You’ve worked hard to make a name for your company, you offer top-level services and have best quality products in store for your customers, but still the numbers of returned orders bother you?
Well, if you have been part of e-commerce business for sometime now, you may have struggled with higher product return rate. It was estimated in 2020 that almost 1/3 of the products purchased globally end up being returned.
That’s a huge number right?
In order to save you from the stress and help you counter that additional cost, we have a list of practices that can help you minimize your return rates.
But first things first, let's understand the concept deeply.
WHY A RETURN OPTION IS NECESSARY?
This one is very easy to understand.
Think from the user’s perspective. If you visit a website and love one of the products and decide to purchase it, you find out that there is no return policy offered by the company.
Would you still purchase it?
Definitely no, right?
The very first thing strikes a user‘s mind is what if the actual product does not turn out as good as in the picture or maybe they don’t like the product as much as they thought they would - So here, return policy is their safety net.
Let’s talk some figures:
- Nearly 70% of the users agree that having a return policy is vital to them while making a purchase.
- 59% of customers expressed that if the store started charging some fee for the returns, they actually wouldn’t order from it.
- 50% revealed, they abandon their purchases if there is a limitation in the return policy.
So how does one cope with the cost incurred from every return? The solution here is - instead of limiting the return option, the strategy should be to reduce the customer‘s desire to return the orders.
WHY CUSTOMERS RETURN ORDERS?
Instead of jumping onto the strategies, it’s crucial to understand why the users actually returned the orders. Here are some of the reasons.
- Wrong fit - either the product didn’t fit well or the wrong size was ordered.
- Damaged upon arrival- The product appeared to be damaged.
- Didn’t meet the expectations- The product looked different in the picture than in reality.
- Change of heart- by the time the product arrived, the user didn’t want it as much as they thought they did.
- Wrong color- received wrong color from what the user anticipated.
- Order more than they actually need - 46% of GenZ and 43% of Millennials order more than they actually need and end up returning those products.
Although the figures differ from industry to industry, there is a very less chance for returns when it comes to household products like coffee, tea, sugar etc. But it is most popular in the fashion industry.
Ever since the pandemic, online shopping has increased and users are unable to decide their size and preferences, people have started to order multiple options from e-commerce stores and then return the ones that don’t fit - Trust me this has become a trend too!
6 Best Practices To Adopt To Reduce Return Rates
1- Keep an eye on serial returners
When a user is aware that your company offers flexible returns, there is a high chance that they might take advantage of it.
Some may order in bulk, decide the one they want to keep and return the rest. Whereas some users might actually order a particular clothing, put it to use and then return it for a full refund.
To save your business from such customers is by identifying them by their patterns and keeping an eye on their habits. And with enough data, you can issue a warning to them or even block them from making future returns.
2- Increase the duration of your return policy
Instead of having a 10 day or 30 day return policy, double or triple the number of days for the customers to return an order, hence reducing the urgency to return.
Once the user is aware that there is still a lot of time before they have to return, they become lenient and hence there is a high chance that they get attached to the product or maybe even forget about it.
In the short time frame, customers are in a hurry to return the order and are less likely to think rationally about it.
3- Send an informational email right after the order is placed
The best way to reduce returns is by sending an informational email right after the customer has placed an order. Provide extra information regarding the product’s origin and other specifications.
Also provide a clear clarity to the consumer regarding the estimated delivery time, return policies and also provide a cancellation period before the product is sent out.
In case a consumer has a query, make sure to include links for life chat, contact information or even instant messaging so that they can conveniently reach out to you.
4- Offer an elaborate and accurate size guide
To avoid high return rates, you need to ensure that you have provided accurate and up-to-date size guides on your website. They should be easy to access and understand to avoid ordering the wrong sizes.
You can also add additional tools like a 360 degree viewer or a small slider or ruler on the displayed products to give customers a better understanding and to avoid any confusion.
Taking a step further, Ikea launched its app featuring AR, that allows users to actually scan the area of the room and gives suggestions of which piece of furniture will fit the area best.
5- Promote and Reward reviews
Encourage your customers to drop a review on the product received and also offer them a 10% discount on their next product or maybe even a freebie or cashback on receiving a review from them.
This will motivate your customers to provide reviews and will also help you in understanding the problems people are facing with the product and put their feedback to good use.
6- Even take returns in a positive way
Instead of stressing and spending so much time on how to reduce returns, rather focus on transforming your return process into a more fun and seamless one.
All customers remember the brand that offered them seamless returns.
No matter how many tricks or strategies you use, you are still bound to get, if not many, than a few returns from your customers.
So instead even take returns as an experience, and offer your customers a seamless journey and hence get a loyal customer in return.
This section will definitely benefit you!
There is always an additional cost incurred whenever a return of an order takes place, so how can a business man save himself from this cost?
Here are a few practices that can help you….
Restock the return order
One way to avoid additional costs is by refreshing the return item in the stock as soon as it is received. This will avoid the opportunity cost that you may have to incur.
Restricting returns after repeat behavior
Once you are aware that a consumer has a repeat pattern of returning orders, you can limit the number of orders they can return.
Let’s say the customer ordered 3 items and returned all the 3. So the next time, per say, he again ordered 3 items, you allowed him to return only 2 items. This will earn you at least the price of one item.
Return items to store
Allowing customers to return their products to a physical store (if you have any) will not only avoid the delivery charges, but will also make the whole inspection process faster and the product can be available on the store shelf for future shoppers.
Product returns are inevitable, and beyond your control. Hence it is important for the business owners to try and minimize the returns as much as possible or instead provide them an experience of a lifetime so they stay loyal to your brand always.
