Can Customer Returns Kill Your Business or Save it?

The numbers look grim if you are an online retailer. Around 30% of the products retailers ship out will come back as returns. The downside is that 65% of those returns were the retailers’ fault resulting in money they didn’t have to spend and decreasing the bottom line. A good return policy is crucial in the ultra-competitive online world so examine yours carefully. There are other things you can be doing to prevent returns and save yourself headaches and money. Let’s look at the statistics and what they mean to you.

23% of returns are because the wrong item was shipped out. This is an amateur league mistake that even the pros seem to be making. It’s simple, have a redundant system of double check to make sure the right item is shipped every time. A few more minutes to make sure the item is the right one or hours of headaches dealing with an irate customer and refunds or more shipping charges. The choice is clear, get it right every time.

22% of returns are because the product looks different. Not 100% fixable but mostly avoidable. Make sure your product is shot in multiple angles and in different light settings. A video will also help with hands or other objects to give a sense of scale.

20% of returns are due to damage. Sure you can have insurance on the product and send the customer a new one, but is that excellent customer service? Not all damage can be avoided but taking extra precautions and making sure the product arrives intact will pay for itself in happy customers. “The box was damaged but the item was fine” = WIN!

92% of customers will buy again if the returns are easy. So you messed up and sent the wrong thing, but the right one was shipped quick and the customer is happy. You will still likely get more business from them in the future. Customers understand mix-ups, your or theirs, and will forgive retailers who make it right without a ton of hassle.

There you have it, some stats to help guide your policies and give you something to think about.

ID-100308213

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s