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  • Home / Blog / Ecommerce Returns

How artificial intelligence can improve your eCommerce returns process

15 Sep, 2023 | 4 Min Read
How artificial intelligence can improve your eCommerce returns process

Table of Contents

Introduction

The utilization of A.I. (artificial intelligence) resources have significantly helped in the automation of work and reduction of manual efforts. It has aided in significant cost reduction going through the process. It has brought about major positives in eCommerce reverse logistics as well. 

This article discusses how Artificial Intelligence has changed the eCommerce returns game for different companies.

How is Artificial Intelligence (A.I.) Technology Used for eCommerce Returns?

To fathom the impact that Artificial Intelligence has had on the returns sector of ecommerce, let us take a peek at the various applications that have made returns quicker, more hassle-free and affordable. 

1) Chatbots 

Automated chatbots use innovative ways to engage customers and give detailed information to their queries. In case of returns, chatbots can be programmed to solve customer queries and provide correct product recommendations according to requirements as specified by customers. 

2) Inventory Management 

Automated ways of recording information regarding reverse logistic processes undertaken by the company help chalking up sales and returns trends. Companies can predict future sales and return patterns, making it easier for the company to formulate operational policies. In case of an inventory lag, it becomes much more convenient for the company to figure out the correct information. 

3) Analytics on causes of returns 

A company can choose to automate their return reasons for easier operations. When a customer registers a return request, the database of the returns portal immediately decides whether the product is fit for return or not, based on the company return policy.

4) Filtering return requests

The return requests registered onto the portal can also be filtered into different categories based on their types and specifications. This filtering of proposals can be done based on the distance of the pickup spot and warehouse, type of product, product brand, availability of pickup partners in the locality, product cost range, return window for the product and so on.

5) Automated carrier allocation for a reverse pickup

Now that the product is deemed fit for return, the company needs to allocate a carrier for pickup based on the most viable options. This job becomes more accessible when the information regarding suitable carriers is programmed into the database of the company. Automation helps allocate carriers much less time-consuming, with considerably lesser manual efforts.

6) A.I. Return Label Generation

When the product is deemed fit for return and categorized into its type, A.I. can help generate an automated return label. This process specifies the unique product barcode, address/ alternate address and other information required by the carrier for proper delivery and the company and customers for tracking the product. This job, when done manually, takes much more effort and time.

7) Automated pickup exception management

An automated NPR management system can effectively manage pickup exceptions or failures due to customers' unavailability, inability to find the correct pickup destination, or even unwillingness to return products. Automating the process helps reduce pickup operations costs and provides a better customer experience and centralized management of all pickup exception situations in the region.

8) Returns tracking and milestone generation 

Automated generation of milestones for every destination the product reaches helps the company avoid too much inventory traffic and simultaneously ensure the cheapest and least time-consuming method for the product to return to the warehouse. The customers and the company can get product milestones in real-time and have an idea of the state of the product.

Advantages of Using A.I. for eCommerce Returns

The applications, as mentioned earlier of Artificial Intelligence, have improved ecommerce company dealings with returns manifolds. Following are just some of the many ways ecommerce has altered for the better.

1) Easier data inventory 

Application of A.I. for maintaining records and data regarding sales and returns helps in smooth retrieval when required and hassle-free analysis of the same. Data repositories also enable management processes like carrier allocation and filtering return requests.

2) Customer satisfaction 

For customers, availing of reverse logistics is only a click away! They can request returns through A.I. (artificial intelligence) applications and wait for pickup from the doorstep. Even in the case of exchange options, they can receive immediate product recommendations or money refunds for them to choose.

3) Quick, regular updates 

Automated update generation for every milestone the returned product reaches makes it more convenient for the company to keep track of it without incurring losses due to misplacement or damage. This does not just reduce costs but also makes the process much more stress-free.

4) Reduction in manual efforts 

Usage of Artificial Intelligence has naturally reduced manual efforts to a great extent. Previously physically done jobs such as generating return labels, making pickup exceptions and allocating carriers can be done in a jiffy without wasting much time or energy.

5) Organized company operations

Keeping one universal database with sections helps keep tabs on the company's overall operations. Organization of company operations helps generate appropriate policies and regulations for better business operations and the development of the service provisions.

6) Lower operational costs 

Managing pickup exceptions or examining products for availability for returns aids in reducing unnecessary expenditures by the company. Furthermore, the companies can also deem a rough idea of the probable process of returns for a product, making it easy for them to find the cheapest possible method.

Top 5 eCommerce Return Management Software that use A.I. (Artificial Intelligence)

1) Clickpost Returns Management Software 

ClickPost has a system of built-in customer support and returns request options. It has separate automated systems for pickups, exchanges, cancellations and refunds. ClickPost also provides an elaborate NPR Management System (Non-Pickup Report) for return exceptions. NPR considerably reduces the number of failed pickups and RTO percentage (Return-to-Origin). It also provides the option for return approval and tracking returned products.

2) Return Magic Product Returns Management Software

Online retailers can quickly make personalized portals, automate return label generation and manage exchanges through automated gift cards and cash returns. Furthermore, they help merchants tie up multiple carriers and offer a broad range of pickup locations. Return Magic provides companies with specific APIs for carrying out hassle-free return requests.

3) Happy Returns Software For ECommerce Returns 

Happy Returns guarantee a significant reduction in return operations costs, tracking and reporting options for greater visibility and standardized international returns operations. They offer customizable return policies and multiple return methods. If goods are requested for returns in bulk, Happy Returns aggregates the products to reduce costs for individual mailing.

4) Loop Returns Management Software 

Loop Returns automates return policies based on company requirements, return label generation and return approval systems. Customers are free to initiate return requests at any point in time without hassle. Their most remarkable feature is increasing exchange operations through automated product recommendations and exchange credits.

5) Return Logic Software 

The Return Logic Software offers inventory management and elaborate return status tracking. It provides API integration with third-party performers. It allows online retail companies to witness the complete customer buying or returns experience. Return Logic Software gives them an idea about the loopholes in their service provision designs and helps them find their areas of development.

All these eCommerce software prove that automation of return operations through Artificial Intelligence applications has led to immense success and smooth functional units within online retail companies. They have ensured the best possible service provisions for not just customers but also the customer service units.

Artificial intelligence has helped reduce costs by managing pickup exceptions and filtering and approving return requests. These measures have protected against fraud losses incurred due to damaged or misplaced goods and fraud returns. It has also proved beneficial in the substantial reduction of manual effort and the time consumed for the overall return operations.

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