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Return Labels: Why They’re Important and How to Generate Them
A customer gets a product delivered to their door and realizes it’s not quite what they ordered. Maybe it’s the wrong color, the wrong size, or the product got damaged during transport. They need to return the order.
Mistakes happen and returns are inevitable. As an ecommerce business owner, you have to roll with the punches and do everything you can to offer top-notch customer service. When it comes to creating an efficient ecommerce returns process, it starts with the return label.
Why is this stick piece of paper so important? Read on to learn best practices on how to generate return labels.
What is a return label?
A return label is the sticker adhered to a box or mailer that includes an address, shipping barcode, and other information that a shipping carrier uses to identify the destination and track the package so it gets returned to the seller or appropriate warehouse.
3 steps to creating a return label
Return labels are typically created with shipping software at the post office, an office supply store, or at home. Whatever software you decide to use, there are three basic steps to generating a return label on your own:
Step 1: Choose a shipping carrier and mail class
Step 2: Enter the address
Step 3: Pay for postage
Pay to cover the cost of turning the item. That way, your customer won’t have to pay for anything out of pocket.
2 ways ecommerce businesses can provide return labels
If you plan to offer return labels to your ecommerce customers in the event they want to return an item, you can either include the label in the original package or you can let customers print their own label at home.
Including the label in the shipped package
You can include a return label (different from a packing slip ) with all shipped packages that go out. This simplifies the return process as customers have everything they need to return the item, just in case.
Letting customers print their own label
The other option is to email customers a return label if they notify you that they’d like to return a product. They can download the label, print it off, and attach it to the package. This takes more time and is less convenient for the customer.
4 reasons why some businesses include return labels in packages
Out of the two most common ways to provide a return label, the most convenient option for your customers is for you to include a return label in all of your outbound packages if you see a really high return rate (note: ShipBob does not do this but some big-box retailers and fast fashion companies do this by default). Here are some reasons why some ecommerce businesses choose this approach, which can also increase your return rate and costs.
1. Saves your customers time and effort
Instead of having to request a return label, wait for you to email it to them, print it off, attach it to their package, and then mail the product in, customers will already have a ready-made label to attach if they decide to send in a return.
2. You can select the lowest cost mail option
By supplying a return label yourself, you can ensure that the lowest cost mail option is used versus having to reimburse customers for shipping fees.
3. Ensures the package is returned properly
How unfortunate would it be to have to refund a customer AND then realize the return package got lost/went to the wrong address?
If customers handle returns themselves, they may improperly address the package or provide improper postage. Including your own labels in the package ensures that the package is returned to the right place.
4. Return labels cost nothing unless they’re used
Besides wasting paper, including return labels in your packages costs nothing if your customers never use them.
Of course, this approach increases the likelihood and ease of returns, making your customers more likely to return items after buying them.
How ShipBob makes processing returns easy
Creating and printing your own return labels can be tedious, especially if you don’t have the right software. And, if you are generating labels for a high quantity of items, you’ll need a solution you can scale.
Fortunately, third-party logistics providers (or 3PL companies) like ShipBob offer direct-to-consumer ecommerce fulfillment services that make it easy to generate labels, view orders, and track returns all in one place.
This significantly cuts down on your costs and processing times, and keeps your customers happy by making the process easier for them. Here’s how it works :
1. Generate a return label from your ShipBob dashboard with a single click
With ShipBob, you have the option to generate and print a return label through our dashboard. Simply search and select the item(s) you want to return.
2. View orders being sent back from the “Return” tab in your dashboard
You can track returns using from the Returns page in your ShipBob dashboard. Filter where your packages are at in the return process (Awaiting, Arrived, Processing, Completed, Canceled). This includes not only returns but delivery exceptions (e.g. packages that couldn’t be delivered).
3. Include specific instructions for the ShipBob’s team
The product was returned – now what? Once the product is received at a fulfillment center and processed, the item will be restocked by default. But you also have the option to set return preferences for certain items: restock, dispose, or quarantine the options. Once you choose your option, the ShipBob’s order fulfillment team will know what to do with the product once its returned.
Save time and money with ecommerce return labels
While you could create your own return labels or email labels to customers who want to return items, these options are tedious and time-consuming.
If you’re interested in learning more about how ShipBob can help streamline the retail fulfillment and inventory management process for your online store, click below to get started.
Return labels
Return labels help you recover inventory that a customer no longer wants. If your business lets customers return products, then you can send your customer a return shipping label so they can send the product back to you.
If your default location is in the United States, then you can create and send return labels in your Shopify admin. After you create a return label, you can send it by email directly from the Shopify admin or copy a link to print the label.
If your default location isn’t in the United States, then you need to purchase return labels directly through a shipping carrier or through a shipping app.
Supported addresses
Return labels are available only for US domestic orders. They aren’t available for US military addresses, US territories, or international addresses.
To create return labels for international addressees, US military addresses, or US territories that require a customs form, you can choose one of the following options:
Supported shipping carriers
You can purchase return labels from USPS at discounted rates through Shopify Shipping.
Set up your return policy
If your business offers returns, then add information about returns to your refund policy in your Shopify store. Customers can read and understand your return policy before ordering from your business so they know what to expect if they want to return a product.
Pay for return labels
Return labels use a technology called pay on scan. This means that the shipping carrier weighs and measures the package when they receive it, and then calculates the cost. A return label isn’t considered purchased until it’s scanned by a shipping carrier, and you aren’t charged for the label until the shipment is marked as delivered.
The cost of a return label is added to your Shopify account after the carrier scans the package. Your account is charged when you reach a billing threshold that’s determined by your current Shopify subscription plan. To learn more about how you’re billed for shipping labels, contact Shopify Support.
Return labels can’t be voided, but they do expire. USPS labels expire 1 year after purchase and UPS labels expire 6 months after purchase. You aren’t charged for labels that you don’t use.
Create and send a return label
You can create a return label from the order page in your Shopify admin or the Shopify app. After you create a return label, you can send it to your customers, or by sending them a link to print the label.
To see more videos, visit our YouTube channel.
Steps:
From your Shopify admin, go to Orders.
Click the order number.
Click More actions > Create return label.
Optional: Click Edit address to change the return shipping address. After the label is scanned by the shipping carrier, the new return shipping address becomes the default address for future return labels.
Select the expected package size.
Add the weight of the order to the expected weight.
Select a shipping method.
Click Create return label.
Select the way that you want to share the return label with your customer:
Click Done.
From the Shopify app, tap Orders.
Tap the order number.
Tap More actions > Create return label.
Optional: Tap Edit address to change the return shipping address. After the label is scanned by the shipping carrier, the new return shipping address becomes the default address for future return labels.
Select the expected package size.
Add the weight of the order to the expected weight.
Select a shipping method.
Tap Create return label.
Select the way that you want to share the return label with your customer:
Tap Done.
From the Shopify app, tap Orders.
Tap the order number.
Tap More actions > Create return label.
Optional: Tap Edit address to change the return shipping address. After the label is scanned by the shipping carrier, the new return shipping address becomes the default address for future return labels.
Select the expected package size.
Add the weight of the order to the expected weight.
Select a shipping method.
Tap Create return label.
Select the way that you want to share the return label with your customer:
Tap Done.
Resend a return label
You can resend the email notification or copy the link to the label at any time.
Steps:
From your Shopify admin, go to Orders.
Click the order number.
On the Return label section, click View details
Select the way that you want to share the return label with your customer:
Click Done.
From the Shopify app, tap Orders.
Tap the order number.
On the Return label section, tap View details
Select the way that you want to share the return label with your customer:
Tap Done.
From the Shopify app, tap Orders.
Tap the order number.
On the Return label section, tap View details
Select the way that you want to share the return label with your customer:
Tap Done.
Customize your return label instructions
In the Customer Notification section, under Shipping, click Return label instructions.
Edit the Email subject and Email body. For example, if you want to change the return instructions, then find return-label__instruction-step and edit the steps.
Click Save.
For more information about using Liquid variables to automatically add information to your return label instructions, see the notification variables reference.
Frequently asked questions
Can I void an unused label?
No. Return labels can’t be voided, but they do expire. USPS labels expire 1 year after purchase and UPS labels expire 6 months after purchase. You aren’t charged for labels that you don’t use.
Why can’t I see Create return label on the order page?
If you don’t see the Create return label option in the More actions menu, then you might not have any fulfilled items. Creating a return label requires at least one item to be fulfilled.
Your store also might not be eligible for return labels. To be eligible, your default location needs to be in the United States.
Can I create a return label for an international order?
No. Return labels are available only for domestic orders in the United States.
return label
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Return to Forever (Album) — Return to Forever Studioalbum von Return to Forever Veröffentlichung 1972 Label ECM Format … Deutsch Wikipedia
Return to the Playboy Mansion — Album par Dimitri from Paris Sortie 28 avril 2008 Genre Electronica Label indépendant Albums … Wikipédia en Français
Return of the Rat — is a song written by the Punk rock band The Wipers, and is the first track on The Wiper’s 1980 debut album Is This Real?. The song was later covered by the band Nirvana on a tribute album called Eight Songs for Greg Sage And The Wipers which was… … Wikipedia
Return the Favor — Single par Keri Hilson Timbaland extrait de l’album In a Perfect World. Face A Return the Favor [Radio Edit] Face B Return the Favor [Instrumental] Sortie … Wikipédia en Français
return address label — UK US noun [C] (also return address sticker) ► COMMUNICATIONS a piece of paper attached to a parcel or letter giving the address to which it should be sent back if it cannot be delivered (= taken to the right address): »All our parcels are sent… … Financial and business terms
Return of the Champions — Livealbum von Queen + Paul Rodgers Veröffentlichung 19. September 2005 (CD); Oktober 2005 (DVD) Label … Deutsch Wikipedia
Return To Forever — Pays d’origine … Wikipédia en Français
Return To The Source — was a London based Goa Trance music collective and record label. RTTS (as it became known) first emerged in the early 1990s alongside the musical genre of Goa Trance and it s successor Psychedelic Trance. RTTS produced a number of compilation… … Wikipedia
Return to Forever (album) — Return to Forever Album par Chick Corea Return to Forever Sortie 1972 Enregistrement 2 3 février 1972 Durée 46:48 Genre Jazz fusion Producteur … Wikipédia en Français
Return of the Rat — est une chanson de groupe punk Wipers, et est le premier morceau de leur premier album Is This Real? de 1980. La chanson a eu un regain d intérêt après que le groupe grunge Nirvana est repris la chanson en 1992 pour un hommage au Wipers intitulé… … Wikipédia en Français
Return to Olympus — Album par Malfunkshun Sortie 1995 Enregistrement Divers enregistrements venant des années 80 Durée 56min 40 s Genre Grunge Produc … Wikipédia en Français
Return Labels: Pros, Cons, Methods
Table of Contents
Return labels are among one of the most confusing aspects of business for online retailers. They act as both goodwill value additions and tentative cost additions, making them a strategically tricky option. Including a pre-printed return label makes your customers feel that they are in control as upto 30% of the processed orders end up getting returned.
On the other hand, they are pitfalls for online stores, and using return labels can act as a damage control mechanism or even as an opportunity for additional sales. In this article, we will learn about shipping labels, their pros, cons, and ideal application cases. Dive in deeper to learn more.
Pros Of Implementing Return-Friendly Labeling
While there are a handful of players in each category that include prepaid labels for returning the merchandise, they can work like a charm if approached correctly. Here, we are listing down the benefits of adding these labels alongside your products and see if you can benefit from doing so:
Return Labels Support Convenience-Driven Decision Making
Cart abandonment is among the biggest turndowns for online businesses. Mentioning that the customer can return the merchandise quickly with pre-assigned return labels can help in reducing it. They improve the odds of making a purchase since your customers will find it convenient to make an order since they know it’s reversible. This improves their confidence. On the other hand, when a customer actually receives the wrong item, the return label automatically deescalates the situation since they have an option to send it back right away.
Return Labels Are Great Marketing Props
Return labels also double as marketing props. They offer a distinct value addition when your competitor isn’t offering the same. You can also include the prepaid return labels as a part of your marketing copy. Thus, you can take advantage of the uncertainty of returns by selling more products. You can also benefit from the fact that people will not spread negative word of mouth as their problems get solved without much effort. When the billing size is small, many returns aren’t likely, while it makes it easy to sell high-value merchandise. This adds a dimension of transparency as it sends a clear message: Even if things don’t go well, we got your back.
Positive Branding Due To Proactively Approaching Undesirable Situations
It is understandable that not every customer is going to be happy with their purchase. Things like buyer’s remorse and even a mood shift can trigger contempt. Hence, handling such instances with return labels improves your reputation among them and builds brand credibility. When other buyers look at how you are handling returns with so much convenience, they will feel more confident about ordering from you. This also means that you can free up your customer support department of the avoidable complaints. All in all, if used properly, return labels can create a very positive impact on your branding game.
Cons Of Including Return Labels In Your Operating Model
Naturally, including return labels comes with a lot of backlashes, both organizational and financial. Before you make the call, you should analyze how much money your online store leaves on the table in the form of returns. Also, you should consider such negative aspects concerning your products and overall business model. Have a look here:
Increased Return Rate
As we discussed earlier, a prepaid return label will make it easy to return your products regardless of whether it’s faulty or not. Buyer’s remorse or finding out other alternatives can lead to returning. It becomes effortless to return since they don’t need to go through a lengthy process. No matter if they fall short of their monthly budget or the installation for their recent smartphone gets due, and your product is a soft target. Thus, if you choose to go with a return-friendly policy, you should be expecting an increase in the return rate without any fault of yours.
30% Buyers deliberately shop more items only to return the unwanted merchandise.
Uncertainty Over Return Workflows
Giving your customers the liberty to give back any item translates to operational glitches. You don’t have any visibility regarding how much stock will return, of which type, price, and when. It also costs you to bring those items to your facility. Also, this is equally unexciting for your finance team. Uncertainty regarding the status of sold items and risks of proliferation make return labels unwanted.
Soaring Costs Of Returned Products
The items are returned solely by the customers, which means that the seller has no insights into the inbound items that destabilize inventory management. Also, if they damage the packaging, which is quite apparent, this cost, too, adds up on your part. These goods also need an examination to see if they are damaged or not. In case these articles get lost, the losses only get amplified. Hence, it’s tough to predict how much damage it causes unless one applies the policies and collects data when it comes to the economic burden.
Ways To Reduce Returns
Now that we are familiar with the risks and financial backlashes posed by implementing return labels let us understand ways to reduce returns. In this section, we will discuss how you can lower the product returning rate in a simple, cost-effective, yet efficient manner. Depending on your products and their price range, you can use these tactics to improve your services and incur minimum losses on account of returned goods. Have a quick look here:
Educate Your Customers
In many cases, if your customer doesn’t understand how to use your product and they find the return label, they might simply return it. You can resolve such issues by providing educational content like quick guides or video manuals that your customers can find easily. You can also include links to tutorial videos with the help of QR codes. This is an extremely useful way to provide educational content because nobody appreciates surfing YouTube to go through FAQ video(s) to find a solution. Contrary to doing that, they may simply send the product back as its prepaid. You can also send such content in the email along with the order confirmation and bill.
Extend A Proper Return Policy
Giving your customers the liberty to take over the entire return transaction can still turn into a nightmare for them if they are unsure of the terms and conditions. You can help out the confused customers with a proper return policy. It should contain all the information on the scope of return, pick up destinations, applicable regions, and replacement terms—this aids in reducing the contingencies and containing negative reviews. Also, shippers offering such flexibilities also support multiple return options, which can add to the confusion. As a result, attaching a clear return policy is mandatory to smooth operations.
Offering Quick Exchange, Alternatives, And Temporary Replacement
You can offer quick exchanges or alternatives based on your customer’s demand. You can also push for more premium alternatives if they are not happy with the overall quality. In many cases, customers cannot wait for the next item to get delivered a few days after the current is picked away, like in case of industrial supplies. You can provide them with temporary replacements at your local facility to calm them and ensure that they don’t make a purchase elsewhere. These methods of providing a temporary alternative can also become a valuable addition to your company.
Methods Of Using Return Labels
This is a tricky area for online retailers since one can divert the returning products and the concerned process in many ways depending on the mutual ease. We will try to highlight three popular ways of doing so. However, you can also combine these methods and find out the most suitable alternative from their permutations and combinations.
Labelling Right On The Packaging
This is the simplest among the three, as you just print and stick the label on the packaging before sending it to the shipping partners. This works fine in most cases, but if the shipper damages the box or the customer throws it away before checking the concerned item, problems arise. You can add the label inside the packing in an envelope to avoid such situations. In spite of the simplicity, we don’t recommend using it. This is because you don’t have any insights into the reason behind returning your articles. As a business, knowing the reasons behind such issues is necessary for making well-informed corrective actions.
Generating Labels On-Demand
You can also ask your customers to send out an email or communicate with your client, servicing executives for generating a label on demand. This may be in the form of activating the label after collecting necessary credentials, but it dilutes the purpose of including the tags. Employing your human resources after paying for these labels is neither a smart move for the business nor for your buyers. Having to communicate to a person over a call or email is the problem which they were looking to avoid in the first place. If you insist on routing the process, you can use simple software to auto-generate the activation code.
Keeping A Web-Based Portal In The Loop
A web-based portal can be a better alternative than using a simple API to check credentials and automatically generate labels. They allow you to quickly fetch the reason for returning the item and also getting suggestions. This window can also help you in upselling or cross-selling, which is a big advantage of this method. You can even know if the customer needs guidance on using the product and send tutorials to them immediately. This can help reduce the pitfalls in revenue while generating much-needed business intelligence.
Selecting a suitable option among these three shouldn’t be a tough choice because you are well aware of your customer base and other factors. However, we find that integrating the returning goods data from your order management system with the inventory software always works better for businesses.
As far as handling the yet to be returned items, you can use either a pick-up or drop-off option depending on the location and carrier availability. Pick-up facility ropes in more support from the buyers while dropping-off the items to carrier location is more economical. However, if you are into omnichannel sales, you can also allow them to drop-off the item to the store. It will also improve the chances of selling more items in the store.
You should include the returning items in the total shipping volume considerations for getting additional rebates/discounts from your carrier as applicable. Also, you can select slower deliveries for returning items since they are less expensive. On the other hand, if the location isn’t mapped in your shipping territory, drop-off points act as great strategic buffer zones for bulk shipping.
Conclusion
We have tried to cover most of the areas concerning the use of return labels here. However, they can be overwhelming if proper systems and software solutions aren’t used. If you are planning to include return labels as value addition and vouch for your brand value, you should weigh the pros and cons of your product line up. Nonetheless, they are excellent for customer retention, nurturing brand loyalty, marketing tools, and driving repeat purchases. We hope that this article on return labels becomes useful to you for your online store operations.