As an entrepreneur, there’s a chance that you’re always looking for the best small business eCommerce solutions. Fortunately, today, we’ll be discussing solutions to a looming problem in eCommerce: returns.
Take note that the numbers aren’t pretty. U.S. return delivery costs totaled a hefty $350 billion in 2017. Returns processing can tally between 20-65% of the cost of the products sold.
No matter what niche you’re in, it’s in your best interest, as a small business owner, to learn how to reduce eCommerce returns.
What are the best ways to reduce eCommerce returns?
It’s not all doom and gloom. In just nine simple steps, business owners can work towards solving the eCommerce return problem, reduce their operational costs, and keep their business afloat.
1. Understand why customers return items.
Most customers return items for one of four reasons:
- Sizing issues
- Transport damage
- Product defects
- Receiving the wrong item
You can glean for more information if you conduct a customer survey asking why shoppers returned their products. Armed with this information, you can then prevent returns that shouldn’t be happening. Which brings us to our next tip…
2. Address warehouse and shipping issues.
According to data provided by the returns management software, Trueship, 23% of returns result from the shipment of an incorrect item. Another 22% of returns relate to items damaged during transportation. These two reasons account for nearly half of all returns.
If customers routinely complain or leave reviews about receiving incorrect or damaged items, it’s vital to immediately address that concern. You have a few options:
- Assess the workers and packing processes in your warehouse
- Invest in order fulfillment software to better manage your warehouse
- Outsource this aspect of your business to an order fulfillment specialist
You should also ensure that you’re shipping items within the timeframe specified on your website. COVID-19 may delay shipping times, so be sure to adjust expected shipping and arrival dates accordingly on your website.
Some customers buy items for time-sensitive reasons, such as special events, so they may return the product if they receive it days or weeks after the expected arrival date.
3. Advertise the product with high-quality photos.
Another common reason that customers return items is that the item didn’t meet their expectations.
How often do you read a product description that excites you, only to find out from the reviews that the item comes in a different shade of blue than the one pictured? Too often. According to Invespro, 22% of shoppers return items because they look different than what’s being shown online.
Using high-quality, high-resolution photos will allow customers to make an accurate, informed assessment of the product before buying, which reduces the likelihood of false expectations. Fewer false expectations mean fewer returns.
Likewise, depending on the product, you may also want to take photos from different angles. For example, you should show how a T-shirt appears from the front and the back, especially if different lettering, logos, or artwork appear on either side. Or, you could show how an office chair looks from the back and the front for aesthetic purposes.
Finally, if you’re selling high-end furniture, consider offering an augmented reality (AR) experience so customers will be able to visualize the products in their home better, leading to fewer mismatched expectations and, eventually, fewer returns.
4. Provide detailed information for each product.
One significant disadvantage of shopping for clothes online, for instance, is the inability to try them on before buying. We’ve all had the experience of buying jeans online only to find that the zipper won’t close all the way.
Just to hedge their bets, customers will often buy a single item in multiple sizes, only to return the sizes that don’t fit. This issue has become so widespread that it’s earned a name in the retail world: bracketing.
You can control this issue by providing a detailed size guide for clothing. For example, you could specify that a large-size dress works best for women within a certain height and/or weight range, whereas a medium-size dress works better for a different range.
However, details matter for more than just clothing. Just about any online product will benefit from a detailed, accurate description as customers don’t like to be misled.
You wouldn’t want a customer buying the wrong charger for their MacBook or the incorrect filter for their water tank because the product specs didn’t provide sufficient information. Not only will the customer return the product, but they’ll also be less likely to purchase items from your store again.
If the product description feels excessive, use formatting tricks, such as bullet points or bolded text, to make an important piece of information stand out.
5. Minimize free-shipping returns.
This solution might seem obvious, but business owners are often wary of implementing it. Maybe you’re worried that customers will flock to your competitors who offer free shipping, which is a real possibility.
But when offering free-shipping returns on all items, you also risk customers buying multiple items and then returning all of them. The sheer number of returns will cause considerable operational costs and a massive headache on your end. As an alternative, you may want to offer free shipping on items up to a certain price point, for example.
At the very least, consider limiting free shipping on certain big-ticket discount days, such as Black Friday or post-Labor Day. If you do that, be sure to clarify the holiday-related shipping change in your return policy.
6. Provide excellent customer service.
You can’t win them all. Some customers will find fault with an item and return it, despite your best efforts.
If you can’t prevent the return, at least do your best to keep customers coming back for another shopping spree. A whopping 92% of consumers would continue to do business with a company after a return, but only if the returns process was easy.
To make your return process a pleasant experience, take the following steps:
- Offer a tracking number so the customer can estimate the time of arrival.
- Give clear details on how and when to return the item (in what condition, within X number of days after purchase, is shipping free or not, etc.).
- Put return/refund information in your return policy, packing slip, and the confirmation email.
- Issue a refund promptly.
7. Ask customers to exchange items.
According to a 2018 consumer report by Narvar, 57% of online customers replaced or exchanged the last retail product they purchased.
This tactic seems like a no-brainer. If you allow people to exchange an unsatisfactory product for another, you can maintain your revenue stream and get a happy returning customer.
8. Adopt a liberal (and easy-to-find) return policy.
According to UPS, nearly 90% of shoppers look at a store’s return policy, and two-thirds of them read the policy before buying an item.
As a solution, make it easy to find your return policy. Place the policy in numerous, visible areas, such as the:
- Official return policy page
- Online product page
- Confirmation email
- A packing slip with the product
However, you should also create a flexible return policy. According to researchers at the University of Texas at Dallas, more lenient return policies lead to greater purchases and fewer returns.
To understand why this happens, let’s take a page out of Psych 101. The customer thinks that they can always return the item if there’s a more flexible timeframe, so they end up buying it. But because the timeframe is so flexible, customers feel less pressured to return the item right away and wind up keeping it.
Take that point into account when deciding the timeframe for a return policy—consider leaning closer to 30-60 days rather than 14 days.
9. Encourage customer reviews and questions.
We all know that well-rated products yield a greater number of purchases. But did you know they can also yield fewer returns?
According to Josh Horton, product marketing manager at Bazaarvoice, customer reviews and question-and-answer sections reduce the need for returns by giving customers upfront information about the product they intend to purchase. Reviews and Q&A sections set expectations for usability so that customers aren’t shocked by the item appearing or functioning differently than they imagined.
You can email your customers each time they purchase a product, asking them to rate and leave a review. Negative comments may deter people from buying products, but they’ll also reduce buyer’s remorse. Meanwhile, positive comments will lead to more customers hitting ‘buy’. It’s a win-win situation.
The bottom line on returns
Regardless of your return policy, quality control measures, or anything else, you should always plan to refund a small percentage of your sales as it’s just part of being an entrepreneur.
Ecommerce returns aren’t disappearing anytime soon, but you can take a few relatively easy steps to make your life a lot easier and your business more profitable.
Now that you have some idea of how to reduce eCommerce returns, ask yourself, “How can I implement some of these practices in my business today?” and get to work!
The post How to Reduce Ecommerce Returns appeared first on Home Business Magazine.
source https://homebusinessmag.com/businesses/ecommerce/how-to-guides-ecommerce/how-to-reduce-ecommerce-returns/
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