The right Return Management & The right Checkout System

This post discusses the importance of an effective return management system and a seamless checkout process for ecommerce businesses in India. It highlights how about 70% of shoppers abandon their carts due to complex checkout experiences, while the ecommerce returns rate stands at an average of 30-40%.

Effective return management and a seamless checkout process are crucial for the success of any ecommerce business in India. 

Because -

  • 7 out of 10 shoppers abandon their carts before completing the checkout 
  • 28% abandon their carts due to a complicated checkout experience
  • 78% expect a fast and easy checkout process, while 47% of want it to take than 1 minute

  • The ecommerce returns rate in India is estimated to be 30-40% on average
  • The cost of reverse logistics, which includes shipping, handling, and processing of returns, is estimated to be around 8-10% of the total e-commerce revenue in India
  • By offering hassle-free returns and refunds, ecommerce companies can improve customer satisfaction and loyalty rates by 30-35%

Checkout System:

The checkout process is the final step in the purchase journey.

  1. User-friendly design: The checkout page should be easy to navigate and use, with clear instructions and minimal distractions.
  2. Multiple payment options: Offer multiple payment options to customers, including credit/debit cards, net banking, mobile wallets, and cash on delivery.
  3. Secure payment processing: Use a secure payment gateway to ensure that customer payment information is protected.
  4. Mobile responsiveness: With a significant percentage of ecommerce traffic coming from mobile devices, it's important that your checkout process is optimised for mobile users.

Return Management:

The Return/Refunds/Exchanges stage is the final step in the customer experience journey.

  1. Automated system: For immediate action instead of manual involvement in the fast moving ecommerce world.
  2. Easy returns process: Make it easy for customers to initiate returns. This could involve providing a prepaid return label or allowing customers to initiate returns through your website.
  3. Timely refunds: Ensure that refunds are processed promptly once products are returned. This helps build trust with customers and encourages them to make future purchases.

Together: Return Management & Checkout System

When both are handled by a single entity, the perks offered come in 2’s

  1. Data, and
  2. Performance

Data - 

The compiled data from customers on every checkout and the corresponding return rate and reason helps brands understand

  • The interest behind the purchase, and whether the return was due to false promises or other factors

Performance -

Optimisation of your checkout in terms of upselling and cross selling, or improving returns and the efficacy of its automation - all take place parallelly.

Meaning, you understand your clique by understanding individual customer journey in both “Checkout Experience” and “Return Experience”

[Note: Pragma optimises performance with the help of data from 450+ brands]

To Wrap it Up, 

A well-designed return management system and a seamless checkout process are crucial for the success of any ecommerce business in India. By prioritising these elements, you can build trust with customers and encourage repeat business.

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