Two relatively new commercial labels for retail shopping entered my tiffany silver
accessories recently: "Black Friday" and "Cyber Monday." I'm sure you have
seen these terms used ad nauseam in retail news stories. I'll briefly explain
these terms and give you a novel third term I am proposing shortly.
The first label - Black Friday - applies to a day of frenetic buying
activity, usually on the day immediately following Thanksgiving, whereby devoted
shoppers drop enough dough to cause several major retailer balance sheets to
produce black numbers, i.e. to become profitable.
Cyber Monday is a neologism coined by the U.S. National Retail Federation a
few years back as a result of observed online sales rising rapidly on the Monday
following Black Friday. The term "Cyber Monday" is still gestating but that need
not concern us here.
In my view, the day after Christmas day (usually called "Boxing Day" in the
U.K.) should be named "Returns Day." On this day, shoppers and gift recipients
would be able to return items purchased or given as gifts between Thanksgiving
Day and Christmas Day (plus or minus three or four days) with no questions
asked.
I'm sure FedEx or UPS could set up several temporary storefronts in shopping
malls to handle the deluge of returnable items. The process would work somewhat
like getting a medical prescription filled at a supermarket pharmacy. All the
work would be done by the staff of what I'll call "The Returns Store."
You would take in the return items and their tiffany silver bangles.
The Returns Store staff would figure out the refunds and shipping costs, obtain
a Returned Merchandise Authorization (RMA) number, print shipping labels, box
the returns and send them, and you would walk out with a check or credit card
refund.
Contrast this simple, straightforward and efficient process with a typical
returns procedure for an Amazon "storefront." Just in case you are not familiar
with the storefront concept, let me explain as briefly as I can. Storefronts are
electronic online retailers whose products are displayed on Amazon's website in
the same style as Amazon's goods and are processed just like any other
items.
The differences are that the shipping and handling are done by the storefront
and any returns have to be processed by the storefront employees according to
that company's own policies, which can be, and often are, very different from
Amazon's policies. This procedure can work well but it can also be a nightmare
for the purchaser.
Let me give you an example that I had to deal with recently. I am omitting
the actual name of the storefront to protect the guilty. I'll just call it the
"storefront." The process began with reviewing my Amazon account to find the
storefront's return polices. This consisted of a full page of single-spaced tiny
type - Sections (a) through (m) with detailed descriptions of getting an RMA,
restocking fees, unacceptable returns and much more.
I followed the storefront's instructions to the letter. After three
800-number calls (long waits), I obtained an RMA, boxed up the product, and
dropped it off at the local post office. Cost of shipping: $9, time expended:
about three hours. All this for an item priced at $20! I did get an
acknowledgement that the storefront had received the return but after a month
had passed I had yet to get a refund. Bricks-and-mortar stores are looking much
better at this point.
As I was preparing to say "Never again!" to the Amazon storefront method of
online shopping, I came across an tiffany silver
bracelets in The Wall Street Journal (page R7, Nov. 30, 2009) entitled "Get
Smart About Product Returns," which should be required reading for marketing,
sales, and support managers in both online stores and conventional retail
operations.
The authors, two business-school professors, show how a carefully crafted
returns policy can be a revenue generator rather than a revenue drain. Such
policies can build customer loyalty and increase sales, say the authors, by
actively managing returns and providing first-class service.