In my last blog I talked about the importance of offering customers a returns solution and examined the key considerations to make that solution a success. I’m now turning my attention to cross border returns, because when a retailer looks to expand into international markets – as many currently are – the returns solutions needs to adapt accordingly.
Check you are complying with regulations
Online shopping by its very nature requires a high level of trust between the consumer and the vendor. Money is often exchanged before the goods are received and shoppers don’t usually have the opportunity to try on or examine their purchases before the transaction is completed. This level of trust is even higher when goods are being purchased from a different country. Vendors need to make their returns policy clear to customers from the outset and carefully ensure that they are compliant with the regulations, which will vary across countries. The Distance Selling Regulations, for example, state that if a customer informs the vendor that they wish to return an item within 7 days of purchase the initial delivery cost has to be refunded as well as the cost of the product, so businesses need to be ready to absorb this cost. These regulations apply across the EU, although countries have implemented them differently so it’s important to be familiar with the practices of each.
Think about costs
While engaging with overseas customers gives online retailers an opportunity for growth, some tricky decisions will need to be made before the rewards can be reaped. For example, when it comes to the cost of cross-border returns – what are the related costs? What proportion of these costs will be passed to the consumer? And how can these be minimised?
Our research shows that over a third (35.4%) of UK consumers paid for faster or tracked delivery when they last purchased an item from outside the UK. Clearly, consumers have different delivery requirements when purchasing an item from somewhere other than their resident country. Since the delivery has to cover a greater distance and therefore may take longer, the customer is likely to foresee greater scope for error or delay. Therefore, retailers may want to consider whether a trackable option can be offered and whether this applies to initial delivery, returns, or both. Whilst a greater choice of delivery options is better for consumers, the costs of these options (for the retailer and the consumer) also need to be taken into account.
Identifying the most cost effective distributor to handle the delivery and/or returns for each territory can be exasperating, especially when it comes to long distance deliveries where many operators will be involved. For many online businesses, engaging with a third party provider which offers the expertise and the relationships with postal operators, not only in the UK but in the destination territories, will be the most fail-safe and cost-effective way of managing distribution. An expert consultant should not only be able to negotiate competitive prices on your behalf, but will also be able to advise you on how to ensure that your fulfilment and distribution infrastructure can keep pace with the expansion of your business.
By Paul Galpin, Managing Director at P2P Mailing.
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