How To Manage Returns on International Package Shipping

Introduction

Let’s face it: managing international returns is a nightmare for every retailer. 

No doubt, the thrill of seeing your business grow internationally seems almost like a dream. But the problem begins when you think of returns.

Managing customs processes, generating shipping labels, coordinating with carriers, and refunds - there is a lot to take care of without harming profit margin and customer experience. 

Thus, in this article, we will give you some expert tips and strategies so you can manage returns on international package shipping in the most efficient way. Let’s start! 

What Are the Challenges You Can Face with International Returns?

Before we move on, let’s explore some major difficulties you may encounter with international returns.

1) Higher Costs

When you send something internationally, it goes through multiple handling procedures. Likewise, in the opposite direction, reverse logistics also involves various handling points because of long distances and smooth operations.

These may include multiple carriers, customs clearance, and local delivery services. 

At each point of the journey, you need to pay extra fees that increase the overall operational costs. Apart from that, the international packaging and labeling specifications mandated by the destination country’s regulation add an extra layer of cost.

2) Country Regulations

International returns aren’t as easy as sending a product back to the origin. Since each country has its own set of rules and regulations, you’ll have to abide by them to handle the return process seamlessly. 

For example, India has intricate customs procedures. Now, if you’re an Indian retailer, you’ll have to invest a good chunk of time to navigate the customs processes, which might hamper the refund timing. 

On the other hand, the EU provides strong consumer protection. This means it’ll again extend the whole return procedure, which, indirectly, will affect your brand loyalty. Thus, maintaining these varying policies makes international returns quite a hectic task.

3) Fragmented communication

As you already know, international shipping often incorporates various stakeholders throughout the process. Now, each of them might have their own language and communication system that might differ from another. 

This language barrier and diverse communication methods create issues that hamper the smooth flow of information among stakeholders.

In fact, customers might misunderstand the terms and conditions related to returns, which can mess up the whole process. 

4) Currency fluctuations for refunds

Currency fluctuation is another challenge international shippers often face while processing refunds. Since currency values keep changing, the refunded amount might not match the original purchase price.

Now, if the refunded amount is lower than the original one, it may upset customers. On the other hand, if the refunded amount is higher, it may impact your profit margin. 

7 Tips to Manage Returns on International Package Shipping

If you consider the latest statistics, around 92% of customers say that they are more likely to buy from a brand again if it provides an easy return process.

This means that if you don’t manage international returns seamlessly, you’re going to leave a lot of money on the table.

Here are some expert tips you can follow to manage international returns despite the associated challenges.

1) Offer a clear and transparent return policy

A well-written return policy that clearly communicates the terms and conditions of returns and exchanges works as a personal customer support agent.

It gives the customers a clear understanding of whether their purchased products are returnable or not, what ways they need to follow to request returns, and how their refunds would be initiated. 

As a result, it eliminates the potential misunderstandings regarding returns among your customers and maintains a smooth process. 

Here are a few things you need to include in your return policy to ensure it’s comprehensive enough. 

• What items are returnable
• What products are exchangeable
• Additional charges are refundable or not
• Standard return eligibility period
• Step-by-step instructions on how customers will request returns
• Methods through which refunds would be initiated 
• The company would cover return shipping costs or not

And more. 

Take the inspiration from Adidas. It has added a dedicated web page to its site that clearly solves any doubts customers have regarding returns. 

2) Make it simple for customers to request returns

Around 58% of customers want an easy return process without sending back-to-back emails to get approved.

This means the simpler the return process, the better. And especially for international returns, a straightforward return initiation process from the customers’ end mitigates further communication hassles and speeds up the long return process. 

However, there are a lot of ways you can simplify the return request procedure for your customers. For example, you can add an easy return portal, auto-approve return requests, provide prepaid return shipping labels, etc.

These small adoptions ease the complicated return process and provide a top-notch customer experience.

3) Partner with a third-party logistics provider of the destination country

It’s one of the smartest ways of managing international returns. Why? When you collaborate with a 3PL provider in the destination country, it helps you from all fronts.

One, the local presence of the 3PL provider offers easy handling of the items returned by customers.

Second, you can gather the returned items at the local return centers to avoid high shipping costs and complicated procedures.

Third, you can initiate the refund process easily to improve customer experience. 

Apart from that, the local carrier might also assist you in the customs clearance process, which further eases international returns. 

4) Go for a top-notch return management solution

It doesn’t matter whether you’ve just stepped into the international market or already have built a sustainable business; relying on the newest technology will solve most international returns-related issues.

These return management software are specially designed with customer experience and business profit in concern.

For instance, they let you set your own return rules, automate creating return label generation, and help track all the return orders in a single place.

Take ClickPost as an example. It offers a customized self-serve return portal so your customers can apply for returns in the easiest way. Here’s what the portal will look like:-

Besides, it also auto-assigns carriers for efficient pickup. Plus, if the customers miss the pickup timing for any reason, it aligns the communication between the brands and the customers.

And finally, it successfully manages the pickup exception. Also, it automates the return approval and the refund process. 

In a nutshell, a well-chosen return management solution works as a personal assistant that eliminates all international returns-related glitches and improves customer satisfaction.

5) Offer flexible refund methods 

If it were a domestic return, you would have a number of choices to process refunds. But that’s not really the case with international returns. 

When you initiate refunds for global customers, you face an extra layer of difficulties. The first and foremost one is customer preference. Your customers can use a totally different payment gateway that might be banned in your country.

Plus, certain payment institutions pose surcharges that directly affect your profit margin or cut off the refunded amount. 

That’s why it's always a great idea to offer flexible refund options. These may include:

• Original payment method
• Store Credit
• PayPal (It handles currency conversions)
• Bank Transfer (It might include additional fees)

When you do that, it offers refund flexibility and boosts brand loyalty. 

6) Reclaim duties & taxes

Tax reclamation is the process of recovering taxes and customs duties that were paid while shipping the items. Several countries, including Canada, the UK, and Japan implemented this principle to encourage fair international shopping and trading.

So, if your customers fall under these countries, you can easily claim refunds of duties and taxes to ensure your profit margin is intact and customer satisfaction is on point.

Ideally, there are two main ways you can reclaim the taxes or duties for international returns:

• The casual refund
• Automated refund

While the first one requires you or your customers to submit paperwork to the relevant authorities of the destination country, the automated one mainly involves a third-party customs broker that takes care of the whole process.

7) Provide out-of-the-box customer service 

This is often an underrated yet useful way to manage international returns. Since communication becomes a barrier between the brand and the international customer, you need to bridge this gap by offering customer support 24/7.

Hire a customer service team that operates across different time zones. Provide multilingual support for varying geographical regions.

Apply multi-channel support so you and your customers stay in touch throughout the return process and mitigate hiccups instantly.

5 Best Practices to Decrease Return Rates on International Package Shipping 

Be it domestic selling or international selling, you can’t avoid returns at any cost. That’s a part of the business.

But you can decrease the yearly or monthly international return rate to a great extent by taking some extra precautions. These are:

1) Provide sturdy & secure packaging

As international packages pass through multiple transportation modes, chances are they’ll undergo various factors like rough handling and consolidation that might damage the internal product. Damaged products are one of the main reasons for returns.

Hence, ensure to protect the international orders with proper sturdy packaging and materials. If possible, use double-walled cardboard boxes and weatherproof packaging to secure the items.

Now, if you are shipping fragile items, safeguard them with bubble wrap and add cushioning inside the boxes.

These minor safety measures will require extra costs but save you from complicated international return processes.

2) Offer virtual try-on functionality 

Just like brick-and-mortar stores, virtual try-ons help customers visualize and experience the items in a real-world scenario. It provides them with a clear understanding of how the item or product they are going to purchase will look on them. 

As a result, they can make informed decisions and stay confident in their purchases, which reduces the return rates. 

Here’s an example of the virtual try-on. Sugar (a well-known cosmetics brand) has integrated a virtual-try-on functionality into its eCommerce store that helps shoppers purchase the products that suit them the most.

3) Create your own return rules

A well-defined return policy and rules play a crucial role in reducing international returns. When you clearly mention which products are returnable and which are not, it creates a shield against hectic return procedures. 

Puma, for instance, mentioned that damaged products due to improper usage aren’t eligible for returns. On the other hand, Adidas doesn’t accept returns for customized products. 

Likewise, Meesho (an Indian retail marketplace) offers a discount for those products that are only eligible for returns if received in a damaged condition. This way, you can configure your own rules to reduce frequent returns. 

4) Go beyond static images

Images and product descriptions are two of the most important aspects shoppers usually consider when purchasing online. If these two things meet their criteria, they hit the “buy” button.

So, why not go extra in this case too? Static, high-quality images are good, and everyone adds them. What is even better is to provide a 360-degree view of the items. It gives a clear picture of how the product will look from all angles. 

Now, the best way is to provide a shoppable video on your site. These videos help customers understand how the product will look in a real-world setting so they can shop with confidence. This technique reduces returns to a great extent. 

Here’s an example of shoppable videos that RIFRUF (a brand that offers dog shoes) has added to its homepage. 

5) Address customer queries instantly 

While purchasing, shoppers might have thousands of doubts that product descriptions and images can’t solve. Exactly here, the chatbot integrations into the website step in.

It immediately solves repetitive queries that assist customers in making purchasing decisions. In fact, when they ask intensive questions that need manual intervention, the chatbot forwards those queries to a human support agent. As a result, it boosts shoppers’ confidence and reduces returns.

Final Thoughts! 

If you’re into online selling, you have to face returns - there’s no other way out. Sure, it gets difficult for international orders, but how you manage them will set your brand apart from the rest.

So, follow the above-mentioned strategies, opt for an effective return management solution like ClickPost, and make managing international returns as easy as possible.