How to Deal with Returns When Dropshipping:

11 Things You Need to Know

September 13, 2023
Return Strategy

Dropshipping has swiftly emerged as one of the most popular business models in the realm of eCommerce. With platforms such as Shopify simplifying the journey for entrepreneurs to kickstart their dropshipping ventures, there's a burgeoning interest in this approach.

Handling returns in a traditional eCommerce store is already complex. The dropshipping business model adds an extra layer to this challenge. In this guide, we'll walk through everything you need to know about managing dropshipping returns effectively.

Everything you need to know about managing dropshipping returns effectively.

1. Understand Your Supplier's Return Policy

Before you can establish your return policy, familiarize yourself with your dropshipping supplier's terms. Every supplier, whether on AliExpress, Amazon, or any other platform, will have their own policies regarding returns. This includes return windows, return address details, and conditions under which a product can be returned.

2. Craft a Clear Return Policy for Your Online Store

Using your supplier’s return policy as a foundation, design your own for your Shopify store or any other eCommerce platform you're using. Your return policy should be transparent, specifying the return window, conditions for accepting returns, and any associated return shipping costs. Remember to mention if you offer free returns or if the customer will bear the return shipping fees.

3. Provide Detailed Product Descriptions

One of the common reasons for returns in a dropshipping store is receiving the wrong item or the wrong size. To minimize this, ensure each product description in your online store is detailed and accurate. Using quality products and accurate images can significantly reduce the hassle of managing frequent returns.

4. Implement an Efficient Return Process

When a return request comes in, act promptly. First, provide your customer with an RMA (Return Merchandise Authorization) number. This is vital for tracking the return. Initiate the return through your return management system, like ReturnBear, to handle the reverse logistics of your returned item. If the return issues persist coordinate with your dropshipping supplier to make product improvements or reduce shipping errors. Remember to keep your customer informed at every step, enhancing the customer experience and trust.

5. Consider Offering Store Credit

Sometimes, the cost of managing dropshipping returns, especially return shipping costs, can eat into your profit margins. Instead of providing a refund, you can offer store credit or a coupon for their next purchase. This not only retains money in your business but also encourages repeat customer orders. With ReturnBear’s simple to use return portal, your customers can easily request a store credit for their returns, and you can even offer then store credit bonuses to ensure they are happy with their return experience. 

6. Communicate Effectively with Customers

Maintain open channels of customer support. Whether a customer received the wrong product or is unclear about the return process, clear communication can prevent potential issues. For instance, if a customer is unsatisfied with their purchase from your Shopify store, explaining the steps they need to follow to initiate a return can streamline the process and improve conversions.

7. Leverage Restocking Fees

Some dropshippers opt to charge restocking fees to cover potential losses from returns. If you decide to implement this, ensure it’s clearly mentioned in your return policy. Such fees should be reasonable, ensuring they don’t deter potential customers.

8. FAQs and Self-service Options

Having an FAQ section on your policy page can preemptively answer many customer queries, reducing the load on your customer support. Furthermore, consider implementing self-service return options where customers can print their return labels and access other necessary information themselves.

9. Stay Updated with Supplier's Changes

Dropshipping suppliers may occasionally update their policies. Stay in the loop and adjust your policies accordingly. This proactive approach ensures there's no discrepancy between your policy and your supplier's, reducing potential conflicts.

10. Diversify Supplier Relations

Don’t rely solely on one dropshipping supplier. By diversifying, you can navigate the return process more flexibly. For example, if one supplier doesn’t accept returns for a specific reason, another might. This allows you to maintain your reputation with your customers while managing dropshipping returns efficiently.

11. Consider the Customer's Perspective

The return process shouldn't be a point of contention. Remember, a positive return experience can lead to repeat business. Whether through Shopify, Amazon, or AliExpress, the objective is to ensure the customer feels valued. If they received the wrong item or the wrong size, they should find the process of getting it rectified as painless as possible.

Returns are an inherent part of eCommerce businesses and the dropshipping business model is no exception. While lucrative, it still comes with its unique challenges. Handling returns effectively is paramount for business owners aiming for long-term success, you don’t want your shop to suffer from negative reviews and lack of customer trust. To overcome these challenges, we recommend focusing on your return policy and return management systems. They play a pivotal role in shaping the customer experience and, by extension, the reputation of your dropshipping store. And in the world of online shopping, reputation is everything.

By understanding the intricacies of dropshipping returns, from RMA numbers to supplier liaisons, you can ensure your dropshipping venture on platforms like Shopify remains profitable and reputable. And with a reliable, convenient, and easy-to-use return partner like ReturnBear, your store is primed for success. Remember, a satisfied customer is a returning customer.

About ReturnBear

ReturnBear’s end-to-end return logistics solution gives eCommerce businesses access to a network of Canadian drop off locations and an automated RMA platform that lets you recover inventory and issue refunds faster. Better returns for you and your customers.

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