The Best Returns Management Software Solutions & How to Improve the Process

The returns process is a critical touchpoint for customer satisfaction and business efficiency. With consumers returning nearly 30% of online purchases, how a company manages returns can significantly impact its reputation and bottom line.

Returns management software has become a game-changer, offering businesses the tools to automate and streamline return processes, ultimately enhancing the customer experience. It’s important to remember that customers making product returns are not lost opportunities for future sales, and optimizing the returns process makes a huge difference for customer retention.

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This technology simplifies the creation and management of return policies and supports a hassle-free post-purchase journey for consumers. By enabling self-service return requests and providing instant return labels, returns management solutions ensure a seamless experience that fosters customer loyalty. Moreover, the insights gathered from returns data can guide businesses in refining their strategies to reduce return rates, improving profitability by reducing the cost of returns, and simplifying the complexities of reverse logistics.

In this article, we delve into the importance of adopting an effective returns management system and how it can transform the returns experience into a strategic advantage for ecommerce businesses. We also walk you through the software and technology you'll need to prevent returns in the first place.

Best Returns Management Software Solutions

Identifying the best returns management software isn't easy for ecommerce businesses aiming to streamline their returns process and enhance customer satisfaction. A top-tier returns management system can solve headaches in the entire return process, while the wrong one can aggravate matters that already plague you. The right system can provide valuable insights into return trends and customer behavior—and give customers more control and flexibility over how they make and monitor returns status with notifications and apps, while the wrong one can confuse customer support, service teams, and decision-makers.

None of the providers on this list will cause your business harm as long as they're correctly implemented and properly managed. The leading solutions in the market, such as Loop Returns, Return Rabbit, AfterShip Returns, and Narvar, offer robust functionality that automates ecommerce returns, facilitates seamless communication and customer support, and enables businesses to customize their return policies. Each product returns management software solution brings unique features to the table, catering to different needs within the product returns management spectrum. By picking the right returns management platform, businesses can transform returns from a logistical challenge into a strategic opportunity for improving customer loyalty and operational efficiency.

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Loop Returns

Loop offers a user-friendly customer returns portal, enhancing the brand experience with customizable interfaces. Its technology seamlessly integrates with existing systems via convenient APIs, supporting various return options, including mail-in and in-store for retailers. However, its focus on specific market segments may limit its applicability for all businesses.

Pros: Loop excels in technology integration, offering a seamless connection with ecommerce platforms. Its customer portal is notably user-friendly, enhancing the overall returns experience.

Cons: The platform might require a learning curve for businesses to leverage its customization capabilities fully.

Happy Returns

Happy Returns

Happy Returns excels in providing hassle-free return experiences with extensive drop-off locations, fostering customer loyalty. While its innovative approach promotes sustainability initiatives, the requirement for physical presence might not suit all ecommerce models that only operate as online retailers.

Pros: This solution stands out for its flexibility in return options, including mail-in, in-store, and drop-off, complemented by easy shipping label generation. It also offers excellent tracking and visibility.

Cons: Limited customization options for the user interface may not fully align with all brand aesthetics or support the fully branded returns options you may want.

Returns Rabbit

Return Rabbit

Return Rabbit specializes in automating refunds and exchanges, offering robust tracking and visibility to streamline the returns process. Its limitations may include a steeper learning curve for new users and integration challenges with less common ecommerce platforms.

Pros: Return Rabbit provides robust restocking and inventory management features, ensuring returned items are efficiently processed and accounted for.

Cons: It might be less intuitive for customers unfamiliar with digital returns processes, potentially affecting the user experience.

AfterShip Returns

AfterShip Returns

AfterShip stands out for its comprehensive tracking and visibility features, supporting informed decision-making. Though it offers extensive capabilities, some businesses might find its cost management insights need more depth for complex analyses.

Pros: AfterShip is renowned for its comprehensive tracking and visibility, both internally for businesses and externally for customers, enhancing transparency in the returns process.

Cons: While strong in tracking returns, it may require additional integration efforts for complete inventory management solutions.



Narvar caters to larger brands with a suite of advanced features, including sophisticated reporting and inventory management. Its focus on big brands means small to medium enterprises might not find it as accessible or cost-effective.

Pros: Narvar is ideal for brands with complex workflows, offering extensive customization of the customer portal and advanced reporting and cost management insights.

Cons: Its sophisticated platform might present less affordable pricing and a higher complexity barrier for smaller ecommerce operations.

How Returns Impact Your Inventory Management

Efficiently managing returns is pivotal for ecommerce success, directly influencing inventory, supply chain, and order management. Returns reintroduce items into the inventory, complicating lifecycle management and imposing significant costs. Notably, the challenges associated with returns include managing inventory from reverse logistics, ensuring order accuracy to reduce return rates, and maintaining visibility across all orders to enhance operational efficiency and customer satisfaction.

Here are three common challenges:

Managing Inventory From Reverse Logistics

Inefficient handling of returned items can lead to inaccurate stock levels, affecting order fulfillment and inventory management. Extensiv's barcode scanning and inventory adjustment capabilities within our warehouse management solutions for ecommerce brands and retailers facilitate accurate inventory tracking and restocking, mitigating these issues.

Lack of Order Visibility

Comprehensive visibility into all sales and return orders is crucial. Extensiv’s order management solution for ecommerce businesses and retailers consolidates orders across channels, from Shopify to Amazon, enhancing the ability to track operational efficiency and improve customer satisfaction by resolving fulfillment bottlenecks proactively with smart order routing.

High Return Rates and Order Accuracy

Minimizing operational errors will reduce returns not driven by customer preference. Extensiv integrates seamlessly with shopping carts for accurate order tracking and automates order processing, reducing human error through mobile technology that validates the products picked, packed, and shipped.

Extensiv's Role in Returns Management

In the above ways, Extensiv contributes to optimizing the returns process. By ensuring accurate, real-time inventory management, providing comprehensive order visibility, and enhancing order accuracy, Extensiv's solutions for brands support an efficient returns management process. The interrelationship between effective order, warehouse, inventory, and returns management is crucial for a seamless ecommerce operation. Extensiv ties these elements together, facilitating a robust framework that minimizes the challenges associated with returns, ultimately improving a business's bottom line and customer satisfaction.

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