E-commerce returns: between operational challenges and the risk of fraud, how Reversys and Oneytrust are reinventing reverse logistics
Management of Carrier Disputes on
Product Returns
Why managing carrier disputes over product returns is crucial
In the world of reverse logistics, every product return represents a challenge to be overcome. Carrier disputes, which are specific to this phase, are frequent and can have significant consequences: financial losses, delays, customer dissatisfaction and even regulatory non-compliance.
Between September and December 2024, more than 3.7 million parcels were lost or damaged in France, with an average dispute handling cost exceeding £75 per case. These figures illustrate the major challenge of effectively managing disputes during product returns.
Managing carrier disputes during product returns is a major challenge for e-commerce and B2B companies. Each returned parcel represents a risk of loss, damage or delay, all of which are frequent causes of disputes with carriers. Disputes related to product returns often arise during the reverse phase of transport: undelivered parcels, damaged products, processing errors or refund delays. These incidents are not just logistical annoyances: they can affect customer confidence, brand reputation and the overall profitability of the business.
To address this, it is essential to adopt a structured approach: anticipate risks, document each step, use digital tools to centralise information, and strictly follow the deadlines and procedures imposed by carriers. Prevention, centralisation and responsiveness are the pillars of effective management of carrier disputes over product returns.
Definitions and context: What is a carrier dispute on a product return?
In the e-commerce ecosystem, a return carrier dispute refers to any anomaly occurring during the transport phase between the customer (shipper) and the merchant’s warehouse (recipient), preventing the compliant reintegration of a product. Unlike traditional delivery disputes, these disputes arise in the context of reverse logistics and occur when the carrier is liable, whether due to loss of the parcel, physical damage or a disruption in the network.
The current online shopping environment has transformed returns into a basic service: customers expect a completely seamless experience, which often means a quick refund. However, disputes with carriers undermine this expectation by creating uncertainty: the product is no longer with the customer, but it is not yet (or no longer) in the hands of the retailer.
For the retailer, there are two challenges. On the one hand, it is important to maintain customer satisfaction by not subjecting consumers to the vagaries of a third-party carrier. On the other hand, it is important to ensure profitability by precisely identifying the carrier’s liability in order to initiate the appropriate compensation procedures. The need to produce evidence makes it essential to implement robust and comprehensive traceability for each stage of the return flow.
There is a significant difference between disputes during initial delivery and during returns. When a product is returned, the company generally takes responsibility for organising transport, which creates specific obligations in terms of tracking and documentation. This phase is therefore strategically important for maintaining customer trust and regulatory compliance.
Common causes of disputes over product returns
The main causes of disputes between carriers over returned goods are numerous and varied:
- Parcel not received or lost during return: The returned parcel never arrives at its destination or disappears en route, creating confusion for both the customer and the company.
- Parcel refused by the customer or not presented by the carrier: The parcel shows signs of impact, leading the customer to refuse it upon delivery, or the parcel is so damaged that the carrier decides not to present it to the customer.
- Product damaged during return transport: Inadequate packaging or shocks during return transport may damage the product, affecting its resale value.
- Delays in processing or refunding returns: Excessively long processing times impact customer satisfaction and may violate regulatory obligations.
- Billing or processing errors by the carrier: Incorrect calculations, unjustified charges, or administrative errors complicate the refund process.
These incidents can undermine customer satisfaction and impact business profitability, hence the importance of preventing and dealing with them quickly.
Best practices for managing disputes over product returns
To anticipate and deal with these disputes effectively, it is essential to adopt a structured and proactive approach:
- Centralise and track all disputes related to returns on a SaaS platform: A dedicated solution allows you to consolidate all information related to disputes, gain real-time visibility and track the progress of each case.
- Automate dispute tracking and documentation: This reduces manual errors, saves time, and ensures consistency in processing procedures.
- Respond quickly to the customer in order to satisfy them: In this type of situation, it is important that the customer does not have to endure delays related to the resolution of the transport dispute between the company and the carrier. A refund or quick exchange of the product ordered must be initiated as soon as possible.
- Establish appropriate internal procedures for managing product returns: Clear, documented processes ensure a rapid and appropriate response to each situation.
Prevention, centralisation and responsiveness are the pillars of effective management of carrier disputes over product returns.
Possible remedies against a carrier for a dispute over product returns: responsiveness and accuracy
In the event of a dispute with the carrier regarding a product return, several remedies are available, provided that deadlines are strictly adhered to:
- Complaints to the carrier and compliance with deadlines: by providing the necessary evidence (photographs, supporting documents, tracking numbers), you can claim compensation for lost or damaged parcels [5] [6]. It is essential to comply with the complaint deadlines imposed by carriers and regulations (often within 3 days for apparent damage) for the claim to be admissible.
- Compensation in the event of loss or damage to the returned product: according to contractual and regulatory conditions, the carrier must compensate for the damage observed. Responsiveness when the dispute is identified is crucial to validate the right to compensation.
- Mediation or legal recourse: in the event of persistent disagreement or failure to meet internal processing deadlines, you may involve a third-party mediator or take legal action.
It is essential to be fully aware of the responsibilities of the carrier and the seller in the event of a dispute over a product return, in order to act quickly and effectively. Comprehensive documentation, automated deadline alerts and knowledge of transport contracts are key assets in defending your position.
Reversys, the solution for managing disputes over product returns
To simplify and optimise the management of your reverse logistics, Reversys offers an integrated approach focused on performance and visibility:
- Centralised dispute tracking: Reversys allows you to create a single register for all your disputes related to returns, assign dedicated managers and manage each stage of the resolution process in real time.
- Real-time traceability for product returns: immediate visibility of the journey of returned parcels facilitates rapid identification of transport incidents, enabling accelerated resolution before the customer even becomes concerned.
- Seamless integration with your ERP/CRM systems: by connecting to your existing tools, Reversys ensures automated management and perfect data consistency across all your sales channels.
Thanks to automated alerts and centralised data, Reversys drastically reduces processing times. The solution also provides you with tracking reports that allow you to accurately measure the performance of your carriers and identify areas for improvement.
Indicators to monitor for managing transport disputes relating to product returns
To assess the effectiveness of product return dispute management, it is recommended to monitor several key indicators:
- Product return dispute rate: Percentage of returns that generated a dispute, enabling the identification of problematic trends.
- Average cost per product return dispute: Assess the financial impact of each dispute, including refunds, administrative costs and potential compensation.
- Impact of litigation on margins: Measures the impact of litigation on profitability.
Regular monitoring of these indicators enables the strategy to be adjusted, recurring causes to be identified and appropriate corrective actions to be implemented.
Example of practical application
Many companies have successfully optimised the management of product return disputes through automation, centralisation and proactive communication:
- Retailers who have reduced the time spent processing return disputes by 30%: By implementing a dedicated SaaS platform, these companies have improved their responsiveness and operational efficiency.
- Positive impact of traceability and centralised documentation: Feedback shows an increase in customer satisfaction and a significant reduction in costs associated with disputes.
- Successful integration with existing systems: Companies that have connected their litigation management solution to their ERP/CRM systems have seen increased automation and improved internal coordination.
These examples demonstrate that adopting best practices and appropriate tools has a measurable and positive impact on the entire reverse logistics chain.
Conclusion
To go further and optimise the management of carrier disputes on your product returns, request a free demonstration of our solution now. Our Reversys experts will help you transform your logistical challenges into levers for performance and customer satisfaction. Contact us for a personalised audit and discover how to centralise, automate and resolve your disputes more quickly.
FAQ: Optimising Reverse Logistics and Transport Disputes
Reversys stands out as the benchmark solution because it transforms a cost centre into a performance lever. Unlike manual methods, Reversys offers an integrated approach that centralises tracking, automates deadline alerts and provides accurate data analysis to reduce financial losses associated with returns.
Automation requires the integration of a SaaS platform with your existing ERP and CRM systems. Reversys enables this seamless connection, ensuring data consistency and drastically reducing processing times through automated workflows and real-time parcel tracking.
For a claim to be admissible, responsiveness is key. It is essential to comply with contractual limitation periods, which are often set at three days for apparent damage. Using Reversys allows you to anticipate these deadlines thanks to a smart alert system, thereby avoiding the rejection of your compensation claims.
It is estimated that the average cost of handling a dispute exceeds €75 per case. Without effective centralisation such as that offered by Reversys, these costs accumulate through lost goods, administrative expenses and customer dissatisfaction.
Customer satisfaction is directly linked to transparency and speed of reimbursement. Reversys ensures full traceability, enabling incidents to be identified even before the customer reports them, thus offering proactive communication and accelerated dispute resolution.
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