DEALING WITH PRODUCT RETURNS

Product returns can be a major headache for online businesses.

 

Whether you’re starting out or if you have been in business for years, having product returns means time and energy spent processing additional (unexpected) packages, issuing refunds and trying to keep the return and refund process positive for the customer so that they don’t run off to one of your competitors as soon as they get their refund.

 

Also, it is much better to replace than refund.

Why do customers return items? It could be something small that you may have overlooked or a more serious issue that demands immediate attention, like faulty policies or system errors. Other times, the return might have nothing to do with your products or policies at all. If you’re selling online, you will receive customer returns. That’s a fact. It doesn’t matter how amazing your customer service is, or how intelligent and groundbreaking your products or services are. Some of the return reasons are legitimate, others not.

E-commerce returns are on the rise. If you’re a small retailer, you know how quickly too many e-commerce returns can eat into your profit margins. However, returns don’t always mean lost sales. Many shoppers end up exchanging or replacing the online purchases they return. However, making online returns difficult or expensive can hurt customer loyalty.

Returns play a big part in the success of your online business. Returns management impacts customer experience, supply chain management, inventory, and customer service. Identify any issues or problems people are having with the product and identify areas of misunderstanding so you can adjust your marketing, listings or emails.

 

Here are some main reasons for returns from some of the online portals

 

The Customer Bought the Wrong Item
Purchasing the wrong item is especially pervasive in e-commerce because the consumer can’t physically handle the product. For example, the shopper might buy a pair of shoes and later realize they are the wrong size. Because there is no physical contact before purchase, online shoppers rely even more heavily on accurate and detailed product descriptions. Therefore, all product and service descriptions need to be as precise and definitive as possible.

The Product is No Longer Needed
Consumers sometimes discover they don’t need certain items shortly after a purchase. Phone cases, chargers, and other accessories commonly fall into this category, as technology updates or broken devices may cancel out the need for an item. Other circumstances in the life of the buyer, such as moving, downsizing, getting married, changing jobs – might also cause them to return products.

The Product Didn’t Match the Description
Products that don’t measure up to consumers’ expectations are typically returned. This is similar to situations in which the customer buys the wrong item. In this instance, though, you can’t blame the customer. You have to be careful about the language you use when promoting your product. Avoid overselling or overstating a product’s capabilities and functions. You can highlight a product or service, but at the end of the day, the description must realistically reflect that item’s qualities. Make your merchandise look good, but not too good.

A Gift Purchase Was Incorrect
A buyer may not be familiar with the product if they’re purchasing a gift for someone else. They also may not fully understand the needs, tastes, or wishes of the recipient. This can easily lead to customer returns, and can be difficult to prevent.

The Product Was Damaged Upon Arrival
Customers will be understandably upset if an item they paid for is damaged or defective upon arrival. In these cases, a return is actually the best possible outcome. Sometimes, the cardholder will turn to a chargeback instead, which you want to avoid at all costs.

The Merchant Shipped the Wrong Item
Consumers have every right to be frustrated in this situation. But unlike a damaged item, you can’t shift blame to a careless handler. There was an error committed in-house, during the order fulfillment process – either by you or your staff, or by the online portal staff.

The Customer Engages in Return Fraud
Return fraud is one of the fastest-growing problems facing retailers today. One common return fraud tactic is wardrobing, in which the cardholder buys an item, uses it, then attempts to return the item for a full refund. Other common tactics include receipt switching, shoplisting, and receipt fraud. It’s nearly impossible to eliminate return fraud completely. Tightening security on all returns will frustrate legitimate customers, not just fraudsters.

An explicitly detailed policy that outlines acceptable returns can help you dispute any fraud attempts that devolve into chargebacks. You should also keep detailed communication records, as they can be used as compelling evidence in the event of a dispute.

Here are some ways that can help you reduce and manage returns effectively.

(Of course, we can do all of this and more for you. Our assessment service will allow you to cut down on product returns immediately.)

1. Write detailed and accurate product narratives.
Aside from being great for SEO (Search Engine Optimization), the product narrative helps shoppers decide whether or not your product is right for them. The narrative needs to be clear on the particulars of a product, its benefits and usage. Therefore, it is very important to make sure that the person writing your narratives knows your products well.

If you sell through an online portal rather than your own site, you have to generally abide by their return policy – not always fair to the seller, especially if the client did not read the narrative correctly. If the narrative is badly worded, you can shoulder some of the blame.

Talk about the product in an appealing way, but don’t exaggerate as this will only come back to bite you.

Correct specification information is critical for technical products, therefore the information must be accurate and precise – not vague and a direct translation from the supplier.

2. If you sell from your own website, have a fair return policy.
A return policy is good business for brick-and-mortar stores, and it’s essential to doing business online. Unlike visitors to physical shops, online consumers don’t get to see and touch the actual product before they buy it. So e-commerce sites must ensure that their return policies are fair and appealing to their customers.

A concise and clear return policy gives consumers a feeling of security; that what they are buying is guaranteed to be what it is represented to be. If a retailer doesn’t give this guarantee, then consumers often become suspicious and avoid buying the product. A definitive retail return policy can help increase sales because an overwhelming percentage of the consumer population looks for it. Consumers see it as a guarantee that reflects the trust that a retailer has in the products they sell.

3. Use high-quality pictures and videos in product listings.
Videos and clear images are very effective for remote selling. They are a great way of bringing products to life – as long as they are accurate. Product photographs create a picture in the mind of consumers about how the product will look when they receive it physically. It is the main reason why customers purchase your product in the first place.

Low-pixel photographs can lose the sale – even if you have a better product than the competition. Also, if there is a colour difference between the products listed on the website and what the customer receives, the likelihood of product returns increases.

 

Contact us today for assistance.