Customers Return $32 Billion In Online Purchases
The cost of product returns for online sales during last year’s holiday season amounted to nearly $32 billion. This year, online retailers will continue to lose revenue to returns. E-commerce—even with all its advantages—has a return rate at least three times that of in-store purchases.
You know that a high rate of product returns can break your business. And while it is impossible to reduce the rate to zero, even a modest decrease has an outsize effect on profitability.
Since customers return products for a variety of reasons, where should you focus your efforts?
First off, you need to know why your customers are sending things back:
- The buyer ordered the wrong item
- The buyer no longer needs the item
- The item was a gift that the receiver doesn’t want
- The product doesn’t match the description
- The wrong item was shipped
- The product is defective
- The customer can’t assemble or set up the product
While you can’t do much about bad gift-giving, basic online best practices can reduce returns for many of these categories. Accurate product descriptions, effective fulfillment operations, and competent support reps are essential.
Identify Your High Return Items
Amazon sellers with high return rates can monitor their analytics and customer reviews to understand what’s going on. You might discover that just one or two products are returned at a higher rate. Read the reviews and talk to your support reps to find out why.
Are Your Product Guides To Blame?
If customers find it difficult to assemble your products, your instructions or product guides may be inadequate. Fortunately, that’s an easy one to remedy.
At Steptap, we create product instructions that help your customers get the most out of your products. When your buyers get your products up and running quickly and easily, they are less likely to return them.
That’s money in your pocket.
Download our white paper “Instructions Should Be Your First Thought. Not An Afterthought.” to learn more.