E-COMMERCE
For many retailers, it's a thorn in the side: returns. At first glance, they reduce the company's profits and indicate customer dissatisfaction. But what sounds so negative at first glance can be turned into exactly the opposite with the right measures. See returns as an opportunity to optimize your services and increase your sales and the satisfaction of your customers with perfect returns management.
Returns in online retail
According to Statista over 300 million orders are returned in Germany every year. From fashion and accessories to technology and food and beverages - returns are made in every industry. Nevertheless, the fashion industry in particular is most frequently affected by returns. Growing consumer demands and desires are also resulting in a steadily rising returns rate.
Of course, returns reduce sales in the first place. On the other hand, simple and clear return policies are often decisive for a purchase. So returns should not become a taboo topic ー rather, you should position your store's return conditions visibly on the product pages or in the checkout. By proactively informing your customers about return options, you increase your sales and reduce customer service inquiries at the same time.
Reasons for returns
The reasons for a return are different:
While in the case of clothing and shoes the products are usually not liked or do not fit, electronic devices are often not compatible for the desired use or simply do not meet the customer's expectations in terms of their functionality and design. There are also frequent returns, which are already known in advance of the order. Products are ordered for testing or in different designs and variants for selection.
Deadline, costs, reimbursement - information you should definitely share
How many days does the customer have to return the ordered goods? And more importantly, who bears the costs? These are questions that are of particular interest to visitors to your online store and are often decisive for their purchase decision. Therefore, you should be sure to answer the following questions in your information on the product pages:
How long is it possible to make a return?
The legal deadline is 14 days ー but is a return still possible in your store after that? The requirements of online shoppers are constantly increasing, especially when it comes to return periods. The majority of shoppers now expect a 30- or even 60-day return period. The trend is therefore towards longer and longer return periods ー although this often also reduces your return rate. In the meantime, the first shoppers have already changed their minds, while others simply forget to send back their returns after 4 weeks.
Who bears the costs for the return shipment?
Which answer the customer is hoping for is probably clear. If the customer bears the costs of a return, in many cases a purchase is not even made. By paying the return costs, you increase customer loyalty in your store ー but that also means that you have to pay for additional costs.
What does the returns process look like?
Is a return label already included in the order or does the customer have to contact a returns management team in advance to arrange the return? These regulations also have a huge impact on the satisfaction of your customers. The trend is increasingly toward speed and convenience. The faster and simpler the process is for your customers, the more satisfying it is for them.
Are there any restrictions?
To avoid additional frustration of your customers, provide information as detailed as possible. For example, are some products in your range excluded from return for reasons of hygiene? Before any misunderstandings arise, make explicit reference to this once again.
Optimize returns management for more sales
Whether customers don't like the product, it doesn't fit, it was ordered on approval, or it simply doesn't meet their expectations ーyou can satisfy your customers with fast and uncomplicated returns management. Satisfied customers, in turn, become repeat customers in the best case and increase sales in your store.
Maximum flexibility
To keep dissatisfied customers happy, give them maximum flexibility. Besides the classic money-back option, you can also offer vouchers or an exchange of the item as an alternative. If the reason for the return is simply the wrong size, color or variant, an exchange is often the fastest and easiest option.
You can also offer maximum flexibility when choosing the parcel service. Many customers have their own preferences here ー so it's best to let them decide for themselves which parcel service to return the goods to.
Status-Update
Customers love to be up-to-date. Not only for orders, but also for returns, customers prefer a status update. Has the return arrived? When can the customer expect a refund? Keep your customers informed about all the key steps in the returns process.
Automate the returns process
Of course, you don't have to handle every request, every return label and every tracking email manually. There are now many fulfillment service providers that support you in returns management and automate your processes.
→ You need support? We work with a wide range of partner companies. Feel free to contact us - together we will find the right solution for your store.
Keep your return rate as low as possible
Frequently, returned goods can no longer be classified and sold as A-goods. It is therefore much more important to keep the return rate as low as possible. To do this, it is important to understand why the goods are returned. According to statistics, the most common reason, especially for clothing and shoes, is that the items do not fit properly. This is also the biggest weakness in e-commerce - the customer can neither hold the goods in his hand nor try them on or off.
Detailed product pages
Primarily, the product pages of your Shopify store are crucial for keeping returns to a minimum. This is where the customer makes his purchase decision - a decision he seems quite dissatisfied with in case of a return. The more detailed the information about the item and the corresponding product images, the better the customer knows the item and what to expect. The images should show the product from a wide variety of perspectives in order to depict all details as accurately as possible. Videos and AR animations enable an even more precise representation and thus usually increase the customer's imagination and realistic impression. In order to be able to specify the fit in more detail in the fashion sector, it is also helpful to provide images with models and their worn size. Size tables, size calculators and recommendations from other customers also increase the accuracy of the fit and reduce the rate of returns.
In contrast to the fashion sector, information on features, functions and compatibility is particularly important for technical devices. The product description should ideally include all information about the product and its use and leave no questions unanswered.
Fast delivery times
Order today, deliver tomorrow - the demands of customers and thus the challenges of online retailers are becoming ever greater. Especially before Christmas, last-minute orders are not uncommon. Even with upcoming birthdays, celebrations or planning, a last-minute gift or outfit is often needed. The faster you can deliver, the higher the probability that the item will arrive on time. Delivery times should therefore be communicated clearly and as accurately as possible to reduce returns in advance.
Packaging
Returns due to complaints are often the reason, especially in the technology sector and for articles of the home and interior sector. To avoid this, you should make sure that the packaging is of high quality and that the filling material is suitable. The choice of parcel service or carrier can also be decisive at this point.
Conclusion
Even though returns often involve a lot of effort and costs, they can unfortunately never be completely avoided. With targeted measures, however, you can try to satisfy customers through appropriate returns management in order to gain loyal customers and keep the returns rate as low as possible. Preventively, it is important to set up the product pages in your store optimally and to inform the visitor of the shop in detail about the products, deliveries and shipping. In many cases, the presentation and description of the items is decisive and determines whether the ordered items meet the expectations, fit and please the customer, and are compatible for the desired use. Reactively, above all, a fast and uncomplicated return should be guaranteed in order to increase purchases as well as to satisfy the customer and bind him to the company.
