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  • Writer's pictureNour Shawky

The Top 5 E-Commerce Returns Management Strategies for 2023

Updated: Jan 4, 2023

Returns are an unwanted but inescapable reality of life for the e-commerce sector. Many companies, especially if products cannot be resold, fail to adequately account for all of the costs involved. Businesses need to put in place a reliable returns management system when money is tight. In this post, we'll go over five best practices for e-commerce returns management to help you streamline your logistics processes and cut costs

How do you manage returns?

By expeditiously processing returns and offering first-rate customer service, returns management helps businesses cut down on customer attrition. Communication, problem-solving, and transportation are just a few of the variables that play a role in this process. Many times, companies put a lot of effort into providing excellent customer service, only to be let down by subpar route planning software and shaky transportation options, which make refunds and redeliveries take longer than a consumer is willing to tolerate.

The issue is not the client.

It's simple to accuse the client of being picky or difficult when there are returns, but this is almost never the case. Businesses must consider themselves to be customers in 2023 in order to identify the pain points associated with product returns.

The truth is that online shopping is more popular than ever. While this is especially true for younger consumers, the epidemic has taken online shopping to a whole new level.

More than two billion people purchased goods or services online in 2020, growing the global E-Commerce sector to $4.2 trillion as high street retailers closed their doors.

Statistics suggest that a large number of consumers continue to enjoy the convenience of making purchases online as the world now slowly returns to some kind of normalcy, and we may anticipate seeing more rises in the coming year.

How to Get the Most Out of Exchanges and Returns?
1. Gather information and improve the digital infrastructure

Good data are the foundation of good returns management. E-commerce companies benefit greatly from this as compiling and evaluating data from consumer returns is rather simple.

By 2023, e-commerce companies should be utilizing their digital infrastructure to help them drill down to the causes of returns and the expenses associated with these causes. Look at the causes of the returns.

Obtain feedback from customers regarding their happiness with the returns procedure, discover how satisfied they are with the product and delivery service, and examine the connection between the obtained data and important demographic parameters like age and gender.

To determine how the returns are divided across the four types of returns, you should gather the following data:

Types of Returns:
  1. A-returns: The returned products are in brand-new form and may be resold right away.

  2. B-returns: Small variations to the items or packaging are necessary.

  3. C-returns: Huge defects that make reprocessing for sale as new items resulting in the placement of secondary market.

  4. D-returns: Serious defects find it difficult to process and resell the products.

2. Know their identities

Excellent customer service is what creates customer loyalty more so than brand recognition. Additionally, you may build your brand if you are familiar with your customers and are able to cater your responses to their needs.

Automating data gathering and analysis might help you profile your audience and learn more about your target audience. You can immediately determine who the customer is, what they desire, and most crucially, what they didn't get from your product when you utilize AI and machine learning, which analyze text data automatically to help you fast learn how people feel about your brand.

Prevention is preferable to cure.

It should go without saying that preventing product returns is much less expensive and more advantageous for a company than developing a "after the fact" returns policy.

Next-level quality control is the first step in the preventative approach to ensure that the products leave the warehouse in excellent condition. The following and most crucial component of the strategy is to guarantee that the products are delivered on schedule.

A birthday present or an outfit for a special purpose are two examples of time-sensitive orders made via e-commerce websites. These things become obsolete and are then returned if they are not supplied on time.

For logistics organizations who are dedicated to completing deliveries to customers on time, route optimization software is essential. By offering effective delivery services, route optimization software has assisted numerous e-commerce businesses in outperforming the competition.

3. The upcoming route is green.

The transportation sector is more scrutinised than ever as nations attempt to achieve new environmental benchmarks. Returns not only cost logistics companies a lot of money each year, but they also contribute significantly to the carbon footprint of an organisation.

In order to reduce their carbon footprint and get ready for future regulations as we all move toward environmental sustainability, logistics companies can start by introducing some creative technology, such as AI-based route planning software and optimised delivery routes.

4. Check for automation.

Since the return slip enclosed with the return is still the standard, the majority of e-commerce businesses include it with the shipment. Many businesses are reluctant to adopt novel return-generating techniques. They worry that adopting new procedures would lead to subpar customer service.

In this situation, this kind of return cargo frequently leads to opaque processes. When returns are received, the merchant must manually unpack them in order to inspect them based on the return slip because this happens frequently.

Only after that can the customer expect a reimbursement, which is difficult in this technologically advanced society.

You may eliminate this bother by using route planning software, which will also result in fewer unsuccessful deliveries.


Effective returns management for a logistics company requires managing multiple tasks at once. It can be a challenge for many firms to ensure that customers receive deliveries and redeliveries on time, keep employees satisfied, and increase productivity while trying to stay within ever-shrinking budgets. Fortunately, technology can help a firm get a jump start on keeping consumers, saving money, and eventually conserving the resources of our planet. One example is route optimization software.

How can Norma LIVE assist e-commerce companies with the management of returns?

By selecting the most efficient route for your fleet, the AI-based route optimization and auto-dispatch software Norma Live automates last-mile delivery. Norma LIVE assists you in meeting delivery deadlines, reduces service times, lowers costs, frees up time, helps you expand your business, and allows the appropriate amount of resources.

Request a one-on-one live demo to learn more about how Norma LIVE may help your logistics operations achieve comparable results. One of our specialists will be pleased to call you back to go over your needs in greater detail.


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