Many businesses today have to process product returns for their customers. An article by CNBC shows that the average rate of retail returns jumped to 16.6% in 2021. It further stated that over $761 billion of merchandise was returned to stores and warehouses.
In a bid to streamline the process of returning items, many businesses are now using returns kiosks. Like regular kiosks, these machines help meet customer needs while saving time and money for businesses.
They also ease operations for businesses that offer items for rent, e.g., libraries and equipment stores. This guide to returns kiosks will explain what returns kiosks are, how they operate, and whether you need one for your business.
What is a Returns Kiosk and How Does it Work?
A returns kiosk is a booth-like machine that helps customers return items without waiting in line. These machines help businesses save money by making the return process more efficient.
One pattern noticed in the business sector is the strain of handling customer returns. Business data shows that returns are expensive to ship, process, and restock. Returns also create an extra need for hired labor, thus further straining company budgets.
Self-Service Options For Returns
Returns kiosks feature technology that automates the return process, thus cutting down long queues. Most returns kiosks use a barcode scanner.
When a customer is ready to return an item, they head to the kiosk machine, scan the barcode on the item to be returned or from the package/waybill, and drop it into a bin for processing. The retail staff receives a notification, usually from an application, updating them on returns.
Using a passcode, the staff opens the unit, gaining access to returned items. They can then check for returned items that are fit for refunds. The items are now restocked or sent to a distribution center. This automated process allows businesses to process more returns in the same time frame.
Streamlines the Process
Many self-service returns kiosks also allow users to state their reasons for returning an item. This allows companies to track returns data more efficiently to make changes.
Customers can also track their returns with information usually sent by email. These self-service options have streamlined the process of returns, helping businesses save money while meeting customer needs
Package and Label-Free Returns
Label and package-free returns have become more popular in recent years as they are cheaper to process. Interestingly, returns kiosks have eased package and label-free deliveries, allowing businesses to optimize the process and boost operational efficiency.
Returns kiosks for package and label-free returns have become very popular in the clothing sector. Many electronics stores also use this model due to its cost-effectiveness and ease of data tracking.
Benefits of Using a Returns Kiosk
There are multiple benefits of installing a returns kiosk in your business. These benefits include:
Improved customer convenience and satisfaction
Many customers have reported greater satisfaction from using returns kiosks. Due to the underlying technology and automation, some returns are processed quickly, allowing users to get refunds on time. Very often, customers spend their refunds on shopping for new items either in the store.
Improved operational efficiency for retailers
Retailers enjoy greater efficiency in their sales and return processes when using such kiosks. Firstly, the automation of returns from using these machines allows businesses to attend to more customers. This, in turn, increases revenues for businesses.
Returns kiosks help item drop-offs
In many businesses, customers will need to drop off items for repairs or even an exchange. Returns kiosks can help smoothen the process for businesses and their customers. These returns kiosks are particularly helpful for retailers that run drop-off partnerships with other businesses.
Free in-store pickup and returns
Returns kiosks are also a great option for businesses that offer free in-store pickup and returns. Some companies allow customers to pick up and return items at stores for free. Retailers can offer this option by using returns kiosks to increase customer convenience.
Returns kiosks help save time
As mentioned earlier, returns kiosks have been shown to greatly cut down time spent on processing item returns. Cutting down time on returns also helps companies save money. Furthermore, these returns kiosks can serve more people than regular workers, allowing companies to do more while spending less.
Secure data handling
Many returns kiosks have data collection and handling technology, allowing companies to accrue valuable insights into customer behavior.
Some returns kiosks can collect information on return reasons, transaction volume/time, and customer satisfaction. These kiosks have also been shown to be more accurate in collecting user data, as fewer human interventions translate to fewer errors.
Integration with Amazon and other retailers
Another advantage of using returns kiosks is the integration of these machines with big retailers like Amazon. Companies can also partner with other firms to receive returns and drop-offs. For instance, smaller brands with returns kiosks can form partnerships with mega-retailers.
Industries Using Returns Kiosks
Returns kiosks are quickly becoming a staple in many industries. Some of the most popular uses of such machines occur in the following industries.
Retail
The most common use of returns kiosks occurs in the retail industry. The rise of online sales in the past few years has increased the need for returns. To deal with the growing demand for item returns, retailers have turned to automated returns kiosks, which have helped them save money on extra labor.
Grocery
Online purchases of groceries and household items also lead to many returns as goods sometimes fail to match customer satisfaction. Having returns kiosks at drop-off centers in urban areas eases the process of returning groceries. It also simplifies refund processing, which is a crucial part of keeping consumers happy.
Electronics
The electronics sector is also bogged down by returns. Unlike other sectors, returns for repairs and exchanges are more common in the electronics industry. Returns kiosks help businesses and customers save money by optimizing electronics shipping for repairs.
Apparel and Clothing Sector
The clothing sector has also witnessed a rise in the use of returns kiosks. Furthermore, the growing fad of recycled clothing has seen an increase in stores taking back clothes from customers. returns kiosks are one technology that is helping businesses in the clothing industry adapt to changes.
Pharmacy
The medical industry also benefits from returns kiosks. In recent years, self-service kiosks have become more popular, meaning more people shop for medication. Sometimes, customers purchase the wrong items, thus needing speedy and efficient returns.
Furthermore, due to the sensitivity of medical information, using returns kiosks helps companies in the medical sector collect more data about their users while meeting their needs.
Library
Returns kiosks in the library sector usually have different purposes. Most libraries handle a lot of rentals, meaning they need an efficient way to process customer returns. As you know, many libraries can only process new rentals after a return. With returns kiosks, book rentals are simplified as customers enjoy an automated process of returning items to the library.
Conclusion: Informative Guide to Returns kiosks
Getting returns kiosks might be the next step in reducing costs and optimizing efficiency in your business. Returns kiosks will help your business save time processing refunds and returns.
It will also lower labor costs while allowing you to serve multiple customers. Another important benefit of returns kiosks is data collection and management. Such data will help businesses optimize their processes while boosting customer satisfaction.
If you offer rentals, a returns kiosk will also be very helpful as it will help streamline your operations. For instance, businesses that offer book and equipment rentals can benefit massively from using returns kiosks.
You can get more information about returns kiosks from BestKiosk. We can help you identify your custom returns kiosk needs while finding an option that best suits your budget. To get a quote for your custom kiosk needs, contact us today.
