November 6, 2017
3 Tips to Reduce Return Rates of Your Online Sales
A recent article, 3 Ways you can Reduce Return Rates for Your Online Store by Renzo Costarella says that e-commerce is continuously emerging and having a solid return policy is a strong advantage in your online store. Nevertheless, while a good return policy often suggests free return shipping, this can potentially hurt your bottom line— an increase in returns or chargebacks.
Here are three tips you can use to reduce e-commerce returns so your business can make more profit.
1. Offer high-quality product
If your customer receives your product with any kind of defect or damage, definitely it will be sent back to you. The best way to prevent or reduce returns is to be carefully involved in every step of the process. Make sure you’re procuring and buying materials from reliable suppliers and you’re consistent with performing quality testing reports. Initially, it may involve more energy and resources, but in the long run it will benefit your business.
2. Use your data
“The numbers don’t lie”, so you should always use your data to determine where you can improve your business. According to Pareto Principle or the 80/20 rule, most of your returns/chargebacks will possibly come from a small fraction of your products or services. So, you can use your data to determine which products have the highest return rates. Once you identify those products, you can examine your data to find out where you can adjust and improve your products to reduce the return rates. However, if a product is constantly showing high return rates in spite of any iteration, it may be time to “take it behind the barn”.
3. Use Product Reviews
A review will give customers an honest idea of the quality of your products, so allowing your customers to leave comments and reviews on your products is a win-win scenario for both parties. If you observe a product is always being rated low, take the time to read the reviews so you can adjust and improve your products. This may also resolve issues for your customers that you haven’t thought of, or dealt with appropriately.
A good return policy in place is essential for online retailers. However, it’s not healthy to have a high return rate, so these three tactics will help you minimize the rate of returns to your online store.