How to effectively set up your retail operations for the return season.

Product returns are as inevitable as the purchases that preceded them. Although you will never see the day when all returns become a thing of the past, there are definitive steps you can take to optimize your online or physical store’s policies and practices to make this difficult season a lot more bearable.

Enhance your systems.

If you don’t already know how helpful your point of sale (POS) solution can be in streamlining everyday tasks, stop right now and take a look at the user guide that came with your hardware-software package. Not only can this solution make day-to-day tasks easier, but your POS can streamline returns as well.

However, this might not be the case if your equipment is outdated. Make sure everything is current and that your software has been upgraded to the most recent iteration. By doing so, you will be able to get the most out of your mobile and even countertop POS system throughout the return season and beyond.

Analyze last year’s returns data.

Your POS’s reporting feature can help you to gain insights into why customers brought items back to your store in the past. The software can give you micro details such as the return rate for each product and product group, the percentage of returned products that were sold at full price or at a discount, and the cost per unit to process the return from each channel. With this information in hand, you can make better decisions about the inventory and suppliers you use.

Make transparency a priority.

Sometimes it just takes a few simple tweaks to lift a heavy burden from your shoulders. When it comes to this post-holiday time of the year, that often means making changes to your documentation. That’s because a prominently displayed, clear return policy can prevent disputes and even speed up the line at the courtesy desk.

When your policy is accessible and clear, the first benefit is that buyers are more willing to make a purchase in the first place because your business gives off the vibe of credibility. The good feelings often extend into the return season; buyers know exactly what to expect and are much less likely to encounter unpleasant surprises that ultimately reflect poorly on your brand.

Revamp your packaging.

If part or all of your retail business involves shipping items, packaging is crucial. The last thing you need is for large numbers of buyers to ask for refunds stemming from damages that occurred due to poor shipping practices. While the occasional problem is inevitable, you can markedly reduce this type of return and chargeback by improving your shipment quality standards.

Get your inventory ready for the return season.

Ideally, wouldn’t you prefer to have every return converted into an exchange and even additional purchases that spur further sales? The only way for this to happen is for your inventory to be well-stocked even after the holiday rush.

Your POS is equipped with robust product quantity management tools that automate processes and turn reordering into a breeze. Just configure your system to alert you when quantities reach a critical benchmark in order to give you sufficient time to restock. Then when customers come in to make those returns, you and your staff can be ready, willing, and able to offer replacements and even recommend compatible products that will improve their initial purchase even further.

Offer multiple return choices.

Customers are busier than ever, and they appreciate return methods that suit their frenetic lifestyles. Giving them just one option can make a frustrating experience much worse and may even taint the way a customer feels about your brand.

Therefore, give people the option to bring back items not only to your physical store but also online. While returning in person gives you the ability to encourage them to make an exchange instead and potentially even to buy additional products, many buyers prefer the convenience of resolving the issue online. Consider furnishing options with shippers like FedEx and UPS that have multiple drop-off locations and even give people the option of at-home pickup. If doing so is within your budget, allow customers to print out return labels that make shipping free and can be easily affixed to a UPS, USPS, or FedEx package.

Although you can’t avoid the return season, think of it as a source of potential benefit instead of as a drudgery. Once you harness the power of your POS to the max, the inefficiency and frustration that you once experienced can be greatly reduced. What you are left with are additional opportunities to impress and sell to your customer as well as a chance to gain invaluable insights about your business that you can use to improve next year’s holiday sales experience.