With digitisation taking on the world, customers too have found their newest mode of shopping, E-commerce.

‍Be it apparel, furniture, electronics, or something as basic as a monthly ration, online sales have seen a sudden growth and this demand for more e-commerce players to fulfil the growing demands.

Even though brands try their hardest to win over customer satisfaction by delivering the best product quality in the least amount of time, there are times when the user simply wishes to return the product. But this return process can be controlled by e-commerce brands by understanding about the Return Management D2C India software.

This return can further be classified as an exchange for a different piece or a refund. Be it any of these, it bears an extra cost to the brands - logistics, warehouse management, and others. Therefore, implementing a solid Return Management Strategy for Ecommerce is essential to minimize these costs and maintain profitability.

Even though these are unfavourable instances for any brand, there are ways in which return requests can be minimised, helping save a significant amount of costs for the brand. Today we’ll learn about how brands can save on return instances without compromising on customer experience.

But first, let’s quickly understand what Returns Management Software is.

What is Returns Management Software?

Return Management Software, sometimes known as reverse logistics software, is known for offering a solution to seamlessly handle the return process for a given product for services like businesses, retailers, online merchants, manufacturers, and third-party logistics (3PL) firms.

An RMS thus, is involved directly with the customers through online portals to make sure various aspects of a return request are being processed like shipping choices, tracking, refunds and credits, replacements, or even the generation of prepaid shipping labels. 

The best part about Returns Management Software like Pragma is that it even enables companies to customise their return portals with company colours, and logos, and integrate directly with their retail websites, offering a seamless Return Management Ecommerce Workflow.

Why Returns Management Software Is Important?

It’s highly possible that you never felt the need for an RMS for your returns because you can simply take requests from customers, refund them and close the process.

But, an RMS is not just about issuing a refund to your user. It’s about why in the first place a user wants to return a product.

Let’s understand: What’s the issue behind the return process not being so simple and why is an E-commerce Returns Software needed?

Numerous brands usually keep their return policies very lenient, like; 15 day return policy, No questions asked. This results in a substantial number of product returns. 

Although this gives users a very good customer experience, this translates into:

1. Increased expenses - Extra delivery cost, warehouse management for return items

2. Complexities for retailers, sellers, and manufacturers. 

Return management software plays a crucial role in streamlining the challenges faced by brands by:

1. Reducing the time they take to process returns

2. Optimising the recovery of value from returned items

3. Lowering the expenses associated with handling returns

4. Most importantly, simplifying the refund process. 

This means a brand can now provide customer satisfaction by simply implementing an RMS, inbuilt with specific return guidelines and policies like specifying return time frames, and maybe automating returns for some types of products.

The best part about E-commerce Returns Software is that it can integrate directly with other 3rd party softwares like warehouse management, order management, accounting software, inventory management software, and e-commerce platforms.

Key Features to Look for in Returns Management Software

Effective returns management software helps e-commerce businesses streamline the returns process, reduce costs, and improve customer satisfaction. Here are the key features to consider when selecting a solution:

1. Seamless Integration with E-commerce Platforms

• Ensure the software integrates smoothly with e-commerce platforms like Shopify, WooCommerce, or Magento to provide a unified returns workflow.

2. Automated Return Authorisation

• Automated Return Merchandise Authorisation (RMA) allows customers to initiate returns online and receive instant approval or rejection based on set policies.

3. Customisable Return Policies

• Look for software that supports flexible return policies, including partial refunds, exchanges, or store credit, tailored to your business model.

4. Inventory and Restocking Management

• The software should track returned items, update inventory in real-time, and manage restocking processes efficiently.

5. Return Labels and Tracking

• Built-in tools for generating return labels and tracking shipments give customers full visibility into their return status.

6. Refund and Exchange Automation

• Automate the process of issuing refunds, exchanges, or store credit, reducing manual work and speeding up the resolution.

7. Analytics and Reporting Tools

• Advanced reporting features allow businesses to track return trends, identify problem areas, and optimise operations based on data.

8. Multi-Location Support

If you have multiple warehouses, ensure the software can route returns to the most suitable location for faster processing.

Best Practices in E-commerce Returns Management

Effective returns management is crucial to maintaining customer satisfaction and loyalty. Here are some best practices for e-commerce businesses to handle returns efficiently:

1. Clearly Communicate Return Policies

• Ensure that your return policies are visible and easy to understand on your website to manage customer expectations.

2. Offer Multiple Return Options

• Provide customers with a choice of refunds, exchanges, or store credit, giving them flexibility in how they handle their returns.

3. Simplify the Returns Process

• Use an online returns portal where customers can initiate returns and generate return labels without contacting support.

4. Provide Free or Discounted Return Shipping

• While free returns may not be feasible for every business, offering discounted shipping can enhance the customer experience.

5. Leverage Automation for Efficiency

• Automate processes like return approvals, refund issuance, and inventory updates to reduce errors and save time.

6. Track Return Reasons to Identify Issues

• Collect data on why customers return products and address any recurring issues, such as incorrect sizing or product descriptions.

7. Create a Sustainable Returns Policy

• Implement eco-friendly practices like consolidating return shipments or partnering with recycling programmes to reduce waste.

8. Engage Customers During the Returns Process

Use personalised emails and notifications to keep customers informed about their return status and encourage future purchases.

Basic Criteria of an RMS

While you’re on the hunt for an RMS for your platform, you will find 100s of features that might amaze you. But what’s the benchmark when every platform has something different to offer?

Well, we have collated a set of the most basic yet important pointers that your platform should look out for while integrating an RMS. Let’s understand them below:

1. Helps you establish a guidelines book for returning products for different categories.

2. Lets you build customisable workflows for the creation, verification, or cancellation of return requests.

3. Manages refunds, credits, or product replacements on the platform itself.

4. Can be seamlessly integrated with e-commerce platforms.

5. Let’s monitor the return cycle at each step - from pickup to final delivery.

6. And finally, gives you insights on the value of returns and their influence on overall revenue.

With these points as the benchmark, we’ll help you find out the RMS that fits your needs. Below we’ve collated the best RMS in the market, and how it can benefit you.

Let’s understand. 

Best RMS in the market

Now, we’re all on the same page. We all have understood the most important features that an RMS should have along with the need for an RMS in your platform.

Now is the time that we explain to you some of the best RMS in the market.

Remember, always choose an RMS that has customisable features basis your brand requirements because not every brand has similar needs. They might change the scale of your business.

Best 5 Product Returns Management Software for eCommerce

1. Pragma RMS

Undoubtedly, Pragma is the most sophisticated RMS in India considering its levels of customisable brand functionality, as it helps you integrate with 50+ Indian Multi-carrier/logistics partners - With a dedicated and branded return request page, brands can make sure that even the return process looks personalised to the customer.

Furthermore, with return requests rising in number, you can put Return restrictions on select products that help the customer be aware of the no-return policy well in advance like; innerware, electronics above Rs. 2,500, etc.

This is further complemented by the addition of a Customisable multi-step approval process for accepting return requests, making sure you don’t receive random return requests from customers.

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While the best E-commerce Return Solution in the market provides a customisable dashboard, it becomes important to have a dashboard that has everything in one place. 

With Pragma, the brand gets access to:

1. Perform QC, Generate payment links, Store credit and initiate shipments all in one place

2. Leave comments to customers against their request - Add more details or reasons for rejection.

With that being said, Pragma’s RMS is relentlessly empowering millions of users via its customer base of 500+. Let’s also see what benefits these features have on customers:

• The user feels personalised - Brand logo and colour customisations.

• One-click return/exchange request for users provides a seamless user experience.

• Get support for different kinds of refunds - Source, Coupons, Bank transfers and Store credit.

• Seamless browsing and selection during the exchange

• Accept exchange difference via COD or Prepaid

• Exchange with same or different product category

Do you know what’s the best part about Pragma?

It's the Deep Analytical insights about customer behaviour that it provides. These can be very helpful in setting up an RMS largely due to the following reasons:

1. In-depth analytics on product performance, and pincode performance.

2. Access to Live data to build strategies on the go.

3. Multi-level nested reasons for better customer understanding. 

4. Assign different return reasons for different product types.

5. Flagging of risky users during order placement or return placement.

It is important to understand that as you work towards enhancing the user experience, it is equally important to safeguard against fraudulent buyers exploiting the convenient return process for malicious purposes. 

Consequently, by utilising data gathered from over 400 brands, Pragma can assist you in addressing these deceptive individuals.

Top 4 Best Product Returns Management Software for eCommerce Companies & Businesses [2024 Updated List]

2. Narvar

Narvar Returns & Exchanges works well with Shopify. As a Return Management Software, you can personalise your return process by implementing various return guidelines, exceptions, refund policies, and more, all managed conveniently within the platform. 

Moreover, you can establish user restrictions granting your team access to process returns while keeping sensitive rules and settings secure. 

The best part is - Their support team is usually prompt in resolving them or guiding users on how to address issues end-to-end.

Cons: 

Modifying the text in return emails can be a bit of a chore. Additionally, some users have encountered challenges with exchanges and sometimes face problems with their tracking pages. 

Regarding Notify (email notifications), there are certain limitations that have led us to discontinue its use. However, this decision is specific to our unique usage scenarios, and I believe most Narvar users do not encounter these issues

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3. Return Logic

ReturnLogic is a user-friendly RMS that helps businesses run smooth returns and is straightforward to navigate. The platform is easy to be used by a first-timer user as well.

The analytics that the platform serves are helpful to brands in building data-driven strategies.

Cons:

1. Users need to complete all the returns one by one.
2. The platform can’t offer extra benefits to users who choose platform wallet credit instead of a refund.
3. Limited customisable options are available for returning orders.

4. Loop Returns

Loop lets brands transform returns into exchanges. It helps you to automate your returns cycle which ultimately helps in reducing costs, and generating more revenue while driving customer loyalty.

Cons:

Brands suggested that they wanted a more proactive approach while Loop Returns tackles issues or glitches. They even suggested that it lacks complete customisation options as compared to a brand like Pragma that provides you with fully customizable options.

5. ReverseLogix

ReverseLogix is a centralised, and fully integrated Return Management Software built for retail, ecommerce, manufacturing and 3PL organisations. 

ReverseLogix platform facilitates, manages, and reports on the entire returns’ lifecycle.

With ReverseLogix, organisations have delivered a good customer returns experience, while saving employee time with faster workflows, and increasing profits

Cons:

Brands using ReverseLogix stated that they seem to be missing features that help clients integrate and utilise warehouse operations for store return operations.

Also, the turnaround time faced while integrating this product into yours can take many months. Some took around 9 months also.

How to Choose the Best Returns Management Software System for Your eCommerce Businesses & Services?

With those being the best ecommerce return solution you could eye one, it’s important that we again mention - Choosing an ecommerce returns software that contains customisability as their main feature is a must!

In such a way, you’ll be able to get most of those manual tasks automated and even reduce instances of fraud.

With data from 450+ brands, Pragma has realised one simple thing that we, as a thought leader, want to convey to the readers:

You can’t fulfil every customer’s expectations, but the majority is in your hands.

We’re analysing millions of return orders. Right from cosmetic brands to apparel, but one thing we recognised is that a product that gets a 5-star rating from a customer might get a 1-star rating from another.

This doesn’t mean your product is average, it just means the customer had different expectations. And this is where an RMS becomes useful.

So the main point here is to get hold of your customer’s expectations so that you can minimise return orders.

With that being said, it even becomes important for you to flag inappropriate users, or return queries that might be fraudulent in nature. Trust us, you can’t manually do this process as once your platform scales and you’re getting hundreds of return requests each day, it’s tough.

This is where a platform can do the analysis of user behaviour and automatically customise the return process for a few of those customers who might be involved in fraudulent activities to help safeguard your brand.

With this, we’re towards the end of this exhaustive guide that explains everything about what are those features you should consider while opting for an RMS for your platform.

With Pragma leading the race in terms of 

1. Access to Live data to build strategies on the go

2. One-click return/exchange request for users

3. Perform QC, Generate payment links in a single place

4. Flagging of risky users during order placement/return 

5. 100% support during onboarding, setup and any time after

It’s time for you to try out Pragma’s Returns Management Software and help you increase your revenue and reduce return order rates.

Challenges in Returns Management & How to Overcome Them

Handling product returns comes with several challenges, from high operational costs to managing customer expectations. Here are the most common challenges and ways to overcome them:

1. High Costs of Processing Returns

• Challenge: Processing returns involves labour, shipping fees, and restocking costs, cutting into profit margins.
• Solution: Implement store credit incentives to reduce refund requests and optimise return shipping with third-party logistics providers.

2. Complex Inventory Management

• Challenge: Returns can disrupt inventory flow, especially when items need to be inspected or refurbished before restocking.
• Solution: Use returns management software to track inventory in real-time and streamline restocking workflows.

3. Fraudulent Returns

• Challenge: Some customers abuse return policies, such as wardrobing (using items and returning them as new).
• Solution: Set return limits for frequent customers, and require receipts or tags for high-value returns.

4. Slow Refunds Impacting Customer Satisfaction

• Challenge: Delayed refunds can lead to customer frustration and impact brand loyalty.
• Solution: Automate refund processes and communicate proactively about processing times to manage expectations.

5. Managing Returns Across Multiple Channels

• Challenge: Handling returns from online stores, marketplaces, and physical stores adds complexity.
• Solution: Use an omnichannel returns management solution to consolidate returns from all sources and ensure seamless processing.

6. Handling Cross-Border Returns

• Challenge: International returns can be costly and involve complex customs processes.

Solution: Partner with local return centres in key regions to minimise shipping costs and delays