Welcome to Parcelconsulting
Welcome to Parcelconsulting
As an online retailer, you’re already aware of the surge in sales that accompanies the festive shopping frenzy. Yet, there’s another event that follows suit, albeit less celebrated – National Returns Day. This day typically signifies the highest volume of returns from online purchases, often stretching into an entire week in early January. What’s more, as e-commerce continues to proliferate, this ‘returns week’ is gradually morphing into a ‘returns season.’
Given these developments, it’s crucial for e-commerce businesses to comprehend the implications of National Returns Day and strategize their return policies accordingly. Here’s an in-depth exploration of how you can turn your return policy into a tool for customer conversion and retention.
Before delving into the intricacies of return policies, understanding statistics around e-commerce returns is paramount. The average e-commerce return rate sits at 16.6%, a figure that rises to 17.8% for purchases made during the holiday season. Moreover, according to industry estimates, online retailers can expect around 1.75 million daily return units during peak return times.
In the face of these numbers, it’s clear that returns are an inherent aspect of the e-commerce landscape. It’s also important to keep in mind that returns do give retailers an opportunity to engage with consumers post purchase and earn long term loyalty when the process is smooth and convenient, especially when it comes to return shipping.
The first step to crafting an effective returns policy is clear communication. Customers should have a comprehensive understanding of how your return policy works. Make it simple and easy to understand with clear instructions and an easy way for customers to return something they’ve purchased.
Next, make sure your return policy is easily accessible and visible on your website. Don’t make customers navigate through multiple pages to find it. A prominent link or banner on your website’s header can do the trick.
Studies have shown that consumers are averse to paying return shipping or restocking fees. By avoiding these charges, you can encourage future sales and enhance customer loyalty.
The returns process should be simple and convenient. By providing prepaid return shipping labels or QR codes for a printerless experience, your business can streamline the process significantly.
To reduce the likelihood of returns, ensure your product descriptions and images are accurate and comprehensive. Videos demonstrating the product in use can also be beneficial and help set realistic customer expectations.
Customer reviews can serve as a powerful tool in preventing unnecessary returns. Offering verified reviews can help your business avoid potential returns while improving the conversion optimization of your best-selling products.
For apparel retailers, integrating sizing apps or providing detailed fitting guides can help reduce the rate of returns due to size issues.
An effective returns policy is not just about preventing returns, but also about managing them effectively when they do occur. A well-structured and efficient returns management system can help ease the process, reduce costs, and improve customer satisfaction.
A customer-friendly returns policy should incorporate easy and speedy refunds. Ensuring a streamlined experience helps your company stand out from other retailers. And having a cost effective return shipment method in place (we can help integrate an amazing shipping rates program for you), reduces the cost you must absorb when products are sent back.
Being flexible with your refund policy can also be beneficial. Consider options like store credits or gift cards instead of direct refunds. This not only retains the revenue within your store but also encourages the customer to revisit and make additional purchases.
Keep your customers in the know by offering regular updates via email or mobile notifications can help keep the customer in the loop and foster trust in your brand.
With the rise in e-commerce returns, the industry has also seen a surge in fraudulent return activities. To combat return fraud, online businesses should consider measures like:
While National Returns Day and the subsequent returns season can pose challenges for online retailers, they also present a significant opportunity for customer conversion and retention. By understanding return trends, optimizing return policies, and managing returns effectively, you can turn this seemingly daunting process into a tool for strengthening customer relationships and boosting your bottom line.
Remember, the goal isn’t to eliminate returns altogether but to manage them in a way that enhances the customer experience and contributes to your business’s success.
Don’t let return shipping cost dig into your bottom line. Get ahead of the curve by exploring the alternative carrier programs and discount shipping rates available through Parcel Consulting. Contact us today at 833-727-2351 or schedule a free consultation here to learn more about our services and how we can help keep your business moving forward no matter what happens!
