Top 13 Returns Management Software for eCommerce

Overview

Most eCommerce brands consider returns a crisis situation and for good reason. The National Retail Federation in its 2023 report accounted for $743 billion in returned merchandise, with online brands making up 17.6% of it.

Without the right system in place, businesses struggle to handle huge volumes of returns, incur unprecedented expenses, and risk upsetting their customers. Thankfully, there are solutions that help you entirely skip this stressful situation - the supreme of which is returns management software.

In this article, we’ll introduce to you the best eCommerce returns solutions and explore different factors you can look for to choose one of them.

What is Returns Management Software?

Returns management software provides a platform for customers to submit return requests and for eCommerce businesses to effectively manage the logistics of bringing merchandise back to their warehouse and issuing refunds.

eCommerce returns management is all about giving customers a positive returns experience that brings 97% of shoppers back to stores.

Returns management software has expertise in improving your communication with customers and creating an easy returns workflow- starting with a seamless return request submission and ending with reimbursing the customers.   

Some returns management software, however, also offers reverse logistics services that help you arrange pickups or drop-offs.

Some offer special services for the returned products, including collecting, organizing, restocking them as inventory, or liquidating them in case they can’t be sold.

What is eCommerce Returns Automation?

If returns management software were a machine, then eCommerce returns automation would be the engine that powers them. It indicates the use of AI, ML, and similar technology to automate and systematize the flow of returns management. With returns automation, you can do the following-

5 Ways How Every Return Management Software Works

Are you curious to know about the inner workings of return management software?

Let’s unveil the mystery-

1. Oversee Return Authorization

All return management software processes return requests based on your return policy. It validates each request according to your pre-defined criteria and if all eligibility requirements are met, it automatically accepts the return request from customers.

2. Arrange for Pickups or Self-Returns

Returns management is incomplete without coordinating the reverse logistics side of things. While some software comes integrated with carriers to help schedule pickups, others offer an extensive network of drop-off points for customers to facilitate self-returns.

3. Track Orders and Improves Visibility

Monitoring the flow of returned shipments is a core function of every return management service. It tracks the status of the parcel throughout its journey from the point of receipt to delivery at your designated destination.

4. Validate and Process Refunds

Returns management software is equipped with payment processing gateways to initiate refunds once you receive and approve the returned item. It automatically credits the amount back to the customer, often in their preferred mode.

5. Generate Data Insights and Reports

Many businesses rely on eCommerce returns solutions because they provide insights into which products are returned, the reasons for those returns, and how to manage them effectively. It performs rigorous data analysis to pinpoint areas for improvement and gives you a new perspective on maneuvering returns to your advantage.

13 Best Software for eCommerce Returns Management

Return management software that is crowned the best does more than generic operations. Let’s find out what’s special about each of them.

1. ClickPost

As one of the most data-driven returns automation software, ClickPost offers practical and hassle-free returns management with customizable features to fit every business’ unique needs. Starting with a branded returns portal that can be pre-configured to your return policy and SKU exception rules, it leverages AI and a blend of smart technologies to create a comprehensive workflow for returns and exchanges. 

Here are the four core areas of returns management that ClickPost addresses:

1. Automated Returns, Exchanges, and Refunds
2. Resolution for pickup exceptions or failures
3. Live shipment tracking and notification
4. Personalization, branding, and customizations 

Taking strength from its core abilities in robust shipping management and integrations with 450+ carriers, ClickPost streamlines returns merchandise authorization and reverse logistics—such as return label generation, pickup scheduling, etc. The software specifically addresses the needs of medium and large enterprises, giving them a range of data-guided insights to support product adjustments, carrier selection, and customer experience. 

2. Loop Returns

There’s much to like about a return management solution as multifunctional and dynamic as Look Returns. It’s a one-stop platform for planning, managing, and executing an exchange experience that customers will buzz about the most.

Loop Returns works on four core areas:

• Automated exchange workflows
• Live return status updates 
• Detect return fraud 
• Pre-negotiated carrier rates

Loop Returns has revamped the way businesses and customers approach instant exchange, allowing them to opt for an exchange anytime before the refund is processed. Its smart rate shopping facility gives businesses a convenient way to choose the lowest shipping rates for every return with a select few carriers like FedEx and USPS. 

3. Narvar

Narvar is a master of post-purchase optimization but lends its resources to streamline returns as well. Its primary focus is to forge customer loyalty by crafting intelligent communications and consistent branded returns experience. 

It concentrates on four primary areas:

• AI-powered delivery dates prediction
• Customizable delivery alerts 
• Smart returns tactics
• Rigorous data processing 

Narvar is an epicenter of all things post-purchase and post-returns. It is well-versed in refining operational efficiencies by predicting delays and removing friction from customer experience. It pairs you with 300+ carriers and operates a return concierge network that gives your customers the flexibility of both pickup and drop-off options. 

4. AfterShip Returns Center

AfterShip has created its own niche in the market as a global multi-carrier shipping solution, operating in 133 countries. Though returns management forms one of its many branches, its strength lies in optimizing return initiation and reverse logistics for businesses. 

These are the four key areas that stand out: 

1. Shipment tracking
2. Email marketing and other sales resources
3. Returns and warranty management
4. Domestic and international shipping

AfterShips unlocks new opportunities for you with every product returned, either by encouraging exchange or sprucing up after-returns marketing notifications. It certainly helps that AfterShip enables integrations with third-party logistics services like ShipBob or ShipHero, as well as other software for orchestrating transportation, order management, and warehousing. 

5. Happy Returns

Happy Returns is a force to be reckoned with when it comes to providing customers the return convenience they crave. It is a pioneer of box-free and label-free returns and has more recently mastered the omnichannel way of bringing customers back to the store with BORIS (Buy Online, Return In-Store). 

Happy Returns has four main purposes:

• Make returns an entirely hassle-free experience.
• Delighting customers to increase their Net Promoter Score.
• Preventing return abuse with stringent monitoring. 
• Boost logistical efficiency. 

Officially, Happy Returns is now part of the UPS family, elevating its reputation for reliable reverse logistics services. As a returns management service provider, Happy Returns accurately identifies pain points in the customer's return journey and replaces the complexity of mailing returns with an easy drop-off option. 

A case in point is its 10k+ Return Bar— the first-of-its-kind concierge service that provides customers with a simple way to return items using QR codes, prompting instant refunds. 

7. Reclaimit

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Reclaimit is an eCommerce returns solution that takes care of your customer journey the minute they decide to return a product. Not only does it devise a painless way to submit return requests, but it also addresses current customer concerns over sustainable returns. 

Reclaimit primarily works on these core areas:

• Optimizing returns policy. 
• Creating customer-centric returns.
• Focusing on reducing return waste.
• Automating the returns process.

8. Unicommerce

Unicommerce is primarily known as an eCommerce enablement software and holds expertise in multiple fronts— including inventory and warehouse management, payment reconciliation, and tracking. Given its focus task of optimizing forward logistics and order management, Unicommerce lends its support to returns management for handling inventory and arranging shipping services.

9. ShippyPro

If you’ve ever doubted the ability of a global shipping platform to match the prowess of niche returns management software, you might be surprised by ShippyPro. Though renowned for its shipping excellence, ShippyPro has a number of returns management tricks up its sleeve.

Before we proceed to its key features, let’s see its foundational capabilities:

• Automates shipping workflows
• Detailed oversight of shipments.
• Comprehensive data analysis 
• International returns management support 

ShippyPro’s returns management is simple yet powerful. Its returns portal can be easily embedded into your website or shared as a link through emails. Apart from the central returns features, its other services like route optimization, serviceable APIs for pickup arrangements, and rate shopping also contribute to optimizing returns. 

10. Yayloh

Yayloh has earned its stripes as an expert returns management solution in the fashion industry—and for all the right reasons! Yayloh’s fully automated returns management amenities cater to the unique return and exchange needs of fashion brands and foster strong customer engagement in an industry known for stiff competition. 

Here are 4 principles on which Yayloh operates:

• Provide in-depth return insights.
• Create a customer-centric return experience.
• Support sustainable returns.
• Cultivate long-term customer relationships through returns. 

Yayloh’s specialization is in turning refunds into opportunities for cross-sale and customer engagement points. It encourages repeat purchases and store credits to retain customer revenue while giving them a flawless returns experience, personalized according to customer segmentation.  

11. ReadyReturns

ReadyReturns is another returns management software that operates on the motto of making returns an amazing experience. It offers a clear, compact, and mobile-friendly return portal for customers who prefer to shop on their mobile devices and look for a return process that is compatible with the small screen. 

ReadyReturns addresses four common concerns of businesses:

• The lack of visibility in returns.
• The issue of prompting customers towards exchanges. 
• The problem of multiple returns from the same customer.
• The hassle of returning a product without proper channels. 

12. Optoro

Optoro is a scalable returns management software that has carved its name among many competitors for seamlessly handling returns and reverse logistics. It leverages machine learning and AI for retailers and 3PLs to oversee and manage the entire return lifecycle—from return initiation by customers to inventory receipt at the warehouse. 

Optoro has earned many accolades as one of the most innovative returns management software for solutions like express returns. It helps you identify and engage with customers who are loyal and shows a higher retention chance. It helps you focus on their needs and engage them with perks like at-home pickups, gift cards for enabling exchanges, and more.

13. Orderhive

Though an inventory planner and a cloud-based inventory management software, Orderhive can be a good companion for businesses with limited returns problems. With a built-in EDI and POS system, Orderhive can be used for managing returned inventory in warehouses and retail stores. 

How to Choose the Best eCommerce Returns Management Software

With so many software options offering rich features for managing returns, don’t worry if you feel unsure about your selection.

We’ve prepared this handy checklist to help you out. 

1. Seamless Integration

One of the most important use cases of any returns management software is having pre-integrations with eCommerce marketplaces, communication gateways, customer service software, WMS, OMS, and other tools you use.

Seamless integrations save you countless hours from the tedious process of manual onboarding with them. It makes many processes like tracking an order or providing refunds function smoothly. You should check the number of carrier integrations the solution has and its capacity to fulfill your custom integration requests.

2. Customizable Returns Policies

Returns policy has a lasting impact on customer satisfaction. While many returns management software offer to uphold your return policy during processing, not all offer the flexibility to allow exceptions or implement your unique eligibility criteria. This can negatively affect your customer relationship. 

Choose a return management solution that can adjust to conditions and criteria that suit your business objectives and customer needs. 

For instance, you may want to exclude certain SKUs from returning during sales or promotions or offer partial returns to your VIP customers. Your return management software should ideally be equipped to manage these customizations without compromising on efficiency. 

3. Branded Return Experience

Research suggests that a positive return experience increases the likelihood of repeat purchases by 97%. With personalization and transparent communication, you can design a branded returns experience that reinforces your identity as a leading provider of exceptional returns. 

Your returns management software will play a major part in it. Select the software that fulfills your return objectives— such as speedy returns processing, or contextualized returns notifications to different customer segments. 

4. Automation and Workflow Management

A key indicator of robust returns management software is the strength of its automation. If the software offers real-time tracking, automatically generates return labels, instantly gets you proof of delivery, and auto-assigns courier partners based on your business logic, you can be confident in its automation capabilities.

To gauge the effectiveness of your eCommerce returns tool, consider its API uptime, ease of integration, webhook availability, and API scalability to keep up with your returns volume. An ideal automated system should remove any bottlenecks while enhancing consistency and improving collaboration among your teams. 

5. Support for Exchanges and Store Credits

Did you know that around 60% of customers prefer exchanges and store credits over complete refunds? So, the probability of you retaining customers hinges upon the excellence of the exchange service you choose. For instance, check if it is amenable to making adjustments in the exchange workflow, such as allowing you a complete website exchange.

Ensure that the returns management software you chose has plenty of exchange options, like in-store or instant exchange. More importantly, it should support store credits, bonuses, exchange credit points, etc. which are good sources of incentivizing customers to prefer exchange over returns.

6. Analytics and Reporting

Return analytics is a powerful tool to analyze return trends, understand return reasons, highlight cost centers, identify patterns in customer behavior, give reliable performance data, and much more. When you make informed decisions based on solid data inferences and logic, there are low chances of errors cropping up. 

Therefore, partner with returns management software that gives you access to in-depth data analytics, comprehensive reports of all focus metrics and KPIs, and actionable insights based on which you can improve your product listings, optimize carrier operations, adopt better strategies that reduce return rate, etc.

7. Reverse Logistics Support

Reverse logistics is a central aspect of returns management, controlling restocking, redistribution, and recycling of the returned items. If your software has integrations with multiple carriers, you get the choice of opting for the best carrier that completes the fastest pickup in a given route. In this way, you’ll save precious time and can quickly stock the item back on your shelves for reselling.

Consider whether your returns management tool gives you the support of an extensive carrier integration library, BORIS, in-person returns, or concierge service with multiple drop-off locations. If you get a mix of everything, you can offer more choices to customers and get extra brownie points for addressing their convenience. 

8. Cost and Pricing Structure

One cannot deny the cost factor that makes returns, sometimes an unbearable burden on the bottom line of even a retail giant like Amazon. An average retailer loses $10 to $20 on every return, without considering shipping rates. 

Now, if your returns management software levies exorbitant monthly fees and hidden charges, it can further push your expenses over the brink of heavy loss. While every returns management solution is entitled to charge a fee commensurate with its services, there are a couple of things that you can do before committing:

• Consider using the software that offers a free trial.  
• Evaluate customer reviews for any hidden charge issues.
• Ensure that the software does not overcharge you.

9. Customer Support and Training

Some returns management software provides exceptional service, but you may have to overcome a steep learning curve before you can master it. It certainly helps to have on-time customer support and training especially if you are new to the system. To choose the right software based on customer support, evaluate it on the following criteria:

• Check the availability of support hours. It’s best if there’s a 24/7 support window. 
• Look for a customer support service that is available on multiple channels, like live chat, SMS, Email, and live video.
• Confirm that there are plenty of documentation, user guides, resources, and tutorials available for quick reference.
• Check if it has an active community or forum like Shopify or HubSpot as they are valuable resources for troubleshooting. 

10. Security and Compliance

If there is one thing that you absolutely must not compromise on, it’s the security and compliance status of your selected returns management software. Before closing the deal, scrutinize the reliability and commitment to safety that your returns management solution has by checking its security strength. Some of the certifications you can look for are- 

• ISO 27001 
• GDPR ComplianceSOC 2
• CCPA Compliance 
• ISO 27701

11. Returns Fraud Prevention

According to the latest NRF report, an astonishing amount of $101 billion was lost to fraudulent returns. While returns and refunds are already costly, the insurance of false claims and appeasements has enlarged the revenue loss for businesses. Given these circumstances, your returns management software must offer at least some protection against return abuse. 

The efficacy of the fraud prevention mechanism depends on smart technology like predictive modeling that identifies patterns in customer behavior and risk-scoring customer profiles based on purchasing history.  Verify that your returns solution does have similar systems in place.

12. Post Purchase Engagement

One of the hallmarks of outstanding customer service is reliable post-purchase engagement— which inculcates trust, reliability, and loyalty among customers. Therefore, your returns management solution should have dedicated and instant customer communication to offer customer support at every step of their purchasing or return journey. 

The success of your loyalty program and customer retention depends upon the performance of your solution. So, it is best to confirm certain absolute must-haves in post-purchase engagement:

• Live tracking
• Regular alerts
• Dedicated feedback collection

Final Conclusion

Managing returns is one of the most crucial tasks in running an online store. When studies suggest that a well-managed return system drives up to a 2246% increase in profit in 6 months, you know there is a lot riding on your choice of returns management software. In this article, we’ve tried to give a holistic view of the best returns management software. Still, we would recommend software choosing software that is data-driven, automated, and has strong foundations in reverse logistics.