Why marketplaces should standardize their return processes

TR
26th Apr 2022
4 minutes, 0 seconds
To ensure a positive customer return experience, comprehensive communication and transparency have long been the key to success in e-commerce. However, this is where a gap arises in marketplaces that can have lasting effects on customer loyalty.

Online marketplaces are popular platforms in e-commerce today: the operator provides the infrastructure that retailers can use to bring their products to the end customer. In turn, customers often enjoy a diversified offering and – thanks to the marketplace operator – faster delivery. But particularly when problems arise in delivery or with the product, customers are often left on their own. Often, they are not even aware that their order is not processed directly by the operator but by a third-party retailer. Thus, the communication for inquiries or return requests is handed over by the operator's customer service to the retailer, with whom the customer may never have directly interacted. This transfer of responsibility, however, can become a trap for all parties: the operator relinquishes control and leaves the customer to the retailer. The retailer, in turn, may not receive all essential data and information from the operator. And the customer feels abandoned due to this lack of transparency – which affects the Customer Return Experience.

Too many cooks spoil the broth: Closing the communication gap

A poor Customer Experience not only negatively affects sales and customer loyalty, but it also reveals hidden potential that has not yet been fully exploited. With a digital return management platform, marketplace operators can take customer communication into their own hands. Thus, they regain control over all processes in the After-Sales-Cycle, as a digital infrastructure standardizes the return process. The marketplace itself provides retailers with the structure for the return process, which the retailer only adjusts to their needs. Thus, the marketplace's customer service knows every step of this cycle and is always able to inform its customers.

By offering a uniform option for the return, for example, to carriers, processes are significantly simplified and centralized by the marketplace operator. This enables the operator to allow customers to choose the carrier for a return. This can prevent end consumers from having to send back several packages with different logistics companies. In addition, the operator provides its retailers with a set of rules, the implementation of which is guaranteed by the platform. The processing of a return is completed much faster, and the customer receives a credit for the returned goods sooner, which in turn positively affects the Customer Return Experience. Thus, the marketplace can protect its reputation with the customer while simultaneously enforcing its service standards with the multitude of retailers.

Moreover, a software-based return process provides the operator with insights that help distinguish good from bad retailers. The operator can better evaluate its retailers in terms of the services offered and costs. With these evaluations, the retailer portfolio can be adjusted accordingly, minimizing the risk of a poor Customer Experience. After all, bad experiences with a retailer are directly transferred to the marketplace itself.

The retailer benefits even more from the infrastructure

Retailers benefit from a central return management platform, especially from the digital infrastructure: they can access the necessary return data of their customers in real-time. They also have access to comprehensive delivery contracts and consolidation options for international returns. For example, retailers can decide based on photos whether a return from abroad is absolutely necessary, or whether these costs can be avoided with an offered discount.

To ensure a seamless digital data flow, the return process can be centralized and prescribed for the retailer. Thus, the operator can support its retailers in customer communication by automatically answering standard inquiries, and customer service only needs to intervene in difficult cases. Uniform and generally applicable carrier contracts lower the costs of return processing. This saving can be passed directly on to the end consumer.

With a digitalized return process, marketplace operators and retailers can also set individual and detailed KPIs. This ensures a uniform quality standard from all sides, which in turn has a lasting positive impact on the Customer Experience.

Reducing customer frustration

Digitization makes the return process more flexible: the marketplace's customer service can intervene at any time and individualize the processing, for example, with country-specific withdrawal periods. For customers, the marketplace remains the only point of contact, significantly accelerating communication for the return. Customer service also always has insight into all important data and can transparently pass this on to the customer. Improved service enhances customer comfort, directly affecting their satisfaction and loyalty.

For customers, the Customer Experience is paramount in e-commerce. What online retailers have already understood should also be implemented by marketplaces. Especially due to unbridged interfaces between the marketplace, where customers shop, and the actual retailer, communication gaps can quickly lead to dissatisfaction on the customer's side in the event of a return. These bad experiences are directly transferred to the marketplace by end consumers. For this reason, operators should try to centralize return management. Digital platforms simplify processes and increase transparency – and thus the Customer Experience.