Optimizing Returns for Global E-commerce: Strategies for European Markets

Statista shares that online returns are the most common in European countries. Whether you run an online store for clothing, footwear, accessories, health and wellness products, or cosmetics, returns are almost inevitable for brands. 

However, as European consumers adopt online shopping for the convenience and selection it provides, is there a way for brands to comply with consumer protection regulations like the EU’s 14-day cooling-off period for online purchases and still manage returns effectively? 

In this post, we’re sharing some strategies to optimize returns for global e-commerce. 

How to optimize international returns for European markets 

Here’s how leading brands are managing returns proactively in Europe: 

1. Weave local preferences into your returns policy 

Online shopping expectations vary from region to region. For instance, while Western European consumers in countries like Germany and the Netherlands expect prepaid return labels and quick refunds, Northern European customers may prefer more sustainable options like eco-friendly packaging or consolidated logistics to minimize environmental impact.

Based on your target market, we recommend tailoring your returns policy. It should communicate the terms, timelines, processes, and how a consumer can reach out to you for assistance. 

Don’t know how to create a cross-border returns policy? Set up one with Return Prime.

2. Create an easy returns process using technology 

European shoppers are technology savvy. Ensure your returns process offers the same ease of interaction as browsing through the website and making purchases does. 

Set up a self-serve returns portal using returns management software like Returns Prime. This gives customers an intuitive portal for requesting and tracking returns while automating the entire process for the business and saving time. 

We also recommend automating customer communication throughout the process - from point of request to resolution. 

3. Partner with regional logistics providers 

Logistics is the backbone of an effective returns strategy. To tackle returns in the European markets, we recommend partnering with regional carriers who have a positive reputation with consumers and a more suited infrastructure. 

A good returns management platform should easily integrate with any regional or global logistics partners like DHL, Royal Mail, La Poste, and others in Europe. 

4. Offset returns costs for your customer 

Studies have found that 45% of EU and US consumers will not reorder from a store where they had to arrange for returns themselves. In fact, 63% of consumers state that free returns give them more confidence to purchase from a store frequently. However, bearing the entire cost of returns can impact your revenue negatively. 

You can offset this cost by providing a clear breakdown of the returns cost in the policy, adding a pre-printed return label in the box, and deducting the defined amount from the refund of the order. To further ensure a win-win perception in the process, you can offer store credits or discounts on future purchases once the request is complete. 

5. Prioritize sustainable practices in returns 

Sustainability is a priority for most European consumers. This allows your brand to showcase your commitment to the environment. 

A few ways to set up sustainable practices in returns include consolidated returns, green packaging, and donation or resale programs. These initiatives can be included in your returns policy with a clear definition of what they mean, how it works, and why it is important for sustainability. This gives eco-conscious consumers a chance to understand how they can effectively contribute. 

6. Streamline cross-border compliance 

Navigating the legal and regulatory landscape in global e-commerce can be complex. But compliance with country-specific rules is non-negotiable to avoid fines and build customer trust. 

To streamline compliance, implement automated processes to handle VAT and customs duties for returned goods, understand and ensure your returns policy complies with regional consumer rights like the 14-day cooling off period, and use secure systems to manage customer data for adhering to GDPR requirements. 

7. Offer value-based alternatives 

Returns don’t have to always lead to refunds. With the customer data available to you, you can use the opportunity to re-engage these consumers with personalized strategies. 

This can include offering a small discount or free shipping for customers who choose an exchange over a refund, providing online styling or consultations to help pick the right product variant or offering store credits with Wonder Promotions instead of refunds to encourage future purchases. 

You can also use Wonder Revenue Booster to upsell relevant products or trigger a product exchange with Wonder Smart Exchanges. These strategies can reduce return volumes while building strong customer relationships. 

Conclusion 

Handling international returns can be a complex process when managed manually.

From accepting and processing requests to managing the return, updating the systems, and processing the request for the consumer, there’s a lot that needs to be tackled promptly. 

This is where the importance of having an end-to-end return management system comes into play.

Return Prime helps businesses marketing to European regions set up a seamless returns process, automating all the crucial steps of the process. It comes with advanced features to automate communication and optimize the process to result in more revenue ‘earned’ than lost. 

Want to know more? Book a demo today.