Again?! But Why? Ecommerce Return Rate

International e-commerce agency
03/22/2021

Again?! But Why? Ecommerce Return Rate

Again?! But Why? Ecommerce Return Rate

8,8 vs 30 
Do you know what these numbers mean?
No, it is not smart phones rate:)

It is just the percentage of returns in traditional and online stores.
I think you will agree that the difference is great.
Brick-and-mortar stores have 8,8 % Return Rate whereas online shop at least 30%. 
Surely returns impact the sales, as a result, the profit.
We are going to consider the ways, how decrease this rate.
Below you will find tips how you could improve management process in this sphere.

1. Detailed information about the product

Again and again we are going to repeat that good photos is 70% of your success.
22 % customers return products just because they look different from the site photos.
Doing shopping online, people rely on the picture and description. That's why photos should be realistic, of good quality. It is a good idea to take photo from different angles or even to shot short video. 
You can use AR/VR. Nowadays these technologies are becoming more popular.
Concerning description, it should be detailed. Customer should get all information, he needs. 
Imagine situation: you want to buy watches: but do not know its size, material, manufacturer and so on. It is not an ideal situation, is it?

2. Severe return policy

Forget it! Return program should be 100 % client oriented. 
95 % clients will buy again from the shops, which return policy is good. 
Potential clients should be sure, that there won't be problems with returns.  
On one hand, having such return policy seems illogical.
However, on other hand  it has long term effect.
If potential clients know, that it is easy to return product, they will have much less doubts to buy or not to buy. As a result, your sales will enhance. 
It is a good option to make your return period longer (more than 14 days).
There is an easy explanation for this offer- endowment effect. Or client can just forget about the item. Below you can find statistics:
92% will buy something again if returns are easy
79% of consumers want free return shipping
67% of shoppers check the returns page before making purchase.

3. Customer Reviews

Encourage you clients to write reviews. You can offer them special discount for it.
Approximately 80% customers view such reviews. They need to get some social proof about the quality and features of the product.
You'll see the difference in return rate between high rated and low rated items. It will be significant.
Don't forget to give feedback, especially, on negative reviews.
BUT! If you see that an item has more negative reviews than positive ones, assess its quality.

4. Size charts 

Do you know which sphere won in return rating?
Surely, fashion e-commerce sector (8 out 10 returns). The main reason is irrelevant size chart. Pay attention to it.
It will reduce the returns drastically. Your clients should be sure that they can choose right size

5.  Serial Returners

There are such buyers, who return most of their purchases. It is just special category. You need to penalize them, for example, to decrease their discount. 
For such reasons, you should always analyze customer data

6. Tell me why or always ask your Customer the Reason for Return

It is essential to ask your customers about the reasons for return. You need to know  them. Honest feedback will help you to understand, what you can improve and how to reduce the return rate. Don't forget that people are lazy, so give them the options for the answer.

7. Right order

Sometimes you can send wrong order. And it is 23% for return reason.
Sending back the wrong item is a challenge for many customers. 
That's why you need to encourage your wholesales specialists to be more attentive.
Please, always improve your order fulfillment service. 
Sometimes you don't need huge investments for the changes.  

To sum up it is important to pay attention to your return policy. 
Simultaneously it can increase your sales or drastically decrease them. 

Be flexible. 
Always analyze your customers' behavior and improve your service. 
The secret is to be 100% client oriented.

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