As diverse as the world of online retail has become, there are still common factors that almost every retailer knows: For most e-commerce companies, returns management is a necessary evil that can be managed reasonably well in daily operations at first, but with increasing scale can quickly lead to losses in efficiency, productivity, and ultimately customer satisfaction and revenue.
Sternglas also faced increasing challenges in returns management over the past years. At the Hamburg-based company, which has successfully specialized in designing timelessly beautiful watches for everyday use, returns processing was still completely manual for a long time.
Kerstin Wacker, Head of Logistics at Sternglas, tells us about the difficulties that arose from manual returns, how switching to automated processes provided the solution, and how returns can be used not only as a method to collect customer feedback but even for product optimization.
Cumbersome Return Processes: Roadblocks for Team and Customers
Since its founding in 2016, Sternglas has developed into an established brand in the watch industry. The reason for this is not only the focus on affordable premium quality but also the emphasis on good accessibility both offline and online: In addition to POS sales, online sales accounted for over three-quarters of the watch manufacturer's revenue in 2020 – in 2021, the distribution shifted even more towards online retail due to lockdown restrictions. At the beginning of their e-commerce development, the associated orders were packed and shipped by a logistics partner; since August 2018, Sternglas's own warehouse has taken over.
"Even though many customers are convinced by their timepiece at first glance, there are some who had imagined the design differently and then initiate a return," Kerstin tells us. For many customers, the final purchase decision only comes when they see the watch on their own wrist for the first time, and often it's the small details that trigger a return.
"Until a few months ago, we handled the entire returns process manually. For our logistics department, this meant all returns were recorded in an Excel spreadsheet. Then an email with the return label was sent to the customer. When the goods arrived back with us, we had to search for them in the Excel file and update the table. At the same time, it was necessary to enter the refund in our shop system, create a credit note, and finally update our inventory."
On the buyer side too, this system lacked smoothness and customer-friendliness: To initiate a refund, customers had to first send Sternglas an email. After receiving the return label, buyers then had to print it out at home, which often led to problems because: "Not everyone has a working printer. I don't have one myself," says Kerstin.
With automation, Sternglas was able to reduce inefficiencies and improve the customer experience and product design.
Collecting Returns and Customer Feedback – with a Well-Designed Returns Portal
In August 2021, Sternglas made the turnaround: Since then, they have been using the returns portal from 8returns – after just one call and a handful of clicks:
"The implementation of 8returns was really easy. We had an onboarding where we were introduced to the system and then everything was handed over to us ready to use. Even our corporate design and logo were already integrated.
We basically just had to connect Shopify and DHL and create our return cases. I also adapted the email template to match our personal tone of voice, but that wasn't a big effort either. After that, everything was set up."
After the smooth transition, they now benefit not only from time and work savings but also from increased customer satisfaction:
"The time savings we've experienced since switching are enormous. No more annoying Excel spreadsheets, no more manual updating of dusty old lists. For refunds, we no longer have to laboriously log into the shop system – everything is done in the 8returns software."
The biggest advantage, however, is for the customers: They no longer need to write an email to Sternglas for returns, as they can now conveniently process the entire exchange through the returns portal. And the printer is now unnecessary for customers too. The label simply comes as a QR code to their phone and is scanned and printed at the parcel counter.
Since the switch, Sternglas has been able to look forward to much more relaxed and efficient processes. The logistics department is relieved and customers are more than satisfied – which, by the way, is also reflected in positive shop reviews. Kerstin tells us that she can regularly read there how well Sternglas's service works.
Product optimization through return reasons
Product Optimization Through Return Reasons
Another major gain for Sternglas is the increased traceability of return reasons through the new system. This not only provides more clarity in the sales area but even influences product design:
"What we couldn't track at all before were the reasons for returns of our watches. Sure, occasionally someone would take the time to give us feedback in an email. But: If you have to write an email just to exchange a product, you often don't feel like telling the retailer in detail about the 'why' anymore.
Since we switched, things look different. In the returns portal, our customers can simply select the return reason and additionally fill out a field where they describe the exact cause of the return – and most of them actually like doing it this way. This information is really valuable to us."
Kerstin even has a concrete example for us.
"One watch, for example, that we really liked was surprisingly returned more often. Now we know why: The movement was simply too thick for many female customers. We naturally passed this information on to our production department, and the team there replaced the movement with a flatter model. That costs a bit more, but since the model now sells much better, the step has completely paid for itself."
A New Returns Portal for a New Era
Like many e-commerce retailers, Sternglas faced increasingly larger challenges as they grew. A cumbersome returns process caused avoidable inefficiency for everyone involved: for the logistics department, for customers, and at Sternglas even for the design team.
Thanks to switching to the returns portal from 8returns, all sides now benefit from the automated processes: Customer support and logistics save time, customers don't have to send emails or fill out forms, and the product team knows exactly how to make their watches even more perfect.
All images courtesy of Sternglas.
