Previously Easycom, now Inretrn

How to reduce cross-border return costs: 3 effective strategies

As an ecommerce player, expanding your sales across borders is an exciting step towards global reach and increased revenue. However, it also introduces complexities in logistics, costs, and time management that can impact your customer satisfaction and profitability – especially related to returns. 

To make this topic even easier to grasp, let’s start with an imaginative example. Imagine you’re a German fashion brand that has expanded into international markets like the US, Norway, and the UK. 

This expansion has been successful, boosting your sales and increasing your market presence. However, with great sales volumes come great challenges, notably the high cost of handling returns across borders. Consider that, at least, around 30% of all online purchases are likely to be returned, each affecting your bottom line.

Efficiently managing these returns might seem overwhelming, but fear not—that’s precisely why this guide is here. You’ll discover three solutions to manage and reduce these costs. 

Solutions overview:

  1. Return-by-return
  2. Speed bulk
  3. Domestic return hub

Each solution is detailed below, offering how it works, the primary benefits, and the ideal business profile.

1. Return by Return

Experience seamless international returns with our Return by Return solution, which simplifies cross-border logistics through direct integration with leading courier services like UPS, FedEx, and DHL Express.

How it works:
When a customer initiates a return, they send their item directly to the courier of their choice. Our platform employs advanced API technology to manage all aspects of the return process, including the provision of necessary customs information to the courier, ensuring documentation is precise and complete.

Key advantages:
This approach simplifies the returns process by automating customs documentation, thereby eliminating errors and delays, enhancing overall efficiency, and making the process accessible and convenient for customers worldwide.

Ideal for:
Businesses with lower return volumes that require a straightforward solution, companies seeking simplicity in their returns process, and market entrants looking for a reliable and easy way to handle returns as they grow internationally.

2. Speed bulk

Our Speed Bulk solution is designed to efficiently manage high volumes of international returns by consolidating them into single shipments.

How it works:
Returns are sent by customers to a domestic hub where each return is scanned and logged. Once enough items accumulate, they are palletized and prepared for international shipment with a consolidated customs declaration. This process is coordinated with your customs and carrier partners to ensure smooth transit.

Key advantages:
This method accelerates the refund process by aggregating returns, which simplifies customs challenges and enhances customer satisfaction. It also improves the efficiency and effectiveness of the returns handling process, reducing overall logistics costs.

Ideal for:
Companies experiencing increasing return volumes in new markets, businesses seeking cost-effective solutions without significant investment in local return infrastructure, and organizations valuing quick processing to maintain high levels of customer service.

3. Domestic Return Hub

The Domestic Return Hub solution focuses on maximizing efficiency and control by consolidating international returns at a local hub before they are sent to the central warehouse.

How it works:
Domestic returns are first sent to a nearby hub, speeding up the initial transport and reducing costs. At the hub, each return undergoes a rigorous inspection to ensure it meets the same high standards as those processed in the central warehouse. Goods are then organized into pallets to maximize space utilization and optimize transportation costs. Products can be redirected to outlets, charities, or disposal early in the process if necessary. Store your best-selling products in a domestic return hub and dispatch them to the next customer directly from this hub.

Key advantages:
This approach not only streamlines the restocking process but also allows for the strategic positioning of popular items to enhance order fulfillment. It reduces the environmental impact by minimizing the frequency of shipments and optimizes transportation costs. Retrieve only prioritized and sellable products to safeguard your profit margins.

Ideal for:
Companies that want to maintain tight control over their returns, optimize logistics costs, and focus on sustainability by reducing the volume and frequency of transport. This solution is particularly beneficial for businesses planning strategic placement of high-demand products closer to customer bases for quick replenishment and improved customer satisfaction.

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