In the case of a return, or returns, a recipient sends the goods received back to the sender. A returns slip is usually used to process a return. When the goods reach the warehouse, this is scanned and the return delivery is recorded. After a quality check, the goods are then stored again in the best case scenario. In order to plan returns better, companies are gradually introducing the so-called RMA process.

Reasons for a return delivery can be, for example

• Incorrect deliveries
• Damaged goods
• Incorrect quantity of goods

Returns in online trade

The delivered goods from e-commerce can also be returned if the goods do not meet expectations. To the chagrin of suppliers, buyers often order the same item in different versions from the outset. The reason for this main cost driver is that buyers are often not sure which size or model is right.

An empirical survey of German online retailers by ibi research revealed various facts and figures. These include

1. If customers order goods from an online retailer that has a large shipping volume, they receive the goods sooner on average than from an online retailer with a lower shipping volume.
2. If a customer pays in advance, shipping to the customer takes longer than with PayPal, for example (PayPal = approx. 2 days, advance payment = approx. 3 days).
3. From the customer’s perspective, the main reasons for returns are: “The item doesn’t fit” or “I don’t like the item”.
4. 80% of retailers do not record which returns are related to which payment method (prepayment, PayPal, instant bank transfer, direct debit, etc.).

Reduction in returns

Ibi research cites the following factors for reducing returns, or the so-called returns rate:

• Detailed product description
• Accurate product presentation
• High-quality packaging for protection
• Product evaluation by buyers
• Short delivery time

In a survey conducted in 2012 on online retailers’ assessment of the abusive returns rate, 18 retailers surveyed for office supplies assumed an average rate of 6.8 per cent abusive returns. In the fashion sector, the returns rate, whether abusive or not, is said to be 50 per cent. In 2012, DIE ZEIT reported that 80.6 per cent of returned goods are actually destroyed.

For more information on offering goods and services over a geographical distance, see Distance selling.