as a credit note in the shop.

By offering store credit as an option, you retain the customer revenue. But how can I steer customers towards the store credit return option? Simple! Ensure there’s a clear benefit to choosing store credit.

Let’s put that into practice!

Offer two different settlement options:

  • Store credit with free returns
  • Refund with a return fee

Check out the visual representation below:

Return Solution

This winning approach entices customers to opt for store credit, eliminating the need to pay a refund fee. It’s a win-win: you retain the customer revenue, and the customer can return the product without any additional cost.

Even if customers opt out of store credit, the return costs will be partially covered by the refund fee.

Convinced? Let’s put this plan into action!

How to implement it in your store

To implement this strategy in your store, follow these steps:

  • Integrate a robust Returns software service
  • Define routes depending on your business
  • Configure return settlement proposals per route

Let’s illustrate this with a practical example:

Meet Marcus, the e-commerce manager of an online company based in Germany, shipping internationally to Europe, with special conditions for Italy. First up, he uses the returns software service: ‘Shipcloud Return’, empowering him to implement this winning return settlement hack.

Secondly, Marcus defines his shipping routes based on his business:

  • Germany to Germany
  • Italy to Germany
  • Europe to Germany

Utilizing multi-carrier connectivity i, Marcus can handpick the optimal carrier for each region or country. Moreover, he can tailor the return settlement proposals for each specific route.

For instance, domestic returns incur lower costs compared to returns from the rest of Europe. In this example, returns from Italy are more expensive.

Marcus configures his system accordingly:

Return Solution

This integration highlights the benefits of combining the returns settlement proposal strategy with multi-carrier connectivity, ensuring seamless returns while preserving customer revenue and optimizing cost efficiency.

Let Returns Work in Your Favor!

Summary

The returns settlement proposal hack offers a win-win situation for both you and your customers. By strategically presenting return options, you can guide customers towards a specific proposal that maximizes benefits for you and your customers. 

Typically, there are two primary return proposals: a refund with free returns or a refund with a return fee. However, incorporating Store credit into the mix introduces a compelling option that works in your favor. 

Return Solution

With store credit, customers are encouraged to choose this option, avoiding return fees while allowing you to retain customer revenue. It’s a win-win scenario.

Implementing this hack is straightforward with the right Returns software service. Integrate a robust return software service, define routes tailored to your business, and set up return proposals for each route.

If you have questions about implementing this winning return settlement hack, feel free to reach out. We’re here to help you unlock the full potential of your returns process.

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Let Returns work in your Favor!
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