Nowadays, online shoppers often order products in various versions. They return what doesn’t fit or what they don’t like, but the large number of returns presents a significant challenge for retailers. Apart from the costs of dispatch, packaging and handling, returns mean retailers have to deal with additional expenses in the payment process especially. It takes several days, if not weeks for returns to be received and processed. During this time, the original invoice is still considered as unpaid. In the worst case, these will automatically go to the dunning process although the customer does not need to pay it, or only needs to pay for a portion. This can lead to frustration and irritation for the consumer.
"The majority of customer inquiries to us concerns returns and credit notes for invoices as well as payment terms," knows Jan-Peter Radtke, Product Manager at AfterPay Germany, who got the solution off the ground with his international colleagues. AfterPay users will in future be able to mark their returns via their MyAfterPay account. The original invoice will be paused until the return is successfully verified by the retailer, so that the customer does not receive payment reminders although they have already sent the goods back long before.
"In the further development of our product, we are always close to the retailer, but above all the consumer too. As only if we put ourselves in the customer’s position and understand their problems, can we develop solutions to improve the user experience," explains Sebastian Kespohl, Vice President AfterPay DACH, the development of the new feature.
With the new returns management system, which will now be gradually rolled out to all AfterPay customers in Germany and later in other markets, Kespohl believes they have created a win-win situation. "Retailers therefore receive fewer customer inquiries and also retain their customers. With AfterPay, customers only pay for what they actually want to keep without receiving unnecessary payment reminders."
About AfterPay/Arvato Financial Solutions
AfterPay offers online retailers secured payment on account, direct debit and payment by installments in Germany, Austria, Switzerland, Sweden, Norway, Finland, Denmark, the Netherlands and Belgium. More than 6,000 retailers use the AfterPay service. AfterPay is a product from Arvato Financial Solutions.
Arvato Financial Solutions is a global financial services provider and part of Bertelsmann SE & Co. KGaA as a subsidiary of Arvato.
The company has around 7,500 employees in 17 countries, including a strong presence in Europe, Brazil and the U.S, and offers flexible full-service solutions for the efficient, international management of customer relationships and cash flows. Arvato Financial Solutions is synonymous with professional outsourcing services centering on cash flow in all phases of the customer lifecycle – from risk management and invoicing to debtor management, the sale of receivables and debt collection. As part of this, the company focuses on minimizing default rates in the business initiation phase and during the collection process. As a result, its services also include optimizing the selection of payment types internationally.
As a financial solutions provider, the company manages around 10,000 customers, specializing primarily in the retail/e-commerce, telecommunications, insurance, banking and healthcare sectors. This makes it Europe’s third largest integrated financial service provider.
For more information, please visit http://finance.arvato.com
Arvato infoscore GmbH – part of Arvato Financial Solutions
Rheinstraße 99
76532 Baden-Baden
Telefon: +49 (7221) 5040-1130
Telefax: +49 (7221) 5040-3055
http://finance.arvato.com
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Telefon: +49 (7221) 5040-1130
E-Mail: Nicole.Schieler@arvato.com