How To Reduce Holiday eCommerce Returns | imedia designs

1. How To Reduce Holiday ecommerce Returns Like it or not, handling returns is a part of every eCommerce business daily operation. According to the WSJ, about 30% of all online orders are returned by consumers. There are many reasons that consumers return their orders at the staggering rate. A report from UPS suggests that the major causes of product returns are actually out of the consumer’s control. It might be that the warehouse staff makes a mistake with an order, or it could be that the damages are made during the shipping process.

2. A research conducted by CNBC suggests that offering free return policies helps eCommerce brands increase sales, customer retention, and word-of-mouth brand communication. Another study by Granify found that friendly return policy surpassed attractive prices when it came to online buying decisions. Therefore many eCommerce merchants are adopting a “generous” returns policies (e.g. cover the shipping costs on returns) to win the trust of online shoppers. With the “frictionless” return policies in place, online shoppers are more apt to to take “risks”, buying multiple items even if they are unsure of some because they know the brand will allow them to buy first and think later. Whether intended or not, product return is a costly problem. Reverse logistics, the refund given and stock tied up in the returns cycle could eat your hard-earned profit and impact your bottom line. The return rate is much higher during the holiday and post-holiday seasons. Gifts that didn’t quite meet expectations, guilt trips caused by impulse buys, these kinds of holiday madness all contribute to the reason-for-return. Fortunately, there are many things you can do to help your customers make better purchasing decisions, and in turn, keep more of their purchases.

3. According to UPS’s report, nearly a quarter of respondents who returned products because they weren’t sure about what they were buying. Another 9% intentionally ordered more than one sizes/colors and return the unwanted ones later. Having customer reviews on your product pages helps reduce fit-related returns. Especially when it comes to fashion industry where sizes and color distortions vary among different manufacturers. So, flag up the issues with customer-generated reviews upfront before the next customer place an order like the fast fashion retailer Nasty Gal: Make sure the product descriptions accurately explains the features and benefits. Use descriptive words to precisely paint a picture of an item. If possible, use videos instead of images.

4. According to comScore, more than 60% of online shoppers read returns policy when making purchasing decisions. Thus, polish the return/refund policy as much as you do with your FAQ and shipping policy. Make sure it is well-written with clarity and display it prominently on your website. Kindly extend the duration of the return windows for holiday gift shoppers. Doing so not only shows a strong trust signal but leads to a surge in sales. Technology upgrades would also help. Any manual action will cost precious time, especially when you are in a holiday season rush. If you sell through marketplaces such as Amazon and eBay, things are a bit easier since they have Return Center that can handle returns automatically. If that is not your case, then integrate an automated online product returns software. A robust returns software helps you create a winning return policy which saves you time and money while catering to the consumer demand for hassle-free returns. By understanding what the root causes are and preparing your eCommerce website accordingly, you can prevent needless holiday returns and reduce their impact on your hard-earned profits.