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How To Manage Online Payments & Refunds

How To Manage Online Payments & Refunds

On 1 October 2020
E

E-commerce has long been thought to be a homogenous practice. Unlike traditional brick and mortar, there are various segmentations dependent on the business models.

For instance, Jumia and AfricaSokoni are marketplaces while on the other hand, the supermarket chains are retailers with an e-commerce presence otherwise known as e-tailers. 

Then there are hundreds of companies that sell web templates and shopping carts such as Shopify and there is us, Pesapal; a payment service provider. Essentially, you need a reliable payment service provider to process the payments SECURELY at the check-out stage on your website.

The punchline? There are several moving parts when it comes to creating an online presence and generating revenue; and it’s not trivial.

Good, effective management of your online shop is all about custody, transparency, and data.

 

Quality Multi-Channel Operations

To operate at peak efficiency, you’ll need a vigorous web presence, a point-of-sale system that doesn’t let you down, a handle on your inventory, and the proper tools to reach out to, and retain your customers.

  1.     Web Presence - The more places your products appear on the web, the easier it will be for you to sell them. Combine your social media efforts with selling on marketplaces to have a wider pool of customers.
  2.     Inventory Management – As your online sales gradually increase, you will need to synchronize your inventory across all your platforms, so you’re not selling a listing that you don’t actually have. There’s nothing worse for your brand than being unable to fulfill a customer’s order after already taking it.  

Recommended Read: How to Start a Profitable Online Store

  1.       Point of Sale (POS) System – If you have a physical shop, then you probably have a point-of-sale system. An effective POS should track your inventory levels, revenues, manage payroll and also integrate with accounting software.  However, with the move to online sales, there’s the need to link the two selling options. Pesapal’s payment solution allows you to integrate with any POS as well as start processing a wide range of payments such as mobile and card payments on your website.
  2.       Customer Retention – Online platforms are the easiest to engage and retain your customers. Unlike walk-ins to your business premises who disappear once out of the shop, you can keep in touch with your online visitors. Did a potential customer fill up a shopping cart and then abandon it before purchase? Does someone have a question about a product or delivery method? Since the customers’ data is easily available to you, be sure to get back to them via text or email or even calling to follow up.  

Processing Online Payment Refunds & Exchanges

Are your refunds and returns policies clear? Need to process a reimbursement? Returns, refunds, and exchanges are all a part of doing business. You need a clear returns policy that includes policy for refunds, a clear process that protects you, the merchant from potential fraud.

  • Policy 

It is important to note, though a refund or an exchange will not lead to better margins, it will increase customer loyalty which eventually leads to a higher customer lifetime value. Create a refunds and exchange policy that’s a win-win situation for both your customers and business. Include basics such as items’ conditions, final-sale goods like perishables, return timelines and channels for return.

  • Process 

How will your customers initiate a return or a refund? Without a straightforward system in place, returns and refunds can be the most dreaded part of managing your online revenue and retaining customers. Just like having a formal return and exchange policy will help eliminate some of the hours spent on customer service, using the right services for processing returns and refunds will save you both time and money on the fulfillment and operations side.

  • Protect 

Some customers insist on a refund and this can be disheartening both financially and emotionally. For a consumer to insist on a refund, it signifies that the product of choice did not meet their expectations. Nevertheless, to safeguard from fraud, Pesapal reimburses the funds to the original mode of payments. Whether the product was paid via Pesapal PDQ Machine or it was an online payment using their debit card, the refund amount will be directed to the point of payment.



 

Ready To Start Accepting Online Payments On Your eShop?

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CLICK HERE TO GET STARTED

 

 

Published In: Payments

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