Introduction
Multichannel selling often involves dealing with each sales channel's different processes for handling returns, order status, and other operations. An order return begins when the customer initiates the return request. Multichannel Returns Management is inherently tied to order management, inventory, fulfillment, and tracking operations. A return impacts other operations like order management, inventory recording systems, order tracking, and matching orders.
This interconnectivity of order returns with other business workflows creates a need for a connected operational infrastructure for every multichannel ecommerce business. Through this system, sales channels' data gets updated in your internal data system in real time to ensure business operation alignment.
What Is Multichannel Returns Management?
Multichannel returns management refers to handling product returns when selling on different marketplaces. The retailer needs to understand how a return can impact the order workflow, inventory records, and tracking processes that they are integrating.
This process generally begins when a customer requests a return of a placed order. The marketplace where the order was placed may have its own return policy or customer-facing process. Once the return affects an order or product status, the business may also need to perform a corresponding internal update.
Single-Channel vs. Multichannel Returns Management
A single-channel seller manages orders, inventory, fulfillment, and returns within one sales channel. This simplifies the operational flow as there are fewer systems to keep in sync.
Multichannel selling adds another dimension. Managing a business with simultaneous sales from Walmart, eBay, TikTok Shop, and Shopify, when inventory is held at one or more fulfillment centers, brings another challenge. It is unlikely to each of those sales channels to have the same return policies and statuses.
Multichannel returns management isn't about a single system processing every return from every sales channel. Each marketplace can continue managing the return and process using their own policies and standards.
The key factor is information sharing – ensuring that all of the data that goes through a return flows to the order management system, inventory, fulfillment and tracking processes. This process identifies what has happened to the order and what needs to be done next.
Why Returns Become Difficult When You Sell Across Multiple Channels
1. Different Return Policies
Each channel may have different return policies and customer-facing processes. For instance, initiating a return on TikTok Shop may differ from the process a customer can use to make a return on Walmart. This means that the returns team must know every channel’s regulations.
2. Scattered Return Information
Because each return is initiated through the marketplace where the original order was placed, return information may remain spread across different platforms. Retailers may need to review multiple channel dashboards, from Walmart to eBay, to understand what happened with each order and track the return request.
When order details are connected across all marketplaces, it simplifies the tracking process so every channel is not treated as an isolated business, even if they operate through separate systems.
3. Inventory Discrepancies After Returns
Returned products should not be added directly to the total available inventory. Instead, each returned product must be checked and verified to ensure it is safe, ready for resale, or will be sold out of stock. Connecting returns to inventory information ensures retail inventory counts are updated; every time a returned order comes in, total available inventory might change.
4. Manual Refund and Order Record Reconciliation
Whether an order can be processed as a return is determined by the seller or marketplace. Records must show what happened to that order. Internal data must include item details, return reason, product price, status change recorded, etc. Consolidating order information ensures an accurate record from the original sale to a potential returned order.
5. Multiple Fulfillment Locations
Returns often become even more complicated when inventory is stored in different warehouses (physical, 3PL, retail, etc.). Businesses with inventory stored at different locations will face considerable uncertainty about where returned inventory will be stored subsequently- a returned product could travel to any warehouse, influencing the potential for future order fulfillment.
How a Multichannel Return Workflow Works
Customer Return → Order Status or Adjustment → Inventory Impact → Fulfillment or Restocking → Operational Reconciliation
- Customer Return: The process starts when a customer requests a return through the sales channel where the order was placed. The return remains linked to the original order and its details.
- Order Status or Adjustment: The order information is updated to reflect the return. This helps the business keep track of the order's current status and next steps.
- Inventory Impact: Once the product is returned, the business determines its inventory status. If it is ready for resale, it can be added back to available stock. If it needs inspection or other attention, it can remain unavailable until processed.
- Fulfillment or Restocking: Products ready for resale can be restocked and made available for new orders. Items requiring further attention can follow the appropriate internal process before becoming available again.
- Operational Reconciliation: Finally, the order, inventory, and fulfillment information should remain aligned. This helps businesses maintain consistent and reliable information across their connected sales channels.
How to Centralize Multichannel Return Operations
What matters is that MMC is our connected operational layer. It connects relevant order, inventory, fulfillment, and tracking information within a sales channel and flows into operations.
1. Connect All Your Sales Channels
Connecting Shopify, TikTok Shop, Walmart, and eBay helps bring your channel orders into a more cohesive multichannel operation. It keeps order, inventory, fulfillment, and tracking information connected and accurate.
2. Keep Return-Related Order Data Connected
A return creates an order status change. When the order data is connected across channels and systems, it remains useful for understanding any follow-up that’s required because of the initial purchase and subsequent return.
3. Maintain Inventory Accuracy After Returns
Inventory accuracy is a common concern when processing returns. Multichannel Integration Platform supports inventory adjustments, helping update inventory based on the status or condition of the returned product.
4. Coordinate Returns With Fulfillment
When it comes to a return, the next steps can be uncertain. Often, operational details flow through different teams in the business. With connected order information, inventory status, and product fulfillment, MapMyChannel supports coordinated processes to accommodate operational flow.
5. Keep Order and Tracking Information Updated
Connecting sales channels helps manage order and inventory tracking details, giving sellers a comprehensive view across all marketplaces. Multichannel eCommerce System keeps order and tracking information connected across supported channels and workflows.
6. Manage Multichannel Operations From One Centralized View
MapMyChannel's single view of all operational processes gives you a unified platform so business owners don’t have to create every channel as a separate workflow. MapMyChannel connects orders, inventory, fulfillment, and tracking so you can coordinate all systems for multichannel returns.
We can visualize our connected infrastructure like this:
Shopify + TikTok Shop + Walmart + eBay → Orders & Return Events → MapMyChannel →Inventory + Fulfillment Workflows → Updated Order & Inventory Data
Best Practices for Multichannel Returns Management
1. Know the Return Rules for Each Channel
Every marketplace can have its own return rules. Knowing the return process for each channel helps to know how to process return requests and return orders correctly.
2. Design a Standard Return Process
Put a simple internal process that outlines what is done when a return occurs. The process should outline the steps your team takes:
- Update the order
- Verify the returned product
- Update inventory
The ability to repeat the process makes it easy to scale returns as your business grows.
3. Update Inventory After a Return
Update inventory as you bring the returned product back through your system. When an item comes back, ask the following questions about the returned products:
- Can the product be sold?
- Do you need to check the product?
- Do you need to repair the product?
- Move it to another facility?
- Do you want it to be unavailable?
As you update inventory, it will then accurately reflect the actual state of the products you sell.
4. Connect Orders With Tracking Information
Maintain the connection between an original order, its original shipment, and its corresponding tracking information. It is essential for your team to have visibility into the product history, including shipping, returns, and processing information.
5. Keep Return Processes Connected to Your Operations
Although the customer-facing aspects of returns may be handled by the marketplace, your interconnected commerce systems manage backend processes. These may include:
- Order updates
- Inventory updates
- Fulfillment data
- Tracking information
- Internal operations logs
Separating return management and operations helps to understand the responsibilities of each system.
6. Leverage Connected Multichannel Operations
As much as possible, connect the order and inventory, and fulfillment systems that your business uses across your marketplace channels. The objective is not to have the same workflow for each channel, but rather for information to flow seamlessly between the necessary business systems.
Key Metrics to Track for Multichannel Returns
These metrics help sellers understand how returns impact inventory, fulfillment, and overall ecommerce operations.
- Return Rate by Channel: Shows which sales channels (Shopify, TikTok Shop, Walmart, eBay, etc.) receive the most returns, helping sellers identify channel-specific issues.
- Return Processing Time: Measures how long it takes to complete a return, helping sellers identify delays in the returns workflow.
- Inventory Adjustment Accuracy: Ensures returned products are correctly updated in inventory, reducing stock errors and overselling.
- Restock Rate: Shows how many returned products are added back to sellable inventory, helping sellers recover inventory value.
- Return-related Inventory Value: Tracks the value of products tied up in the returns process, helping sellers understand the financial impact of returns.
- Order Reconciliation Accuracy: Confirms that order records remain accurate after returns and refunds, reducing operational errors.
- Fulfillment Impact: Measures how returns affect warehouse operations and inventory movement across fulfillment locations.
- Channel-level Performance: Compares return trends across sales channels, helping sellers identify where operational improvements are needed.
Together, these metrics help sellers improve return handling, maintain accurate inventory, and make better operational decisions across multiple sales channels.
Conclusion
Multichannel returns management means the sellers control the returns operations, but let each of their sales channels control its own customer-facing returns experience. A return originating from TikTok Shop could look very different from a Walmart or eBay return, but the important thing for the company is to have the connected order, inventory, fulfillment, and tracking data associated with the return.
MapMyChannel is a back-end system; it is not a specialized returns system, but supports the workflow around connected sales channels.
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