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How to Create a Solid Return Policy (Or Optimize Your Current One)

In the fast-paced world of e-commerce, ensuring customer satisfaction and brand protection is a big deal. One crucial aspect of this is having a well-crafted shipping and return policy in place, especially when it comes to large items like furniture and other household goods.

In this article, we will explore the importance of return shipping (and the advantages of a great return policy) for businesses and provide a step-by-step guide on creating a solid returns strategy. Whether you are starting from scratch or looking to optimize your existing policy, this guide will help you navigate the world of returns and enhance your customer experience.

Understanding the Significance of Return Shipping

The rise of e-commerce has transformed the retail landscape, with more sales resulting in more returns. Most of these returns are well over distances considered “local” due to being able to order from anywhere at any time.

According to projections, furniture and household goods e-commerce revenue, will reach a staggering $167.5 billion in 2023, comprising 11.8% of total e-commerce sales. Broadly, all online orders face a 30% return rate, significantly higher than the 8.9% return rate in brick-and-mortar stores.

This surge in returns highlights the critical role of reverse logistics in the supply chain, making it a key focus for businesses. As e-commerce continues to drive sales, it’s essential for retailers to address this blind spot by optimizing their return policies.

The Impact of Returns


Returns don’t just affect the bottom line; they have a far-reaching impact on these various aspects of a business:

  • Customer Experience: A staggering 95% of consumers would consider buying from a brand again if they had a satisfactory return experience.
  • Brand Perception: 67% of shoppers check a retailer’s returns policy before making a purchase, indicating that a transparent and customer-friendly policy can positively influence brand perception.
  • Internal Management: Efficient handling of returns can streamline internal processes, reducing the burden on finance, accounting, warehousing, and logistics teams and further bring costs down.
  • Sales and Repeat Buyers: A well-structured, consumer-friendly return policy can retain customers and encourage repeat business.
  • Environmental Compliance: Promoting sustainability efforts can improve brand perception and contribute to environmental responsibility.

There exists huge potential for businesses that adopt a generous return policy. With it, your business instills purchase confidence, thus reducing abandoned carts, increasing the likelihood of multiple purchases, and further building that loyalty all businesses want.

Avoid Profit Pitfalls in Returns

Creating an Effective Returns Policy

To build a solid returns policy (or revamp the one you have) that not only satisfies your customers but also adds value to your business, consider the following recommendations:

  1. Accurate Product Information: Make sure product information is accurate and easy to find to reduce the likelihood of returns stemming from misinformed customers.
  2. Visibility: Ensure your return policy is clearly visible on your website to reduce inquiries and enhance transparency.
  3. Sustainability: Promote any sustainability efforts in your returns process, as environmentally conscious consumers are more likely to support your brand.
  4. Extended Return Window: Consider extending your return window to allow buyers more time to evaluate their purchases, increasing their attachment to the product.
  5. Customization: Recognize that return policies are not one-size-fits-all; tailor your policy to your specific product and customer base.
  6. Effective Communication: Establish clear communication channels with your customers. Send order and return confirmation emails to keep them informed.
  7. Streamlined Return Process: Make the return process as easy as possible. Provide prepaid return labels, clear instructions, and options for in-store or online returns, if applicable.
  8. Multi-Channel Returns: If you operate both online and brick-and-mortar stores, offer the flexibility for returns through any channel.
  9. Customer Feedback: Encourage customers to provide feedback about their returns experience. Use this information to continually improve your policy.

Optimizing Your Transportation Strategy


Given that shipments often pass through multiple touchpoints, resulting in potential damage and returns, it’s essential to optimize your transportation strategy. Here is some guidance:

  • First-to-Last Mile Delivery: Embrace first-to-last mile delivery services (like uShip) to reduce handling and damage during transit. Instead of multiple handoffs, this model embraces one truck point-to-point shipping, and we’ve perfected it.
  • Instant, Transparent Rates: Tap into the uShip marketplace for instant and transparent shipping rates to provide accurate cost estimates to your customers.
  • Blanket-Wrap Services: Choose blanket-wrap services over Less-Than-Truckload (LTL) options for better protection during transportation.
  • Room-of-Choice Pickup: Offer room-of-choice pickup services to enhance the customer experience.
  • Strong Carrier Network: Ensure coverage with a robust, feedback-rated carrier network to optimize shipping options.
  • Added Protection: Add shipping protection for higher-value items to protect against potential losses.

Challenges and Strategies for Large Items

Furniture and household goods, such as large appliances and sports equipment, always pose unique challenges when it comes to returns. These items are not only large and bulky but also prone to damage during shipping. Remember the first-to-last mile delivery mentioned above? uShip has fine-tuned the process — it’s why our damage rates are so low.

Here are some strategies to address the challenges around large returns:

Packaging: Invest in quality packaging materials to protect furniture during transit. This may include custom-designed boxes, cushioning, and protective wraps. With uShip, blanket-wrap shipping comes standard, saving you time and money.

Specialized Carriers: Partner with carriers experienced in handling large and fragile items. They have the expertise to transport these products safely.

Returns Warehousing: Consider setting up specialized returns warehousing for furniture and homeware items. This can streamline the inspection and refurbishing process.

Refurbishment and Resale: When an item is returned, assess whether it can be refurbished and resold as a “like new” product to minimize losses.

Key Takeaways

In the world of e-commerce, reverse logistics are no longer an afterthought. Strengthening your returns policy (which is just a small part of the reverse logistics puzzle) is essential to preempt returns and retain customers.

Consider that your go-to transport model might not always be the best fit, especially in an evolving digital landscape. Furthermore, a younger buying audience is highly cognizant of sustainability as a brand value, and they are seeking that in their buying decisions. As this generation continues to replace the outgoing ones, their buying power and influence will only increase.

Remember that your return policy is not just a formality but an integral part of your business strategy, impacting customer satisfaction, brand perception, and long-term revenue goals. A robust consumer-friendly returns policy will be your ticket to customer retention and a stellar brand reputation.

With these strategies in place, you can navigate the complex world of e-commerce returns with confidence, creating a win-win situation for both your business and your valued customers.

The easiest way to make good on your newly minted (or revamped) return policy? Partner with uShip. Once your return policy is clearly defined and rolled out, we take everything else off your plate…all at a cost that just makes sense for your business.

Give us a call—we’d love to show you easy returns can be.