Online shopping has significantly gained popularity in recent years, and with it comes the issue of product returns.
Customers may return a product for a variety of reasons, such as receiving a damaged item, the wrong size or color, or simply changing their minds. And statistics show that product returns cost businesses a fortune. According to a report by Appriss Retail, product returns cost retailers $309 billion in the United States alone in 2020. And while returns are unavoidable, reducing return rates can have a significant impact on a company's bottom line.
Today, we will explore 10 tips on how to reduce product returns in your e-commerce store.
One of the main reasons customers return products is because the product doesn't look the same as it did online. This can be due to differences in lighting, color accuracy, or even the angle of the photograph. Businesses can use augmented reality (AR) visualization tools and rich media like 360-view panoramas and 3D videos to deal with this issue.
Such tools allow customers to see products from all angles and in different lighting and how a product will look in their own environment before making a purchase, helping to reduce the chances of returns.
For finishing material retailers and manufacturers, utilizing AR-powered tools can be a game-changer in providing customers with an accurate representation of the products.
AR visualizers like Wizart allow customers to visualize how a particular finishing material will look in their space before making a purchase. This can help customers make more informed decisions and reduce the likelihood of returns due to color or texture mismatch.
Another reason why customers may return a product is that it doesn't meet their expectations. According to a study by Shotfarm, 30% of online shoppers returned a product because it didn't match the description or photos. To avoid this issue, you need to provide accurate and detailed product information, including sizing, materials, and care instructions.
Luckily, a detailed and SEO-optimized product description can be generated by AI-based algorithms. Thus, you can automate this process and update a large number of SKUs in bulk without spending months on writing content.
Home improvement and DIY projects can be complex, so it's important to provide comprehensive instructions for your products. This can include:
By providing clear and easy-to-follow instructions, you can reduce the chances of customers returning your products due to difficulties in installation or use.
For larger home improvement projects, customers may need guidance and advice before making a purchase. Offering consultations with experts in your field can be a great way to build trust with your customers and ensure they have all the information needed to make informed decisions. This can also reduce the likelihood of returns due to incorrect product selection or installation.
Another way to manage product returns is by offering personalized recommendations to customers based on their browsing and purchasing history. Implement advanced algorithms that analyze customer data and offer products that are more likely to meet their specific needs and preferences.
As a result, you will not only reduce the return rate but also improve customer satisfaction and average check by helping customers find the right match.
Another reason why customers may return a product is that it arrived damaged during shipping. Fragile tile can easily break during transportation, and beautiful wallpapers get wet and torn from the rain. To reduce the chances of this happening, try using high-quality materials and adding extra padding. This way, you can ensure that the product is secure during transit.
While the goal is to reduce returns, it's important to make the return process as easy as possible for customers. According to a survey by UPS, 81% of online shoppers said they would be more likely to make a purchase if the return process was easy. So by offering a hassle-free return policy, businesses can increase customer trust and satisfaction.
Here are some ideas on how to make a return process easier:
By providing quality customer service, you can help customers resolve issues before they decide to return a product.
Make sure to have multiple channels for customer service, such as email, phone, live chat, and social media. Respond promptly to customer inquiries and provide accurate information and helpful solutions. Additionally, make sure to provide easy and clear return policies and procedures to customers.
Customer reviews can be a valuable source of feedback for your business and can help you identify common issues that lead to product returns. By encouraging customers to leave reviews, you can gain insights into what customers like and dislike about your products and customer experience and identify areas for improvement. This can include improving product descriptions, offering different sizes or colors, or changing the packaging to prevent damage during shipping.
You can also monitor customer feedback using surveys, social media, and reviews services like Google Reviews.
Finally, it’s important to highlight that you can not avoid returns completely, but you can always gather customers' feedback to get more details about why this is happening so you can address issues leading to product returns.
Consider implementing a customer feedback survey that is sent to customers after they returned the order. This survey can ask about their experience with the product, the packaging, the shipping, and the customer service. Use the feedback you receive to identify common issues and implement changes to reduce the likelihood of returns in the future.
In conclusion, product returns can be a significant issue for online businesses, costing them billions of dollars each year. However, by implementing the tips mentioned above, businesses can reduce their return rates and improve customer satisfaction. From improving product visualization to providing accurate product information, comprehensive instructions, personalized recommendations, and high-quality customer service, businesses can create a seamless online shopping experience that reduces the likelihood of returns. Additionally, monitoring customer feedback and implementing a customer feedback system can help identify common issues and address them to further reduce returns in the future. By taking these steps, businesses can not only reduce costs but also build trust and loyalty with their customers.