Online retailers lose out most in the product returns. This is the operation that costs you a lot and gives you the least value in return. In the present time, free and convenient returns have become the expectations of a customer. It has fueled some unprofessional and unprofitable customer practices among consumers that they buy multiple colors and sizes, only keep their favorite ones and return the unwanted products. The retailers are already at a thin margin and with these returns, it is further squeezed and sometimes turns into a loss.
With the increase in the popularity of e-commerce industry customers are shifting towards online purchases and the ratio of product returns is also increasing dramatically. As we already discussed that free and easy returns have become the expectations of a customer and most of the online stores’ use free product returns as a tool to stay competitive in the market. But sometimes it can become very difficult to tackle the product returns especially in holidays when the product returns are at its peak. You profit will start to turn into loss if you are not able to control the returns of your store and manage them properly.
There are various reasons behind the product returns. Either the customer didn’t like the product, he didn’t receive the product that he was expecting, the size was different, the color was different, the material wasn’t according to his expectations, etc. There could be many other reasons.
To run a successful online store, you must tackle these returns so that you can make a profit. Many online stores are implementing different strategies to control their online product returns. In this article, we are going to have a look at how different online stores and retailers tackle the problem of product returns.
Improving Quality Control
Retailers try to contain and control their product returns but analyzing and getting into the depth of mass-return situations. Mostly the common problem behind the product returns faced in the online industry is the quality issue. Quality issues can cause customers to return your products in a large amount which can rack up thousands of dollars in the return shipping fees within days. Retailers try to overcome this issue by making investments in smart technology which can help them in identifying and controlling the issues at early stages before the problem spreads out and amplifies losses.
Implement 3D Technology
3D technology such as 3D viewer has gained a lot of popularity in the e-commerce industry. Retailers are using 3D technology to overcome the product return problems and it tends to work out. 3D views enable your customers to have a 3D view of your products in your store. Customers can have a try before you buy experience by sitting at their homes and they will only order the product when they will be satisfied with everything. So, the chances of product returns can be reduced to 90%.
Reduce Mistakes That Causes Returns
There are several mistakes done by the retailers which result in product returns. According to studies, about 30% of the products are returned due to the mistakes of retailers. For example, the customer asked for a different color and size, but the retailer sent him different colors or a different size. These kinds of mistakes are very common when you are handling many orders every day.
Retailers can overcome this problem by implementing a proper system that makes sure that the product which is about to dispatch is according to the needs of the customer. There are many other minor mistakes that retailers do, and, in the end, they face huge traffic of product returns. By reducing these mistakes retailers can control the rate of returns and reduce the return rate to a considerable extent.
Profitable Return Policies
If you are facing losses due to the returns in your online store, then it is time to reconsider your return policies. You should make your return policies in a way that they support your customers and at the same time save you from losing money on returns. You can do this by hiring an expert for this task. Some psychological factors of customers are also considered when making return policies. You should spend some time on this so that your return policies can benefit you instead of a loss.
So, these are some methods by using which retailers are tackling the problems of online product returns. You can also implement these methods and you will surely observe a significant decrease in the returns of your store.
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