1. "My return will just be destroyed anyway."

Regularly, reports emerge about online retailers destroying entire truckloads of returns. Despite the 2020 enactment of the Circular Economy Law, it's easy to bypass the incumbent duty of care for returns. Many retailers choose this path because it's more economical for them to destroy returns rather than integrate them into the re-buy cycle.

The societal trend is increasingly moving towards recycling. Consumers often don't handle products carefully, which greatly increases the effort for resale and makes it less profitable. However, brick-and-mortar second-hand stores are experiencing a renaissance – and fashion chains like C&A take back old clothes after the return period in exchange for discount vouchers. This is then resold as second-hand goods. This voucher model, in particular, can create incentives for customers to return goods in good condition in online retail. This option must be communicated transparently at the time of ordering and not just when the return is triggered. To encourage buyers to discuss problems with the retailer, it's important to make contacting them as easy as possible. Comprehensive self-service portals, which simplify direct contact for both sides from the first touchpoint, help to positively shape the customer journey.

With such a platform, mail-order retailers can also implement second-hand portals, through which goods are either centrally organized or resold from customer to customer. This creates an incentive for the end consumer to return goods in a reasonable condition and to buy second-hand goods. In addition, the end consumer can be offered a discount if they decide to keep the goods.

2. "The return process is too opaque and lengthy."

In German e-commerce, free returns are widely considered standard. Especially at peak times, like Black Friday or Christmas, online retailers often relax their own goodwill rules for free returns. Yet, the 2022 Returns Report shows that nearly half of Germans (44%) would be willing to pay for their return in the interest of sustainability. However, these options and rules must be communicated transparently from the first touchpoint. Still, plenty of retailers actively try to make returns more difficult, following the motto, "If I don't receive a return, I don't lose money."

However, this thought is too short-sighted: The frequently cited reference to the right of withdrawal in the terms and conditions causes customers to become annoyed and not to order from the shop again. If this dissatisfaction is reflected in reviews of the online shop, it can deter potential new customers – at the expense of potential sales. Therefore, the principle applies that preventing returns is also preventing sales. Even complex return regulations can be implemented in an accessible and customer-friendly way.

3. "My wishes and problems are not heard. Retailers don't care why I send the product back."

The standard process of including a return label in the package prevents individual problem-solving. As the 2022 Returns Report shows, last year, two-thirds of Germans (65%) still sent back a package using the insert. Often, however, a problem is much more complex: The insert forces customers to send back a partially intact product and order a completely new one. It would be much simpler to provide suitable replacement parts. The resulting logistical effort comes at the expense of the environment.

An uncomplicated exchange is also almost impossible. In brick-and-mortar retail, product exchange can be done in one process, where product prices are weighed against each other. In contrast, in the case of the insert, each exchange consists of two separate processes. In the worst case, this can result in two similar products charging the credit card bill simultaneously. Both examples can be avoided on a comprehensive platform: The customer conversation is transferred to the virtual world, and an exchange can be processed in one step. This maintains customer satisfaction.

Conclusion

E-commerce faces many prejudices from end consumers. Often, however, the reasons for this can be found in the process transparency of individual retailers. If an online shop acts intransparently, especially in return management, customer dissatisfaction quickly arises, negatively impacting their loyalty to the shop. With a comprehensive self-service platform, the retailer can not only simplify communication with the customer but also transparently implement rules for individual processes that provide individual solutions for various problems. This sustainably increases customer satisfaction. And only satisfied customers are loyal customers.