How well you handle online returns will likely determine your
future success-or failure-in the dotcom world.
There are a number of ways to handle returns, but one
particularly popular way is to provide customers with return labels
that can be placed on packages to be sent back to the ful-fillment
center or business. The U.S. Postal Service (USPS) was the first to
offer a system to allow customers to print return labels straight
from their own PCs. Called Returns@ease, it works like this: After
customers alert you that they want to return items, you can provide
them with merchandise return labels via the Web so they can return
the packages by mail.
To use Returns@ease, you must obtain a merchandise return permit
from the USPS and set up an account at a local post office. The
reg-istration application, programming codes and applicable
guidelines for using the service can be found online at
USPSPriorityMail.com. The service is free to customers and
doesn't require additional hardware or software. Keep in mind,
though, that there is a minimum charge to merchants of 30 cents per
return, plus postage and any fees for special services such as
shipping insurance and delivery confirmation.
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UPS also has an e-returns service that provides consumers with a
label they can print from their PCs. But the UPS system has
additional functions. For example, "[If your customer returns
a CD because] he changed his mind, the system can ship it back to
the merchant for restocking," says Steve Holmes of UPS.
"But if the CD was returned because it was defective, the
system knows immediately to put the name and address of the
manufacturer on the return label so it can be returned under
warranty."
Once packages are shipped, you and your customers can keep track
of the status of those packages directly from your Web site or via
the UPS Web site. Customers can
hand return packages to any of UPS' 70,000 drivers,
or-depending on your returns policy-UPS drivers can pick up the
packages at consumers' homes.
Based on your returns policy, you'll be charged a
transaction fee and various transportation charges, which are
billed to you or your customer once you receive the items from each
return.

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