Returns reduce tips for your webshop? Returns are a pain point for many ecommerce entrepreneurs. You prefer to send a package out the door and never see it again. Unfortunately, returns are part of (online) sales.
To grow with your webshop, it is important to limit the number of returns as much as possible. The cost of processing returns can put a significant strain on a company’s profitability.
Returns of orders give logistical operations and pressure on your company’s profit margin. Reducing returns therefore gives less work and more profit for your company. In this article I explain how returns can increase and how you can solve this.
Why can returns increase in your business?
Returns will increase if the order meets the following characteristics:
- characteristics, such as size, are unclear; one orders 3 sizes and returns 2
- expectation; product does not meet expectations
- damage; product is broken or incomplete
- need for money; customer still needs money from the order for something else
- comfort; returns made free of charge by the webshop
- media; little or no photo material, videos, 3D model, etc.
- Unboxing; is it fun or boring when the customer opens your package?
- price fluctuations; if your product is 55 euros the first week and 45 euros a week later, you will often get it back
Also, Brexit hasn’t really been a mess. Due to the administration or customs costs that often end up with the consumer, he wants to return the product more and more often.
How can you reduce returns from your webshop?
If you look at the features above, I can give you the following tips to ensure that your returns from your webshop or store are reduced:
- make sure that the characteristics or attributes of your products are filled in as completely as possible. You can think of description, size, color, model, EAN, type, series, etc.
- make sure that the product matches expectations or even exceeds expectations.
- prevent damage during shipping by, for example, putting bubble wrap in the package. Use enough tape so that a package cannot lose parts.
- set a small threshold for returns by charging low costs of, for example, € 3.95.
- support the texts of your products with images, video, possibly a 3D model
- by giving nice things to your customer during the unboxing of the package, a smile and favor factor is created. Your package will be returned less quickly.
- research the reviews you receive and see where you can apply points for improvement
Many webshops have a hard time because of a bad return policy. A lot of turnover is made, only due to the large number of returns, a lot of money is refunded to the accounts of customers.
Reduce returns with a clear policy and a pleasant user experience
Most webshop entrepreneurs find returns an annoying aftermath of a successful order. It can put a dent in your ego if you see products coming back too often in your eyes. It also gives a decent cost to process the returns.
You can reduce returns with a clear policy and a pleasant user experience. You can do this first of all by clearly communicating:
- how many days of cooling-off period does a customer have?
- how much does it cost to return an order?
- when has an item been used and does the right to return expire?
- do your return rules apply to all products or are there exceptions?
- how can I get a return label?
A nice user experience actually means that you make as few pain points as possible in your return process. If you look at the above points, you can apply this to improve the experience:
- 30+ days to change your mind
- free returns or 50-50% splitting of costs
- receiving products in new condition without label
- create general return rules with exceptions for specific product categories such as worn items
- automatically set up a return center via parties such as MyParcel, Sendcloud, etc.
Ideally, a shopper has free returns and free shipping. They prefer to order 3 sizes and send 2 back. The problem is that many webshop entrepreneurs get into trouble with this because of the profit margin. You can partly compensate for this by including the costs in the sales price. Try to make distinctive products with your own brand, so that you do not have price competition on platforms such as Bol and Amazon. Otherwise, it will be a race to the bottom.
An example of a return policy can be found on the return page of LifeDeals.nl.
Reducing returns is an essential part of your work as an e-commerce entrepreneur. It can even be decisive whether your business is viable!
Dear Internet Entrepreneur,
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