DIY returns challenges are only amplified by marketplaces
DIY returns are notoriously operationally expensive. Why? They often consist of bulky and oversized goods that exceed small-parcel norms. Hazardous or regulated items, including paint, power tools and chemicals. Kits and bundled items with non-uniform repackaging rules. They have low refurbishment viability due to wear, installation or damage risk. Two-man handling or scheduled pickup are required for certain categories.
Now layer in a third-party marketplace and the complexity multiplies, including:
- Disjointed seller policies, with no uniformity in timelines, channels or resolutions
- Fragmented reverse logistics, where returns may need to go to the seller, not you
- Blurry shopper expectations because consumers bought “from you” and expect you to resolve the issue
- Store associates who are in the dark, forced to turn away marketplace returns they can’t process
- Hidden costs associated with sorting, restocking and disposing of unrecognized SKUs erode margins
- Reputational risks because consumers blame your brand, not the seller, for a failed returns experience
Even if your organization is a leader and innovator that’s already invested in digitized processes, clear rules and policies, early visibility of returned products, and other best practices, you may still face challenges in running a third-party marketplace. How well do your own internal policies and processes mesh with dozens or hundreds of third-party sellers—who each have their own standards and practices?
Inconsistency leaves consumers confused—and, when they can’t easily find an answer, they’ll likely default to your brand. Imagine the all-around frustration when a consumer shows up in-store with a large, unwieldy product—and your employees have to turn them away.
The twisting, inconsistent and poorly defined path returns take through a third-party marketplace often represents a losing proposition for DIY retailers. Consumer satisfaction is not in your control, so shopper loyalty and your brand reputation might be damaged. Reverse logistics drives up costs quickly, especially when large products and third parties are involved—erasing the benefits of making a sale in the first place. From a sustainability standpoint, third-party product returns are less likely to make it back into sellable inventory quickly, and more likely to end up in a landfill.
Take complete control as you take back products
How can DIY retailers capture the advantages of participating in a third-party marketplace, while minimizing the negative impacts of returns? It’s simple. They must achieve the same level of visibility and control over every product return, regardless of where it originates. They need to establish consistent returns practices, policies, timelines and consumer experiences across every channel and every product, including third-party offerings. Instead of differentiating returns by channel, the answer is creating a universal returns gateway for all products, across all channels.
That’s a challenging proposition. But Blue Yonder’s industry-leading returns management capabilities make it much easier.
Blue Yonder helps DIY retailers create an online returns portal where every buyer can initiate a product return, regardless of where the product sale originated. Detailed insights are created during this initiation process: Where did the sale originate? Who is the seller? What is the product’s condition? Where is the consumer located? At what location, and through what channel, is the product most likely to be resold?
Because this is a complex set of questions, artificial intelligence (AI) is applied to determine how to quickly and cost-effectively get each returned item back into sellable inventory, whether in your warehouse or a third-party warehouse. Then Blue Yonder AI optimizes the journey, step by step.
DIY marketplace consumers might receive a digital QR code to launch the process. They might drop the product off at a carrier, return it to store or drop it off in an in-store kiosk. Whatever the optimal route determined by Blue Yonder—and guided by your rules governing third-party marketplace sales—the consumer receives an intuitive map showing where to drop off the product. And just like that, the return is on its way.
Blue Yonder gives you complete control over DIY marketplace returns. Don’t want to touch third-party products? You’ll never have to. Send consumers to a carrier or a drop box that’s managed by your seller. Want to drive shoppers into your store, where they might make an additional purchase? Send them to your local customer service counter or an in-store kiosk.
From the shopper’s perspective, the returns experience remains the same, whether they’ve purchased your product directly from you or a third-party seller. You remain in control of the shopper relationship and can protect your brand image.
Intelligently and automatically identifying the origin of every return, and mapping the right path, also makes a huge impact on your speed and cost outcomes. By having Blue Yonder AI flag third-party products and send returns directly to the right vendor, you’ll eliminate the need for your employees to manually sort third-party returns from your own inventory. With early visibility of the return, its timing and the product’s condition, both you and your third-party sellers can get the right resources in place to get sellable merchandise back into inventory, fast.
