When it comes to how you provide return labels to customers, there are a number of pros and cons to consider to see if it’s worth providing a return label in the box.

Pros & Cons of Including a Return Label With Orders

Here are some of the pros and cons of including a return label in the box of the original order. 

Keep in mind that the best decision for your business will ultimately depend on your specific needs and priorities.

Pros of a Label in the Box

Some advantages to including returns labels directly in the box when shipping out orders to customers include:

Convenience – Customers appreciate the convenience of having a return label already included in the package. This eliminates the need for them to track down a printer or go to the post office, making it easier for them to return their purchases.

Easy Returns – A return label in the box makes the returns process easy for customers. They can simply stick on the label, pack up the product, and drop it off at the nearest shipping location.

Cons of a Label in the Box

Providing return labels in the box also comes with several disadvantages that you should keep in mind:

High Costs – Including a returns label in the box can add to your costs, as you’ll need to print out a label for every order, even if they don’t return it.

For every order shipped, you’ll incur the cost of including a return label – even though only a percentage of customers actually end up using it. This reduces your profit margins and incurs extra costs that are redundant. 

Those unused return labels represent large amounts of wasted potential revenue which could have covered other business expenses. 

While return labels may provide a more convenient customer experience, the high-cost trade-off is one to seriously consider.

Environmental Impact – Printing out many return labels can have a negative environmental impact by generating a lot of waste. 

Global paper consumption is expected to double by 2060, along with the amount of paper waste. Paper makes up half of the waste generated by businesses.

Therefore, it’s probably not the best idea to be sending thousands of labels straight to landfill every month.

For eco-conscious businesses, these environmental impacts may outweigh the added customer convenience. It’s important to analyze the waste and emissions generated by return labels provided with every order.

Limited Customer Touchpoints – When you include a return label in the box, you’re losing out on an opportunity to interact with your customers. 

Missing an opportunity to re-engage with customers and bring them back to your website is a big sacrifice when using the label-in-box method. 

By receiving a return label in the box with their order, customers have no incentive to provide feedback or communicate about any issues with their order. This eliminates a touchpoint where you could potentially resolve problems, encourage exchanges instead, or rescue the sale.

Reduced Return Insights – You won’t be able to collect as much data about your returns when you include a return label in the box. This data can be valuable for understanding why customers are returning products and making improvements to your returns process.

Some stores include a slip where they encourage customers to share feedback or their reason for return before sending the product back. However, since customers don’t have any incentive to fill out the form, they often leave it blank. Even if they do fill it out, the data then has to be collected and inputted manually, creating a painstaking process to collect the information.

With a manual, offline returns process, you lose out on crucial insights into why items are being returned. Is the sizing off? Do the materials not match the product description? 

A lack of concrete return data makes it harder for you to pinpoint pain points and improve the customer experience.

Lack of Control –  When you include a return label in the box, you lose a level of control over the returns process. 

There’s no way to predict or prepare ahead of time for how many items will be returned within a given timeframe, leaving you to make reactive decisions. 

This lack of visibility into your returns workflows makes it hard to manage warehouse costs and control inventory dynamics.

Is it Worth Including a Return Label in the Box?

When weighing up the pros and cons of including a return label in the box, the cons seem to outweigh the pros.

The costs, environmental impact, lack of customer engagement, and loss of data provide compelling reasons for you to reconsider this strategy. 

While return labels in the box offer short-term convenience for customers, they can hurt your business in the long run through wasted resources and missed opportunities to improve the shopping experience. 

So what’s a better alternative? Print-on-demand labels.

The Solution: Print-On-Demand Labels

Generating return shipping labels on demand is a more sustainable and cost-effective way to handle returns. This way, you only print return labels when they’re needed.

With a print-on-demand return label process, a return shipping label is emailed to the customer when they initiate a return request. 

Advantages of print-on-demand return labels:

Cost-Effective

By generating labels only for actual returns, you avoid paying shipping for unused labels that end up in the trash.

With control over the shipping carriers and service level, you’ll know exactly how much it will cost and how long it will take to receive your returned items.

Generating return shipping labels in real-time significantly cuts label costs and makes returns much more cost-effective.

More Sustainable

Print-on-demand return labels are a far more sustainable option than pre-printed return labels.

Reducing the printing of return labels that aren’t used drastically decreases paper waste and carbon emissions, creating a greener, more eco-friendly solution for returns.

The environmental impact of online shopping is becoming increasingly important to customers, with 83% of customers considering sustainability when making purchases.

Better Customer Engagement & Insights

Offering print-on-demand labels through a return portal can help you boost customer engagement and insights, by collecting feedback from customers when they return products.

Understanding why customers initiate returns provides data that can help you optimize your products and improve the customer experience.

By collecting feedback from customers, you can also learn more about their customers’ needs and preferences, helping you create a better returns process.

How ReturnGO Can Help You Generate Return Labels

ReturnGO is a returns management system that can help you generate return labels on demand using a self-service return portal and a wide range of integrations with shipping carriers.

With ReturnGO, you can easily create return shipping labels, track returns, and collect data about your returns process.

Offer a self-service return portal through which customers can easily request a return or exchange and then receive an automatically-generated pre-paid return shipping label that they can print out and attach to their return package.

Using ReturnGO to automatically generate return shipping labels helps you keep track of your return shipments, collect return reasons and other returns data, and monitor the returns process from start to finish, all in one place.

Print-On-Demand Labels: The Future of Efficient Returns

Automatically-generated return labels are more sustainable, easier to track, and more cost-effective than in-the-box labels.

No matter which approach you choose, it’s important to make sure that you have a clear return policy in place and that you’re collecting data about your returns process. This will help you to improve the returns experience and reduce the number of unnecessary returns.

So if you’re looking for a more efficient way to handle return shipments, use print-on-demand return labels through ReturnGO.

Create a sustainable, convenient returns process that will boost efficiency, reduce return rates, and delight your customers.

What Are Printerless Returns?

With printerless returns, your customers no longer need to print out a physical return label.

The traditional way of returning items was that customers print out a return shipping label, tape it to the package, and drop it off – an inconvenient and wasteful process. 

Printerless returns are where instead of printing out a return shipping label, your customers receive a convenient QR code that acts as their return barcode. They can access it right on their smartphone – no printing, no fuss. 

And the best part? They can drop off their returns at a nearby USPS, Canada Post, or any other designated drop-off location, and the staff member can scan the return barcode right from the customer’s phone, enabling a completely contactless and paperless return.

The Power of QR Codes

QR code technology is truly revolutionizing returns in the retail industry, by storing a large amount of encoded data, so that a QR code can include all the relevant return shipping information.

Offering QR codes eliminates the need for printed return labels, while still providing the shipping carrier with the information necessary for processing the return.

In addition, they provide a mobile-friendly, omnichannel return option that’s ideal for the modern customer. Their flexibility and scalability make QR codes an ideal replacement for static, single-use printed return shipping labels. 

Why Offer Printerless Returns?

In order to fully understand the significance of printerless returns, let’s dive into the benefits of implementing QR code returns.

1. Reduced Barrier for Returns

Offering printerless returns makes it convenient for customers to return items without too much hassle. When the returns process is easy, you’ll gain more trust from your customers and keep them coming back to buy again.

By offering printerless returns, you eliminate the hassle of customers needing to find a printer and deal with printing. Your customers can initiate their return from the comfort of their home, then get their QR code and head straight to the drop-off location.

How to use a QR code for returns:

• After initiating the return, your customers receive an email with their QR code.
• They can open the email on their smartphone and display the QR code at the drop-off location.
• The staff there scan the return barcode, and the return process is set in motion. Simple as that!

2. Enhanced Sustainability

Switching to printerless QR code returns eliminate the need for printed labels and dramatically reduces environmental impact.

Printing shipping labels uses significant amounts of paper and ink, leading to considerable paper waste and contributing to carbon emissions. 

Make your return process more eco-friendly by adopting printerless returns. Eco-conscious customers will appreciate this sustainable approach.

Research shows that more and more customers are actively factoring sustainability into their shopping habits: 78% of customers say their purchasing decisions are influenced by a brand’s environmental practices. 

By offering printerless returns with QR return barcodes, you demonstrate your commitment to sustainability, which can attract environmentally-aware customers and boost your brand image as a socially-responsible company.

3. Convenient and Contactless Experience

In today’s fast-paced world, convenience is king. Customers expect seamless, user-friendly experiences, and that applies to the returns process as well. With printerless returns and QR codes, you can offer your customers the highest level of convenience.

Gone are the days of printing shipping labels and dealing with the logistics of returning a product. By simply accessing a return barcode on their smartphones, your customers can initiate returns effortlessly, without having to print anything. 

By providing a convenient and contactless experience, you can create a positive and memorable impression of your brand. Using QR codes for printerless returns will delight your customers and position your eCommerce store as a leader in customer-centric, forward-thinking practices.

4. Increased Customer Loyalty

Printerless returns with QR codes can play a significant role in enhancing customer loyalty. When the returns process is seamless, hassle-free, and efficient, customers develop trust and confidence in your brand, knowing they can easily return items if necessary.

Moreover, the eco-friendly aspect of printerless returns aligns with the values of eco-conscious customers. By offering sustainable returns options, you attract environmentally-aware customers who appreciate your commitment to making a positive impact on the environment.

Investing in printerless returns and QR codes improves customer loyalty and contributes to long-term customer retention. As you build a loyal customer base, you reduce customer churn and increase customer lifetime value, driving sustainable growth for your eCommerce business.

How to Implement Printerless Returns

ReturnGO seamlessly integrates with various carriers like USPS, UPS, FedEx, and other major carriers that support QR code return barcodes. This functionality enables you to generate QR codes instead of or in addition to traditional return shipping labels. 

When customers request a return or exchange via ReturnGO’s convenient self-service portal, eligible customers will receive a QR code and/or return label directly via email. 

Customers can bring their packages to a participating carrier location, where employees will scan the return barcode from their screen. Offering an omnichannel returns experience ensures maximum convenience, flexibility, and ease of use for your customers. 

By enabling you to provide both QR codes and return shipping labels, ReturnGO helps you cater to a broader range of customer preferences, granting them the convenience and freedom to choose their preferred method. 

Some customers might prefer the digital ease of QR codes, while others may still appreciate the familiarity of a physical, printed return label. 

Take your return management to the next level by offering printerless returns through ReturnGO’s seamless integrations, delighting your customers with flexible return options.

Adopt Printerless Returns for a Competitive Edge

In the rapidly evolving eCommerce industry, offering a frictionless returns experience is essential to maintain a competitive advantage. 

By implementing innovative solutions like printerless returns using QR codes, you can transform the post-purchase process to be more sustainable, convenient, and customer-centric. 

ReturnGO makes implementing a printerless returns solution simple and straightforward. Give your customers the hassle-free returns process they deserve while reducing your environmental impact.

What Are the Challenges of Managing International Returns?

International eCommerce offers huge opportunities for growth. The cross-border eCommerce market is estimated to reach approximately $7.9 trillion by 2030.

However, running an international eCommerce business also comes with unique challenges – especially when it comes to returns.

There are several things to keep in mind when processing international returns, including:

• Rules and regulations – Each country has its own set of return policies and regulations. You need to research and understand the rules that apply to each country you serve.

• Language barriers – Language differences can lead to misunderstandings and confusion during the returns process. Overcoming language barriers is crucial to providing a seamless experience for your international customers.

• Return shipping costs – International shipping costs can be significantly higher than domestic shipping, making it essential to find a cost-effective way to manage international returns.

How to Effectively Manage International Returns

Handling international returns properly requires careful planning and execution. Here’s how to provide a smooth and efficient international returns service:

Determine Eligible Countries

Decide which countries you want to be able to accept returns from. Research each country’s regulations to understand the return policies and legal obligations specific to each location. This will help you navigate the requirements involved in cross-border returns.

When determining your eligible countries, consider factors like return shipping costs. International shipping costs can be significantly higher than domestic shipping, which can impact your profitability and long-term success. Evaluating these costs will help you plan and budget for international returns more effectively.

To minimize complications, you can start your international expansion with just a few countries before expanding globally. This way, you can test your returns process and fine-tune it based on customer feedback and operational performance, before scaling up to more locations.

Create Location-Specific Return Policy Rules

Once you’ve determined which countries you want to accept returns from, it’s essential to tailor your return policy based on the specific needs of each location. 

As different countries will have different regulations, shipping costs, and requirements, a one-size-fits-all return policy is unlikely to work for international returns. 

• Return window – Customize your return window length by country, state, or city, taking into account the average shipping time to each location. This way, customers in different regions will have a reasonable amount of time to initiate a return.

• Eligibility conditions – Define location-based eligibility conditions to specify which items can be returned from where. Some products may have legal or customs restrictions, making them ineligible for returns, or you may want to restrict customers from certain locations from being able to request certain kinds of refunds or exchanges.

• Fees – Set location-specific fees, such as who pays for return shipping. Depending on shipping costs and distance, you may want to charge different return fees for customers in different locations.

Generate International Return Labels

To simplify the return shipping process for international customers, integrate shipping carriers that can generate international return labels. 

Automatically generate return shipping labels to save time and reduce the potential for errors.

Implementing an automated system to generate return labels for international customers will enhance the returns experience and streamline cross-border returns.

Provide Localized Communications

To provide a positive returns experience for your international customers, effective communication is crucial. 

Overcome language barriers by providing return instructions in the native language of each eligible country, to ensure that customers can easily understand the steps to initiate a return.

75% of customers are more likely to purchase from the same store again if customer service is in their native language, so providing a localized returns experience can significantly affect customer satisfaction.

When confirming a return, display the refund amount in the customer’s local currency. This personal touch enhances the customer experience and avoids confusion about the refund amount. 

By providing localized communications, you can build trust and loyalty with your international audience.

Automate Your Returns Workflow for International Returns

To optimize your international returns process and streamline your operations, take advantage of advanced returns software like ReturnGO. 

ReturnGO is a powerful returns management system that helps you automate your returns with a localized self-service return portal, so customers can easily initiate returns, track the progress of their returns, and receive timely updates in their native language, reducing the need for customer support intervention.

With ReturnGO, you can manage international returns in one centralized system, regardless of the countries involved.

The comprehensive returns analytics provide visibility into global customer return behavior, to help you anticipate returns volume, identify trends in specific regions, and tailor your return policies and strategies accordingly.

Returns Without Barriers

In order to grow your eCommerce business globally and reach new markets, you need to have a returns process that can handle international returns. 

Delight customers around the world and scale for international growth by setting up a streamlined and automated international returns workflow.

ReturnGO can help you set up simple, localized returns for your online store so that you can manage international returns as easily and efficiently as domestic returns.

Selling electronics online also comes with unique challenges and risks, especially when it comes to returns. So how can you manage your electronics returns effectively? Here are some best practices you can follow to optimize your returns process.

Why Returns of Electronics Are Unique

Managing electronics returns presents a unique challenge due to the constantly evolving nature of the electronics industry, as well as many returns associated with high customer expectations.

Value

As electronics often carry a higher price tag than smaller, lower-cost products, each return is a significant hit to your bottom line. 

One advantage of eCommerce, though, is that customers purchasing electronics online tend to conduct more thorough research before making a purchase, so they’re more likely to buy something they’ll be satisfied with.

With the availability of detailed product information, customer reviews, and comparison websites, customers have the means to make informed decisions about their purchases. 

Complexity

Unlike other products, electronics often have more intricate components, delicate circuitry, and multiple functionalities, making quality checks and effective return management especially important.

The relative complexity of electronics can cause challenges like customers encountering difficulties or errors while using or setting up the product, as well as electronics needing to be compatible with other devices or systems the customers use.

Customer Expectations

Customers expect a hassle-free and transparent return process, especially for high-value and complex products like electronics. 

Some of the factors that influence customer satisfaction with returns are:

• Customer expectations – Customers have high expectations for the quality, performance, and functionality of electronics. If the product doesn’t meet their expectations or match the description, they’re more likely to return it.
• Product complexity – Electronics are complex products that require technical knowledge and skills to use. Customers may encounter difficulties or errors while using or setting up the product, or they might realize that they need additional accessories or components that aren’t included.
• Compatibility issues – Generally, electronics need to be compatible with other devices or systems that customers already own. Customers may return the product if it isn’t compatible with their existing setup.
• Buyer’s remorse – Electronics are often high-value products that involve a significant investment from customers. Customers may experience buyer’s remorse after buying the product, especially if they find a better deal elsewhere or change their mind about what they want.

Return Costs

The costs associated with returns of electronics can be substantial, as electronics often require careful packaging, secure shipping methods, and specialized handling due to their delicate nature.

Some of the return costs include:

• Shipping costs – Shipping electronics can be expensive due to their weight, size, and fragility. You may have to pay for both outbound and inbound shipping fees, depending on your return policy and carrier agreements.
• Handling costs – Handling electronics requires special care and attention to avoid damage or loss, requiring an investment in protective packaging materials, labels, scanners, etc. There are also labor costs for inspecting, sorting, and restocking the returned products.
• Refurbishing costs – Refurbishing electronics by repairing or restoring them to a sellable condition costs you for parts, tools, and technicians. 
• Reselling costs – Reselling electronics can be challenging due to their depreciation and obsolescence. You often have to resell them at a lower price or through a different channel than the original sale, and pay for marketing, advertising, listing fees, or commissions.
• Disposal costs – Disposing of electronics can be costly and complicated due to environmental regulations and ethical concerns, costing you recycling fees, disposal fees, and fines.

Best Practices for Managing Returns of Electronics

It’s important to implement best practices and constantly improve the returns process, especially when it comes to electronics. 

By doing so, you can effectively tackle the unique challenges of electronics returns, reducing financial impact and taking care of issues as they arise.

Here are some best practices for managing returns of electronics:

Define a Clear and Flexible Return Policy

A clear and flexible return policy is a must-have for eCommerce stores selling electronics. A good return policy can help you reduce return rates, increase customer trust, and boost conversion rates. 

Here are some tips on how to create a return policy that works for your electronics business:

• Be generous and reasonable – Customers expect a generous and reasonable return policy when they buy electronics online. Make sure your customers can return the product within a reasonable timeframe, so give them at least a 30-day return window and consider extending it for certain products.

• Be transparent and fair – Provide a transparent return policy that doesn’t have any hidden fees or charges. Clearly state what products are eligible for returns, and what conditions they must meet to be accepted. 
• Be specific and consistent – If you have different return policies for different products or channels, make sure to clearly state the differences and reasons.
• Be communicative and helpful – Communicate your return policy effectively to customers using simple language and avoiding technical terms that may confuse or intimidate them. 

Make sure your return policy is easy to find by displaying it prominently on your website, such as on your homepage, product pages, checkout pages, footer, etc. Check that it’s visible and accessible from any device or browser.

Automate the Returns Process

Streamlining the returns process is important for reducing costs and increasing efficiency. A streamlined return process can help you save time and money, improve customer service quality, and enhance customer satisfaction and loyalty. 

Here are some tips on how to streamline your returns process for your electronics business:

• Automate the returns process – Automating the returns process can help you eliminate manual tasks and errors, speed up the refund process, and provide real-time visibility and control over your returns. ReturnGO enables you to create custom return rules and workflows that match your business needs and goals. 
• Offer multiple return options – Offering multiple return options can help you cater to different customer preferences and needs, and reduce return shipping costs. Provide a variety of return methods such as mail-in returns, in-store returns, and drop-off returns.
• Create a dedicated return portal – Provide a self-service return portal on your website for customers to easily initiate their returns online. ReturnGO can help you create a user-friendly and branded return portal that integrates with your website and eCommerce platform.

Maximize the Value of Returned Products

Maximizing the value of returned products is crucial for recovering revenue and minimizing waste. Returns don’t have to be a loss for your business. 

Strategies to maximize the value of returned products include:

• Grading – Assessing your returned products can help you determine their condition and quality and decide the best course of action for them. You can use a standardized grading system that categorizes your products into different condition levels.

• Repairing – Repairing or refurbishing your returned products can help you restore them to a sellable condition and recover some of their value. Use your own technicians or outsource the service to a third-party provider. 
• Reselling – Reselling your returned products can help you generate additional revenue for your business. You can create a separate section or page on your website or store that features your returned products at discounted prices, list your returned products on online marketplaces that specialize in selling refurbished or second-hand electronics, or sell your returned products in bulk to wholesale buyers who can resell them.
• Recycling – Recycling your returned products can help you reduce environmental impact and comply with legal regulations. Electronics contain valuable materials such as metals, plastics, glass, etc. that can be recovered and reused for other purposes. 

Take on the Unique Challenges of Electronics Returns

Managing returns in the electronics industry can be challenging yet rewarding. 

The best practices outlined in this article will help you optimize your returns process, maximize the value of your returned products, and improve the customer experience.
With ReturnGO, you can create custom return rules and workflows that are tailored to your unique needs, helping you automate and streamline your returns, reduce costs, and increase revenue.

With the return analytics dashboard, you can gain valuable insights into return patterns and customer behavior, helping you make better decisions about pricing, products, the customer experience, and more. 

Having this data at your fingertips helps you take your eCommerce business to the next level.

What is the Return Analytics Dashboard?

The ReturnGO return analytics dashboard provides you with a transparent overview of how your products, customers, and return process looks and works using real-time return analytics.

An analytics dashboard is a data visualization tool that consolidates key performance indicators (KPIs) and metrics into an easy-to-read display. 

Easily track your return data on your return analytics dashboard so that you can make informed decisions and improve your returns process.

Why Tracking Return Data is Important

It’s important to track return data so that you can optimize your return policy and return process to suit the needs of both your business and your customers. 

Make strategic decisions to reduce your return rate based on your understanding of your return reasons. 

Tracking and analyzing your product return data can help you identify any potential issues with your products or fulfillment process, ensuring that you are able to resolve them quickly and efficiently.

Return data is one of the most important types of information that an eCommerce store can track. By understanding what products are being returned and why you can make informed decisions that can improve your bottom line.

Monitor your return data to identify patterns and trends that can help predict future returns and optimize your eCommerce returns process. 

All your returns data is displayed in a clear, easy-to-understand way on your ReturnGO return analytics dashboard, using pie charts, graphs, and numbers to highlight your returns data.

A user-friendly layout with tabs to filter different kinds of return data based on different aspects of your eCommerce business’ process.

What Can You Do With the Return Analytics Dashboard?

Tracking your returns data is easy thanks to a user-friendly layout and tabs to filter the different kinds of returns data.

RMA Status: The Pulse of Your Returns Process

The “RMA Status” tab gives you an overview of your RMAs, items, and their value, as well as your return policy rules and how effective they are. 

By analyzing the number of returns within a specific time frame, you can spot unusual patterns, identify your most returned items, and see how much value has been returned.

You can see metrics like:

• Total number of return requests
• Number of items returned
• Value of returns

So let’s say you notice way more returns than normal in a given month. You can dig into the data to figure out what happened and how to prevent it next time.

Example: You see a sudden spike in returns for a particular product. By diving deeper into the data, you find that the majority of these returns are due to sizing issues. Armed with this knowledge, you can update your product descriptions with more accurate size charts and reduce the number of future returns.

Requested: Unveiling Return Resolutions and Reasons

The “Requested” tab takes you into the minds of your customers and provides insights into their return requests. 

By understanding what customers are returning and why, you can discover issues with products, sizes, warehouse mistakes, and more.

You can see metrics like:

• The most common resolutions (refunds, exchanges, etc)
• Top return reasons
• Most frequently returned products

Example: You find that a significant number of customers are requesting refunds for a specific product. Upon closer examination, you discover that the product images on your website don’t accurately represent the actual color of the item. Armed with this information, you can update the product images and reduce returns caused by color discrepancies.

Processed: Keeping an Eye on Transactions

In the “Processed” tab, you can monitor and review all the transactions issued to customers, including refunds, exchanges, store credit, and gift cards. 

Tracking these transactions over time helps you identify any unusual patterns and analyze your financial performance.

Example: After implementing a new return policy that encourages customers to exchange items for store credit instead of requesting refunds, you find that the number of store credit transactions has increased significantly. This indicates that customers are more willing to try out different products, leading to additional sales and increased customer loyalty.

Customers: Understanding Customer Behavior

The “Customers” tab lets you analyze customer behavior related to orders and returns. By tracking customer segments like first-time customers and repeat customers, you can gain valuable insights into customer buying habits and tailor your return policy to reduce return rates and increase profitability.

Example: You see that a particular group of repeat customers has a high average number of returns per customer. Further investigation reveals that these customers often order multiple variants of the same product to try out different options. Armed with this insight, you can offer size or color guides to help them make more informed choices, reducing the need for returns.

Insights: Actionable Tips for Informed Decisions

Looking at the “Insights” tab reveals actionable insights based on customer profitability segments, as well as insights related to products. This information can guide you in optimizing your returns process to retain more revenue and improve your overall profitability.

Example: You find that your most profitable customers tend to prefer exchanges over refunds. This suggests that they value the convenience and speed of getting a replacement item rather than waiting for a refund. To capitalize on this behavior, you can implement a streamlined exchange process to cater to your high-value customers and improve their shopping experience.

ReturnGO Impact: Celebrating Your Success

Under the “Impact” tab, you can see the real difference ReturnGO has made for your store. From retained revenue to time saved and even reduction in CO2 emissions, find out exactly how using ReturnGO benefits your bottom line and the environment.

Example: You discover that by using ReturnGO’s automated returns process, you’ve reduced the average processing time for returns by 40%. This translates to increased customer satisfaction while also freeing up your team to focus on other aspects of your business.

What Metrics Are Shown in the Analytics Dashboard?

Your return analytics dashboard is a powerful tool that can provide a lot of information about your store’s performance. Tracking key metrics can help you gain insights into your return data and identify areas for improvement.

There are hundreds of metrics you can track on the return analytics dashboard. Here are just a few useful metrics to keep an eye on:

1. New Revenue

ReturnGO provides lots of ways for you to encourage customers to choose resolutions that keep the revenue in the store and generate additional revenue.

On the returns analytics dashboard, you can see how much revenue was retained and how much new revenue was generated through resolutions like store credit, gift cards, and exchanges.

For example, if you see that customers often add money to their purchases when redeeming store credit, that is new revenue generated from the return, which can be extremely valuable. You might want to incentivize store credit to keep customers coming back and spending more.

2. Retained Revenue

Track how much revenue you’ve retained by offering exchanges, store credit, and gift cards.

Instead of losing money on refunds, encourage customers to choose smart refund alternatives that keep the revenue in your store.

3. Return Reasons

View a clear visual representation of the top return reasons that customers give for each resolution type. 

Easily compare the rates of different return reasons, gaining valuable insight into your return process.

Customers may return an item for a number of reasons, such as sizing issues or damaged products. The analytics dashboard helps you track these reasons so that you can take steps to avoid them and reduce your return rate. 

Identify which return reasons are most common for specific products, to identify patterns and take action to improve your products or product descriptions when necessary.

4. Resolutions

In the return analytics dashboard, you can see a clear visual representation of all the return resolutions you have defined as options, such as exchange, refund, store credit, and gift card.

The easy-to-understand display makes it simple to see how the rates of the various return resolutions compare, giving you insights into which options are most popular with your customers. 

Track your return resolutions to identify changes to be made to your products, shipping process, or return policy in order to optimize your business’ efficiency. 

Adjusting your return policy can lead to a visible change in the most frequently selected return resolutions.

5. Customer Behavior

In order to better understand your return analytics, it’s important to understand the bigger picture. Your returns analytics dashboard provides you with additional information about customers’ purchase and return patterns to help you better understand how returns relate to sales.

It’s important to know how much of your revenue comes from new versus repeat customers. New customers are important for growth, while repeat customers are key to maintaining a successful business. 

By understanding the trends in how your customers shop, you can see how that is reflected in their return patterns.

Look at information such as:

• Proportion of revenue and returns generated by new customers versus repeat customers.
• Average number of products ordered and returned by customers.
• Frequency of customers placing orders.

Your customers are not all alike, and it wouldn’t make sense to treat them as such. Purchase and returns data can be combined to segment customers and pinpoint specific patterns for each group. 

Download Return Data Reports

The analytics dashboard gives you the option of downloading reports of all the different returns analytics data.

Downloading return data reports will give you a more complete picture of how your business is performing and where there may be room for improvement. 

With this information at your fingertips, you’ll be able to make more informed business decisions.

Use Return Analytics to Grow Your eCommerce Store

The return analytics dashboard provides a consistent, simplified view of your return data, enabling you to dive deeper into your data and figure out which products are being returned the most, why products are being returned, and what you can do to reduce your return rate.

Take your store to the next level by tracking your returns on the ReturnGO return analytics dashboard.

ReturnGO is here to help you continue managing your returns without interruption, and make the post-purchase process even better, one return at a time.

With ReturnGO, you get an excellent alternative that makes the transition effortless as well as offering many additional features and benefits.

Easy RMA Migration of RMAs

We have everything set up so you can seamlessly migrate your RMA data and keep managing your returns smoothly and uninterrupted.

Effortlessly transfer your RMAs, ensuring that you don’t lose any crucial information during the transition, and eliminating the risk of losing any data or accidentally issuing double refunds.

Take comfort in knowing that all your information will be securely moved over, keeping your returns management on track.

Quick Setup

Time is of the essence, and we know you don’t want a hassle and time-consuming migration process. 

ReturnGO prioritizes your efficiency and ensures a swift onboarding process, so you can start managing returns seamlessly from day one. 

With our intuitive interface and straightforward setup process, we’ll help you get up and running in no time. 

Many Integrations

With ReturnGO, you get a comprehensive solution that integrates seamlessly with your existing systems. 

ReturnGO offers a wide range of integrations with popular shipping providers, ERPs, helpdesks, and more. 

Plus, if you have unique requirements, our flexible API enables you to create custom integrations to meet your needs.

Flexibility

Every business has unique requirements, and we understand that. ReturnGO offers the flexibility to adapt to your specific workflows and requirements.

No matter the size of your business, ReturnGO scales to meet your demands. Customize your returns management process and make it work for your business.

Order Tracking & Returns in One Place

Simplify your post-purchase operations with ReturnGO’s all-in-one solution. Our platform combines order tracking and returns management in a single, user-friendly interface. 

Easily track orders, manage returns, and keep your customers informed – all in one place.

Benefits of ReturnGO

Manage your returns like you did before with Returnly, but even more easily. ReturnGO is here to stay, providing a reliable post-purchase solution that you can count on to make managing your returns as efficient as possible.

Advanced Automation Rules

ReturnGO has even more automation capabilities than Returnly, enabling you to process returns and exchanges automatically based on a wide range of trigger events, including in-transit, shipment received, item validated, and more. 

With ReturnGO’s advanced automation capabilities, you have the flexibility to define automated processes to suit your specific needs.

Case Study: Travelpro

Travelpro, a leading luggage manufacturer, has successfully implemented ReturnGO to automate its returns process and increase efficiency. 

Using ReturnGO, Travelpro has completely automated the returns process, eliminating the need for customer service agents to handle tasks like sending return labels and manually approving return requests. 

“The return process is completely customer-centric. They fill out the request, generate the label, and get a refund…This cut the return processing time from 20 minutes down to just 90 seconds.”

– Mark Costigliola, eCommerce Operations Manager, Travelpro

Since Travelpro processes a large volume of returns, especially during the holiday season, automating the refund process has made it easier to efficiently issue refunds on a daily basis.

ReturnGO’s advanced automation capabilities have enabled Travelpro to reduce the processing time for returns from 20 minutes of manual work to zero, resulting in substantial cost savings by eliminating customer service involvement.

Read the full Travelpro case study.

Unlimited Return Policy Rules

With ReturnGO, you have the freedom to create an unlimited number of return policy rules and eligibility conditions, with no restriction on how many you can have. 

Customize your returns management based on a variety of variables, including item, order, RMA, or customer details, to resolve any return scenario, no matter how complex or unique.

Whether it’s return window, item eligibility, product types, tags, or other criteria, ReturnGO empowers you to create tailored policies that align with your business requirements.

Case Study: One Project

One Project, an eCommerce fashion platform, streamlined the returns process using ReturnGO’s exceptional return policy flexibility.

As a result of ReturnGO’s highly flexible return policy rules, One Project was able to customize the return process according to their business needs and customer preferences, for example providing free refunds for VIP customers while hiding refund options from customers who frequently request returns.

“I think ReturnGO is a masterpiece in the eCommerce refund process because there are a lot of apps that do some of the things but not all.”

– Shmulik Konforty, CTO, One Project

Read the full One Project case study.

Flexible Shipping Options

ReturnGO offers flexible shipping options, including Easypost like Returnly offered, as well as many more integrations that you can choose from.

With an array of shipping integrations and an API, you can connect to any shipping carrier, generate pre-paid return shipping labels and QR codes, and manage your return shipping seamlessly. 

ReturnGO also supports international returns, so you can expand your global reach and provide a seamless returns experience.

Case Study: Brava Fabrics

Brava Fabrics, a sustainable fashion company, streamlined its return process using ReturnGO. 

Brava Fabrics had different return policies for each shipping carrier and country they worked with. Through ReturnGO’s seamless integration with Shopify and ShippyPro, Brava Fabrics was able to easily switch between carriers such as DHL Express (International), GLS (Germany), Mondial Relay (France), and EasyPost (UK) as needed. 

Thanks to ReturnGO’s seamless integrations, flexibility, and automation capabilities, Brava Fabrics was able to manage its return logistics more efficiently and save thousands of dollars each month.

“We choose carriers according to price and time. So, the best thing about ReturnGO is being able to change these carriers according to our priority, whenever we want.”

– Gabriela Meyer Torres, Senior Operation Executive, Brava Fabrics

Read the full Brava Fabrics case study.

Incentivize Customers with Bonus Store Credit

Instead of being able to offer only gift cards, ReturnGO goes the extra mile by giving you the option to offer store credit as well. You can incentivize customers to choose store credit over a refund by offering fixed or dynamic bonus credits.

By providing additional value through store credit, you can encourage customer loyalty, reduce refund rates, and retain more revenue.

Case Study: Silk & Salt

Silk & Salt, an eco-conscious fashion brand, has successfully generated a notable 24.9% additional revenue from redeemed store credit since implementing ReturnGO’s store credit feature. 

With 61% of customers spending more money when redeeming their store credit, the brand has experienced a substantial boost in revenue. 

Read the full Silk & Salt case study.

Get Started Today

As the deadline approaches for Returnly’s shutdown, it’s important to take action and ensure an easy transition.

With easy migration, streamlined onboarding, and endless flexibility, ReturnGO offers everything you need to keep managing your returns as seamlessly and effectively as possible.

Make the smart choice and ensure a smooth transition for your business. Contact us to learn more about ReturnGO. ReturnGO is here to make your post-purchase process better, one return at a time.

FAQ

When is Returnly closing?

Returnly is closing on October 1st, 2023.

Don’t wait to migrate, to make sure you can keep managing your returns uninterrupted.

How can I migrate to ReturnGO?

Contact us to book a demo and see how ReturnGO works. Our team will be happy to help you get set up and efficiently migrate your RMAs without losing any data.

What’s the difference between Returnly and ReturnGO?

With ReturnGO, you can manage any return scenario with ease thanks to its advanced automation capabilities, many integrations, and flexible return policy settings.

Can you help me set up my account? 

Our onboarding team is here to help you every step of the way, from helping you migrate over from Returnly to setting up your return policy rules and automations. Whatever you need, we’re here for you.

That means customers are more likely to scrutinize and evaluate their purchases carefully and return them if they don’t meet their expectations. 

Let’s explore why returns management matters for online jewelry stores and the benefits of having an effective returns management system.

Why Returns Management Matters for Online Jewelry Stores

The size of the online jewelry market is expected to increase by $36.23 billion between 2022 and 2027, at a CAGR of 15.55%. 

Returns can be particularly costly and challenging for online jewelry stores. Here are some reasons why:

• Jewelry is expensive – The average item price of jewelry is much higher than other eCommerce categories at $575.27, which means that every return represents a significant loss of revenue and profit.

• Jewelry is fragile – Because jewelry is fragile, jewelry items are more prone to damage during shipping and handling, which can result in customer dissatisfaction and higher return rates.

• Jewelry is personal – Jewelry is often bought as a gift or a symbol of love, which means that customers have high expectations and emotional attachments to their purchases. If they are unhappy with their jewelry, they may feel disappointed or frustrated.

• Jewelry is subjective – Since jewelry is a matter of personal taste and preference, customers often change their minds or regret their choices after buying something online. 

These factors make returns management a crucial aspect of running a successful online jewelry store. 

Challenges of Handling Returns in the Jewelry Industry

While returns are common in all eCommerce industries, there are some unique challenges and opportunities that online jewelry stores face when it comes to managing returns. Here are some of them:

Return Reasons

While the reasons for returns in the jewelry industry are similar to other retail sectors, there are a few specific factors that contribute to a higher rate of returns in this industry. 

Some of the most common reasons for jewelry returns include:

• Size – Returns due to sizing issues are common in the jewelry industry, especially for rings, bracelets, and necklaces. 

• Quality – Jewelry is often returned due to quality issues, especially relating to metals, gems, and pearls. 

• Damage – Since jewelry is fragile, damage, particularly during shipping or handling, is another common reason for returns. 

• Mismatch – Jewelry returns often result from mismatches between expectations and reality as it can be difficult to see the product clearly from online images.

By addressing these return reasons, you can better manage your returns and provide a positive customer experience, leading to increased customer satisfaction and loyalty.

Security

Security is a crucial factor to consider when handling jewelry returns, as these products are particularly susceptible to theft or loss during transport or storage. 

Due to their small size and high value, jewelry products are a prime target for theft, and there is a higher likelihood of loss during shipping or storage. 

When handling returns, take additional measures to ensure that the products are returned safely and are secure during the entire process.

Authenticity

Verifying authenticity is another challenge for handling returns in the jewelry industry, as jewelry products may be counterfeit or tampered with during return or exchange. 

Counterfeit jewelry is a growing problem, and this can impact the reputation of your brand and lead to legal and financial repercussions. 

It can be difficult to determine the authenticity of a returned item, and even more so if the item has been tampered with during the return process.

To mitigate this issue, put in place quality control measures in place to verify the authenticity of each product you receive back. This includes checking for genuine materials, hallmarking, and performing laboratory testing when necessary. 

Hygiene

Hygiene is a challenge for handling returns in the jewelry industry, as jewelry products may be contaminated or infected by contact with skin or fluids during wear or return. 

To address this challenge, put protocols in place for handling and processing returned jewelry products, including thoroughly cleaning and sanitizing all items before they are returned to inventory or resold to another customer. 

How to Reduce Returns for Your Online Jewelry Store

While handling returns is an inevitable part of running an online jewelry store, there are some steps you can take to reduce the number and frequency of returns and minimize their impact on your business. 

Here are some tips to reduce returns:

Improve your Product Descriptions and Photos

Clear and accurate product descriptions and photos can help customers make informed purchasing decisions and reduce the likelihood of returns due to misunderstandings or misrepresentations.

Provide accurate and detailed descriptions and photos of your products on your website, highlighting their features, specifications, dimensions, materials, and craftsmanship. 

By providing detailed and accurate information about your products, customers will have a better understanding of what they are purchasing and will be less likely to return the product due to misunderstandings or inaccuracies.

“The biggest challenge I face as an online jeweler is getting people to trust us with their purchases. As our customers can’t exactly touch the product or even try items like rings on, it’s pretty difficult to get customers to trust our quality. We try our best using images and video and also super detailed descriptions of each item, so our potential customers can feel secure they are buying what they see.”

– Sanket Shah, Director & Founder, The Opal

Provide Sizing Guides

Common reasons why customers return jewelry involve issues with the size, fit, or style of the product. 

To prevent this, provide size guides and measurement instructions for your products, especially for rings, bracelets, and necklaces. 

A clear sizing guide can help customers determine the correct size and reduce the likelihood of returns due to sizing issues.

For example, you’d be surprised how many people don’t know their ring finger size. Providing detailed ring size guides and charts like Gucci does, for example, or special tools such as the Bvlgari ruler to determine a ring size can raise customer confidence and avoid unnecessary returns for resizing.

Display Customer Reviews and Ratings

Displaying customer reviews can be a powerful tool for reducing returns in the jewelry industry. Showcasing the experiences and opinions of previous customers can provide valuable social proof and help potential customers make informed purchasing decisions.

Customer photos can help potential customers get a better sense of how the jewelry will look and fit on different skin tones and in different lighting conditions. 88% of customers specifically look for photos and videos from other customers before purchasing.

By collecting and displaying user-generated reviews and photos on your website, you can showcase the quality and value of your products, and address any questions or concerns that your customers may have before purchasing. 

Create a Loyalty Program

Creating a loyalty program can be an effective strategy for reducing jewelry returns. By incentivizing customers to make repeat purchases or refer their friends and family, you can increase customer engagement and loyalty, which can lead to a decrease in returns.

By offering rewards such as discounts or exclusive perks for repeat purchases, you can create a sense of value and incentivize customers to keep shopping with you.

Offer a Luxury Returns Experience 

Jewelry is often considered a luxury item, with customers willing to pay a premium for high-quality products. As a result, the returns experience should also reflect this luxury aspect to ensure customer satisfaction and retention.

Customers buying jewelry expect a certain level of service and attention to detail, even when it comes to returns.

Providing a seamless and personalized returns experience can help establish trust and confidence in your brand. This can include offering free return shipping, a generous return policy, and clear communication throughout the returns process.

Navigating the Unique Challenges of Jewelry Returns

Managing returns in the jewelry industry presents unique challenges and opportunities. By understanding and addressing these specific challenges, you can create a returns management process that benefits both you and your customers.

It’s important to take advantage of helpful tools and resources, such as ReturnGO, to streamline and automate your returns management, reducing the workload and stress that often come with managing returns, especially for jewelry.

Here’s everything you need to know about returns automation and how to use it for your eCommerce store.

What is Returns Automation?

Returns automation refers to the strategic implementation of technology to automate various aspects of the eCommerce returns process. 

By automating your returns process, you can increase efficiency, reduce costs, and improve customer satisfaction.

Returns automation can help you:

• Generate return labels – Streamline return shipping label generation and make it easier for your customers to receive return labels.

• Approve and reject return requests – Automate the verification and approval of return requests.

• Track returns – Track and monitor the status and location of returned items in real-time.

• Issue refunds – Automate the process of calculating and issuing refunds or store credit.

• Verify returned items – Automatically update inventory levels and statuses when items are returned.

• Notify customers – Keep customers updated on the status of their return by sending automated email notifications.

• Collect returns data – Collect and analyze data on returns to gain valuable insights and make data-driven decisions.

Using an automated returns system, you can minimize manual work, increase accuracy, and save time and resources. 

The use of automation in returns management has become increasingly popular in recent years, as eCommerce stores increasingly look for ways to optimize workflows and improve the customer experience.

Benefits of Returns Automation

Here are some of the main benefits of automating your returns process:

Increased Efficiency

One of the biggest benefits of returns automation is that it simplifies and speeds up the returns process for both you and your customers. 

By automating returns, you eliminate the need to manually handle each return request, print labels, update inventory, or issue refunds. This simplifies the process and means that customers don’t have to wait for your approval, fill out forms, or contact customer service to request a return, as everything is done automatically and efficiently.

65% of customers say the speed and ease of refunds affect where they choose to buy from, so streamlining your returns process can make a huge difference in conversion rates and customer retention.

Manual processes are often prone to human error, which can result in mistakes such as incorrect refunds or mislabeled items. By automating the returns process, you can minimize these errors and ensure that returns are processed accurately and efficiently.

Returns automation leads to a more efficient returns process that saves time, reduces errors, and improves the customer experience. 

Reduced Costs

Returns automation can help reduce the costs associated with handling returns. By automating the process, you can eliminate the need for additional staff or resources, ultimately reducing costs and increasing efficiency.

The following costs are reduced by returns automation:

• Shipping – Lower your return shipping costs by using pre-paid return labels or offering incentives for customers to keep their items.

• Labor – Reduce your labor costs by automating the returns process and requiring less manual work.

• Lost revenue – Decrease your refund costs by offering store credits or exchanges instead of cash refunds.

Improved Customer Experience

Automating your returns process can significantly improve your customer experience, ultimately leading to increased loyalty and higher customer lifetime value. 

Returns are a critical touchpoint in the customer journey, and how you handle them can make or break your relationship with your customers. A hassle-free and streamlined returns process shows customers that you value their time and money and are committed to providing a positive experience.

By automating your returns process, you can boost:

• Satisfaction – Automating your returns process can improve customer satisfaction by making the returns experience easy and convenient. 

When customers can easily initiate a return request, print a return label, and track the status of their return, they feel empowered and in control of the process. 

• Trust – A transparent and consistent return policy can help build trust with your customers. When customers know what to expect from the returns process, they feel more confident in their purchase decisions.

• Engagement – Automating your returns process provides opportunities to engage with your customers. 

Offering personalized incentives or recommendations during the returns process shows your customers that you value their business and are committed to their satisfaction. 

• Loyalty – Building customer loyalty is essential for the long-term success of your business. Automating your returns process can help show your customers that you appreciate their business and care about their satisfaction. 

By handling returns efficiently and effectively, you can create a positive experience that encourages customers to return for future purchases.

The longer the relationship with an online store, the more customers spend, so putting in the effort to create an exceptional customer experience can increase your customer lifetime value and overall revenue.

Higher ROI

Returns automation is a game-changer for any eCommerce store looking to maximize profitability and ROI. By automating the returns process you can reduce costs, retain revenue, and even generate more revenue.

Some of the ways returns automation can increase your store’s ROI:

• Reduced fraud and errors – Automating the returns process reduces the likelihood of fraudulent returns and human errors, saving your business significant amounts of money in the long run. 

• Higher efficiency – Additionally, by reducing costs and improving operational efficiency through automation, you can process returns faster, resulting in higher profitability.

• Retain and generate revenue – Returns automation also provides an opportunity to offer store credit or exchanges instead of refunds, which can help you retain revenue and generate additional revenue. 

For example, enabling customers to exchange an item for a different product gives you a chance to upsell or cross-sell and increase the customer’s overall order value.

By automating your returns process, your business can improve its efficiency, retain revenue, and generate additional revenue, leading to increased profitability and ROI.

Key Features of Returns Automation Systems

Depending on your business needs and goals, you might want to look for different features and functionalities when choosing a return automation system. 

Here are some of the key features that you should consider:

Automatic Label Generation

Automatic return shipping label generation is an essential feature of returns automation systems that can save time, reduce errors, and improve the customer experience. 

This feature enables customers to receive a pre-paid return label instantly when they initiate a return request online, which they can print out and use to ship back the returned items.

Automatic return label generation is done through integrations with shipping carriers, which saves time and improves accuracy by eliminating the need to manually generate return shipping labels each time.

Integrating with shipping carriers to generate return shipping labels enables real-time tracking and updates on the return shipment’s status, streamlining the returns process and providing peace of mind.

Seamless Integrations

Returns automation systems offer seamless integrations with other business software and service providers such as warehouse management systems (WMS), helpdesk software, shipping carriers, and third-party logistics (3PLs) providers to streamline the returns process.

• WMS – By integrating with a WMS, you can improve inventory management, reduce errors in tracking returns, and improve processing times. 

• Helpdesk – Integration with helpdesk software can help manage customer inquiries and provide real-time updates on the status of returns.

• Shipping integration – Integrating with shipping carriers enables automatic label generation, real-time tracking, and updates on the return shipment’s status, simplifying the returns process. 

• 3PL – Integration with 3PLs can help manage returns and processing times, especially for businesses with high-volume returns.

Seamless integrations with third-party software and service providers can automate the returns process even more, making it more accurate and improving the customer experience.

Customizable Return Portal

A customizable return portal provides a self-service platform for customers to initiate a return request. 

Through the return portal, customers can easily initiate a return request, select the reason for the return, and choose their preferred return method.

By creating a branded return portal that reflects your store’s brand style, you can provide customers with a sense of continuity throughout their shopping journey, leading to increased customer satisfaction and loyalty, and a higher likelihood of repeat business.

Providing customers with an intuitive self-service return portal reduces the number of customer service inquiries and complaints, freeing up your team to focus on other tasks.

Real-Time Tracking Updates

Keeping customers informed of the status of their return is an essential part of delivering a positive customer experience. 

Returns automation systems provide the ability to send automated notifications to customers throughout the return process, keeping them informed and reducing the need for manual follow-up.

Send automated return email notifications and customize them to include relevant information such as return status updates, shipping information, and expected refund dates. This level of transparency can help build trust with your customers and enhance their overall experience with your store.

By automating your notifications, customers can receive immediate confirmation of their return request and a pre-paid return shipping label via email. Once the returned item is received at the warehouse, customers can be notified that the item has been received and is being processed. And then when the refund has been issued, customers can be notified of the details of the refund.

Return Automation Rules

Return automation rules enable you to automate actions within your returns process based on criteria that you define. By automating your team’s processes and workflows, you eliminate the need to perform repetitive manual tasks, saving time and improving efficiency. 

Return automation rules follow a Trigger > Condition > Action workflow.

• Trigger – An event that triggers the activation of the automation rule.

• Condition – Requirements that must be met in order for the automation rule action to happen.

• Action – The part of the automation rule that completes a task.

Return automation rules can be set up to automatically perform various actions in your return process, such as refunds, exchanges, approving, and marking as done. 

For example, you can set up an auto-refund rule to automatically issue a refund when an item is returned due to being damaged or defective.

Here are some return automation rules you can set up to help streamline your returns workflow:

• Auto-Refund – Automatically issue a refund under certain conditions, such as when an item is returned due to being damaged or defective. 

You can configure the rule to be initiated based on triggers such as item validation, RMA approval, shipment in transit, or shipment receipt.

• Auto-Exchange – Automatically release an exchange order when a certain condition is met. 

For example, you can set up an auto-exchange rule so that when an item is returned and is in transit back to your store/warehouse, the exchange is released and a new draft order is generated in your Shopify account, which you can then fulfill and dispatch to the customer.

• Auto-Approve – Automatically approve return requests based on criteria that you define. 

You can set up the rule to automatically approve refund requests in the form of store credit, for example, or for customers who have not previously returned an item.

• Auto-Mark as Done – Automatically mark the RMA (return merchandise authorization) status as Done once all required actions are completed for each item. 

The RMA status will automatically be marked as done only once all the steps of the return have been completed.

By implementing return automation rules, you can simplify and streamline your returns process, making it more efficient and improving the customer experience.

Return Analytics and Insights

Returns analytics and insights are essential components of returns automation systems, providing valuable data that can help optimize the returns process and enhance the overall customer experience. 

With returns automation, you can track and monitor various metrics related to the returns process, including:

• Return rates – You can track how many returns are being initiated and processed over a given period and identify any spikes or trends.

• Return reasons – Understanding the reasons behind returns can help you identify common issues with your products or shipping process and make necessary improvements.

• Processing times – By tracking how long it takes to process returns, you can identify bottlenecks in the returns process and take steps to speed up the process.

By analyzing these metrics, you can gain valuable insights into your returns process and make data-driven decisions to improve efficiency, reduce costs, and enhance the customer experience. 

For example, if you notice a high number of returns for a specific product due to sizing issues, you can take steps to adjust the product description or talk to the manufacturer. 

Similarly, if you identify that processing returns is taking longer than expected, you can streamline the returns process and improve the turnaround time.

Returns analytics and insights are an integral part of returns automation, providing real-time data to help you stay on top of your returns process and make informed decisions. 

By leveraging the power of data analytics, you can optimize your returns process, reduce costs, and provide a better customer experience.

How to Implement Returns Automation

Now that you know what returns automation is and why you should use it, you might be wondering how to implement it for your eCommerce business. 

Here are some steps to help you get started:

1. Review Your Current Return Policy and Process

The first step to implementing returns automation is to evaluate your current return policy and process. Take a look at how the current process is working for both you and your customers and identify any pain points, gaps, or areas for improvement.

Consider the following questions:

• How easy is it for customers to initiate a return?
• How long does it take for customers to receive their refund or exchange?
• How are returns currently being processed?
• Are there any frequent customer complaints about the returns process?

Answering these questions will help you identify the pain points in your current process and set goals for improvement.

2. Choose an RMS that Suits Your Needs and Budget

Once you have evaluated your current return policy and process, you will need to choose a returns management system (RMS) that suits your needs and budget. 

Take into account the following factors when choosing an RMS:

• Integrations – Does the system integrate with your eCommerce platform, shipping carrier, and other relevant systems?

• Customization – Can you customize the return process to fit your brand and return policy?

• Pricing – How much does the system cost? Are there any additional fees or charges?

• Support – What kind of support does the system offer? Do they have a knowledge base, customer support chat, or training resources?

Research and compare different return automation systems to find the best fit for your needs.

3. Set Up and Test Your Return Automation System

After choosing a return automation system, it’s time to set it up and test it. 

Follow the instructions and guidelines provided by the RMS to ensure a smooth set-up process, and then test the return portal and automation rules thoroughly to ensure that everything is working properly.

Here are some key steps to setting up and testing your return automation system:

• Integrate – Integrate the system with your eCommerce platform and shipping, helpdesk, and warehouse management integrations.

• Customize – Customize the return policy, return portal, and customer communications to fit your brand and return conditions.

• Test – Test the system by initiating a return and following the process through to completion. Check that everything is working correctly and that all data is being recorded accurately.

4. Launch and Promote Your Return Automation System

Once you’ve set up and tested your return automation system, it’s time to launch and promote it. 

Inform your customers about the new system and how it benefits them. Highlight your return policy and return portal on your website, email, social media, and other channels.

Use the following tactics to promote your new return automation system:

• Return policy page – Add a dedicated return policy page to your website.

• Email announcement – Send an email to your customers announcing the new return portal and explaining how to use it.

• Educate – Include information about the returns process in your packaging and order confirmation emails.

5. Monitor and Optimize Your Return Automation System

The final step in implementing returns automation is to monitor and optimize the system. Track and measure the results of automating your returns using return analytics and customer feedback, and make adjustments as needed.

Track return metrics such as:

• Return rate – How often are customers initiating returns?

• Return processing time – How long does it take for customers to receive their refund or exchange?

• Return reasons – Why are customers returning items? Is there a pattern of common return reasons for specific products?

• Customer satisfaction – What are customers saying about the returns process? Are there any common complaints or issues?

Use returns data to continuously adjust and improve your returns process as needed to offer your customers the best experience and be as efficient as possible.

Case Studies

Here are some real-life examples of how stores have successfully used returns automation to improve their returns process, increase customer satisfaction, and increase their ROI.

One Project

One Project, a global eCommerce fashion platform, faced the challenge of enabling quick and efficient item exchanges for their customers. After evaluating various returns management solutions, they chose ReturnGO for its ability to facilitate easy exchanges, automate processes, and handle complex return policy rules.

Here’s how they used returns automation to streamline their returns management:

• Customized refund and exchange rules – One Project implemented tailored return rules based on customer profiles, item types, and product categories. This enabled them to prevent returns of custom products, restrict frequent returners, and provide a VIP experience.

• Automation and integration – By integrating their logistics and ERP systems with ReturnGO, One Project achieved seamless communication and synchronization of data, enabling them to automate a wide range of processes and significantly reduce manual intervention.

• Efficient handling of edge cases – With automation in place, One Project’s team focused on addressing exceptional situations that required individual attention, such as cases where customers failed to return items. This increased overall efficiency and reduced workload.

• Data-driven insights – ReturnGO’s comprehensive analytics and reporting provided One Project with valuable insights into key metrics such as refund value, exchange value, and gift card value. They used this data to optimize the refund process and improve business operations.

“The process is fully automated, from the customer request to the refund.”

– Shmulik Konforty, CTO, One Project

ReturnGO’s returns automation and streamlined processes resulted in significant improvements for One Project, including:

• Enhanced returns management workflow efficiency.
• Increased customer satisfaction through easy exchanges.
• Positive impact on the store’s ROI.

By leveraging ReturnGO’s features, One Project successfully transformed their returns process, providing a seamless experience for customers while achieving operational efficiency.

Check out the full One Project case study here.

Travelpro

Travelpro®, a leading luggage manufacturer known for its focus on innovation, faced challenges with a manual return handling process. Customers had to request returns on the website, and the customer service team manually generated return labels, leading to inefficiencies and delays.

Here’s how they used returns automation to streamline their returns management:

• Automation and integration – By implementing ReturnGO’s returns solution and integrating it with their shipping carrier, Travelpro® eliminated the manual process of generating return labels and reduced return processing time from 20 minutes to just 90 seconds per return.

• Easy return initiation – Customers can quickly initiate a return by entering their order number and ZIP code in the self-service return portal, which will generate a pre-paid return label, creating a seamless return experience.

• Efficient refund processing – With ReturnGO, Travelpro® can issue refunds quickly, even during peak seasons, increasing efficiency and reducing backlogs. 

“The return process is completely customer-centric. They fill out the request, generate the label, and get a refund.”

– Mark Costigliola, eCommerce Operations Manager, Travelpro

By automating the returns process, Travelpro® achieved the following:

• Streamlined returns management and reduced processing times.
• Increased customer satisfaction by offering easier returns.
• Improved customer retention through a focus on enhancing the return process.

By automating the returns process with ReturnGO, Travelpro® successfully streamlined their returns management, reduced processing times, and improved the customer experience.

Check out the full Travelpro case study here.

Future of Returns Automation

The future of returns in eCommerce lies in returns automation. As technology continues to advance, returns automation is revolutionizing the way returns and exchanges are handled.

80% of companies are already using or planning to use automation software and tools, a trend that is expected to become pretty much universal in eCommerce in the next few years.

By embracing returns automation, you can stay ahead of the curve, meet evolving customer expectations, and unlock new opportunities for growth in the dynamic eCommerce landscape.

Here are some emerging trends and predictions for returns automation:

Artificial Intelligence

Artificial intelligence (AI) is rapidly transforming the world of returns management, and the trend towards AI-powered solutions is on the rise. With AI, businesses can automate their returns process more intelligently and efficiently, resulting in reduced costs, increased customer satisfaction, and improved operational efficiency.

Returns automation systems like ReturnGO are excellent examples of AI-powered solutions that help businesses reduce return rates, automate returns, and increase customer loyalty. 

By leveraging the power of AI, you can analyze vast amounts of data, provide insights into customer behavior, and offer personalized recommendations and incentives to customers, resulting in a seamless and hassle-free returns process.

The trend towards AI-powered returns management is on the rise, and businesses that adopt these solutions will be well-positioned to reduce costs, improve customer satisfaction, and drive operational efficiency. 

Circular Economy

Among the newest trends in returns management, the circular economy aims to eliminate waste and promote the continuous use of resources.

In the context of eCommerce returns, circular economy means that returned products are not seen as waste, but rather as valuable resources that can be reused, refurbished, or recycled.

Returns automation plays a crucial role in facilitating a circular economy by making the returns process more efficient, cost-effective, and sustainable. 

By automating returns, you can:

• Streamline return processing – Streamline the processing and handling of returned products to reduce waste and damage.

• Refurbish and resell items – Quickly identify products that can be refurbished or resold, maximizing their value and reducing their environmental impact.

• Use sustainable packaging – Integrate sustainable packaging and shipping practices into the returns process to reduce carbon emissions and waste.

• Create closed-loop supply chains – Build strong partnerships with suppliers and logistics providers to create closed-loop supply chains that prioritize sustainability and circularity.

By embracing circular economy principles in your returns management, you can create a more efficient and resilient supply chain that benefits both your bottom line and the planet.

Omnichannel Returns

Omnichannel returns management is an emerging trend that leverages technology to seamlessly track and manage returns across different channels. As 78% of customers use multiple channels to start and complete a transaction, they expect to be able to return products through any of those channels as well.

Returns automation plays a vital role in enabling an efficient omnichannel returns process. By providing a centralized platform to manage returns across multiple channels, you can enhance customer satisfaction, reduce costs, and improve operational efficiency.

Provide a positive customer experience by providing multiple return methods for returning items purchased online such as return to a physical store or drop-off location, and providing clear and consistent communication throughout the return process.

Omnichannel returns management is one of the key trends of returns automation that you should embrace to stay competitive and meet the evolving needs and preferences of your customers.

Unlock the Power of Returns Automation

Returns automation is not just a solution; it’s a game-changer that can turn your returns process from a headache into a competitive advantage. 

By streamlining your returns, reducing costs, increasing efficiency, and improving the customer experience, returns automation has become an essential tool for eCommerce success.

If you’re ready to take your eCommerce business to the next level, it’s time to make the switch to automated returns management.

ReturnGO specializes in returns automation and offers a comprehensive returns management platform to lower return rates, automate the entire returns process, and increase customer satisfaction. See for yourself how ReturnGO can transform your returns process with automation.

Here are some of the main cultural differences that affect eCommerce returns and how you can adjust your returns management strategy accordingly.

The Role of Culture in eCommerce Returns

Culture is the set of assumptions, traditions, and values that a community develops over time. It influences how people perceive and evaluate customer service, how they communicate, and how they behave as customers.

While this diversity is a valuable aspect of business, it can also present challenges when it comes to managing returns.

Let’s look at some examples of how culture affects these aspects of eCommerce returns.

Cultural Differences in Perception of Customer Service

Customer service is a crucial factor in customer satisfaction and loyalty, and different cultures have different standards and expectations for what constitutes good customer service.

For example, Russians and Japanese customers tend to expect to get better and more personal attention, as in those cultures customers are seen as a “king”.

On the other hand, Finnish culture is highly individualistic, meaning that Finnish customers value their time highly, making them unwilling to spend a lot of time shopping and waiting. Moreover, they plan what they’ll buy in advance, so they don’t expect assistance while shopping.

This means that your customer service representatives need to adjust their tone of voice and attitude depending on the country they serve.

Cultural Differences in Attitudes Towards Returns

Customers from different cultures are likely to have different attitudes toward product returns. 

In some cultures, returning a product is seen as a loss of face, and customers may be reluctant to return products, even if they are dissatisfied with them. In other cultures, returning products is considered a normal part of the shopping process, and customers may be more likely to return products.

One place you can see cultural differences regarding returns is in the attitude toward return policies. 

For example, in the pre-purchase stage, Chinese customers often show a limited interest in return policies since they usually prefer not to return products. 

By contrast, Italian customers are more concerned with the return policy since they want to feel protected against making a wrong purchase. 

Make sure you understand the return behavior and preferences of your target markets and adjust your return policies accordingly.

It’s important to provide accurate and detailed product descriptions, images, and reviews on your website to reduce the likelihood of misunderstandings and false expectations.

Cultural Differences in Communication Styles

Communication is essential for building trust and rapport with your customers. However, different cultures have different ways of expressing themselves and interpreting messages.

Some cultures are more direct and explicit in their communication style, while others are more indirect and implicit. 

For example, American and British cultures have a high level of trustworthiness, meaning that they expect everything said by sales and customer service representatives to be true, as they believe they have a high level of expertise and knowledge. 

These cultural differences mean that you need to tailor your communication style to match the preferences and expectations of your customers and use clear and simple language that avoids ambiguity and confusion.

How to Cater to Different Cultural Preferences in eCommerce Returns

Now that you have a better understanding of how cultural differences affect eCommerce returns, you may be wondering how to adapt your returns management strategy to cater to different cultural preferences. Here are some tips to help you do that.

Multilingual Customer Support

One of the best ways to cater to customers from diverse cultural backgrounds is by offering multilingual customer support. This means providing customer service in different languages to ensure that all customers can communicate effectively with your eCommerce store.

75% of customers are more likely to purchase from the same store again if customer service is in their native language.

To implement multilingual customer support, you can hire multilingual customer service representatives, use AI translation software, or hire professional translators. 

You can also provide translated versions of your website and return portal in different languages.

By offering multilingual customer support, you can create a more inclusive and welcoming shopping experience for customers, which can increase customer loyalty and reduce returns due to language barriers.

Localized Return Policies

When you understand the expectations of customers from different cultural backgrounds, you can customize your return policies according to the expectations and behaviors of your target markets.

For example, you can offer different return periods, conditions, fees, or methods for different countries or regions.

To determine the best approach, research the return practices and standards of your target markets and tailor your return policy accordingly. By doing so, you can minimize misunderstandings and reduce the likelihood of returns due to cultural differences.

When creating localized return policies, make sure to:

• Clearly communicate your return policy on your website and in your confirmation emails.
• Update your return policy according to changes in the market or customer feedback.
• Automate your returns process for different policies and scenarios.

A returns management system like ReturnGO can help you overcome the challenges of receiving returns from all over the world and create, manage, and optimize your return policies for different markets. 

Personalized Customer Service

Personalized customer service can help your store cater to different communication styles and build stronger relationships with customers. 

By understanding the preferences of customers from different cultural backgrounds, you can adjust your customer service team’s communication strategies to create a more personalized and effective experience.

Go beyond language translation and tailor your communication style, tone of voice, emotions, humor, and gestures to match the expectations and norms of your customers.

Train your customer service team on how to provide personalized customer service for different cultures to build trust, reduce misunderstandings, and create a more positive shopping experience.

Bridging the Gap: Cultural Awareness Improves the Returns Experience

In order to provide a great customer experience for your international customers, it’s important to understand how culture affects their perception of customer service, their attitudes towards returns, and their communication styles.

Catering to different cultures when it comes to eCommerce returns requires a flexible and culturally sensitive approach. 

Offer multilingual customer support, localized return policies, and personalized customer service to reduce the impact of cultural differences on returns and build stronger relationships with your customers. 

With ReturnGO, you can streamline your returns process, set up location-based return policies, and offer a multilingual return portal to provide the best possible customer experience for customers all over the world.

But what if we told you that product returns could actually be a chance for you to create a positive customer experience?

By automating your Magento returns process, you can make your returns management more efficient and improve the customer experience at the same time.

Why Having an Efficient Returns Process is Important

Having an efficient returns process is important because customers appreciate a simple and fast returns process that gives them options and flexibility, and they are more likely to shop from you again if they have a positive return experience.

Automating the returns process is one of the most effective ways to improve the customer experience.

Picture this – your customer wants to return a product they bought from your store. They initiate the return online and immediately receive a confirmation email with details on the next steps. They pack up the product, attach a prepaid shipping label, and send it back to you.

Beyond making the returns process easy and efficient for your customers, this also saves you time and resources. Your team doesn’t have to manually process each return, freeing them up to focus on other tasks.

Streamline your returns management and improve the customer experience by automating your Magento returns process.

How Automating Magento Returns Improves the Customer Experience

By automating your Magento store’s returns process, you can create a positive customer experience that will encourage repeat business and boost customer loyalty. 

Use a returns management system to automate your returns and improve the customer experience with a self-service return portal and advanced automation rules. 

Having a hassle-free returns process sets your store apart from competitors and shows your customers that you value their business. 

Provides a Self-Service Returns Experience 

Providing a self-service return portal for your customers makes it easy for them to initiate returns on their own. 

By offering customers the ability to initiate returns by themselves, you give them control over the process and enable them to take action at their convenience, so that customers can initiate returns at any time without needing to contact customer support.

With an automated returns process, customers can quickly and easily initiate returns and receive timely updates on the status of their return. They can receive email notifications at each stage of the return process, from the moment they initiate the return to when their refund is processed. 

This level of transparency helps build trust with customers, keeping them in the loop throughout the entire process. 

Reduces Confusion and Frustration Around Returns

Confusion and frustration around returns can quickly lead to unhappy customers, negative reviews, and lost sales. 

Streamlining the returns process and making it easy for customers to understand the return policy eliminates a lot of the guesswork and ensures that customers have a positive experience.

Offering easy returns shows your commitment to providing an excellent customer experience and ensuring that customers feel valued and supported throughout the returns process. This can help build long-term customer loyalty and drive more sales for your Magento store.

Speeds Up the Returns Process

Automating many of the steps involved in returns makes the process faster and more efficient for both you and your customers.

Customers can initiate a return and generate a return label in just a few clicks, and receive their refund or exchange faster.

With an automated returns process, it’s easier for you to offer faster refunds, as your team no longer needs to spend as much time manually processing returns. 

Reduces Errors and Improves Accuracy

Manually processing returns can be prone to errors and inaccuracies. This can lead to frustration for customers and additional work for your team. Automating your Magento store’s returns process can reduce errors and improve accuracy.

A returns management system can help you collect all necessary information from the customer, such as the reason for the return and the condition of the item, to prevent misunderstandings and disputes later on. Automation can also help ensure refunds are issued accurately and promptly.

By providing a transparent, personalized, and accurate returns process, you can create a positive experience that sets your Magento store apart from competitors and builds customer loyalty.

Analyzing the Impact of Returns

To ensure that your returns process is as efficient and effective as possible, it’s important to track your returns data and improve your returns process as needed. 

Some key metrics to track include:

• Return rates – Monitoring your return rates shows you the percentage of items that are being returned by customers and helps you identify which products or categories are returned most frequently. 

• Return reasons – Understanding the reasons behind customer returns can help you identify recurring issues with your products, shipping process, or customer service and improve them.

• Customer behavior – Analyzing customer behavior during the returns process can provide valuable insights into how you can improve your customer experience. 

Monitoring these metrics and optimizing your returns process over time helps you provide a better customer experience, increase customer satisfaction and loyalty, and ultimately improve your bottom line.

The Impact of Returns on Customer Loyalty

Customer loyalty is crucial for the long-term success of your business. Loyal customers are more likely to make repeat purchases and spend more money per transaction than new customers.

Loyal customers spend an average of 67% more per purchase than new customers, so retaining existing customers is much more cost-effective than acquiring new ones.

When you provide an easy returns process, you can increase customer satisfaction and loyalty, because when customers feel their needs are being met and that your Magento store values their business, they’ll be more likely to come back and buy again.

Customers are more likely to be loyal to a store that provides an effortless and enjoyable shopping experience, including a hassle-free returns process.

Take Control of Your Returns Process Now

Automating your returns process can be a game-changer for your Magento store. By offering a more convenient, transparent, and accurate experience for your customers you can improve customer loyalty and drive repeat business.

By making returns hassle-free and seamless, you can show customers that you value their time and satisfaction, and differentiate your store from competitors.

If you’re looking to improve the customer experience in your Magento store, automate your returns process to create a customer-centric experience that drives sales and builds long-term relationships.

Managing returns can be time-consuming and costly, which is why returns automation is the key to improving returns management. Returns automation streamlines the return process, reduces errors and costs, increases customer satisfaction and loyalty, and provides valuable return data insights. 

Here are some of the trends and predictions for the future of returns automation, and how you can leverage them to optimize your returns management.

The State of Returns Management Today

In order to understand where returns management is going, it is important to first understand how it has worked until now.

Many eCommerce businesses still rely on manual methods to manage their returns, using spreadsheets, emails, phone calls, and paper forms to track and process returns.

Manually managing returns is inefficient, error-prone, and costly. It’s easy to have delays, mistakes, miscommunication, and dissatisfaction, as well as it being hard to analyze and optimize your return process.

That’s why more and more eCommerce businesses are turning to returns management systems (RMS) to automate their returns. By automating your return process you can save time and money, improve the customer experience, increase operational efficiency, and gain a competitive edge in the eCommerce market.

“Returns automation is the future of eCommerce. At ReturnGO, we’re dedicated to providing innovative solutions to streamline returns and help businesses stay ahead of the curve.”

– Aviad Raz, CEO of ReturnGO

Trends That Are Changing the Game for Automated Returns

The world of eCommerce is constantly changing and evolving, and returns automation is no exception. 

More and more eCommerce stores are automating their returns to streamline the returns process and enhance the customer experience.

Here are some of the trends that are changing the game for automated returns:

Artificial Intelligence (AI) in Returns Management

One of the most significant trends that are changing the game for automated returns is the use of artificial intelligence (AI) in returns management. 

AI enables computers to perform tasks that normally require human intelligence, such as learning, reasoning, decision-making, and problem-solving. 

With businesses becoming increasingly aware of the potential of AI, automation is increasingly being integrated into day-to-day workflows to help achieve greater efficiencies, save costs, and more.

The role of AI in returns automation is growing as it contributes to:

• Predicting return rates and reasons based on customer behavior, product attributes, seasonality, and other factors.
• Recommending optimal return policies and strategies based on your business goals and customer preferences.
• Detecting fraud and abuse in returns by analyzing patterns and anomalies.
• Optimizing return logistics by finding the best routes, carriers, and warehouses for each return.
• Enhancing customer service by providing chatbots, voice assistants, and self-service portals for return inquiries.

As AI technology continues to evolve, we can expect to see more accurate and efficient returns management, leading to a better customer experience and streamlined returns process.

Seamless Integrations

Integrations are the glue that brings everything together in returns management. By integrating different services and platforms, you can automate the entire workflow, including shipping, inventory management, customer service, and processing returned items. With everything in sync, different teams can work together smoothly and stay updated.

For example, the shipping provider can generate return labels and track shipments while the warehouse team processes and verifies returned items and the customer service team has access to all the necessary order and return information at their fingertips. Automated integrations bring these teams together, enabling them to communicate effortlessly and ensuring that everyone is on the same page. 

With seamless integrations, data flows smoothly between systems, eliminating the need for manual data entry and reducing the risk of errors. This means less time spent on tedious tasks and more time to focus on improving processes and delivering an exceptional customer experience.

The trend of integrating various systems together is gaining momentum as businesses recognize the immense value of interconnected systems in streamlining the returns process. 

Personalization and Customization

Personalization and customization are growing trends in eCommerce, with customers expecting a personalized experience based on their preferences, needs, and past behavior, and 80% of customers being more likely to make a purchase when provided with a personalized experience.

In the returns process, this means that customers expect more than just a generic return policy and instead want a return experience that suits their individual needs. Returns automation can help you personalize and customize the returns process.

Returns automation makes it easier to personalize the returns experience by:

• Segmenting customers based on their demographic, behavior, purchase history, loyalty level, etc.
• Offering different return resolutions such as refunds, exchanges, store credit, etc.
• Creating dynamic return windows based on customer segments, product categories, seasons, etc.
• Providing a variety of return methods such as return to a drop-off location, ship with a pre-paid label, etc.
• Sending personalized messages to keep your customers updated on the status of their return.

Today, it is rare to find an online store that doesn’t offer some level of personalization in the shopping experience. And still, the potential of personalized eCommerce has not been fully explored. 

As returns technology and data analysis continue to advance, eCommerce stores will have even greater opportunities to tailor the returns process to each individual customer, thereby increasing customer loyalty and satisfaction.

Self-Service Returns

Self-service returns are a growing trend in the eCommerce industry that is transforming the way customers return products. 

It used to be that customers had to contact customer service or go to a physical store to request a return. Now, customers can initiate the return process themselves through a self-service return portal, without needing to jump through so many hoops.

This provides a faster and more convenient experience for customers, while also freeing up customer service resources for other tasks. Return portals provide customers with the flexibility to initiate a return at their convenience and from any location.

Customers increasingly expect a self-service experience, with 81% of customers wanting more self-service options.

A self-service returns process is a win-win for both customers and the store, providing a better return experience and reducing costs. 

Return portals are already becoming the standard in returns, and soon it will be hard to find an eCommerce store without an online return portal.

Bold Predictions for the Future of Automated Returns

As the eCommerce industry continues to grow and evolve, the shift towards returns automation is likely to continue, with automated returns management becoming the norm.

Here are some bold predictions for the future of automated returns:

Increased Adoption of Automation Technology in eCommerce

As eCommerce continues to grow and evolve, so will the demand for returns automation technology. 

More and more eCommerce stores will adopt returns management systems and other returns automation tools to streamline their return processes and gain a competitive advantage. 

Growing competition in the eCommerce industry will require businesses to differentiate themselves by offering better return experiences, and returns automation will help them achieve this.

The efficiency, accuracy, and scalability of returns automation technologies are becoming more widely recognized and sought after.

80% of companies are already using or planning on implementing automation software and tools, a trend that will become almost universal in the eCommerce industry over the next few years.

It’s clear that we’re heading towards a future where returns automation is the norm, rather than the exception.

Expansion of Automated Returns to International Markets

The world is becoming increasingly interconnected, and nothing illustrates this better than the growth of international eCommerce. 

As eCommerce continues to expand globally, returns management will also need to adapt to the complexities of managing cross-border returns. Returns automation can play a significant role in making this possible. 

By automating the returns process, you can more easily manage the flow of returns across various countries and regions, including customs clearance, local regulations, and language barriers.

Returns automation provides a centralized system that facilitates tracking and managing returns from anywhere in the world. This can include automatically calculating customs and fees, multilingual support for return portals and customer notifications, and localized return options for customers in different countries and regions.

By automating the returns process, you can also track data and analytics on the performance of returns in different markets, which can help you optimize your return policies and strategies for each region. 

With the continued expansion of eCommerce, returns automation will play a crucial role in enabling businesses to manage returns across different countries and regions effectively.

Greater Focus on Sustainability and Eco-Friendly Return Processes

Product returns have a significant environmental impact, generating waste, emissions, and carbon footprint that contribute to global warming and climate change. 

As customers become more aware of the impact their purchases have on the environment, there is a growing demand for eCommerce stores to provide sustainable return processes.  

78% of customers say their purchase decisions are influenced by a business’ environmental practices – they want to know that the stores they shop at are committed to working towards a more sustainable future.

This means that returns management will need to be designed with the environment in mind, from the packaging used to send items back to the way they are sorted and disposed of. 

We can expect to see more stores implementing reusable packaging and incentivizing customers to choose eco-friendly return options.

Some sustainable returns practices that are likely to become more prevalent include:

• Reducing return rates by improving product quality, accuracy, and descriptions.
• Reusing and recycling returned items instead of discarding them.
• Using biodegradable or recyclable packaging materials.
• Supporting social causes or charities by donating returned items.
• Educating customers about the environmental impact of returns and encouraging them to make responsible choices.

With advances in technology and a growing focus on sustainability, we can look forward to a more eco-friendly future for returns management.

Best Practices for Implementing Returns Automation

Implementing return automation requires careful planning, execution, and evaluation. Here are some best practices for implementing returns automation in your eCommerce business:

Evaluate Your Current Returns Process

Before you start automating your returns management, you need to understand where your current returns process stands and identify pain points and opportunities for improvement. 

Use tools such as process mapping, SWOT analysis, and gap analysis to analyze your current return process and find out:

• How long does it take to process a return?
• How much does it cost to process a return?
• How many errors or mistakes occur in processing a return?
• How satisfied are your customers with your return process?
• How effective are your return policies and strategies?

By evaluating your current returns process, you can identify areas for improvement and determine where automation can streamline the process.

Choose the Right Returns Management Software

Once you’ve analyzed your current return process, you need to do some research and choose the right returns management system (RMS) for your business. 

Here are some factors to consider when choosing an RMS:

• Scalability – Choose an RMS that can scale with your business as it grows. Ensure that it can handle high volumes of returns without compromising performance.

• Integrations – Look for an RMS that can integrate seamlessly with your existing eCommerce platform and other systems, such as shipping carriers and warehouse management systems (WMS).

• Customization – Find an RMS that offers customization to fit your specific business needs, such as return policies, workflows, and user interfaces.

• Data Analysis – You want an RMS that can provide insights and data analysis on your returns process, such as return rates, reasons for returns, and customer behavior.

• Customer Experience – Opt for a return management system that provides a convenient experience for your customers, such as multiple return options, automated return shipping labels, and real-time return tracking.

By carefully evaluating these factors, you can choose the right returns management system for your business and successfully implement returns automation.

Constantly Track and Analyze Returns Data

For your returns process to be effective, make sure to constantly track and analyze your returns data after you have implemented returns automation.

Measure key metrics, including the return rate, return cost, customer LTV, and repeat purchase rate. By tracking these return metrics, you can identify areas for improvement and adjust your process accordingly.

Your returns management system gives you actionable insights that will help you make informed decisions. By consistently monitoring your returns data you can identify trends and patterns, address issues, and optimize your returns management process for improved efficiency and customer satisfaction.

Automation is the Future of Returns Management

As the world of eCommerce continues to expand and grow, it’s becoming increasingly clear that returns automation isn’t just a trend – it’s the future.

By automating your returns management, you can improve your efficiency, reduce your costs, increase your customer satisfaction and loyalty, and gain valuable insights into your returns data.
Stay ahead of the curve by automating your returns with ReturnGO and taking your returns management to the next level.

Let’s explore how returns automation can be a game-changer for improving your store’s profits and eCommerce ROI.

What is Returns Automation and Why is it Important?

Returns automation is the process of streamlining the return process for online purchases. This involves automating all aspects of the return, from return authorization to processing refunds and exchanges.

Automating your returns with a returns management system makes the returns process faster and more efficient both for you and your customers.

By automatically generating return shipping labels, issuing refunds, releasing exchange orders, and sending email notifications, you can increase efficiency and improve the customer experience.

A returns automation system can help you:

• Save time and money – Save time and resources by minimizing manual work and human errors.

• Improve the customer experience – Improve customer satisfaction and retention by providing a seamless return experience.

• Boost sales – Increase sales and conversions by offering incentives and options for customers to keep or exchange their products.

• Track data – Gain insights and data on your return rates and customer behavior.

Using advanced technology to streamline the return process helps improve the customer experience and reduce the costs associated with returns processing, thus increasing ROI.

How eCommerce Returns Automation Improves Your ROI

Now that you know what eCommerce returns automation is and why it’s important, let’s see how it can improve your ROI and profitability. 

Here are some of the ways returns automation can help you improve your ROI:

Reduces Costs

By automating your returns process, you can cut down on the expenses associated with returns and exchanges. 

For example, you can reduce the costs of:

• Customer service – Providing self-service options for customers to initiate and track their returns frees up your customer service team’s time and resources for other tasks.

• Shipping – Offering pre-paid return labels and integrating with shipping carriers reduces shipping costs and keeps you from paying for unnecessary shipping materials. 

• Processing – Automating the refund process and minimizing manual work speeds up the refund process and reduces human error and delays.

• Restocking – Ensuring that returned products are in good condition and ready for resale prevents product damage or loss and increases your recovery value.

Using returns automation can hugely reduce your store’s operational costs and improve your returns management ROI by making your returns process more efficient.

Increases Revenue

Automating your returns process can boost your revenue and sales. Automation makes the returns experience more convenient and efficient, which can help build customer trust, leading to increased customer retention and higher customer lifetime value.

Revenue metrics you can increase with returns automation include:

• Customer lifetime value – Encourage repeat purchases and referrals from satisfied customers to increase customer lifetime value (LTV). 

By automating your returns process, you can make it easy and convenient for customers to return or exchange their products, which can increase their loyalty and trust in your brand.

• Average order value – Offer incentives for customers to keep or exchange their products instead of returning them to increase the average order value (AOV).

For instance, you can offer discounts, credits, or gift cards for customers who choose to keep their products or exchange them for something else. This can help you reduce the number of refunds and retain more revenue per return.

• Conversion rate – Reduce cart abandonment and increase customer trust with a clear and straightforward return policy, leading to a higher conversion rate.

An automated returns process makes it easier for you to provide customers with more information and options about your return policy, which can reduce friction and uncertainty that may prevent customers from completing their purchases. 

Enhances Customer Loyalty

Customers appreciate it when you make it easy and convenient for them to return or exchange their products, without any hassle or hidden fees. By automating your returns process, you can reduce waiting time and prevent confusion for customers by providing more information and options.

81% of customers consider clear information about return policies to be an important factor when deciding where to shop.

Customer loyalty is one of the most valuable assets your eCommerce store can have, as the average amount spent per purchase by loyal customers is 67% higher than by new customers.

You can reward your customers for their loyalty by offering them incentives to shop with you again. Having an automated returns process enables you to send automated messages to customers who have returned items, thanking them for their purchase or giving them a discount, thus increasing customer loyalty and retention.

Provides Data and Analytics

When you implement a return automation system, you gain access to valuable data about your returns process such as the number of returns, return reasons, and return rates. 

Returns data can be used to identify trends and patterns, helping you optimize your inventory management and product offerings to reduce future returns.

Return automation also enables you to track and analyze customer behavior related to returns, including the time it takes for customers to initiate a return, the frequency of returns from certain customers, and the products that are most commonly returned. 

By analyzing this data, you can gain insights into customer preferences and needs, which can help you improve your product offerings and customer service.

How to Measure Your ROI Growth

To measure your eCommerce ROI and see how your returns process impacts it, you need to track and analyze some key metrics and KPIs that reflect the efficiency of your returns process. 

Here are some returns metrics to monitor:

• Return rate – Percentage of orders that are returned by customers. It indicates how well your products meet customer expectations and how effective your product information is. 

The lower your return rate is, the fewer returns you’re processing, leading to higher profitability.

• Cost per return – Amount of money that you spend on each return transaction, including shipping, processing, restocking, refunding, or any other fees associated with returns. It indicates how efficient and profitable your returns process is. 

A high cost per return may indicate that you need to optimize your returns process and reduce unnecessary expenses.

• Revenue per return – How much revenue you generate from each return, including the revenue from upselling, cross-selling, exchanging, or keeping products that would otherwise be returned. 

An increase in revenue per return translates to increased profits as you’re able to retain or generate more revenue from returns.

• Customer satisfaction – Degree of satisfaction that customers have with your returns process and experience, including the ease of initiating and completing a return, the speed and accuracy of the refund or exchange, the flexibility and convenience of the return method and resolution, and the quality and responsiveness of customer service.

When you see an increase in customer satisfaction, customers are more likely to shop with you again and refer others, resulting in higher profits.

How to Calculate eCommerce ROI

To calculate your eCommerce ROI, subtract your total costs from your revenue, divide that number by the total cost, and then multiply by 100 to get the percentage.

ROI = (Revenue – Cost) / Cost * 100%

This formula shows you the percentage of profit or loss that you make from your eCommerce store. 

Having a low eCommerce ROI means you spent a lot in comparison to what you made, while having a high ROI means your profit margins are better. The higher your ROI, the more profitable your eCommerce store is.

The average ROI for eCommerce stores is between 20-50%, depending on many factors such as industry, ease of returns, shipping costs, product quality, and cost of returns.

Examples of Stores for Which Returns Automation Has Improved ROI

To inspire you further, here are some examples of how leading brands have improved their ROI with eCommerce returns automation:

One Project

One Project, an eCommerce fashion platform that offers products from over 100 popular brands, uses returns automation to offer exchanges and gift cards in addition to refunds, helping to retain and even generate more revenue. 

“By allowing customers to exchange products, and not refund them, we manage to save a lot of money on customers who don’t make a refund and just make an exchange. This helps us achieve our KPIs from a revenue aspect.”

One Project has seen a number of positive outcomes since using ReturnGO to automate its returns process:

Decrease in Refunds

Since offering customers the option to exchange products and receive refunds through gift cards, One Project has reduced its average refund rate by 10%.

New Revenue from Exchanges

One Project has been able to generate new revenue by offering easy exchanges and gift cards, in addition to retaining revenue that would have otherwise been lost through refunds.

Increased Efficiency

ReturnGO’s automated and streamlined processes have improved the efficiency of One Project’s returns management workflow by offering easy product exchanges and seamless integrations.

“We saw it very quickly. I thought it would take a couple of months, but in 2-3 weeks we already saw that the amount of revenue lost to refunds was decreasing.”

– Shmulik Konforty, CTO, One Project

Read the full One Project case study.

Silk & Salt

Silk & Salt, an eco-conscious fashion brand, has managed to generate 24.9% additional revenue from redeemed store credit since using ReturnGO to automate its returns process.

Since automating their returns, Silk & Salt has seen the following benefits:

24.9% New Revenue

Silk & Salt saw that when customers redeem store credit, 61% of them spend more money, generating an average of 24.9% additional revenue. 

Optimized Returns Management

Using advanced features such as automation and flexible policy rule settings to adjust their return eligibility conditions to match their return policy, Silk & Salt is able to manage and process return requests more efficiently.

Reduced Costs and Time

Automation rules and an intuitive self-service return portal have significantly reduced the number of customer support queries, freeing up the Silk & Salt team to focus on other essential tasks, resulting in cost and time savings.

“Once you have all of your automated rules set up in ReturnGO, you don’t need to do anything else for returns to go through. Everything goes smoothly. Simple as that.”

– Assaf Neuman, Head of Operations, Silk & Salt

Read the full Silk & Salt case study.

Underoutfit

Underoutfit, an innovative activewear & underwear brand, has automated its returns process, leading to positive outcomes in its main KPIs such as the number of full refunds given, the resources spent on customer service, and the costs of return shipping and handling.

Automating the Underoutfit returns process had the following results:

25.6% Decrease in Refunds

Since offering store credit and variant exchanges, Underoutfit has seen a 25.6% decrease in refunds, while sales and RMAs have increased.

16.4% New Revenue

When Underoutfit customers redeem their store credit, more than 51% spend more money, generating an average of 16.4% additional revenue.

Reduced Costs

Since implementing a streamlined returns process, customer support requests have decreased almost completely, saving Underoutfit thousands of dollars a month.

“ReturnGO’s analytics provides more than basic statistics such as how many products were returned and what the return rate is, it also provides other interesting insights from which you can really conclude which products are more profitable and which are less so.”

– Felix Leshno, Co-Founder & CXO, Underoutfit

Read the full Underoutfit case study.

Automate Your Returns to Boost Your Profitability

Automating your returns process is a smart business strategy that can significantly improve your ROI and profitability. 

By leveraging ReturnGO’s returns automation technology to streamline the returns process, you can reduce costs associated with manual labor, while increasing revenue and improving customer satisfaction and retention. 

Gain a competitive edge in today’s fast-paced market by automating your returns process, benefitting both your customers and your bottom line.

By retaining the original purchase value and generating repeat business, exchanges can boost your profits and increase customer retention.

Refunds VS Exchanges

Before we dive into the benefits of exchanges for boosting your profits, let’s set the foundation by understanding the key differences between refunds and exchanges. 

While they may seem similar, refunds and exchanges have different implications for your eCommerce business. Here’s a quick comparison:

Refunds

• Refunds are when a customer returns a product and receives a full or partial reimbursement for the purchase price.
• Refunds can lead to lost revenue since you’re refunding the purchase price as well as losing out on potential future sales.
• Refunds can hurt your brand reputation and customer loyalty if not handled properly.

Exchanges

• Exchanges are when a customer returns a product and receives a replacement product of equal or lesser value.
• Exchanges can lead to increased revenue by both retaining the original purchase value and potentially upselling the customer to a more expensive product and generating repeat business.
• Exchanges can also improve your brand reputation and customer loyalty, as they demonstrate your willingness to accommodate your customers’ needs and preferences.

So while refunds are an inevitable part of eCommerce, it’s important to focus on lowering your refund rates and making the most of exchanges. 

Offer seamless and convenient eCommerce exchanges to turn potential negative experiences into positive ones and boost your profits in the process.

12 Ways to Boost Your Profits with eCommerce Exchanges

Exchanges can be a powerful tool for boosting your profits. By offering exchanges, you can encourage customers to make additional purchases or spend more on their initial purchase, leading to increased average order value and repeat purchases, ultimately boosting your profits.

1. Retained Revenue

Product exchanges can help you retain revenue by providing an alternative to refunds. By offering a product exchange, you keep the customer’s money within your business and prevent a loss of revenue. 

One of the most significant advantages of product exchanges is that they enable you to retain revenue that would otherwise be lost. Refunds involve returning the customer’s money, which can result in a loss of revenue for the store. 

Product exchanges provide a win-win solution for both the customer and the store. By offering a product exchange, you retain the revenue from the initial purchase, preventing a loss of revenue. At the same time, the customer receives an alternative product so they don’t lose out either.

“By allowing customers to exchange products, and not refund them, we manage to save a lot of money on customers who don’t make a refund and just make an exchange. This helps us achieve our KPIs from a revenue aspect.”

– Shmulik Konforty, CTO, One Project

Check out the full case study here.

2. Increased Repeat Purchases

When a customer has a positive exchange experience, they are more likely to come back and buy from your store again. 

An easy exchange process gives customers a sense of trust and confidence in your store, and customers are more likely to do business with stores that they trust.

Making it easy to exchange products can create a positive impression of your store in customers’ minds, leading to increased customer satisfaction and positive reviews, which can attract more customers to your store and boost your sales.

By providing a positive exchange experience and building trust with your customers, you can encourage them to return for future purchases, resulting in increased profits for your eCommerce business.

Repeat customers are more profitable in several ways:

• Repeat customers are easier to sell to – Customers become more likely to buy from your store again with each purchase they make. 

• Repeat customers spend more – On average, repeat customers buy more frequently and spend more per purchase. 

• Repeat customers refer more people – Word-of-mouth referrals are the most powerful and cost-effective way to bring in more customers.

3. Upselling Opportunities

Exchanges present a great opportunity for you to increase your revenue through upselling.

When a customer initiates an exchange, they are showing a willingness to purchase a new item from your store. This presents an opportunity to show them other items that complement or enhance their original purchase potentially leading to a larger sale.

For example, if a customer wants to exchange a t-shirt, you can offer a higher-value variant.

By offering personalized recommendations based on the customer’s purchase history or browsing behavior, you can increase the chances of them making additional purchases during the exchange process. You can also use data analytics to identify cross-selling and upselling opportunities, and then make personalized recommendations based on that data.

In addition, you can create product bundles that are offered exclusively during the exchange process. These bundles can provide additional value to the customer and incentivize them to spend more money on your products.

By utilizing these techniques, you can turn the exchange process into a revenue-generating opportunity rather than simply a cost of doing business. By providing personalized recommendations and exclusive offers, you can increase the customer’s overall purchase value and create a positive experience that encourages them to return in the future.

4. Increased Customer Retention

By providing a convenient and hassle-free exchange process, you demonstrate that you value your customers and are committed to their satisfaction.

When customers feel that their needs are being met, they are more likely to trust and remain loyal to your business. By providing a positive shopping experience that includes an easy exchange process, you build trust and loyalty with your customer base.

It’s much more worthwhile to focus on retaining customers than acquiring new ones, as loyal customers spend an average of 67% more per purchase than new customers.

By handling exchanges efficiently and quickly, you create an experience that leaves customers feeling satisfied and taken care of. This increases customer retention and helps generate word-of-mouth referrals, which can lead to more customers and increased revenue. 

5. Higher Customer Lifetime Value

Happy customers are more likely to return for future purchases, and product exchanges provide an opportunity to upsell or cross-sell to customers, increasing the potential for larger orders and higher profits. 

Encouraging exchanges can be a powerful way to increase CLV, as it enables you to generate additional revenue from existing customers.

Customer lifetime value (CLV) is a critical metric to track, as it measures the total amount of revenue a customer will generate for your store over the course of their relationship with your store. 

6. Improved Supply Chain Management

Encouraging product exchanges helps stores reduce costs and increase revenue while also providing valuable insights into customer behavior and preferences. 

By analyzing patterns in exchanged products, you can gain a better understanding of which products are driving returns and why, which can help inform inventory management strategies.

You can address specific issues that you see, such as sizing or quality, by improving the product description or adjusting the design of the product.

Furthermore, analyzing exchange data can also help you identify trends in customer preferences and adjust your inventory management strategies accordingly. 

For instance, if a particular product is frequently exchanged for a different color or style, you can stock more variations of that product to better meet customer demand, reduce the risk of stockouts and improve supply chain efficiency.

7. Increased Sales

Customers today expect a hassle-free return and exchange process when shopping online. They want to be able to try on or test out a product without feeling like they’re stuck with it if it doesn’t meet their expectations. 

By offering easy exchanges, you can improve the customer experience by providing a convenient and flexible option for customers who are not completely satisfied with their original purchase.

Customers are more likely to make a purchase knowing they can easily return or exchange it if needed. 

By offering exchanges, you can reduce the perceived risk of making a purchase, leading to increased conversion rates and ultimately, increased sales.

8. Enhanced Customer Experience

Create a positive customer experience by providing a hassle-free exchange process. This is particularly true if you offer a self-service return and exchange portal, which enables customers to initiate and track the exchange process on their own, without needing to contact customer service.

A self-service return portal streamlines the exchange process for both customers and your store. 

Make it easy for customers to initiate an exchange, print out a return shipping label, and track the status of their exchange. Since 81% of customers say they want more self-service options, providing self-service returns and exchanges can make a huge difference in the customer experience.

Instead of having to return an item and then make a new purchase, customers can simply exchange the item for something else that better suits their needs. This saves customers time and effort, making their shopping experience more enjoyable and making them feel more confident and in control of their shopping experience.

9. Increased Average Order Value

By offering exchanges, you can encourage customers to buy more or spend more on their initial purchase. 

Customers are more likely to make additional purchases or purchase higher-priced items when they know they can easily exchange an item that doesn’t fit or isn’t quite what they expected.

When customers know they have the option to exchange an item, they may feel more confident about making a purchase in the first place. 

When they know they can easily exchange the item for something else if it doesn’t fit or isn’t quite what they expected, they are more likely to buy from your store and increase their average order value.

10. Improved Cash Flow

Offering exchanges instead of refunds can help you improve your cash flow management. 

While refunds can have a negative impact on your profits, exchanges keep the money flowing.

When a customer returns an item for a refund, you lose the sale and the money associated with it. However, when a customer exchanges an item, you keep the money in your store and even generate additional revenue if the customer decides to exchange it for a higher-priced item.

11. Competitive Advantage

An easy exchange process can give you a competitive advantage over stores that only offer refunds or don’t have a clear exchange policy. 

By promoting your exchange policy as a key differentiator, you can attract customers who are looking for a hassle-free returns and exchanges experience.

Use exchanges to build customer trust and improve your reputation to drive more sales and stand out in the competitive market of eCommerce.

12. Data Insights

Tracking exchanges can provide you with valuable data insights beyond the immediate financial benefits. 

By keeping track of exchanges and the reasons why customers are exchanging products, you can gain insights into the quality of your products, customer preferences, and areas for improvement. 

Here are some ways tracking exchanges can provide data insights:

• Product quality issues – If customers frequently exchange items due to defects or quality issues, it may indicate a problem with the manufacturing process or quality control. 

By identifying these issues, you can work to improve the quality of your products and reduce the number of exchange requests.

• Sizing issues – Customers frequently exchanging products due to sizing issues may indicate a need for clearer sizing guides or a wider range of sizes. 

You can use this data to help you improve your sizing charts and product descriptions or adjust the product design accordingly.

• Product preferences – By tracking which products are most frequently exchanged, you can see which products are popular and which might need improvement. 

This can help you make data-driven decisions about which products to prioritize and how to improve your product line.

• Customer behavior – Tracking product exchange data can also provide insights into customer behavior and preferences. 

For example, if you see that customers who exchange items tend to purchase more frequently or spend more money overall, you can tailor your marketing and sales strategies accordingly.

By leveraging the data insights gained from tracking exchanges, you can make more informed decisions about products, manufacturing processes, and customer engagement strategies, leading to improved customer satisfaction, increased sales, and a competitive edge in the marketplace.

How to Turn Refunds Into Exchanges

By providing incentives and making the exchange process as easy as possible, you can turn refunds into exchanges, retaining revenue and customers.

Provide Bonus Credit as an Incentive

One strategy for encouraging exchanges is to provide customers with bonus credit to use towards a future purchase. 

For example, you could offer a 10% bonus credit for customers who choose to exchange an item, incentivizing them to request an exchange rather than a refund.

Bonus credit provides an incentive for customers to choose exchanges and encourages them to come back and make additional purchases in the future, increasing your overall profits.

Extend the Return Window for Exchanges

Another strategy for encouraging exchanges is to extend the return window exclusively for exchanges. 

By offering a longer return window for exchanges than for refunds you can incentivize customers to choose an exchange instead of a refund.

Set clear expectations by clearly communicating your return policy on your website, in your marketing materials, and in order confirmation emails.

Make sure the return window is clearly defined. Does it begin once an order has been shipped, or once it’s been delivered?

Offer Free Shipping on Exchanges

Shipping costs can often deter customers from choosing an exchange, particularly if they need to pay for return shipping. To encourage customers to choose exchanges, consider offering free shipping on exchange orders.

By offering free shipping on exchanges, you remove a potential barrier to the exchange process, making it more appealing for customers to choose an exchange over a refund.

Suggest Alternative Products

When a customer requests an exchange, take the opportunity to suggest alternative products that may better fit their needs. 

By suggesting alternative products, you increase the chances that the customer will find a product they are happy with, leading to an increase in their average order value.

How to Calculate Your eCommerce Exchange Rate

Your exchange rate is the percentage of returned items that are exchanged for a new item, rather than refunded. This metric can provide valuable insights into customer behavior and the effectiveness of your exchange policy.

To calculate your exchange rate:

Divide the number of exchanges by the total number of returns and multiply by 100 to get your exchange rate as a percentage.

Exchange rate = total returns ÷ exchanges x 100

By tracking your exchange rate over time, you can gain insights into the effectiveness of your exchange process and the satisfaction of your customers, as well as identify trends and areas for improvement, such as product sizing or quality issues.

ReturnGO automatically shows you analytics like your exchange rate, and you can also see which products are exchanged the most, what seasons have the most exchanges, and more.

Turn Refunds Into Exchanges and Boost Your Profits

Offering eCommerce exchanges is a powerful tool for boosting profits and improving customer satisfaction in your eCommerce business. 

By increasing your average order value, improving cash flow, gaining a competitive advantage, and providing valuable data insights, exchanges can have a significant impact on your bottom line. 

Don’t let refunds drag down your revenue potential – turn them into exchanges and boost your profits.

Here are some things to keep in mind when handling returns of custom-made products on your eCommerce store.

The Challenges of Managing Custom-Made Product Returns

The popularity of customizable products is on the rise. The global custom manufacturing market is projected to reach $1,350.2 billion by 2031.

It is inevitable that with the rise of custom-made products, there also comes an increase in custom-made product returns, which need to be handled differently due to their unique nature.

Managing returns for custom-made products presents unique challenges, including:

Complex Product Specifications

When selling custom-made products, you must be prepared to handle returns resulting from errors in specifications or design.

Customers sometimes return custom-made products due to errors in the specifications or design, which may occur if the customer provides incorrect measurements or if there is a mistake in the production process. 

Correcting these errors requires additional time, labor, and materials, which can add to the cost of processing returns.

Limited Resale Value

Due to their unique nature, custom-made products often have limited resale value, making it harder to recover costs from returned products. 

Since each custom-made product is designed specifically for a particular customer, they can be harder to resell as they won’t necessarily appeal to or suit other customers.

High Production Costs

For custom-made products, production costs are often higher due to the fact that each product is unique. 

Since custom-made products are more personalized and require more attention to detail, they require more time, labor, and materials to create, which raises the cost of production.

As a result, you may find it more difficult to offer free returns to your customers. Free returns have become an expectation for many online customers, and they are often viewed as a competitive advantage in the eCommerce industry. 

Due to the higher production costs associated with custom-made products, offering free returns can be more challenging to sustain.

Complicated Returns Process

The returns process for custom-made products can be more complex than for mass-produced products. Each product is unique and requires careful handling and inspection to determine its condition and resale value, making it more time-consuming and costly to assess. 

The additional time and effort required to handle returns can result in longer processing times and higher costs for your business, and can also impact the customer experience as customers may have to wait longer to receive a refund or replacement product.

Best Practices for Handling Returns of Custom-Made Products

Planning and setting up your returns process strategically is key to effectively managing returns of custom-made products.

Here are some best practices for handling returns of custom-made products:

Set Clear Expectations

Setting clear expectations about the product is crucial for managing returns of custom-made products because it helps to reduce the likelihood of returns due to misunderstandings. 

Since custom-made products are unique and personalized to the customer’s specific requirements, make sure that your customers are aware of the product’s specifications, design, and expected delivery date before they place an order.

To do so, provide detailed product descriptions and images that clearly communicate the product’s features, design, and customization options. 

Check Quality Control Before Shipping

Before shipping a custom-made product, it’s important to conduct rigorous quality control checks, to reduce the chances of returns due to defects or errors. 

Have your team review the product’s design, measurements, and any other specifications provided by the customer, as well as test the product’s durability and quality, before shipping out the order. 

Provide a Clear Returns Process

It’s important to provide customers with clear instructions on how to initiate a return and what to expect during the returns process.

The returns process should be easy and user-friendly to reduce the likelihood of customer confusion or frustration.

Provide customers with regular updates on the status of their return to keep them in the loop and reduce customer support queries.

Create a Specialized Return Policy

Create a clearly-defined return policy that covers all aspects of the returns process, including the timeframe for returns, eligibility criteria, and any associated costs.

By setting a clear return policy, you set clear expectations and customers will have a better understanding of their rights and responsibilities when it comes to returning custom-made products, which can help reduce the likelihood of disputes or misunderstandings and improve customer satisfaction.

Automate the Returns Process for Custom-Made Products

One of the most effective ways to automate the returns process for custom-made products is by using a returns management system like ReturnGO. This can help streamline the returns process by automating tasks such as generating return labels, tracking returns, and processing refunds or exchanges.

Some of the benefits of automating returns for custom products include:

Streamlined Returns Process – Automating your returns helps streamline the returns process, making it faster and more efficient, reducing your team’s workload and freeing up time to focus on other tasks.

Improved Accuracy – Automated systems can help ensure that custom product returns are processed accurately, reducing the risk of errors and inconsistencies in the returns process.

Enhanced Customer Experience – An automated returns process can provide customers with a convenient and hassle-free way to return custom-made products, improving their experience and increasing the likelihood of repeat purchases.

Real-Time Tracking and Reporting – With real-time tracking and reporting, you can monitor the status of returns and identify any issues or trends, helping you optimize the returns process and identify areas for improvement.

By using technology to automate the returns process, you can improve the customer experience and save yourself time and money.

Streamline Your Returns Process for Custom-Made Products

While managing returns of custom-made products can be challenging, with the right tools and strategies it can be done effectively. 

By prioritizing customer satisfaction and using technology to streamline the returns process, you can effectively manage returns of custom-made products and maintain a positive relationship with your customers.

By implementing a customer-centric approach to returns management and adopting strategies such as offering store credit and encouraging exchanges, you can turn product returns into a powerful tool for generating additional revenue and boosting your store’s profitability.

What is Average Order Value (AOV)?

Average Order Value (AOV) is a crucial metric in eCommerce that measures the average amount of money your customers spend on each order.

How to Calculate Average Order Value

To calculate your store’s average order value (AOV), divide the total revenue within a certain timeframe, i.e a year, by the number of orders in that same timeframe.

Average order value = total revenue ÷ total number of orders

Once you know your store’s average order value, you can use it to track how much customers are spending on average and monitor changes over time.

The Impact of Product Returns on AOV

Although at first glance product returns may seem like a negative thing, they actually provide a valuable opportunity to increase your revenue.

When customers return products, it can reduce the total revenue for that order and bring down the AOV for their purchase. However, by offering incentives such as the option to exchange products, you can encourage customers to spend more money on their purchase and generate additional revenue.

For example, if a customer returns a shirt that doesn’t fit, you could offer them a higher-value variant, increasing their purchase value and boosting your store’s average order value. 

Understanding how to increase average order value is essential for having a profitable eCommerce store, and product returns can have a significant impact on this metric.

By using returns as an opportunity to increase AOV, you can turn a potential negative into a positive for your store and boost your profitability.

How to Increase AOV Using the Returns Process

The returns process presents a valuable opportunity to increase your average order value in various ways. 

By implementing strategies like encouraging exchanges, offering store credit instead of refunds, and displaying social proof, you can make returns profitable for your store.

1. Encourage Exchanges

Instead of offering refunds for returned items, encourage customers to exchange them for different items. This keeps the revenue in your store and provides an opportunity to upsell and cross-sell.

To encourage exchanges, make sure to communicate your return and exchange policy clearly on your website and in any post-purchase communications. Provide instructions on how to initiate an exchange and make sure the process is easy and convenient. 

One way to encourage exchanges is to offer free shipping for exchanged items. This incentivizes customers to make an exchange and removes a potential barrier to completing the transaction. 

Another approach is to offer a discount or incentive for exchanging an item for a higher-priced one. This increases the overall value of the exchange and encourages customers to consider higher-priced products they may not have otherwise.

You can also use techniques like personalized product recommendations or discounts to incentivize customers to make an exchange.

It’s important to remember that the exchange process should be as seamless and efficient as possible. Make sure to have adequate inventory and a clear exchange policy to avoid delays or confusion.

2. Set an Order Minimum for Free Returns

To balance the benefits of offering free returns with the costs, consider setting a minimum order threshold for free returns.

For example, you could offer free returns for orders over a certain amount, such as $50 or $100. This encourages customers to make larger purchases and increases your AOV.

Make sure to clearly display the minimum order threshold for free returns on your website and in any post-purchase communications. 

You can also use strategies like countdown timers or limited-time offers to create a sense of urgency and motivate customers to make a purchase that qualifies for free returns.

3. Implement a Loyalty Program

Loyalty programs are a powerful tool for building customer loyalty. Loyal customers can be extremely valuable for your store, as the average amount spent per purchase by loyal customers is 67% higher than by new customers.

Since retaining existing customers is much more cost-effective than looking for new ones, a loyalty program can help you keep customers coming back to buy from your store again and again by rewarding them for spending more.

When creating a customer loyalty program, think about which customers you want to target and what kind of loyalty you want to build. What do you want them to do?

For example, you could offer points or discounts for purchases made with store credit from returns. This increases the value of the return for the customer and encourages them to make additional purchases, boosting their average order value.

Loyalty programs can take various forms such as point systems, tiered rewards, exclusive discounts, or referral programs. 

Your rewards should be relevant to your target audience and align with your brand’s messaging and branding.

4. Offer Store Credit Instead of Refunds

Instead of issuing a refund, offer the customer the option to receive store credit or a gift card that can be used towards future purchases. 

This keeps the customer within your eCommerce store and provides an opportunity to increase their AOV by encouraging them to make additional purchases.

To encourage customers to choose store credit, consider offering an incentive such as a higher credit amount than the refunded amount or a bonus credit amount for future purchases. This incentivizes customers to choose store credit over a refund and increases the overall value of the transaction.

5. Provide a Personalized Customer Experience

Personalization is an effective way to create a positive customer experience and increase the likelihood of repeat purchases. 

A positive experience at a store increases the chance that the customer will seek out that store again next time. 80% of customers are more likely to make a purchase if they are provided with a personalized experience.

Use data such as previous purchases, browsing behavior, or demographics to personalize the shopping experience for each customer. This can include customized product recommendations, personalized offers, or personalized post-purchase follow-up emails.

To implement personalization effectively, use a combination of automation and human interaction. Use data and algorithms to make relevant suggestions, and provide opportunities for customers to interact with your store and provide feedback or input.

6. Automate Your Returns Process

Automating your returns process can save time and resources while providing a faster and more convenient experience for customers. 

By using tools such as returns management software, you can streamline the returns process, resulting in a better customer experience and increasing the likelihood of repeat purchases.

Self-service return portals enable customers to initiate returns and exchanges on their own, reducing the likelihood of errors and delays in the returns process.

In addition to increasing efficiency, automated returns can provide an opportunity to increase AOV by offering customers various options and incentives throughout the returns process.

For example, you can set triggers to automatically offer certain customers the option of exchanging their returned item for a more expensive item and paying the difference, or offer a discount code for future purchases when they choose store credit instead of a refund.

Providing a convenient self-service returns process and incorporating personalized upsell opportunities into the returns process helps increase the chances of your customers making additional purchases and being valuable to your business.

7. Display Social Proof

Social proof can be a powerful tool for increasing AOV. 97% of customers look at product reviews and ratings before making a purchase.

Potential customers are more likely to trust information from other customers than from the eCommerce store itself. When they see that others customers have had a positive experience with your returns process, they are more likely to trust and buy from your store.

One effective way to collect social proof is by requesting reviews from customers after they’ve completed a return, and displaying that user-generated content on your product pages and social media.

8. Send Post-Purchase Emails

Post-purchase emails are an effective way to communicate with customers after a purchase and encourage them to make additional purchases. 

Engage with your customers by sending them order confirmation emails, thank you emails, or asking for product reviews.

One way to use post-purchase emails to increase AOV is to recommend related products based on the customer’s purchase history or browsing behavior. For example, if a customer just bought a shirt, you can recommend a pair of pants or a jacket that would complement it. 

Personalized recommendations encourage additional purchases by providing a relevant and engaging shopping experience.

Another approach is to offer discounts or promotions on future purchases in your post-purchase emails. Offer a discount code for the customer’s next purchase, or provide a limited-time promotion on a specific product or category. 

Post-purchase emails can also be used to gather feedback and improve the customer experience. You can include a survey or feedback form in your post-purchase emails to gather insights into your customers’ shopping experience and identify areas for improvement. 

Make sure to include clear calls-to-action and provide relevant and engaging content that encourages the customer to take action. You can also personalize the emails with the customer’s name and purchase history to provide a more personalized experience.

Maximize AOV with Effective Returns Management

Returns can be a valuable opportunity to enhance loyalty and trust in your store. By implementing strategies such as offering store credit instead of refunds and encouraging exchanges, you can turn returns into a positive shopping experience that generates additional revenue.

To fully capitalize on returns as an opportunity for increased profitability, use ReturnGO to provide a personalized and engaging shopping experience that meets the needs and preferences of your customers.

A customer-centric approach to returns management will help you increase your average order value and boost your store’s profitability while improving the customer experience.

Just like a chef crafting a new recipe, you need to carefully plan your return policy and process to create an experience that your customers will love.

And like a pinch of spice can take a dish from ho-hum to yum, small touches in your returns process can elevate the customer experience from tolerable to terrific.

So grab your apron, fire up the stove, and let’s explore how cooking principles can help you cook up some fantastic returns management strategies.

Key Ingredients for Effective Returns Management

Just like a chef needs the right mix of ingredients to create a delicious dish, you need the right mix of elements to provide a satisfying returns experience for your customers. 

From crafting the perfect return policy to seasoning the process with clear communication and speedy refunds, every aspect of returns management contributes to the customer experience.

Recipes: Crafting a Return Policy

Think of your return policy as the recipe that your customers will follow when they need to initiate a return. 

You want to make sure that your return policy is easy to understand, with clear instructions for customers on how to start the returns process and what steps they need to take.

Like a recipe, a clear return policy should include all of the necessary ingredients. This includes details about the types of items that are eligible for returns, the timeframe in which returns can be made, and any special instructions or requirements for initiating a return.

Here are some tips for crafting your return policy:

• Keep it simple – Your return policy should be easy to understand and straightforward. Use simple and concise language and avoid using technical jargon that can confuse customers.

• Provide clear instructions – Break down the returns process into clear step-by-step instructions for how customers can initiate a return, including the process for packaging and shipping the item. 

Just like a recipe when cooking, make sure your return policy is clear and easy to understand for your customers so they’ll be able to initiate a return with confidence, knowing exactly what steps to take, and be left with a positive experience that will keep them coming back for more.

Seasoning: Enhance the Customer Experience

Seasoning a dish requires a fine touch and close attention to detail. The smallest things, such as a pinch of salt, can make all the difference in creating a dish that is delicious and memorable. The same is true for returns management.

Just as the right amount of seasoning can transform a dish, every little detail in the returns process can transform the customer experience. 

To add spice to the customer experience, pay attention to the details:

• Offer multiple return options – Providing multiple return methods such as in-store returns or pre-paid return shipping labels helps you cater to different customer needs and preferences and make the returns process more convenient. 

• Give a discount code – Offering customers a discount code for a future purchase is a great way to show appreciation and incentivize them to continue shopping with your store.

• Be responsive – Being responsive to customer inquiries and concerns throughout the returns process helps to build trust and loyalty with customers by addressing any issues or concerns promptly and professionally.

• Make it easy – Simplifying the returns process and making it easy for customers to initiate and track their returns can help to create a seamless and hassle-free experience for their customers.

By paying attention to the little details, you can create a returns process that meets customers’ needs and exceeds their expectations.

Timing: Cooking Up Quick Refunds

Just as you want to cook your food for the right amount of time to achieve the perfect result, you want to process returns quickly to provide your customers with the best possible experience.

When it comes to returns, customers want a fast and hassle-free process. They don’t want to wait weeks for their refund to be processed or have to jump through hoops to get their money back.

52% of customers would spend more if they knew they would receive a refund quickly – in fact, they spend an average of 23% more.

That’s why it’s important to prioritize quick refunds in your returns process. Just like cooking a meal, timing is everything. If you leave your food in the oven too long, it could burn or dry out. 

Similarly, if you delay processing a return, it could lead to customer frustration and dissatisfaction. Customers are 77% less likely to recommend your business if the refund process is slow.

Here are some strategies for expediting refund processing times:

• Automate the refund process – Use a returns management system to automate the refund process to reduce the amount of time it takes to process refunds and minimize the risk of errors. 

• Communicate with customers – Send automated emails to keep customers informed about the status of their refund and estimated timeframes to reduce uncertainty and frustration.

• Offer instant refunds – Integrate with a third-party instant refund provider to provide customers with instant refunds that are processed immediately.

By focusing on quick refunds, you can build customer trust and loyalty and improve satisfaction with the returns process. Cook up those quick refunds and watch as your customers come back for more!

Presentation: A Tasty Returns Experience

Presentation is key when it comes to cooking, and it’s just as important when it comes to providing a returns experience that’s both user-friendly and visually appealing. 

Just as you want to present a dish that’s both delicious and visually pleasing, you want to create a returns process that’s intuitive and easy to navigate.

Customers don’t want to have to sift through multiple pages or navigate confusing menus just to initiate a return. They want a process that’s simple, straightforward, and easy to use.

Focus on your presentation by using clear and concise language in your return portal, branding it to match your brand style, and making sure that your returns process is easy to follow.

• Use a simple and clean design for your return portal – Use easy-to-read fonts and your brand colors on your return portal and make sure that important information is highlighted or bolded for easy visibility.

• Provide clear communication throughout the process – Customers want to be kept informed about the status of their return, from the moment they initiate it to the moment they receive their refund. Send automated email notifications to let them know that their return has been received, is being processed, and has been completed.

• Make sure that customers can easily find the return portal – Make sure that customers can easily find the return portal, and that it’s prominently displayed on your website, on product pages, and in confirmation emails.

By focusing on presentation and providing a user-friendly returns experience, you show customers that you value their time and business, which can increase customer satisfaction and loyalty.

Add Flavor to Your Returns Experience

By understanding the similarities between returns management and cooking, you can improve your returns process and create a better experience for your customers. 

But it’s not just about the ingredients, the execution is what makes the difference. ReturnGO helps you with the execution and helps you add flavor to your returns.

The Importance of Efficient Tracking in eCommerce

Tracking orders and returns provides valuable insights that can help you optimize your operations and improve customer satisfaction.

Without tracking, you would be operating in the dark, with no way of knowing how your business is performing or where it can improve. Tracking enables you to monitor your orders and returns and adjust your process accordingly.

Additionally, customers expect transparency and want to know when they can expect their purchase or refund. Keep your customers updated on the status of their order or return to reduce uncertainty, thus reducing customer inquiries and support requests.

How Tracking Helps Meet Customer Expectations

In today’s online world, customers expect to be able to easily track their orders and returns in real-time. By meeting these expectations, you can improve customer satisfaction and prevent unhappy customers.

By providing tracking information proactively, you can reduce the volume of customer inquiries and complaints. Customers will have the information they need upfront, reducing the need for them to contact customer support.

Timely tracking updates can help manage customer expectations for delivery and returns. By providing accurate and timely information, you can help customers plan accordingly and reduce the risk of missed deliveries or returns.

Providing real-time tracking information improves the customer experience in the following ways:

Builds Customer Trust

Providing easy tracking builds customer trust by increasing transparency and reducing uncertainty. 

When customers are kept up-to-date on the status of their order or return, they feel more informed and involved in the process. Transparency increases trust in your store and makes customers feel confident about making a purchase. 

If customers don’t have to chase after updates, they’re more likely to remain customers.

Real-time tracking updates help reduce uncertainty by demonstrating your commitment to transparency and customer satisfaction.

Keeps Customers in the Loop

Providing tracking notifications helps keep customers in the loop, giving them visibility into the status of their deliveries and returns. 

Notify customers when their order has been shipped, when it’s out for delivery, and when it has been delivered. This information helps customers plan their time and make sure they’re available to receive their orders. 

Similarly, for returns, help customers know when their return has been received by your store and when they can expect a refund, to reduce uncertainty and give customers peace of mind. 

Makes it Easy to Track Orders and Returns

By making tracking information easily accessible, you can provide a seamless and convenient experience for customers.

Make it easy to track orders and returns by providing customers with real-time updates about the status of their shipment, so that customers don’t need to contact your customer service team to find out where their order or return is. 

The click rate of confirmation emails is 70% higher than that of regular marketing emails, and 64% of customers consider order confirmations to be the most valuable emails.

By constantly providing tracking updates, you can improve the customer experience and boost customer loyalty.

Improves Customer Satisfaction

Accessible tracking information makes customers more satisfied and more likely to buy again and refer your store to others because it provides a sense of control and confidence in the purchasing process. 

Use notifications as an opportunity to proactively reach out to customers, instead of waiting for them to contact you asking for information about their orders.

Besides getting up-to-date information about their order’s status and location, customers want to know about new collections and products, special discounts, and product recommendations.

Order update emails can be a great opportunity to increase sales and keep your customers engaged.

Use Tracking to Increase Efficiency

Order and returns tracking can help you increase efficiency, improve accuracy and streamline your order and returns management. 

By tracking all your orders and returns in one place, you can ensure that the correct products are being shipped and received, reducing errors and ultimately increasing customer satisfaction. 

Moreover, tracking provides valuable insights into customer behavior and preferences which can help you make data-driven decisions for your business.

Tracking can improve your store’s efficiency in the following ways:

Streamline Order and Returns Management

Tracking helps you manage your orders and returns efficiently, showing you when your return shipments are due back at your warehouse, and streamlining the fulfillment process.

With a tracking number assigned to every order and return, and all order and return information gathered in one place, it is easier to manage and track each shipment, reducing the risk of errors or missed deliveries. 

It is important to know exactly where your orders stand at any given moment in order to make informed business decisions, such as restocking inventory or adjusting your pricing.

Reduce Shipping Errors and Costs

With real-time updates about your order and return shipments, you can identify and resolve any issues that may arise during the shipping process, reducing shipping errors and costs.

Tracking shipments helps you anticipate problems and deal with them promptly as they arise. As a result, customers are more likely to receive their orders in good condition and on time, resulting in increased customer satisfaction and repeat purchases. 

Additionally, by improving accuracy and reducing costs, you can save money and resources.

Gain Actionable Insights 

Keeping track of your outgoing and incoming shipments can provide valuable insights into customer behavior and product quality. 

By analyzing your order and return data, you can identify trends in customer preferences and purchasing habits, and identify any issues with products or the shipping process.

Improve Inventory Management and Forecasting

By tracking orders and returns, you can identify which products are popular and which are returned most frequently, and for what reasons. 

Look at your data to identify patterns and pinpoint the root causes of returns. For example, if you notice a high rate of returns for a specific product due to sizing issues, you can adjust your sizing chart or provide more detailed sizing information to reduce future returns.

Using historical sales data and current order trends, you can also predict future demand, and adjust inventory levels accordingly.

Elevate Your eCommerce Business with Effective Tracking

By implementing order tracking and returns tracking, you can improve your customer service, reduce shipping errors, and gain insights into your sales and inventory. 

Provide constant tracking updates to keep customers informed about the status of their orders to provide a seamless shopping experience for your customers. 

Track your orders and returns to easily manage your entire eCommerce process from end to end, and provide your customers with a seamless experience.

By implementing the right strategies, you can turn eCommerce returns into an opportunity to increase revenue and retain customers. 

Understanding the Financial Impact of eCommerce Returns

Returns can be costly. Processing returns manually can be time-consuming and labor-intensive. 

Let’s break it down: If, for example, each return request requires 10 touchpoints, each taking 12 minutes to process, that’s around two hours of wasted time and productivity per return, in addition to the associated labor costs.

In addition to the cost of processing the returns, there are costs such as shipping and restocking items and the cost of managing inventory.

However, the financial impact of returns is not just negative. With the right strategy, returns can also be an opportunity to increase revenue and profitability.

How to Turn a Negative into a Positive

The potential ROI of product returns is often overlooked. Returns can be an opportunity to increase customer satisfaction and loyalty. By offering hassle-free returns and exchanges, you can show customers that you value their satisfaction and are committed to providing a positive shopping experience.

By optimizing your returns process and automating it where possible, you can turn returns management into a profitability booster. 

Boost Your ROI Using eCommerce Returns

By implementing a few key strategies such as maximizing the value of returned items and retaining revenue with exchanges, you can maximize your ROI through returns and turn a potential liability into a profitable opportunity.

Maximize the Value of Returned Items

Maximizing the value of returned items is a key strategy for increasing your ROI on returns. While some returned items may not be able to be resold as new, there are still ways to extract value from them. 

Here are some strategies for maximizing the value of returned items:

• Resell –  Instead of throwing away returned items that are in good condition, you can resell them at a discount. This prevents waste and offers customers an opportunity to purchase sustainable items.

A great way to do this is to work with third-party repair companies and reCommerce companies. 

Reselling returned items can help you get back some of the money you lost and even generate additional revenue.

• Recycle – Incorporate recycling into your returns process to reduce waste and prevent materials from ending up in landfills. 

Returned products can be recycled and used as raw materials for new products, thereby extending the product’s life, reducing waste, and helping the environment.

• Donate – Encourage customers to donate returned items instead of shipping them back. This can help reduce waste and demonstrate social responsibility, and generate customer trust.

Instead of letting returned items go to waste, find ways to reuse and repurpose items to create a circular economy, which both maximizes the value of returns and contributes to a more sustainable world.

Retain Customers Through a Positive Experience

When a customer returns an item, it’s an opportunity to engage with them and provide a positive experience so they’re more likely to come back and shop with you again.

Customer loyalty is one of the most valuable assets your business can have. Loyal customers spend an average of 67% more per purchase than new customers. 

To retain customers through a positive returns experience, it is important to make the process as easy and straightforward as possible. 

Provide a self-service return portal to make it easy for customers to request a return or exchange. 

Offering customers the convenience of initiating and tracking their returns online empowers them to feel in control of the process. This helps to reduce the frustration and anxiety that can come with returning a product and can lead to a more positive experience. 

Some ways to create a positive return experience:

• Make returns easy – Provide a hassle-free returns process, with clear instructions and an easy-to-use online return portal.

• Offer free returns – Offer free returns or return shipping to show your customers that you value their business.

• Provide fast refunds – Process refunds and exchanges quickly to keep your customers satisfied.

• Personalize the returns experience – Use personalized messaging to communicate with your customers throughout the returns process.

• Offer incentives – Offer loyalty points or discounts on future purchases as a way to incentivize customers to shop with you again.

• Analyze returns data – Analyze returns data and customer feedback to identify ways the returns process can be improved to improve the customer experience.

By providing a positive returns experience and showing your customers that you care about their needs and concerns, you can build customer loyalty and keep them coming back to your eCommerce store.

Increase Revenue with Exchanges

When a customer returns an item, you can offer them the option to exchange it for a different item rather than issuing a refund. This can help you retain revenue and even generate additional revenue if the customer chooses a more expensive item as a replacement.

For example, let’s say a customer purchases a shirt for $50 and then decides to return it. If the customer asked for a refund, the store would lose the entire $50 in revenue. 

However, if the customer requests an exchange instead, the customer might choose to exchange the shirt for a different one of equal value, in which case the store retains the $50 in revenue. 

Alternatively, the customer might choose to exchange the shirt for a more expensive one that costs $60, in which case the store retains the original $50 in revenue and generates an additional $10 in revenue from the exchange.

Here are some tips for using exchanges to retain revenue:

• Make the exchange process easy – To encourage customers to choose an exchange over a refund, make the process as easy and convenient as possible. 

Provide clear instructions for how to initiate an exchange, and consider offering free shipping on the replacement item to sweeten the deal.

• Offer discounts or incentives – To incentivize customers to choose a replacement item of equal or greater value, offer discounts or other incentives. 

For example, you could offer a 10% discount on the replacement item, or offer free return shipping.

• Use data to personalize exchanges – Use customer data to personalize the exchange and make it more relevant to the customer’s needs. 

For example, if a customer is returning a blouse in a particular size or style, suggest similar items in that size or style.

• Cross-sell or upsell – Use the exchange request as an opportunity to cross-sell or upsell related items. 

For example, if a customer is exchanging a pair of shoes, you could recommend a matching handbag or accessory.

By offering easy exchanges, you can retain revenue and even generate additional revenue from customers who choose to exchange their returned product for a higher-value product. 

Streamline Returns With Automation

Automating your returns process is a powerful way to reduce costs and increase efficiency since processing returns can be a labor-intensive and time-consuming task. Automating the process can help streamline the entire process from start to finish.

With an automated returns management system, you can automatically generate return labels, keep track of return shipments, and issue refunds instantly. 

By automating these tasks, you can save time and resources that would otherwise be spent manually managing returns.

Automating your returns process also improves accuracy. Returns management systems ensure that data is captured consistently and accurately, minimizing the chance of returns being processed incorrectly. This can make inventory records more accurate and reduce costs associated with incorrect or fraudulent returns.

By automating your returns, you can improve profitability and ROI in the following ways:

• Reduce costs – Reduce costs associated with manual returns processing and free up your staff to focus on other tasks. 

• Streamline return processing times – Speed up the returns process, from approving the return to issuing the refund to validating the returned items.

• Prevent errors and inaccuracies – Minimize the risk of errors or inaccuracies that can lead to additional costs.

• Gain data insights – Get insights into return trends and customer behavior, helping you make informed business decisions to optimize your operations and profitability.

By reducing the amount of time and resources required to process returns, automating your returns can help you reduce costs, improve efficiency, and maximize profits.

Case Study: How One Project Turned Returns into Revenue

One example of a store that successfully turned returns into revenue is One Project, a multi-brand eCommerce fashion platform that uses exchanges and gift cards alongside refunds to retain and increase revenue.

Previously, One Project only offered refunds, which made it difficult for customers to exchange products. If customers wanted to exchange a product, they would have to go through a complicated process of receiving a refund and then purchasing a new product.

Because customers couldn’t easily exchange products, there was an increased level of frustration among customers and a higher workload for the team.

Using ReturnGO, One Project was able to offer an easy exchange process, making it quick and simple for customers to exchange items. This saved the company a considerable amount of refund revenue and greatly reduced customer frustration.

In addition to offering exchanges, One Project also started providing gift cards instead of refunds, which helped them retain even more customers and keep the revenue within the store.

“By allowing customers to exchange products, and not refund them, we manage to save a lot of money on customers who don’t make a refund and just make an exchange. This helps us achieve our KPIs from a revenue aspect.”

– Shmulik Konforty, CTO, One Project

By implementing these changes, One Project has reduced their average refund rate by 10% and kept the revenue within the store for 40% of return requests. 

With easy exchanges and gift cards, One Project has been able to generate new revenue and retain revenue that would have otherwise been lost through refunds.

Check out the full case study here.

Why Returns are an Opportunity, Not a Liability

With the right strategies in place, you can actually turn returns into an opportunity to increase your revenue and retain happy customers. 

Use strategies such as making the most of returned items, offering easy exchanges, and automating the returns process, to make returns management painless and profitable. 

Instead of fearing returns, embrace them as a chance to grow your business.

How Exclusivity Enhances the Returns Experience

Exclusivity can play a big role in your customers’ return experience, especially in the luxury industry. 

Customers who buy luxury products often have higher expectations and lower tolerance for dissatisfaction than customers who buy mass-market products.

Providing an exclusive, luxury return experience can help differentiate your store from competitors and boost the customer experience. 

By focusing on exclusivity, you can transform returns from a dreaded process to an opportunity to create a positive connection with customers.

“Customers are rarely buying just the luxury product. They are purchasing the entire experience and they expect that same experience at every touch point – in-store, in the call center, in the call center chat room and online.”

– Perry Kramer, Vice President, BRM

Exclusivity vs. Convenience: Balancing Customer Needs

While eCommerce has made purchasing luxury products easier and more convenient, it has challenged the idea of exclusivity. 

As a luxury brand, you need to consider how to keep your exclusive status when in the world of eCommerce. It’s a balancing act that requires you to be conscious of the importance of both convenience and exclusivity.

While trying to create a perception of exclusivity helps meet customer expectations, exclusivity makes it harder to manage your inventory and logistics when dealing with returns. 

For example, if a customer returns a custom-made handbag made with rare leather and unique colors, you may not be able to find another customer who wants exactly the same item, so you’ll likely have to modify or dispose of it at an additional cost.

In addition to the logistical challenges of exclusive returns, keep in mind that you still want to make returns convenient for all your customers. 

Maintain a balance by providing tiered benefits with exclusive benefits to VIP customers while maintaining a convenient returns process for everyone.

How to Create a Luxury Returns Experience Using Exclusivity

When it comes to creating a luxury returns experience, one of the most important things you can offer is a sense of exclusivity. 

By creating a unique and personalized experience for customers who are returning items, you can build your reputation as a luxury brand and keep your customers coming back again and again.

Here are a few ways you can create an exclusive, luxury returns experience:

Free Returns

Offering free returns for VIP customers is a great way to create an exclusive returns experience. 

Define what constitutes a VIP customer and create a custom return policy that applies only to this customer segment. For example, you might define a VIP customer as someone who has spent over a certain amount in your store or has made a certain number of purchases. 

Once you’ve defined your VIP customer segment, create a custom return policy rule that offers free returns for these customers, which will help to make them feel valued and appreciated.

Automated Refunds

Another way to offer an exclusive returns experience is to offer automated refunds for certain types of returns. 

For example, you might offer automatic refunds for returns of a certain value or for items that meet certain conditions.

By automating the refund process, you can offer a faster and more convenient returns experience for your customers, helping you build customer loyalty and satisfaction.

Personalized Communication

Personalize your communications with your customers for a more luxurious experience.

For example, you can send personalized emails to customers who have returned items, thanking them for their business and offering them exclusive promotions or discounts. 

71% of customers expect companies to deliver personalized interactions, and companies that are good at personalization generate 40% more revenue from such activities than average companies.

By communicating with your customers in a more personalized and exclusive way, you can create a stronger connection with your customers and build customer loyalty over time.

Extended Return Windows

Another way to create a luxury experience is to offer an extended return window for high-value customers. 

To offer an extended return window for high-value customers, define what constitutes a high-value customer, such as customers with a certain average order value (AOV), and set up a custom return policy rule that gives them a longer amount of time to return products.

By offering a returns process that is tailored to different customer segments, you can create a more personalized and exclusive customer experience.

Perception vs. Reality: How Exclusivity Shapes the Luxury Returns Experience

When it comes to luxury returns, perception is everything. Customers who perceive a brand to be exclusive and high-end are likely to have higher expectations for the returns process. 

High-value customers expect a smooth and efficient returns process, and to be treated with the same level of exclusivity they received during the initial purchase.

The results can be dramatic when customers shopping at luxury eCommerce stores have a returns experience that doesn’t meet their expectations.

Therefore, a luxury customer experience should include a returns process that is aligned with the initial shopping experience.

Turn Returns into a Luxury Experience

Offering an exclusive returns experience using strategies such as free returns and extended return windows for high-value customers can have a significant impact on customer satisfaction, loyalty, and perception of your brand.

By providing exclusive benefits to certain customers, you make them feel valued and special.

Use the power of psychology and perception to provide a luxury returns experience that enhances customer satisfaction and builds brand loyalty.

Factors to Consider When Setting a Return Window

It can be challenging to determine the ideal return window for your eCommerce store. 

While the most common eCommerce return window length is 30 days¹, some stores offer a longer return window in an attempt to be more customer-friendly while others offer a shorter one to minimize their revenue loss.

Ultimately, the ideal return window for your store depends on several factors, including industry standards, customer expectations, product types, and legal requirements.

So, what do you need to take into account when setting your return window?

Industry Standards

While there is no one-size-fits-all solution, it’s helpful to know what other eCommerce stores in your industry are doing.

For example, electronics stores often offer longer return windows than toy stores¹. This might be to give customers time to try out the products and decide if they want to keep them, as electronics are typically higher-value and have a longer lifespan. 

On the other hand, toy stores may offer shorter return windows in order to keep their inventory fresh.

“Our toy store offers a 14-day return window, which is enough time to allow customers to return items if they’re not satisfied, while also providing our online store with the opportunity to keep our inventory fresh and current.”

– Ray Lauzums, CEO, Poggers

To get a sense of what the industry standards are for your specific niche, do some research and look at what other eCommerce stores in your industry are offering.

Some ways to find out what standard practice is in your industry are to search online, consult with industry associations or trade groups, or go to competitors’ sites and take a look at their return policies.

Keep in mind that while industry standards can be helpful, they shouldn’t be the only factor in setting your return window. Your final decision should be based on your specific business and customer needs.

Customer Expectations

It’s important to consider customer expectations when setting your store’s return window. A return window that aligns with your customers’ needs can help build trust, loyalty, and a positive reputation for your business.

Customers today expect a certain level of convenience and flexibility when it comes to returns. They want a return window that gives them enough time to try out a product and decide if they want to keep it or not, without feeling rushed or pressured.

To get a sense of your customers’ expectations, collect customer feedback and use return analytics to track return behavior. Look for patterns in the timing and frequency of returns, and consider surveying your customers to get direct feedback on their return preferences. 

The more aligned your return window is with your customers’ expectations, the more likely you are to increase customer satisfaction and reduce negative reviews.

Product Types

Different products have different return requirements and considerations, so it’s important to tailor your return window to the types of products you sell.

For instance, products that have a short shelf life or expiration date, such as food or beauty products, may warrant a shorter return window to prevent customers from returning expired or unusable products that can’t be resold.

On the other hand, more expensive items or items that require more time to evaluate such as furniture or clothing, often call for a longer return window in order to give customers enough time to try and test the product before deciding whether to keep it. 

You can also offer different return windows for different product categories, such as a longer return window for clothing and accessories and a shorter return window for electronics.

By tailoring your return window to each product type, you can ensure that your customers have enough time to evaluate and return products as needed, while also protecting your business from excessive returns or fraudulent activity.

Return Costs

Returns can be expensive, as they often require shipping and restocking fees, and can also result in lost inventory or damaged products. As such, it’s important to balance the needs of your customers with the operational costs of handling returns when setting your return window.

A short return window can result in customers feeling rushed to make a decision about returning a product, resulting in a higher rate of customer complaints and lost revenue.

On the other hand, if your return window is too long, you may receive a higher volume of returns, which can be costly and time-consuming to manage.

To find the right balance, consider the types of products you sell and the average cost of processing returns for those products. If you sell high-end or luxury products, you may be able to offer a longer return window without significantly impacting your costs. If you sell low-margin products, however, a shorter return window may be necessary to keep your costs in check.

In order to offset your return costs, you may want to consider implementing a restocking fee or limiting the number of returns allowed per customer.

Maintaining a balance between the costs of handling returns and customer needs is key to setting a reasonable return window.

Return Fraud Prevention

How you set your return window can make a big difference in preventing return fraud. 

Return fraud is a growing concern in eCommerce. Return fraud happens when a customer abuses your return policy for their own gain under false pretenses, such as returning products they didn’t buy from your store, or claiming a product was defective and returning a damaged product or another product altogether.

“One particularly memorable incident involved a customer who tried to return a set of off-road lights that had clearly been used and damaged.

The customer contacted us to request a return, claiming that the lights did not work and were defective. We asked for photos of the damage or defect, but the customer was unable to provide any evidence to support their claim. 

Despite our suspicions, we agreed to process the return and issue a refund, as we wanted to maintain a positive relationship with the customer. 

When we received the returned item, we were shocked to see that the lights had clearly been used extensively and were now damaged beyond repair. It was obvious that the customer had taken the lights out on a trail ride and then deliberately damaged them in order to make it look like a manufacturing defect.”

– Chad Brinkle, Owner & Founder, High Country Offroad

Setting a long return window can increase the likelihood of return fraud, while a short return window can alienate customers by making them feel rushed in making a decision about returning an item. 

A good rule of thumb is to set a reasonable return window that gives customers enough time to receive and test their purchases, while also implementing return fraud prevention measures such as product authentication and tracking. 

Using a returns management system like ReturnGO can help you track and analyze returns data, identify patterns of return fraud, and prevent fraudulent returns from being accepted.

Legal Requirements

Depending on your location, there may be legal requirements regarding returns that you need to take into account when setting your store’s return window.

Some states or countries require a minimum return window or require you to provide customers with specific information about the return policy, such as how refunds will be processed and what items are eligible for return.

For example, UK law imposes a minimum return window of 14 days, and in California, stores that don’t accept returns within 7 days must clearly display their return policy otherwise customers may return products for a full refund within 30 days of purchase.

In addition to legal requirements, you should also be aware of any contractual obligations you have with third-party providers such as payment processors or eCommerce platforms, that may have their own return requirements.

Failure to comply with legal requirements can result in legal repercussions such as fines or legal action from customers.

To ensure compliance with legal requirements and contractual obligations, make sure to review the relevant refund laws and regulations and consult with a legal professional as needed.

How Long Do Customers Actually Take to Return?

It’s important to take into account the actual behavior of customers in addition to things like industry standards and return costs when creating your return window.

ReturnGO data shows that while the average return window is 30 days, customers tend to return items in a shorter time frame, within an average of 19 days from purchase.

The time between order and return varies significantly by industry, with toys and games being returned the quickest at an average of 7 days, and electronics taking the longest to be returned at an average of 32 days. 

Seeing how long it takes customers to decide to return items can help you decide how to set your return window based on the types of products you sell.

It’s also worth noting that the average time between order and return is often shorter than the industry average return window, which indicates that the industry average is sufficient since customers don’t usually take advantage of the full amount of time they are given to return items.

When setting your store’s return window, it’s important to take into account the behavior of your specific customer base as well as the types of products you sell.

A return platform like ReturnGO can provide this valuable data on your customer behavior and give you insights to help you make informed decisions about your return window.

Best Practices for Setting a Return Window

When setting your store’s return window, be sure to communicate your return window clearly and to track customer feedback.

Implement these best practices to create a clearly-defined return window.

Take a Tiered Approach

Offering tiered return windows can help incentivize customers to stay loyal to your store.

For example, you can offer a longer return window for exchanges and store credit and a shorter window for refunds, to show your customers that you value their business and want to keep them coming back.

Having a shorter return window for refunds than for exchanges helps discourage return fraud and incentivizes customers to opt for an exchange or store credit, which retains the revenue in your store and keeps your customers coming back.

A returns management platform like ReturnGO gives you the flexibility to set different return windows for refunds, exchanges, and store credit, so you can customize your return policy to fit your business.

Communicate Your Return Window

When it comes to setting a return window for your eCommerce store, clear communication is essential. Customers should know exactly what your return window is and what the process entails. 

Here are some tips for communicating your return window clearly:

• Make your return window easy to find – Your return window should be clearly stated in your return policy which should be easily accessible on your website and other sales channels. Include a link to your return policy in your order confirmation emails and on your product pages.

• Use clear and concise language – Avoid using jargon or technical terms that might confuse customers. Use simple language to explain your return window and what customers can expect.

• State the length of the return window clearly – Make sure to clearly state how the return window is calculated, for example, whether it starts when the order is placed or when the product is delivered.

• Specify any exceptions – If there are certain products or conditions that have different return windows, be sure to specify them clearly.

By communicating your return window clearly, you can help avoid confusion and frustration, leading to a better customer experience and increased customer loyalty.

Monitor Customer Feedback

Keeping an eye on what customers are saying about your returns process can give you valuable insights into how customers feel about it and identify areas for improvement.

Monitor customer feedback by tracking customer reviews and ratings on your website, social media, and other online platforms. Look for comments related to the returns process, such as how easy or difficult it was to initiate a return and what they thought about the return window.

Additionally, track your customer behavior and see how long it actually takes customers to return items, and use that information to adjust your return window as needed.

Being open to adjusting your return window shows customers that you value their feedback and are committed to providing an excellent customer experience.

Make sure to communicate any changes in your return window to your customers so they know what to expect from the returns process.

Automate the Returns Process

Use a returns management system like ReturnGO to automatically uphold your return window. 

With ReturnGO, you can easily set up your return policy and specify the length of the return window for each product or category. 

Customers will only be able to request returns during the return window, so you aren’t burdened with return requests that don’t meet your store’s requirements.

ReturnGO also provides you with real-time return analytics and reporting to help you identify return patterns and optimize your return policy accordingly. Based on this information, you can adjust the length of your return window as needed to improve customer satisfaction and reduce return costs.

Set a Return Window That Works For Your Business

Setting a return window for your eCommerce store is an important decision that requires careful consideration of industry standards, customer expectations, product types, return costs, fraud prevention, legal requirements, and customer feedback. 

By following these best practices and being flexible, you can find the ideal return window for your business that balances customer satisfaction with profitability.

Sources:

¹ ReturnGO Data 2023

Start collecting and analyzing your returns data in order to grow your online store.

The Importance of Returns Data in eCommerce

Returns data is about more than handling returns; it’s about seeing them as an opportunity for growth. By understanding the reasons behind returns, you can identify areas for improvement, optimize your processes, and ultimately provide a better customer experience.

The key performance indicators (KPIs) of returns data are one of the most important types of information that can be tracked by an eCommerce store. Understanding what products are being returned and why can help you make informed decisions to improve your bottom line.

Here are two ways in which returns data can help you grow your online store:

1. Understanding Customer Behavior

Returns data can provide insights into customer behavior, such as why they are returning products, what items they are returning, and how often they return items. 

Determine trends in customer behavior, like how often certain items get returned, and then work on addressing them. For example, if a particular product is frequently returned due to size issues, you might invest in more detailed sizing information or add a sizing chart. 

By analyzing returns data, you can identify patterns and preferences and adjust your inventory accordingly. 

Additionally, you can use returns data to analyze customer feedback and reviews to understand their pain points and improve the customer experience.

2. Identifying Opportunities for Improvement

Returns data can help you identify areas where your business can improve, such as reducing return rates, improving product descriptions, or identifying quality issues. 

For instance, if customers are frequently returning a specific item, you can investigate whether there is a quality issue with that item or whether the product description is misleading.

Collecting and Analyzing Returns Data

Returns data can be collected and analyzed through manual methods or by using a returns management system.

Manual Methods for Tracking Returns

Manual methods involve tracking returns through spreadsheets or other manual processes. While this method can work for small businesses with low return volumes, tracking returns data manually can be time-consuming, error-prone, and difficult to scale.

The Benefits of Using a Returns Management System

Returns management systems like ReturnGO automate the process of collecting returns data, saving time and reducing errors. 

An easy-to-understand return analytics dashboard gives you a visual representation of your returns data and displays it in an easy-to-understand format.

Here are some benefits of using a returns management system (RMS) to track and analyze returns data:

• Reduces manual work – Automating data collection with an RMS eliminates the need for manual data entry, saving time and making the process more efficient.

• Improves accuracy – Tracking returns data with an RMS reduces the likelihood of errors and ensures that the data is accurate.

• Streamlines the returns process – Using an RMS simplifies the returns process, making it easier for customers to return items, which can improve the customer experience.

Ways to Use Returns Data to Grow Your Online Store

Now that you understand the importance of returns data and how to collect it, let’s look at how you can use returns data to grow your online store. 

1. Improve Products

By analyzing returns data, you can identify patterns and preferences, such as customers’ preferred sizes, colors, or materials, and adjust your inventory accordingly.

Returns data can also help you identify common complaints or issues that customers have with your products. By analyzing this data, you can make data-driven decisions to improve your products, such as adjusting the design, improving the material quality, or updating your product descriptions.

2. Enhance the Customer Experience

When it comes to handling returns, providing a high-standard customer experience is important, which is where returns data comes in. 

Analyzing your returns data can help you uncover trends and insights and gain a deep understanding of your customers’ needs and wants, which you can use to optimize your online shopping journey to better meet their expectations. 

You can use returns data to identify areas where you can improve the customer experience during the returns process. For example, tracking the time it takes to process returns can help you streamline the process to reduce customer wait times and improve customer satisfaction. 

Additionally, you can gain valuable insight into customer preferences and pain points by tracking customer feedback, and you can use this insight to make adjustments to your product offerings and marketing strategies to better meet the needs of your customers.

For example, if you see that the average amount that repeat customers spend is higher than that of first-time customers, you can focus your attention more on customer retention as that’s where you can get the most value.

3. Identify New Sales Opportunities

Returns data can be a valuable source of information for identifying new sales opportunities. 

By analyzing return analytics, you can unlock insights into product performance, customer behavior, and operational efficiency. 

With the help of a returns management system like ReturnGO, you can tap into this treasure trove of data to gain a competitive edge in the crowded eCommerce landscape. 

By understanding why customers return products, you can improve your product offerings and take advantage of untapped segments of the market. 

Additionally, optimizing internal processes, such as restocking and dealing with damaged products, will free up resources you can reallocate to growth initiatives. 

Use returns data to make informed decisions, improve customer satisfaction, and drive sales growth.

4. Reduce Return Rates

Return rate is one of the most important KPIs to track for returns management. Your return rate is the percentage of products that are returned.

Tracking your return rate enables you to measure customer satisfaction, identify customer return reasons, determine order accuracy, and take action to reduce your return rate. 

The average eCommerce return rate hovers around 20-30%. Tracking your return rate can help you manage your returns more effectively.

Based on your returns data you can improve product descriptions, adjust sizing charts, and improve the quality of your products to reduce your return rate.

Streamline your returns process and reduce the time and resources required to process returns by using a returns management system such as ReturnGO. By doing so, you’ll be able to reduce your return rate, improve customer satisfaction, and save money on returns processing. 

One example of an eCommerce store that used returns data to reduce its return rate is Silk & Salt, an eco-conscious fashion brand. When Silk & Salt realized that the most common reason for returns was “doesn’t fit”, they decided to look into it further.

Silk & Salt used customized follow-up questions on the ReturnGO return portal to collect customer feedback. Using the ReturnGO return analytics dashboard, they discovered a product with a 90% return rate and determined that its high return rate was due to incorrect sizing for the “small” option. They turned to the manufacturer to make more accurate sizing for that product.

Since then, Silk & Salt has taken an active approach to reducing returns by reviewing their returns data on a monthly basis.

“Return trends can be easily understood with the amount of data in ReturnGO’s analytics.” 

– Assaf Neuman, Head of Operations at Silk & Salt

Harness the Power of Returns Data

Analyzing returns data and understanding customer behavior will help you make data-driven decisions that will improve your business. 

Gain actionable insights into your eCommerce business by using a returns management system like ReturnGO, which automates the data collection process for faster and more accurate reporting.

Let’s take a journey back in time to the first documented return request in history – around 3,000 years ago.

The First-Ever Return Request: The Complaint Tablet to Ea-nasir

The earliest recorded return request in history dates back to 1750 BCE, in the ancient city of Ur in Mesopotamia, on a clay tablet known as the Complaint Tablet to Ea-nasir, written in Akkadian cuneiform.

This tablet is believed to have been written by a man named Nanni, a merchant who had ordered copper ingots from Ea-nasir, a fellow merchant. Upon receiving the goods, Nanni found that the copper was of poor quality. 

In frustration, Nanni wrote a letter in which he detailed his complaints, stating that he had not accepted the copper, but had paid the money for it, and demanding a refund: 

“What do you take me for that you treat me with such contempt? …

… How have you treated me for that copper?

You have withheld my money bag from me in enemy territory;

it is now up to you to restore it to me in full.”

Full Translation

The complaint tablet to Ea-nasir is a valuable historical artifact as it provides insight into the way transactions were conducted in ancient times and highlights the importance of customer service even back then.

The complaint tablet was discovered in the ruins of the city of Ur, in a house that may have been the residence of Ea-Nasir, and is currently on display at the British Museum. 

Understanding the Complaint: What it Tells Us About Early Returns

The complaint tablet to Ea-nasir is an excellent example of how returns have always been a part of trade, and provides us with valuable insights into the early history of returns. 

It tells us that customers have always had high expectations of the products they buy and that they are not afraid to voice their dissatisfaction when those expectations are not met. It also shows that merchants have always been held to high standards of honesty and fairness.

While the specifics of the complaint tablet are unique to its time and place, the basic principles underlying it are still relevant today. 

Customers still expect high-quality products that meet their expectations, and merchants are still expected to resolve customer complaints satisfactorily.

Comparing the Complaint Tablet to Modern-Day Returns

Considering that the earliest complaint we’ve found was from 1750 BCE, it’s safe to assume there were others before then – this is just the oldest to have been discovered.

Returns have come a long way since the days of the complaint tablet to Ea-nasir. While the basic principles underlying returns have remained the same, the way they are managed has evolved significantly over the past 3,000 years.

In modern times, thanks to technology, the process of initiating a return request is faster and simpler – to the point where customers can easily initiate a return request online and instantly receive a refund.

The Evolution of Returns Management

Over the past 3,000 years, returns have evolved from a complicated and time-consuming process to a much simpler and more efficient one. 

In ancient times, it was complicated to request a refund. Think about how much effort Nanni had to put into sending his complaint to Ea-nasir, engraving the message into a small clay tablet in cuneiform script and sending it by messenger. The effort put into making it conveys the magnitude of Nanni’s dissatisfaction.

Fast forward to the 19th century, and returns were still a complicated and lengthy process, although less so. Mail-order catalogs, which were popular at the time, enabled customers to order products by mail, which they could only return the same way, if at all. This process could take weeks or months, and it wasn’t guaranteed that the customer would receive a refund.

The 20th century saw the development of new retail technology such as barcodes and point-of-sale systems. While these innovations made returns easier to process in-store, they still demanded a lot of time and effort.

It wasn’t until the rise of eCommerce in the 1990s that returns began to truly evolve. Even then, customers would need to contact the merchant by phone or email to initiate a return, and then merchants would have to process the return manually, which involved a significant amount of paperwork and tracking.

The introduction of digital returns management systems enabled merchants to automate the return process, reducing the amount of time and resources required to process returns. 

Today, returns management systems like ReturnGO are able to handle the entire returns process from start to finish, making returns more efficient and customer-friendly than ever before. 

Customers can initiate a return online with just a few clicks of a button, and merchants can process the return automatically, with the system automatically generating shipping labels and tracking information.

Embracing Returns: A Natural Part of Trade

The complaint tablet to Ea-nasir, dating back to 1750 BCE, shows that customers have been unhappy with their purchases for thousands of years. 

Over time, returns have evolved into a simpler, more efficient process. Today, returns management systems like ReturnGO make the returns process easier and more efficient than ever before.

When we think back to the days of the complaint tablet to Ea-nasir, it’s hard not to wonder what merchants of the time would think if they knew what technology we have now. The ability to automate the entire returns process from start to finish would have seemed like magic to them.

By understanding some of the most commonly overlooked mistakes in returns management, you can prevent problems and prioritize your efforts to create a more efficient returns process.

9 Overlooked Returns Management Mistakes to Avoid

Steering clear of returns management mistakes is key to effectively managing returns, boosting customer satisfaction, and reducing costs.

Here are some common mistakes in returns management, along with some of the best returns management tips for avoiding them.

1. Not Having a User-Friendly Returns Process

When your returns process is confusing and unclear, customers may not know how to initiate a return or what to do if they encounter a problem. This can lead to a decrease in the number of returns, as customers may simply abandon the process out of frustration.

84% of customers would stop doing business with an online store after a bad returns experience.

Moreover, a confusing returns process can lead to inefficiencies, as customers are more likely to contact customer service for assistance, adding to the workload of the customer service team and increasing return processing time.

Simplifying the returns process for your customers can greatly improve their experience and reduce frustration. This includes providing clear instructions on how to initiate a return, the steps involved, and a self-service return portal to make it easy for customers to initiate a return.

Returns Management Tip

Provide a user-friendly, easy-to-understand returns process that includes clear instructions on how to initiate a return.

2. Not Having a Clear Return Policy

Without a clear return policy, customers may not know what to expect when they initiate a return. This can lead to misunderstandings and disputes, as customers may have different expectations for the return process.

A clearly-defined return policy is essential for avoiding confusion and establishing trust with customers. 

Customers want to know what to expect when they initiate a return, and a clear return policy provides them with the information they need.

Your return policy should include:

• Eligibility for returns (timeframe, eligible products)
• Steps in the return process (initiating a return, required documentation)
• Expected outcome for the customer (replacement, refund, store credit)
• Fees associated with returns (restocking fee, return shipping fee)

Clearly communicate your return policy across all your channels, including your website, email notifications, and product pages.

Returns Management Tip

Create a clear return policy that is easily accessible and clearly states the conditions for returns, including what items are eligible, how long customers have to initiate a return, and how the returns process works.

3. Not Viewing Returns as Positive

One of the most common mistakes in returns management is viewing returns as something negative. This mindset can lead to an inefficient returns process, which can increase costs and the amount of time it takes to complete the return.

Additionally, if you only see returns as a negative thing, you’ll miss out on the opportunities that returns can provide, such as the ability to gather customer feedback and insights into customer preferences and shopping habits.

It’s important to recognize that returns are a normal part of eCommerce and can even be an opportunity to improve the customer experience and build customer loyalty. 

A smooth and customer-friendly returns process can improve customer satisfaction and loyalty, leading to repeat business and word-of-mouth recommendations. Returns can also provide valuable insights into customer preferences and purchasing habits, which can be used to improve product offerings and the overall customer experience.

With a positive approach to returns, you can turn a potentially negative experience into a positive one and improve the customer journey.

Returns Management Tip

Take returns as a way to understand customer preferences and improve your products and customer satisfaction, rather than as a burden.

4. Not Leveraging Return Data

By not leveraging return data, you miss out on the opportunity to improve the customer experience, increase customer satisfaction, and make your returns process more efficient. 

Analyzing your returns can help you identify common return reasons such as sizing or product defects, which can then be addressed to reduce the number of returns and improve the customer experience.

Your return data can also be used to optimize the returns process, identify inefficiencies, and reduce costs. By analyzing your returns, you can determine the most cost-effective shipping methods, improve the speed of the returns process, and ensure a smooth customer experience.

Use your return data to analyze return trends, customer preferences, and the effectiveness of your return policy. Using this information, you can make informed decisions and continually improve your returns process.

Returns Management Tip

Use ReturnGO to track and analyze your return data to gain insights into your returns patterns and improve your returns process.

5. Not Automating Your Returns

Handling returns manually is a common mistake in returns management, particularly for small and growing eCommerce businesses. 

Manually managing returns leads to errors in record-keeping and a lack of visibility into return data and trends. This can also lead to inefficiencies in the returns process, as your team has to spend time processing returns instead of focusing on other tasks.

Efficiency is key when it comes to managing returns. More and more eCommerce stores are turning to automated returns management systems (RMS) like ReturnGO. ReturnGO helps you automate the entire returns process, from tracking returns to providing return shipping labels to analyzing return data.

Automating your returns can improve efficiency, reduce errors, and speed up the return process.

Returns Management Tip

Automate your returns process with returns management software such as ReturnGO to simplify returns management, increase accuracy, and easily track and manage your returns in one place.

6. Not Prioritizing Exchanges

Another often-overlooked returns management mistake is not prioritizing exchanges over refunds. While it may seem easier to simply give customers a refund, this would be a missed opportunity to retain revenue and establish a lasting relationship with the customer.

By prioritizing exchanges, you can turn a potentially negative experience into a positive one, showing customers that you value their business and are committed to providing an excellent experience.

Using a ReturnGO return portal can help you better understand the reasons for returns and make it easy to offer seamless exchanges for another variant or another product altogether, all from within the return portal.

For example, if a customer returns a jacket because they didn’t like the color, offering to exchange it for the same product in a different color can provide an easy solution.

Returns Management Tip

Prioritize exchanges to retain revenue from returns and keep customers instead of losing them after one purchase.

7. Not Limiting Your Return Eligibility Rules

When customers can return items without any restrictions or limitations, it can lead to abuse of the system and an increase in fraudulent returns. 

To avoid this mistake, clearly define and communicate your return eligibility rules to customers, making it clear what the conditions are for returning and exchanging items. 

Return conditions can include limitations on the timeframe for returns, the condition of the item being returned, and the type of item that can be returned.

Limiting your return eligibility rules can help you better manage and process returns, reduce the likelihood of fraudulent returns, and ensure that your customers understand the limitations on returns before purchasing.

Automating the return process with an online return portal can help you limit your return eligibility rules. Using ReturnGO, you can set up rules and conditions to ensure that only eligible returns are accepted.

Returns Management Tip

Establish clear return eligibility rules and automate the process to better manage returns and prevent return fraud.

8. Not Understanding the Costs of Returns

Without a clear understanding of the costs of processing returns, it can be difficult to assess the full impact of returns on the bottom line and identify areas for improvement.

Costs associated with returns management can include:

• Labor
• Storage and inventory management
• Equipment
• Shipping
• Non-resellable inventory
• Software

Track your returns management costs, including return costs per item, unsellable inventory costs, and costs associated with processing returns.

By tracking your returns costs you can identify areas where costs can be reduced and develop strategies for managing returns more efficiently.

Reduce your return costs by improving the efficiency of shipping, warehousing, and processing returns.

Automating your workflows can help reduce the costs of managing product returns by streamlining the process of handling returned items. 

With the right technology, such as a returns management system, you can fully automate the returns process, which helps reduce errors and improve efficiency, thus reducing returns costs.

Returns Management Tip

Track the cost of returns and automate your workflows to reduce returns management costs.

9. Not Preventing Return Fraud

One of the biggest challenges in returns management is dealing with return fraud.

Return fraud is the act of returning products for illegitimate reasons to get a refund. Some common types of return fraud include returning damaged, used, or stolen products, or using counterfeit receipts to claim a refund.

Not taking action to prevent return fraud can be a costly mistake, leading to financial losses and an increase in operational costs. The US retail industry suffers annual losses of around $24 billion in return fraud and return policy abuse, making up an average of 8% of returns. 

To prevent fraudulent returns, implement clear return policies and processes to validate the legitimacy of returns. 

Set clear restrictions on the timeframe for returns, the conditions in which products must be returned, and the types of products that are eligible to be returned.

Technology can also help you prevent return fraud. There is various return fraud-detecting software that can help you identify and prevent fraudulent returns. 

For example, you can track product movement throughout your supply chain with barcode scanning technology to detect and prevent fraudulent returns and use analytics tools to identify patterns of fraudulent behavior, such as multiple returns from the same customer or repeated high-value returns.

Returns Management Tip

Establish a clear return policy and use technology to detect and prevent return fraud.

Streamline Your Returns

Efficient returns management is a crucial aspect of running an eCommerce store, and avoiding the common mistakes highlighted above can help you create a smoother and more cost-effective returns process.

By having a user-friendly returns process and return policy, as well as utilizing return data and automation, you can improve the customer experience, reduce costs, and optimize your returns process.

ReturnGO can help you implement the returns management tips mentioned above to streamline your returns.

Let’s explore how you can apply principles of camping to the eCommerce returns process, such as how to remain organized and prepared, how to choose the right tools for the job, and how to be adaptive and flexible when conditions change.

Camping and eCommerce Returns: What They Have in Common

Camping and eCommerce returns have more in common than you might think. Both require careful planning and consideration of all possible scenarios to ensure a successful outcome. 

When camping, you need to make sure you have the right supplies and know the best places to set up the tent. With eCommerce returns, you have to make sure your store is ready to accommodate customers who want to return or exchange their online purchases. This requires a well-thought-out returns process and returns management system. 

By taking a few lessons from the great outdoors and applying them to your eCommerce returns management strategy, you can make sure your customers have a great experience and that your returns process runs smoothly.

1. Be Prepared for Anything

One of the key lessons to be learned from camping is to always be prepared for anything. Just like camping, running an online store requires careful planning and preparation. 

It’s important to set up processes and workflows to ensure a smooth returns process, including having a well-defined return policy that is easy for customers to understand. 

An automated returns management system will also help you process returns quickly and efficiently.

2. Adapt to Changing Conditions

Another lesson the great outdoors can teach us regarding eCommerce returns management is the importance of adapting to changing conditions. 

Just like in camping, your store must be prepared for the unexpected, and be able to adapt to changing customer needs and expectations. 

Returns management is an ever-evolving process and it’s important to update your return policy and process as needed to ensure your customers have a positive returns experience.

3. Leave No Waste

In camping, it’s important to leave the natural environment as undisturbed as possible, and this includes minimizing waste. Similarly, your store can take steps to reduce the waste generated by returns. 

Returns generate billions of pounds of landfill waste and create huge amounts of carbon emissions.

Transport, packaging, and processing of returns generate carbon emissions, and products that can’t be resold are often sent to landfills, causing significant environmental damage. 

One way to reduce waste is by encouraging customers to donate or recycle items they no longer want or need rather than sending them back to your store. You can also consider using more sustainable packaging materials and partnering with companies that offer eco-friendly disposal options.

4. Stay Organized

In camping, staying organized can help campers keep track of their gear and supplies.

In eCommerce returns, staying organized can help you keep track of returned items and ensure that they are processed correctly.

Use a returns management system to keep track of returned items, ensure that they are properly processed and restocked, and minimize errors in the returns process.

Staying calm and collected can help campers make rational decisions and stay safe in stressful situations. When it comes to eCommerce returns, staying calm can help you resolve customer complaints and keep things moving smoothly. 

What You Can Learn From Camping to Improve Returns

Camping can teach us a lot about how to manage eCommerce returns. Taking camping principles such as being prepared, adaptable, sustainable, and organized and applying them to managing eCommerce returns for a smoother and more efficient returns process. 

ReturnGO can help you implement these principles and make your returns process simple, cost-effective, and efficient.

It’s important to understand the impact of impulsivity on eCommerce returns and take steps to mitigate its effects.

What is the Impact of Impulsivity on eCommerce Returns?

Impulsive buying behavior can lead to more product returns because when customers make purchases without fully considering their options, they often end up with products that don’t meet their needs or expectations.

Some of the ways customer impulsivity increases return rates:

Not Considering the Return Policy

Impulsive buyers are more likely to make purchases without carefully considering the return policy, which can lead to confusion or frustration if the return policy is not clearly communicated or doesn’t align with the customer’s expectations.

Experiencing Buyer’s Remorse

Impulsive purchases are more likely to result in buyer’s remorse, which is the feeling of regret or anxiety after making a purchase. When customers experience buyer’s remorse, they are more likely to return the product, even if there’s nothing wrong with it. 

Not Planning Ahead

Impulsive purchases are often made without a plan or consideration for future needs or preferences. Ultimately, this can result in customer returns when they realize the product doesn’t fit their overall plans.

Engaging in Bracketing Fraud

Impulsive buyers are more likely to engage in bracketing return fraud, which is the act of buying multiple versions of the same item in different sizes, colors, or styles with the intention of returning those that don’t fit or don’t meet their needs.

Impulse Purchases Lead to High Return Rates

Impulse purchases lead to high return rates as customers are more likely to return items they bought impulsively.

A high return rate can have several negative impacts, including:

• Reduced Profit Margins – Every time an item is returned, your store loses revenue. High return rates can significantly impact your profit margins.

• Increased Costs – Returns lead to additional costs, such as restocking fees, return shipping costs, and reduced inventory value, which can add up quickly and reduce your store’s profitability.

• Decreased Customer Satisfaction – High return rates may be indicative of customer dissatisfaction, resulting in negative reviews and reduced customer loyalty.

• Increased Workload – Processing returns can be time-consuming and require additional resources. High return rates can increase your team’s workload, resulting in decreased efficiency and higher costs.

By understanding the impact of impulsivity on eCommerce returns and taking steps to mitigate its effects, you can improve your bottom line and provide a better customer experience.

Tips to Mitigate the Impact of Impulsivity on Returns

Here are a few practical steps you take to reduce the likelihood of impulsive purchases and subsequent returns:

Provide Clear Product Descriptions and Images

Providing detailed and accurate product descriptions and images can help customers make more informed purchasing decisions, reducing the likelihood of them making impulsive purchases that may not meet their needs or expectations. 

By using high-quality images and descriptive text, you can provide a more accurate representation of the product, which can reduce the chance of eCommerce returns and exchanges.

Display Reviews from Previous Customers

Customer reviews and ratings can provide valuable feedback and social proof for potential customers who are considering buying a certain product.

97% of customers typically read product reviews and look at ratings before making a purchase. Reviews can help build trust with potential customers and provide them with a more accurate representation of the product. 

By highlighting customer reviews, you can provide a more balanced perspective on products, which can help reduce the likelihood of impulsive purchases.

Communicate Your Return Policy Clearly

Reduce confusion and manage customer expectations by clearly communicating your return policy.

Customers want to know what to expect if they need to return a product, including any deadlines, requirements, and potential fees. Make sure your return policy includes everything customers need to know about the returns process.

By clearly communicating your return policy on your website, product pages, and post-purchase emails, customers can make more informed decisions about their purchases, reducing the likelihood of returns and exchanges.

Offer Personalized Product Recommendations

Personalized product recommendations can help customers find products that meet their specific needs and preferences, reducing the likelihood of them making impulsive purchases that may not be a good fit.

By using customer data to personalize messaging and promotions, you can create a sense of exclusivity and relevance that can help reduce impulsive purchases. 

80% of customers are more likely to make a purchase if they receive a personalized experience, and that purchase is more likely to meet their expectations.

Address Impulse Purchases to Reduce Return Rates

The impact of impulsivity on eCommerce returns is something many people fail to consider, and it should be taken seriously. 

By taking steps to mitigate the effects of impulsive buying behavior, you can help customers make more informed decisions and reduce the likelihood of impulsivity-related returns.

Here are some brilliant insights from 8 leading eCommerce experts who share their tips for managing returns smoothly and efficiently. From automating your returns to improving your return policy, these tips will help you manage returns effectively.

1. Put Someone in Charge of Returns

“Having someone who is in charge of the return process for your eCommerce business ensures that it goes smoothly. 

When you have someone dedicated to making the return process simple and done right, then you increase the chances of a happy customer. 

It also makes your life easier as a manager or business owner as you have trusted people on your team who can focus on this aspect of owning an eCommerce company. 

Doing this helps to streamline the return process which makes it easier for customers to trust how you do returns and therefore will continue to shop with you.”

Daniel Climans 

Senior Manager, Digital Marketing & Partnerships 

StickerYou

2. Communicate Effectively

“Communication is key in managing customer returns. Regular updates and proactive notifications can help reduce customer frustration and increase satisfaction. 

Respond promptly to customer inquiries acknowledge receipt of returned items, and keep customers informed about the status of their return. 

Consider offering a chatbot for quick and easy access to information, and provide clear and concise answers to frequently asked questions about returns on your website.”

John Frigo

eCommerce Manager

Best Price Nutrition

3. Have a Clear Return Policy

“Make sure you have a clear return policy in place. This will help customers know what they’re allowed to do and what they need to do to return your product. 

Make sure to include information about how long the product must be unused, the shipping costs associated with returning the product, and any other relevant details.”

Febra Alexander

Owner

Doggy Bag Treat

4. Actively Encourage Reviews

“When determining whether or not to purchase, online customers are naturally drawn to user reviews, so it’s always a good idea to include them on your product pages. 

You may undoubtedly meet negative evaluations along the way, but you should not regard this as a negative. Take the time to reply to any feedback, positive and negative, and you will be able to resolve any concerns. 

Actually, how you treat your clients after they have made a purchase is more significant than how you handled them before they made a purchase. 

Those efforts to assure customer satisfaction and resolve any concerns, if necessary, will foster brand loyalty and keep customers coming back for more.”

Mark Valderrama

Owner and CEO

Aquarium Store Depot

5. Collect Customer Return Reasons

“Use the data from your returns to reduce your future return rates. By asking your customers for the reason they wish to send back items, you can quickly identify widespread issues. 

These insights can help find problems with the products, such as quality or fit, and can also help you edit product listings for fewer returns in the future.

For example – if many items of a particular SKU are coming back as “too large” then you’ll know that you need to have the manufacturer double-check their measurements and maybe alter the sizing for future shipments (could be there was an issue, or type of material fits differently, etc). You’ll also want to QA the rest of the sizes in that batch to make sure they measure correctly.

By also offering an open-ended feedback comment box, you can better identify pain points and customers’ exact issues. 

This can help you better dial in product descriptions – what are customers saying they wish they knew before they purchased?

If it is something frequently reported, consider adding that note to the product description to help future buyers.”

John Cheng

CEO

Baotris

6. Set Well-Defined Steps

“Focus on establishing straightforward but effective processes. 

However, in order to reach this degree of returns management, stores must implement clear, efficient processes at the point of return, such as collecting all essential data, swiftly analyzing the condition of the returned item, and assigning it to its final destination.”

Raine Gui

Founder and Creative Director

Model Chic

7. Understand the Cost of Returns

“A solid return policy is crucial to maintaining customer satisfaction, and shoppers adore shops that provide free returns.

However, it’s critical to comprehend how much returns are costing you financially in terms of paying for reverse shipping and tracking, as well as how many man hours are required to manage returns, from answering phones to refilling shelves.

These calculations can provide a lot of information; for instance, if the data reveals that customer returns cost nearly as much as developing a new product or buying one in bulk, you might want to consider offering a refund and letting customers keep the original to immediately decrease your losses. 

If the figures make sense, it might be advisable to refrain from doing so since research indicates that 79% of buyers won’t make a purchase from an online business that charges return shipping costs. 

Additionally, providing free eCommerce returns may result in a significant enough boost in overall sales to eventually pay for itself.”

Steve Pogson

Founder & E-commerce Strategy Lead

First Pier

8. Make Returns Trackable

“Why should logistics be any different now that we can get whatever information we require or desire? We can track a product from the manufacturer to your warehouse and, if necessary, back to you thanks to advanced technology. 

Tracking your items’ entire path, including the reverse logistics process, has never been simpler. And as we all know, information is power.

As a result, you gain control over your returned merchandise and give your customers the ability to check on the progress of their returns. Return monitoring is crucial on your end for preventing returns fraud, which can be easily avoided and dealt with if it does occur. 

After a customer returns a product, you should keep track of the situation at all times. This, along with additional features like partial refunds, can assist you in preventing return fraud and abuse while still delivering top-notch customer service.”

Gene Fitzgerald

Head of Content Marketing

Best Osmosis Systems

Streamline Your Returns Management

Follow these eCommerce experts’ returns management tips to streamline your returns, improve customer satisfaction, and build a loyal customer base. 

By approaching returns with a positive attitude with a focus on automation and tracking, returns can be turned into an opportunity for growth.

Whether you’re just starting out or looking to take your returns management to the next level, these tips provide practical advice and actionable steps to improve your returns process.

Let’s take a look at how climbing and returns management both require careful planning, adapting to unexpected challenges, and attention to detail.

Here are a few valuable lessons I found from the world of rock climbing that can be applied to improve your returns process.

Lessons from Rock Climbing for Better Return Management

At first glance, rock climbing and eCommerce returns may not seem to have much in common. 

However, there are some interesting parallels we can draw between the two:

Planning and Preparation

Just like rock climbing, successfully managing eCommerce returns requires careful planning and preparation. 

When preparing to climb a rock face, climbers carefully study the route, assess the risks, and plan their approach. They must assess the risks, plan their approach, and prepare the necessary gear and equipment. This preparation helps the climber anticipate potential obstacles and prevent unpleasant and dangerous surprises.

Similarly, make sure to carefully plan your return policy, including processes for handling returns, packaging, restocking, and refunding, and set up return technology and software to help you manage your returns.

Consider factors such as the types of products you sell, the customer base, and shipping and logistics. By planning ahead and preparing for returns, you can prevent confusion and reduce the risk of dissatisfied customers.

Adapting to Challenges

Rock climbing and eCommerce returns can both present unexpected challenges that require quick thinking and adaptability.

It might seem like returns are straightforward – a customer is unsatisfied with their order, they request a refund, and you refund them. Climbing, too, might seem as simple as grabbing a rock and pulling yourself up.

The truth is, they aren’t quite so simple, and a lot can go wrong, making it important to be flexible and adaptable.

While climbing, there may be equipment malfunctions, a foothold might break off, or it may start raining. Climbers need to adapt to these challenges on the fly, finding solutions to complete their climb safely.

Similarly, managing returns involves adapting to unexpected challenges that might come up, like mislabeled packages, disputes over refund amounts, or logistical issues.

It’s important to be able to think on your feet and find solutions to these challenges.

By being prepared and flexible, you can keep your customers satisfied and ensure a smooth return process.

Attention to Detail

Attention to detail is a crucial aspect of eCommerce returns management that can make a significant difference in the success of your business. 

Like in rock climbing, where every foothold and handhold must be carefully assessed and considered, attention to detail in the returns process involves carefully examining each return and making sure all the details are accurate.

Paying attention to the details of the returns process helps you reduce the likelihood of damaged or lost products and ensure that returned products are properly restocked or disposed of.

When customers experience problems with the returns process, they are less likely to return again. They may also share their negative experiences with others, leading to lost sales and damage to your brand reputation. 

By paying attention to details and providing a smooth, efficient returns process, you can build customer loyalty, improve your reputation, and increase customer satisfaction.

Tracking and Analysis

Just as climbers track their progress and analyze their performance, you can use data and analytics to track and analyze your store’s returns. 

It’s important for climbers to keep track of their performance and progress by tracking workouts, measuring climbing speed, filming climbs to analyze and improve, and more.

When managing returns, track and analyze return metrics to gain valuable insights into the return management process, identify areas for improvement, and make data-driven decisions to optimize your returns. 

You can track things like return rates, reasons for returns, costs associated with returns, and the time required to process returns.

For example, if you have a high return rate for a particular product, you can improve the product description or images, and if you notice that returns are taking longer than usual to process, you can look for bottlenecks or inefficiencies that could be addressed.

Climbers track their progress so they can improve their technique and reach new levels of climbing ability.

Similarly, by monitoring your return rates, return reasons, and outcomes, you can identify areas for improvement and make data-driven decisions to improve the returns process.

Applying Climbing Principles to eCommerce Returns

While rock climbing and eCommerce returns may seem like unrelated topics, they actually have a lot in common. 

Both require careful planning, adaptability, focus on details, and the use of data and analytics to track and improve performance.

By learning from the techniques and strategies of rock climbers, you can improve your returns process and provide a better customer experience.

If you’re looking to take your returns management to the next level, look to the world of climbing for inspiration and start climbing with confidence today, with ReturnGO by your side to help you reach the top.

You click on the link in their bio, but you’re not quite sold yet. Then you see the product reviews and customer photos. People just like you wearing and loving the outfit. 

Suddenly, you feel more confident about buying it.

That’s the power of user-generated content for eCommerce. By providing social proof, user-generated content helps potential customers make informed purchase decisions, reducing the likelihood of a return.

What is User-Generated Content?

User-generated content (UGC) is content created and shared by your customers about your products. UGC can be in the form of reviews, photos, videos, and more.

Including user-generated content on your eCommerce store offers potential customers valuable information about the products, which helps reduce return rates and improve the customer experience.

You can use a UGC platform such as Loox to easily collect and display user-generated content for your online store.

How Does User-Generated Content Reduce Return Rates?

User-generated content reduces return rates by providing potential customers with relevant information about the products they are considering purchasing. 

Customers are more likely to trust information coming from other customers rather than the eCommerce store itself. In fact, 80% of customers say they value customer photos more than brand photos.

UGC provides an authentic and reliable representation of the product, and customers can see real-life examples of how the product is used and what others think of it. 

86% of customers prefer UGC because it enables them to see what the product looks like in real life. Brand-produced photos and videos can show off a product’s best features, while user-generated content shows a real person using the product in real situations, giving customers a more realistic view of how it might benefit them.

By displaying user-generated content on your eCommerce store, you can tap into this customer trust and provide potential customers with valuable information to help them make informed purchasing decisions, reducing return rates and improving customer satisfaction.

How To Encourage User-Generated Content

Here are some ways you can encourage your customers to create UGC for your eCommerce store:

Offer Incentives

Offer incentives such as discounts, special promotions, or exclusive access to products and services to encourage customers to create UGC.

By offering incentives to create user-generated content, you motivate customers to engage with your brand and create UGC that can help other customers with their buying decisions.

Make it Easy

Make it easy for customers to create user-generated content by including a simple review or feedback form on your website or product pages.

The process of submitting UGC should be simple and straightforward, without lengthy forms or complicated authentication processes. 

By streamlining the process and reducing any barriers or obstacles to leaving reviews, photos, or feedback, you can encourage more people to contribute valuable UGC.

Respond to UGC

Responding to user-generated content shows that you value your customers’ opinions and feedback, which can encourage them to create more content in the future.

When responding to UGC, it’s important to be timely and professional. Acknowledge the customer’s contribution and thank them for taking the time to share their experience. Address any concerns or questions they may have raised. 

Make it a standard practice to respond to all UGC in a timely manner, regardless of whether the feedback is positive or negative, to demonstrate your commitment to customer satisfaction.

5 Types of User-Generated Content for eCommerce

User-generated content can come in many different forms such as product reviews, customer photos and videos, and FAQs. 

Incorporate different types of UGC into your eCommerce strategy to improve the customer experience and reduce return rates by providing customers with the information they need to make purchasing decisions. 

Here are five types of eCommerce UGC and how they can help you reduce return rates.

1. Product Reviews

Product reviews are one of the most common forms of UGC. They provide valuable insights into the product’s quality, functionality, and usage, and can help potential customers make informed purchasing decisions. 

97% of customers typically read product reviews and look at ratings before making a purchase.

Reviews can provide an inside look into the quality, fit, and overall experience of a product, giving customers a more informed perspective and helping to reduce the risk of them buying a product that doesn’t meet their expectations.

Customers who interact with ratings and reviews on a product page convert at 120.3% the rate of those who don’t.

Positive reviews from other customers can provide social proof that a product is of good quality, which can lead to customers feeling more confident in making a purchase. 

Product reviews can also provide valuable information about a product that isn’t included in product descriptions or other marketing materials, helping customers make more informed purchasing decisions.

By monitoring and responding to customer product reviews, you can demonstrate your commitment to customer satisfaction, improve the customer experience, and identify recurring problems with specific products.

2. Customer Size & Fit Information

User-generated content is important for helping customers with sizing and reducing return rates because it provides customers with real-life examples of how a product fits. 

Customers are more likely to feel confident about the sizing of a product when they see pictures or videos of other people wearing the product or read about their experiences. This can help reduce returns due to sizing issues.

Ask customers to share sizing information by asking for it when they submit a product review. Encourage customers to include their height, weight, and measurements along with a photo of themselves wearing the product. Other customers can then use this information to determine how the product might fit them.

75% of customers say that user-generated content helps them get a better sense of the product’s sizing. 

By providing customers with size and fit information from real people, you can reduce the number of returns due to sizing issues. 

3. Real-Life Photos & Videos

Encouraging customers to share real-life photos and videos of your products can provide potential customers with a more realistic idea of what the product looks like and how it works. 

85% of customers say they’re more likely to buy a product that has photos and videos included in the reviews. 

User-submitted photos and videos can help you convert more browsers into buyers, especially in highly visual categories such as apparel and home improvement.

With customer photos and videos, you can reduce return rates as customers are more likely to make a purchase if they have a clear understanding of what they are getting.

4. FAQ of Customer Questions

An FAQ section can be a valuable resource for customers, as it provides answers to common questions about your products. 

Regardless of how comprehensive your product descriptions are, some customers are likely to still have questions. In this situation, customers are likely to check your FAQ section to see whether another customer has already asked the same question, and if not, they can ask it themselves.

Customers’ interactions with FAQ sections can greatly affect their buying decisions. FAQs are the most effective form of user-generated content, driving a 157.1% increase in conversions. Getting quick answers to questions (and reading answers to questions that have already been asked) gives visitors the confidence they need to convert.

Encourage customers to ask questions and answer them in a detailed FAQ section that can reduce return rates by giving potential customers the information they need to make an informed purchase decision.

5. Customer Feedback

Customer feedback is an essential type of UGC as it provides valuable insights into what customers like and dislike about your products. 

Feedback from customers can be used to make improvements and enhance the customer experience, reducing return rates due to product defects, functionality issues, or other types of customer dissatisfaction. 

For example, if a customer provides feedback indicating that a product is too small or too large, you can use that information to adjust the sizing. Alternatively, if a customer provides feedback indicating that a product is difficult to use or has a short lifespan, you can improve the product design or quality.

How to collect customer feedback:

• Online Surveys – Collect customer feedback with online surveys, which can be used to gather information on customer satisfaction, product feedback, and suggestions for improvement.

• Social Media Monitoring – Monitor mentions and comments about your brand on your social media channels.

• Customer Service Interactions – Encourage your customer service team to ask customers for feedback during phone or live chat interactions.

• Post-Purchase Emails – Ask for customer feedback in post-purchase emails, which can include a rating or feedback form, and ask customers for their thoughts about the product.

By using customer feedback to improve products, you can reduce returns and improve customer loyalty, since customers are more likely to make repeat purchases from your store if they know you take their feedback into consideration. 

Customers Want User-Generated Content

A growing number of customers depend on user-generated content such as photos, videos, and reviews to make purchase decisions.

UGC can be an effective tool for reducing eCommerce return rates, as it provides information in advance so that customers feel more confident and are less likely to return items due to misunderstandings.

Displaying product reviews, highlighting customer size information, and using customer feedback to improve products can help increase customer trust and provide valuable insights into customer preferences. 

Leverage the power of user-generated content to reduce return rates, improve customer satisfaction, and optimize your products.

Here’s an extensive list of innovative ways to make returns a competitive advantage for your eCommerce store and stand out from the competition.

27 Innovative Ways to Make Returns a Competitive Advantage 

1. Personalize the Return Experience

Making returns more personalized can make a big difference for customers. Personalize the return process by providing personalized messaging and offering return options that suit the customers’ preferences. 

Customers appreciate a personalized return experience because it makes them feel seen and cared for, and people prefer shopping at stores that make them feel seen as individuals at every step of their journey. In fact, 80% of customers are more likely to make a purchase when provided with a personalized experience.

You can provide tailored suggestions for replacement products by tracking customers’ returns and purchase history. For example, if a customer often returns shoes due to sizing issues, suggest a different size or style that may fit better. 

Personalization can also extend to the branding of the return process, creating a cohesive and positive experience for the customer.

Only 15% of stores offer personalized customer experiences, so now is the time to get ahead of the competition by personalizing your return process.

2. Provide a Self-Service Return Portal

Self-service return portals give customers the ability to initiate and track their own returns. 81% of customers want more self-service options, which is why providing self-service returns is so important. Customers who can issue return requests on their own will be more satisfied with their experience.

An online return portal can reduce the time and resources needed to process returns, freeing up your customer service team to focus on other tasks. 

Additionally, you can increase customer satisfaction and reduce the likelihood of negative reviews by providing a self-service return portal, since customers appreciate having control over their return process and appreciate the ability to track their returns in real-time.

3. Offer Buy Online, Return In-Store (BORIS)

Buy Online, Return In-Store (BORIS) is an increasingly popular option for returns, that offers customers the convenience of returning online purchases in-store. 

This can improve the customer experience by providing customers with a physical location to return items, which can be more convenient and cost-effective for both the customer and your store. 

BORIS can also increase foot traffic to physical stores, leading to potential upsells and cross-sells. 

Additionally, BORIS enables you to check returned items on the spot, giving customers an immediate resolution to their issues and reducing the time it takes to process the return.

4. Provide Fast Refunds

Fast refunds can help build trust with customers and improve the overall return experience. Nowadays, customers expect immediate results and quick turnaround times – including for refunds.

Having a slow and complicated refund process can cause frustration, damaging customer trust, while a fast and efficient refund process can increase customer satisfaction and the likelihood of repeat purchases. 

Customers are 77% less likely to recommend your store if the refund process takes too long.

The best way to process refunds quickly is by providing instant refunds using an instant refund solution such as Refundid and Reveni, which enable you to refund customers instantly.

By providing fast refunds you can reduce the stress and uncertainty that often comes with returns. The refund experience may be a deciding factor in whether a customer will shop with your store again, so speeding up your refund process is important.

5. Encourage Exchanges

Providing easy exchanges can turn returns into a positive experience for customers. By offering exchange options, you can reduce the likelihood of losing the sale altogether. 

You can also provide personalized exchange options that match the customer’s preferences and purchase history, which can lead to upselling opportunities. 

For example, if a customer returns a dress due to sizing issues, you can suggest that they exchange it for the same dress in a different size. 

Exchanges are more profitable for your store because instead of refunding customers, you retain the revenue that would have been lost.

Encouraging exchanges and providing an easy exchange process can lead to a higher customer satisfaction rate and can help you maintain positive customer relationships.

6. Provide Pre-Paid Return Shipping Labels

Provide pre-paid return shipping labels to reduce the hassle for customers so they don’t have to go out of their way to find a shipping provider or pay for return shipping costs out of their pocket. 

With pre-paid return shipping labels, customers can simply print out the label, attach it to the package, and send it back without any additional costs. 

Return shipping labels include information such as: 

• Shipping carrier and service type. 
• Sender and recipient information and their addresses. 
• Shipping barcode and/or QR code. 

Pre-paid return shipping labels help prevent errors because if customers have to figure out how to return the item themselves, they might fill out the return address incorrectly or use incorrect postage, which could lead to the package being sent to the wrong place.

Return shipping labels are scanned at every stage of shipment until the package reaches its destination. Using ReturnGO to integrate with carriers and generate return labels, you can track the status of your return shipments and stay up-to-date in real-time.

7. Make Returns as Easy as Possible

The ideal return process encourages customers to come back to your store again and again instead of looking for another store to buy from. 

When the returns process is too long and complicated, customers are likely to give up and keep their unwanted items, and not buy from your store again. Earn your customers’ trust by showing them that if they need to return or exchange an item they can do so quickly and easily.

To make returns as easy as possible, provide clear instructions on how to return products and provide an online return portal where customers can easily request a return or exchange without needing to contact customer service.

Self-service return portals reduce the likelihood of miscommunication, speed up the returns process, and give your online store a competitive edge.

By making returns easy you make customers more comfortable about buying from your store, as they know they can easily return the item if it doesn’t meet their expectations. 

8. Collect and Implement Customer Feedback

Listening to what customers have to say about their return experience can help you identify pain points and opportunities for improvement. 

Getting feedback from customers can help you improve the returns process and make it more customer-focused, resulting in higher customer satisfaction.

You can collect customer feedback through surveys, social media, or other channels, and then use that feedback to implement changes in your returns process. 

For example, if customers consistently report issues with the pre-paid return shipping labels, you can work to address those concerns and improve the label design or shipping provider. 

9. Use Returns as an Opportunity to Build Customer Loyalty

Returns can be a great opportunity to build customer loyalty. By handling returns with care and attentiveness, you can show customers that you value their business and are willing to go above and beyond to ensure customer satisfaction.

For example, if a customer has a defective item, offering a replacement or repair at no cost can be a powerful gesture that demonstrates your store’s commitment to customer satisfaction. 

Having a loyal customer base is one of the most valuable assets an eCommerce store can have, given that loyal customers spend an average of 67% more per purchase than new customers.

By using returns as an opportunity to build customer loyalty, you can keep your customers coming back to your store and strengthen customer relationships.

10. Offer Gift Returns

Gift returns enable customers to easily exchange gifted items without involving the original purchaser.

People often receive gifts of clothes and accessories, only to discover the sizes are wrong and then the gift recipient ends up stuck with a gift that they can’t use. 

When buying gifts in a physical store, gift receipts are usually included so that recipients can exchange whatever doesn’t fit or they don’t like. Even though more and more people do their gift shopping online nowadays, many online stores don’t offer online gift returns. 

This gives you an advantage if you choose to offer gift returns and exchanges, as it can make gift shopping less stressful and make it more convenient for gift recipients.

Make sure your return policy clearly explains how gift returns work, so customers know what their options are.

11. Deliver an Omnichannel Customer Experience

Customers expect a seamless and consistent experience across all channels. This is especially true for returns. 78% of customers use multiple channels to start and complete a transaction.

By offering an omnichannel experience for returns, you can differentiate yourself from competitors and build customer loyalty.

Provide flexibility by giving customers the option to return items through multiple return methods and offer a range of refund options, such as store credit and exchanges.

Create a consistent branded experience across all channels by being consistent in language, fonts, colors, and messaging.

A return management system like ReturnGO provides an omnichannel solution by streamlining the returns process and providing a consistent brand experience across all channels.

12. Analyze Reasons for Returns

Analyze why customers are returning items, in order to make informed decisions about product design, marketing, and customer service.

For example, if a particular product has a high return rate due to sizing issues, you could add more detailed sizing information to product pages or offer free variant exchanges.

Looking at common return reasons can also help you identify potential issues with product quality, customer service, or shipping, and address them before they become major problems.

By collecting customer feedback and analyzing the reasons for returns, you can gain valuable insights into customer behavior and use this information to make informed decisions that improve the returns process and build customer loyalty.

13. Offer a Clear Return Policy

Make sure that your return policy is clear and easy to understand. Customers want to know what they can expect when it comes to returning items, so it’s important to clearly outline your return policy. 

Your return policy should include information such as:

• The length of time customers have to request a return.
• Refund and exchange conditions.
• The products that are eligible for return.
• Steps for customers to request a return.

When writing a return policy, make sure to be specific, use easy-to-understand language, and make sure it reflects your brand values and voice.

A clear return policy helps build trust with your customers. When customers know that they can easily return items if they’re not satisfied, they’re more likely to make a purchase in the first place.

14. Make Your Return Policy Easy to Find

Beyond writing a clearly-defined return policy, it’s important to make it easy to find. Customers shouldn’t have to hunt around to figure out how to make a return or what the conditions are.

Your return policy should be prominently displayed in your website’s header or footer. Consider also including a link to your return policy on your product pages and on your checkout page to make your return policy easily accessible throughout the online shopping journey.

By making your return policy easy to find, you reduce the friction of making a return. Customers will appreciate the fact that they can quickly and easily find the information they need.

15. Accept Returns Through Multiple Return Methods

Make the return process more convenient by offering multiple return methods for customers to choose from.

Return methods specify what the customer should do with the products that are being returned or exchanged. You can offer a variety of return methods such as shipping the products back, returning them to a store location, or donating them.

Some customers may prefer to return items in person, while others may prefer to ship back items by mail or take them to a drop-off location. 

Offering returns through multiple return methods gives customers the option of returning products in a way that’s convenient for them.

16. Automate Your Returns Process

Automating your returns process can be a game-changer for your eCommerce store, especially if you’re dealing with a high volume of returns. 

A returns management system like ReturnGO can help you streamline your returns process and make it more efficient.

Using automation to manage returns and exchanges takes the hassle out of managing return requests while also improving the customer experience.

Benefits of automating the returns process include:

• Reduced risk of errors – Managing returns can be complex, with a lot of moving parts. Automating the process reduces the risk of errors and ensures that returns are processed accurately and efficiently.

• Faster returns processing – Rather than manually processing returns, you can automatically generate return labels, approve returns, and issue refunds, freeing up your team to focus on other tasks.

• Improved customer experience – By automating the returns process, you can improve the customer experience, as customers can initiate a return online, receive a return label, and track the status of their return all from one platform. 

Automating the returns process gives your eCommerce store a huge competitive advantage because it enables your business to react quickly and smoothly to return requests and process returns efficiently. 

Automated returns are the future of eCommerce, and having an automated returns process is a must for any eCommerce store that wants to stay competitive and keep its customers happy.

17. Provide a Realistic Return Window

There is no right or wrong length for a return window, so it’s really up to you to decide how long to give customers to return items. Offering an extended return window or setting specific conditions for products or categories can give you a competitive advantage.

For example, Zappo offers a 365-day return window, which makes it stand out and is one of its unique selling points.

Use your return window to stand out from other eCommerce stores by creating a positive customer experience and setting clear expectations.

Things to consider when setting your eCommerce store’s return window:

• Industry standards – Look at what your competitors are doing and what the standard return window is in your industry. If you give a longer return window than your competitors, that can give customers an incentive to buy from you instead of them.

• The nature of your products – When setting a return window, take into account that products have different lifespans and usage cycles. For example, a return window of 30 days might be too short for a piece of furniture that customers might not assemble or use for weeks.

• Shipping times – Your return window should give enough time for customers to receive the product, inspect it, and decide whether they want to keep it or return it.

Clearly communicate your return window on your website, in your marketing materials, and in order confirmation or shipping emails to set clear expectations. 

Make sure to be clear about the definition of the return window. Does it begin when an order is shipped or once it’s delivered?

Software like ReturnGO can help you implement your specified return window and automatically only accept eligible returns to make the process as smooth and efficient as possible.

18. Make Your Returns Process Sustainable

Sustainable returns can give your store a competitive advantage because they show that you’re committed to environmental responsibility. Customers today are more conscious than ever about the impact that their purchasing choices have on the environment. 

By focusing on eco-friendly returns, you’re sending a clear message that your business cares about the environment and is doing its part to be sustainable. This can make a powerful impression on customers and attract more customers who share those values.

How to make your returns more sustainable:

• Use eco-friendly packaging – Reduce the amount of packaging that ends up in landfills by using eco-friendly packaging such as compostable or recyclable packaging or reusing packaging from returned products.

• Recycle or resell returned products – Instead of sending returned products straight to the garbage, consider recycling or reselling returned products. This gives products a second life and reduces the amount of waste caused by returns.

• Offset your carbon footprint – Offset your carbon emissions from return shipping by investing in renewable energy and reforestation projects through carbon offsetting programs.

Many customers are willing to change their buying habits and 72% of customers are even willing to pay more for sustainable products. 

As more people choose to shop at eco-friendly stores, taking action to be sustainable will encourage customers to choose your store over your competitors.

19. Communicate Throughout the Returns Process

Communicate with customers throughout the return process for a competitive advantage over other stores. By keeping customers informed and providing transparency at every step of the returns process, you can build trust, reduce frustration, and increase satisfaction. 

94% of customers are likely to buy again after having a positive experience with customer service.

How to communicate with customers throughout the returns process:

• Provide clear return instructions – Clearly communicate your return policy, including any conditions or restrictions, to set expectations and avoid misunderstandings.

• Send return status updates – Keep customers updated on the status of their return, such as when it’s been received, processed, and refunded, to reduce anxiety and uncertainty.

• Offer multiple support channels – Make it easy for customers to ask questions and get help throughout the return process by providing multiple channels of support such as email and live chat.

• Automate notifications – Use an automated returns management system such as ReturnGO to automatically send branded return notification emails and communicate with customers during the returns process. 

By keeping customers informed throughout the returns process, you can differentiate yourself from other eCommerce stores and build a reputation for providing excellent customer service. 

20. Offer Incentives for Certain Types of Returns

By encouraging customers to return certain types of items or providing rewards for returning items within a certain window, you can increase customer trust, drive repeat business, and reduce your return costs.

When customers feel that they are being treated fairly and are given additional incentives to make returns, they are more likely to choose your store over competitors.

With ReturnGO, you can automatically apply incentives or rewards based on certain conditions, such as bonus store credit or free return shipping for specific items, such as seasonal products or overstocked inventory.

Offering free return shipping or enabling customers to return items in-store in certain situations makes returns more convenient for customers while incentivizing them to return products in ways that are beneficial to your store.

21. Use Return Data to Improve the Returns Process

Tracking your return data can provide you with valuable insights that can help optimize your store and gain a competitive advantage over other eCommerce stores. 

Return data can provide valuable insights into customer behavior and preferences, helping you improve the return process and provide a better customer experience. 

By analyzing return data, you can identify patterns and trends in the types of items being returned, return reasons, and return methods used. 

For example, if you notice that a certain product is frequently being returned due to sizing issues, you can provide more detailed sizing information or turn to the manufacturer if there’s a recurring issue.

A returns management system like ReturnGO can help you efficiently analyze return data. With features like real-time analytics and insights, you can easily identify trends and patterns and make data-driven decisions to improve the return experience.

By using return data to continuously improve the returns process, you can create an exceptional customer experience that sets your store apart from competitors.

22. Track the Market

When you track the market, you can gain valuable insight into industry trends, customer preferences, and competitor offerings, helping you find ways to make your store better than your competitors. 

Ways to track the market:

• Monitor competitors – Keep a close eye on your competitors and what they offer to help you identify gaps in the market and opportunities to offer a unique experience. 

• Track industry trends – Follow the latest trends in your industry and incorporate them into your business to stay ahead of the curve and appeal to customers who are looking for the latest and greatest.

• Use customer feedback – Collect feedback from customers in order to identify areas that can be improved.

Tracking the market and staying up-to-date on industry trends is crucial for staying competitive in the eCommerce space. By offering something that your competitors don’t, you can differentiate your store and attract customers who are looking for something different.

23. Outsource the Reverse Logistics Process

Outsourcing the reverse logistics process can help you stay competitive in the eCommerce space by freeing you up from having to worry about how to manage your returns and exchanges.

Since reverse logistics is such an important part of eCommerce, it makes sense to outsource it to a reliable service provider. For example, a third-party logistics (3PL) provider is a company that can help you manage your logistics, including returns processing, validation, and restocking. 

Outsourcing your reverse logistics can help you provide a more efficient and reliable returns process for your customers. By partnering with a 3PL provider that specializes in returns management, you can improve the accuracy and efficiency of your returns process.

Less than half of retailers use a 3PL to handle returns, so outsourcing your reverse logistics can differentiate your store from your competitors who might still be struggling to manage returns in-house.

24. Prevent Return Fraud

Preventing return fraud can protect your store’s revenue, maintain customer trust, and save your reputation.

Return fraud is when customers intentionally abuse the returns process for personal gains, such as returning used or damaged items, items that weren’t purchased from your store, or items that were purchased with a stolen credit card.

It can be costly to deal with return fraud, both in terms of lost revenue and the resources required to investigate and prevent fraudulent returns. 

In the US retail industry, return fraud and return policy abuse result in around $24 billion in losses each year, accounting for an average of 8% of returns. 

To prevent return fraud, set clear expectations with a detailed return policy that outlines exactly what items are eligible for return and the conditions under which returns are accepted. 

Tracking and analyzing return data is also a good way to identify suspicious behavior and prevent return fraud. Identifying potential return fraud cases and taking appropriate action can help you prevent future fraud.

25. Encourage Customers to Donate Items

Encouraging customers to donate returned items instead of shipping them back to your store can lower your costs of processing returned items, and reduce the amount of waste generated by returns.

At the same time, customers can feel good about their return, knowing that their unwanted items are going to a good cause.

70% of customers say that a business’ involvement in the community influences their decision to buy from them.

Customers are increasingly looking for ways to support businesses that have a positive impact on society, and by offering a donation option you show your commitment to social responsibility and gain a competitive advantage. 

26. Give Bonus Store Credit

Giving bonus store credit for returns is a great way to incentivize customers to make future purchases and establish customer loyalty. 

By offering bonus store credit, you can incentivize customers to make additional purchases, rather than looking elsewhere. Customers are more likely to be loyal to a store that offers rewards and benefits, and bonus store credit can be an effective way to establish that customer loyalty.

With so many eCommerce stores vying for customers’ attention, offering bonus store credit can be a unique and effective way to differentiate your store and attract customers.

27. Offer Free Return Shipping

Offering free return shipping is a great way to show your customers that you care about them and will go above and beyond to make their experience a good one. 

When customers know that they can return an item without incurring any additional costs, they are more likely to make a purchase in the first place. 

One of the biggest benefits of offering free return shipping is that it can help build customer loyalty. Customers who have a positive experience with the return process are more likely to make future purchases and recommend your store to friends and family.

In spite of the fact that customers increasingly expect to not be charged for returns, less than half of eCommerce stores offer free return shipping, so offering free return shipping will give you an advantage.

Use Returns to Your Advantage

From personalization to automation to instant refunds, there are many innovative ways to make returns a competitive advantage. 

Take advantage of these strategies to get ahead in today’s fast-paced eCommerce landscape. 

By prioritizing the customer experience and finding new ways to stand out, you can make returns a competitive advantage for your eCommerce store.

Returns management presents a classic game theory problem, where stores and customers have conflicting interests. Stores want to minimize returns, while customers want returns to be as easy as possible. 

By applying game theory to eCommerce returns, you can design an effective return policy that benefits both customers and your store. 

Game Theory and eCommerce Returns

Game theory is a mathematical framework used to model strategic interactions between decision-makers. In eCommerce, the decision-makers are the store and the customers. 

Online stores want to minimize returns, while customers want returns to be as easy as possible. This interaction creates a classic game theory problem known as the Prisoner’s Dilemma.

What is the Prisoner’s Dilemma?

The Prisoner’s Dilemma is a classic game theory problem that involves two decision-makers who must make a decision without knowing what the other party will choose.

Each decision-maker is incentivized to choose the option that is in their own self-interest, however, if they both act in their own interests, the outcome is worse overall.

This dilemma comes into play in eCommerce when a store and a customer need to make decisions about product returns. 

The scenario is called the Prisoner’s Dilemma because it is based on a scenario in which two people are arrested for a crime.

The dilemma arises from the fact that neither prisoner knows what the other is going to do. If they both cooperate and remain silent, they can only be sentenced to one year in prison each, however, if one testifies while the other doesn’t, the one who testifies will go free and the other will get five years. If both testify against each other, they will both be sentenced to three years in prison.

If each of the prisoners pursues a strategy of maximum self-interest – that is, each testifies against the other – the collective outcome will be worse than if they corporate and both refuse to testify. You can read more about the prisoner’s dilemma here.

The relationship between an eCommerce store and a customer can be thought of in the same terms. If each party seeks only to maximize the benefit for themselves, neither will achieve an optimal outcome.

For the store, the ideal situation is to create a return policy that minimizes returns, as processing returns can be time-consuming and costly. However, customers prefer a lenient return policy that makes it easy for them to return products they are dissatisfied with.

If the store adopts a strict return policy to discourage returns, they may end up losing customers, while if the store offers a lenient return policy, the customer might take advantage of it and cost the store a lot of money.

This creates a dilemma for both parties, as their individual best strategies lead to an outcome that is less than ideal for both parties as they are unable to communicate and reach an agreement.

Game theory provides a framework for analyzing this situation and finding a solution that is optimal for both parties – the Nash Equilibrium.

What is the Nash Equilibrium?

The Nash Equilibrium is a solution concept in game theory that represents a stable state in which neither party has an incentive to change their strategy. 

In eCommerce, this means finding a return policy that balances the interests of both the store and the customers. 

The ideal return policy is one that encourages customers to make purchases without the fear of making returns while also discouraging abuse of the system by customers.

How to Use Game Theory to Improve eCommerce Returns

Game theory provides a useful framework for understanding the strategic decisions made when it comes to product returns. By applying game theory to eCommerce returns, you can optimize your store’s return policy and return process to achieve a win-win outcome for both parties. 

Ways to use game theory in eCommerce to improve the return process:

Encourage Cooperation

Encourage customer cooperation by creating a generous return policy that provides customers with an easy and hassle-free return process. 

This can include free returns, pre-paid return shipping labels, or easy product exchanges, which can increase customer satisfaction and reduce the likelihood of customers taking advantage of the returns process.

Analyze Customer Behavior

Use returns to better understand customer behavior when it comes to returns, such as the types of products that are most frequently returned and the reasons for returns. 

By analyzing return data, you can create a more targeted return policy that is tailored to your specific customer base.

Be Transparent About Returns

Make your return policy transparent and easy to understand. 

Clearly communicate the return policy, provide customers with a convenient returns process, and keep customers informed about the status of their returns.

Incentivize Positive Return Behavior

Provide incentives for customers who make return decisions that benefit both the store and the customer. 

For example, offer customers discounts or rewards if they keep the product instead of shipping it back or make returns within a specific timeframe. These incentives encourage customers to make return decisions that benefit both the store and the customer.

Finding ways to align both parties’ incentives in a mutually beneficial way can reduce return costs and increase customer loyalty.

Apply Game Theory in eCommerce Returns

Thinking about eCommerce returns from a game theory perspective, it’s clear that the best approach is to provide a return process that is beneficial to both parties.

By finding the Nash Equilibrium between customer needs and business goals, you can create a return process that is convenient and flexible for customers while also being practical and cost-effective for your store. 

Apply game theory in eCommerce to manage returns to create a more positive customer experience and improve your bottom line at the same time. 

Consider factors such as packaging materials, size, and layout, and provide clear instructions on returns and exchanges. Optimizing your packaging can save you time and money, minimize waste, and improve the efficiency of your reverse logistics. 

Why Packaging Matters for Returns

Packaging is important for returns because it helps protect the product on its way to the customer and prevents customers from receiving damaged products that they would then need to return or exchange. 

Additionally, providing reusable packaging makes it easier for customers to ship back their returned items.

If your packaging is well-designed and easy to reuse or recycle, it can help reduce waste and improve the overall customer experience.

How to Optimize Your Packaging for Returns

Packaging plays an important role in preventing damage from the elements and human error, as well as making it easier to ship and store returned items.

Below are 4 things to consider when it comes to package optimization:

1. Packaging Materials

Consider the material your packaging is made of. Opt for reusable and eco-friendly materials that are durable yet lightweight.

Use reusable packaging – Customers can more easily initiate returns if they receive a product in reusable packaging, as they can simply repackage the product and return it, rather than finding new packaging.

• Reusable plastic containers: Using reusable plastic containers for packaging can make it easier for customers to return items. Just make sure to include clear instructions for how to properly package the items for return.

• Envelopes with peel-and-seal closures: Envelopes with peel-and-seal closures are easy to use and can be used to return small items.

Using packaging materials that are easy to reuse can make it more convenient for customers to send back a return and can also help reduce waste.

Choose lightweight materials – Using lightweight packaging materials can reduce shipping costs and make it easier for customers to handle the package. For example, bubble wrap is lightweight and provides excellent protection for fragile items, and it can also be easily reused or recycled.

Consider the durability of the packaging – Packaging should be sturdy enough to protect the product during shipping, without being excessively thick or bulky. A good example of this is corrugated cardboard, which is strong and lightweight and can also be easily recycled.

Use eco-friendly packaging – Choose materials that are easy to recycle or that have a low environmental impact. Eco-friendly packaging materials, such as recycled paper and biodegradable plastics, have a lower environmental impact than traditional materials and can help reduce waste. 

71% of customers say they’re more likely to buy from stores that package their products in paper or cardboard rather than other materials because they are better for the environment and less wasteful.

It can be helpful to test out different packaging materials to see which ones work best for your products and your customers.

2. Space Efficiency

Space efficiency in packaging is important for reducing shipping costs and minimizing waste. 

One way to ensure that return packaging is space efficient is to use packaging materials that can be easily folded or collapsed. For example, using a cardboard box that can be flattened when not in use can help reduce the amount of storage space needed for return packaging.

3. Packaging Sizes

When it comes to return packaging, it’s important to use packaging that is appropriately sized for the product. 

Using packaging that is too large can create unnecessary waste and increase shipping costs, while packaging that is too small may not provide enough protection for the product during shipping.

A simple way to determine the correct packaging size is to measure the product and add a few inches for cushioning material on all sides. This can help ensure that the product is well-protected during shipment.

4. Order Consolidation  

Multiple returned items can be consolidated into one package to reduce waste and create an eco-friendly return process. By reducing the number of boxes on a truck, transportation emissions are decreased.

Consolidating returns can help streamline the return process since you’ll only have to track and handle one batch of returned items instead of multiple smaller packages.

Benefits of Package Optimization

Package optimization can help you make your reverse logistics easier, more cost-effective, and more customer-friendly. Using packaging materials and design techniques that are appropriate to your product, customer needs, and business objectives will help you optimize your packaging for returns.

More Cost-Effective

Optimizing your packaging for returns and exchanges can lead to more cost-effective shipping and packaging materials.

Shipping costs can be reduced by using lightweight packaging materials and packaging sizes that are appropriate for the returned product.

Reducing waste and packaging usage can reduce the cost of packaging and make your return process more cost-effective. 

Easier Reverse Logistics

Reverse logistics can be made easier and more efficient by optimizing packaging and reducing the number of packages that need to be handled.

Additionally, customers can initiate returns more easily if the packaging makes it easy to repackage the returned items.

By reducing the number of packages that need to be handled and making it easy to repackage returns, your reverse logistics will be more efficient and streamlined.

Less Damage

Optimize the packaging of your products to reduce the chance of the items getting damaged on their way to the customer, which in turn reduces the chance that the items will be returned.

This can be achieved by choosing packaging materials that are both sturdy and able to protect the product during shipping, as well as having enough room for cushioning.

By ensuring your items arrive undamaged to your customers, you can reduce your return rates.

Additionally, providing strong, suitable packaging that customers can use for returning their items reduces the chances of returned items getting damaged on their way back to your warehouse. 

Reducing damage to returned items will reduce the amount of time and money spent on processing returns. 

Better Return Experience

Make it convenient for customers to repackage returns to make the return process easier. Reusable containers and clear instructions on how to package returned items will help provide a better return experience.

Offering prepaid return labels can further simplify the return process for customers and make it easier to return items. By making the return process more straightforward and convenient, you can increase customer satisfaction and loyalty. 

Optimize Your Packaging for Easier Returns

Optimizing your packaging for returns and exchanges can help you save time and money, improve the return experience, and minimize waste. 

Consider packaging materials, size, efficiency, and instructions for returns to streamline the return process and make it more convenient and cost-effective both for your team and your customers.

Take the time to optimize your packaging to increase the efficiency of your reverse logistics and make it easier for customers to send back returned items. 

What is a Return Policy?

A return policy outlines the specific requirements as to how, when, and under what conditions customers can return purchased items to your online store.

Online stores typically provide return policies to their customers and outline the steps that customers need to follow in order to return a product, as well as any limitations or exclusions that may apply. 

Also included in a return policy is the timeframe within which customers can return a product, the required condition of returned products, and any restocking fees that may be charged.

Is a Return Policy a Legal Agreement?

A return policy is a legal agreement. If your eCommerce store has a return policy in place, you must adhere to the terms of the policy and cannot change it retroactively. 

Your store must comply with any relevant consumer protection laws that apply to returns and refunds, such as the right to a refund within a certain timeframe or the requirement to issue a full refund in certain circumstances.

Failure to comply with return policy laws can result in legal consequences for your store, such as fines or lawsuits.

Are Return Policies Legally Required?

Return policy laws vary by country and state and may be different depending on the location of your store and customers. Familiarize yourself with the specific laws and regulations that apply to your business and ensure that your return policy complies with these requirements.

The Legal Importance of Return Policies

Return policy laws may include the right to a refund within a specific timeframe, the requirement to issue a full refund in certain circumstances, or the obligation to clearly disclose the terms of the return policy to customers. 

Failure to comply with these laws can result in legal consequences for your store, such as fines or a lawsuit from unhappy customers.

Additionally, having a return policy can help reduce return fraud, and prevent chargebacks and other legal disputes.

Reduce Return Fraud

Return policies can help reduce return fraud in a few ways. 

1. Having a clear and well-defined return policy can help to reduce the number of fraudulent returns by setting clear expectations for customers and making it more difficult for them to make false claims.

2. You can choose to implement stricter return policies for high-risk items or customers with a history of fraudulent returns. For example, you may require a receipt or proof of purchase for certain items, or only offer store credit instead of a direct refund for these items. 

3. Using return fraud prevention software or hiring specialized loss prevention staff to detect and prevent fraudulent returns can help you prevent return fraud. These tools can analyze return patterns and identify suspicious activity, helping you reduce your store’s risk of return fraud.

Having a return policy can help to deter fraudulent returns and make it easier to identify and investigate suspicious returns.

Prevent Chargebacks

Return policies can help prevent chargebacks by reducing misunderstandings between you and your customers. 

Chargebacks occur when customers dispute a charge on their credit card statement and the credit card company reverses the charge. As chargebacks often incur fees and may require a significant amount of effort to resolve, they can be costly and time-consuming for you to handle. 

To prevent chargebacks, your store should have a clear return policy to reduce customer dissatisfaction, prevent misunderstandings, and reduce the risk of fraudulent chargebacks.

If your customers are unaware of your store’s return policy, they may initiate a chargeback if they are unhappy. By clearly outlining the terms of your return policy and being very detailed in your conditions and requirements, you can help prevent misunderstandings and reduce the risk of chargebacks.

Where to Find Your Country’s Return Policy Laws

There are a few ways you can find information on the return policy laws that apply to your store:

Consult with a Legal Professional

A lawyer or attorney in your country will be able to provide you with information on the relevant laws and regulations regarding returns and refunds.

Search Online

You can often find information on your country’s return laws by doing a search online. Government websites, such as those of consumer protection agencies, can provide information on these laws.

Check with Relevant Industry Associations

Industry associations, such as trade organizations or professional associations, are likely to have information on the laws and regulations that apply to your store.

Contact Relevant Regulatory Bodies

Depending on your country, there may be regulatory bodies that oversee specific industries or types of businesses. These organizations can provide guidance on the laws and regulations relevant to your business.

Examples of Return Policy Laws

Each country has its own return policy laws and regulations, so make sure you verify what laws apply to your store. 

Below are a few examples of how return policy laws work in certain countries. Please note that these are only examples; you should check your local laws for the most current information.

United States

The U.S. has no federal laws requiring a return policy. Return policy laws vary from state to state. 

A limited amount of protection is provided to customers under federal law by the Federal Trade Commission (FTC), which enforces federal consumer protection laws to prevent fraudulent, deceptive, or unfair business practices such as false advertising.

Each state has its own return policy laws and regulations. For example, in California, stores that do not accept returns within 7 days must clearly display their return policy. If this requirement is not met, customers may return products for a full refund within 30 days of the purchase.

United Kingdom

In the U.K., the Consumer Rights Act of 2015 lays out rules regarding returns, refunds, and exchanges.

UK law imposes minimum timeframes for requesting a return. Customers have 14 days to return online purchases.

Customers are entitled to a replacement or repair if the product they purchased is defective or doesn’t match the description online.

If a customer returns an item within 6 months because it is defective, you must repair or replace it, unless you can prove that it was not defective at the time of purchase. If a customer requests a repair or replacement after 6 months, you can ask them to prove the item was faulty when they purchased it.

Deliberately misleading or deceiving customers about their rights, such as stating that you don’t accept returns or refunds, is illegal.

Australia

Australia leaves the return and refund policy mostly up to the stores. There are, however, some basic consumer laws that apply in Australia.

Customers have the right to return a product if they think there’s a problem with it. The product doesn’t have to be in its original packaging, but the store can ask for proof of purchase, such as a receipt.

It is illegal to have a policy that says refunds are not permitted under any circumstances. It is also illegal to fail to take responsibility for a defective product unless it is identified as such at the time of purchase.  

As you can see, refund and return laws vary widely from country to country and from state to state, and each place approaches the topic differently, so it’s important to verify what laws and regulations apply to your eCommerce store.

Automate your returns so you don’t have to worry about it, as your return policy will be enforced automatically without you having to think about each case and decide whether it’s eligible. 

With ReturnGO, you can set up your return policy to fit your local laws. For example, you could set the return window to 30 days, and then every return request would be automatically marked as eligible or ineligible.

Make Sure Your Return Policy Complies with the Law

It’s important to have a return policy in place in order to prevent disputes and return fraud by setting clear expectations.

While return policies are not legally required in many countries, you must adhere to any relevant consumer protection laws that apply to returns and refunds. 

Familiarize yourself with the specific laws and regulations that apply to your business and ensure that your return policy complies with these requirements. To find information on the return laws that apply to your country, you can consult with a legal professional, search online, check with relevant industry associations, or look for guidance from relevant regulatory bodies.

Make sure that your return policy complies with all relevant laws and regulations as it is a legal agreement, and use a returns management system like ReturnGO to automatically implement your return policy.

What are Post-Purchase Emails?

Post-purchase emails are emails that are sent after a customer has completed their purchase. Post-purchase emails can include transactional emails (order confirmations, return request updates, etc) and marketing emails (upsells, loyalty program promotion, etc).

The purpose of post-purchase emails is to keep customers engaged and informed after checkout and to continue the customer relationship.

Why are Post-Purchase Emails Important?

Post-purchase emails are a great way to boost customer loyalty and build brand awareness, as well as to keep customers coming back and increase their lifetime value.

Increase Customer Lifetime Value

Post-purchase emails can be a powerful tool to help increase customer lifetime value (LTV) and can be used as an effective marketing tool to drive future sales. 

Maintaining customer engagement post-purchase is a great way to increase sales, and utilizing post-purchase emails to upsell and cross-sell is an effective way to maximize customer lifetime value.

Build Customer Trust and Brand Awareness

Sending branded and personalized post-purchase emails is one of the most effective ways to create a consistent brand experience throughout the customer journey. 

Create brand awareness and customer trust by providing branded post-purchase emails, so customers recognize your store’s emails immediately and know what to expect since it matches the rest of their shopping experience.

Boost Customer Loyalty and Retention

Keeping customers engaged after the purchase is a key component of customer retention. Sending post-purchase emails is an effective way to engage customers and keep them coming back.

By providing customers with engaging content and timely shipping updates, post-purchase emails can help to build an ongoing customer relationship that leads to repeat purchases and increased customer loyalty and retention. 

10 Post-Purchase Emails to Keep Customers Coming Back

Post-purchase emails can be used to build customer relationships, remind them of the value of their purchase, and encourage them to continue shopping with your business. 

From discount offers to product recommendations, there are a variety of post-purchase emails you can use to keep customers engaged. Knowing which to send and when can help ensure that your post-purchase emails are effective. 

Keep your customers engaged with these post-purchase emails.

Transactional Emails

Transactional emails such as shipping, order, and return emails are the most basic kind of post-purchase emails sent after a customer places an order. 

Post-purchase transactional emails are informative and typically contain details such as the customers’ order and product details. 

Providing timely and accurate updates about the status of customers’ orders builds trust and makes customers feel valued, helping to create a positive customer experience.

1. Order Confirmation Emails

Order confirmation emails inform customers that their order has been processed, confirm the details of the order, and lets them know what to expect next.

More than just confirming product details, order confirmation emails represent your brand and are often the first emails that your customers receive after making a purchase.

Send branded, personalized order confirmation emails to provide customers with peace of mind about their purchase and create strong and lasting customer relationships.

2. Shipping Updates Emails

Keep your customers informed by sending them email updates regarding their shipments and return shipments. Update your customers about the progress of their orders by sending shipping confirmations, delivery notifications, and tracking information.

3. Return Request Emails

Notify your customers throughout each stage of the return process, from when they request the return to the point when the refund or exchange is approved and issued. 

Keeping your customers informed about the status of their return requests in real-time by including return notification emails in your post-purchase flow will help provide a smooth return process.

ReturnGO makes it easy to customize your return emails according to your brand’s colors, voice, and style, and automate your return update emails to keep your customers informed throughout the entire return process.

4. Return Shipping Update Emails

Provide customers with real-time updates on the status of their return shipments. Let them know when their returned items are in transit, received, and processed.

Keeping your customers in the loop reduces the number of customer support queries your team has to handle.

Marketing Emails

You can use post-purchase marketing emails to increase customer retention and lifetime value, upsell and cross-sell, and establish your store as a trustworthy brand.

5. Thank You Emails

Demonstrate your appreciation for your customers by sending them a dedicated thank-you email in addition to transactional emails.

Send a separate thank-you email to promote your brand, provide more information about your products, remind them of your return policy, and reassure customers that they made the right choice by buying from your store. 

6. Educational or How-To Emails

With post-purchase educational or how-to emails, you can provide tips on how to care for, use, and assemble your store’s products.

Educating customers about how to use the products they bought can increase your repeat purchase rate and decrease the number of returns. Your how-to emails are also a great opportunity to reassure customers that they can return their purchased items if necessary.

7. Loyalty Program or Loyalty Rewards Emails

Send post-purchase loyalty rewards emails inviting customers to your loyalty rewards program if you have one, or sending them a special discount for their next purchase. 

Customer loyalty is important as loyal customers are more likely to recommend your business to others and make repeat purchases, which helps increase sales and revenue

Loyalty rewards give you the opportunity to demonstrate your appreciation for your customers. Having customers earn rewards for their purchases is a great way to capture their interest and keep them coming back.

8. Review Request Emails  

The best way to get more reviews is to ask for them. Send a clear review request email to your customers, asking them to leave a review of the products they bought.

86% of customers see reviews as an essential factor in their purchase decisions. Reviews increase conversion by helping your customers make more confident purchases, leading to an average of 65% conversion increase.

Keep your review request emails short and to the point. Include a direct call to action to leave a review, and avoid other marketing elements, links, or banners that might distract customers from writing a review.

When sending review request emails, it’s important to get the timing right – before your customers’ excitement over their new purchase has worn off, but after they’ve had time to use the products.

Combining asking for feedback with asking for a review can help you gain insights into your products, website, and return process. See how your products and customer experience can be improved by getting a sense of what your customers think and how their experience was.

The more frequently customers interact with your store, whether by purchasing, returning, or repeat purchases, the more opportunities you have to ask them for feedback and reviews, and the more loyal they are likely to become.

9. Cross-Sell or Upsell Emails

Post-purchase emails are an effective way to cross-sell or upsell to customers. 

For example, a certain amount of time after a customer has placed an order, you can suggest that it might be time to reorder, or suggest a related product or an upgraded version of the product they bought. These emails can increase sales and customer loyalty by encouraging customers to purchase more from your store.

Personalizing your cross-sell and upsell emails to each customer is key to creating a positive customer experience. Show your appreciation by sending them emails that are relevant to their interests, based on their purchase history.

10. Product Recommendation Emails

Send personalized product recommendation emails to customers after their purchase to increase customer loyalty, boost brand awareness and drive sales.

Use your customers’ purchase history and demographics to personalize their product recommendations.

5 Tips for Writing Effective Post-Purchase Emails

After customers make a purchase, keeping them engaged is key to providing an exceptional customer experience and keeping them coming back to buy again. To ensure your post-purchase emails are effective and successful, here are some practical tips to keep in mind.

1. Get Creative With Your Copy

Don’t let your emails get lost in customers’ inboxes – make them stand out by investing in good copywriting.

From your subject lines to your calls to action, your email copy should be engaging, creative, and most importantly, in line with your brand voice. 

2. Include Personalized Information

Personalizing your post-purchase emails is an effective way to boost customer retention and satisfaction.

Include the customer’s name in the subject line and body of the email, information relevant to their recent purchase, or offers tailored to the customer’s interests to create a personalized experience.

By personalizing all your post-purchase emails, you can see up to 81% increase in click rates, 133% increase in conversion rates, and 22% increase in open rates compared to only sending static, generic emails. 

3. Consider the Timing of Your Emails

Creating a positive post-purchase experience that anticipates customer needs and questions is dependent on getting the timing of the different emails right. 

Consider when to send each type of email in relation to the purchase, delivery, and other emails.

4. Segment Customers Based on Behavior

Segmenting customers based on their behavior is an effective way to send relevant post-purchase emails. 

You can segment your customers by tracking data from customer interactions to identify patterns in behaviors and preferences. By segmenting customers into different groups, you can tailor your post-purchase emails to their interests. 

Customer segmentation can help your store provide a better customer experience, increase customer loyalty, and boost sales.

5. Automate Your Post-Purchase Emails

Automating your post-purchase emails is a great way to streamline the post-purchase process and improve customer satisfaction. 

In addition to providing fast and accurate information about orders, shipment status, return requests, and more, automating your post-purchase emails will drastically reduce the amount of time spent manually managing your emails, enabling you and your team to spend more time on other tasks.

Additionally, automated emails make it easy to give customers a personalized post-purchase experience.

Create a post-purchase email flow with triggers for each email to create a positive customer experience and increase customer loyalty.

Use Post-Purchase Emails to Keep Customers Engaged

Post-purchase emails can be an effective way to engage with your customers even after checkout. 

From transactional emails updating customers on the status of their shipment or return to marketing emails thanking customers for their purchase, encouraging them to leave a review, or promoting other products, post-purchase emails can add value to customers and keep them in the loop even after they leave your site.

By continuing the customer relationship beyond the initial purchase, you can build customer loyalty and increase customer lifetime value.

Return policies help you give your customers all the information they need about the return process before they make a purchase, including how long they have to return items, what condition the items need to be in, and how they should go about requesting a return. 

Use the tips, best practices, and steps laid out in this guide to write an effective return policy that increases customer trust, reduces return fraud, and improves the customer experience.

Table of Contents

• What is a Return Policy?
• Why is it Important to Have a Return Policy?
• How to Write a Return Policy in 7 Steps
• Step 1: Prepare to Write Your Return Policy
• Step 2: Write Down Your Return Conditions
• Step 3: Draft Your Return Policy
• Step 4: Edit and Proof Your Return Policy
• Step 5: Publish Your Return Policy
• Step 6: Implement Your Return Policy
• Step 7: Review and Update Regularly
• The 7-Step Process of Writing a Return Policy
• Conclusion 

What is a Return Policy?

A return policy outlines the specific requirements as to how, when, and under what conditions customers can return purchased items to your online store.

Use your store’s return policy to explain to customers how returns, refunds, and exchanges work, including the accepted returns, refund timelines, and any restocking fees that might apply. 

Why is it Important to Have a Return Policy?

Having a return policy is important because it lets your customers know exactly how your store’s return process works, reducing misunderstandings and return fraud. Most customers are unlikely to purchase a product if the store has an unclear return policy. 

Your return policy should be simple and straightforward, so that customers will have fewer questions, resulting in a better customer experience and increased customer trust.

• Improve the Customer Experience

Having a clear return policy can help improve the customer experience by setting expectations and promoting honesty and transparency.

Giving customers a clear understanding of the return process before they place an order can help reduce confusion and frustration for customers later on, and leave them with a positive shopping experience. 

• Prevent Return Fraud

A well-defined return policy can help prevent return fraud because having clearly defined conditions makes it harder for people to commit return fraud than if conditions are vague or unclear.

Return fraud is an ongoing issue for eCommerce stores around the world. There are many forms of return fraud, ranging from unintentional fraud to organized crime.

Common forms of return fraud include:

• Wardrobing – when customers buy an item planning to use it once or twice and then return it for a refund.

• Bracketing – when customers buy multiple items with the intention of returning the ones they don’t want once they receive them.

• Empty Box Fraud – when customers claim they received an empty box or never received the package at all, and request a refund while secretly keeping the item.

• Price Arbitrage – when customers buy two similar-looking but differently-priced items and return the cheaper item as if it’s the more expensive one. 

Customers will be deterred from fraudulently returning items if there is a clear return policy because they’ll know the conditions for returning items, and that they won’t be able to get a refund for items that don’t fit those conditions.

• Build Customer Trust

Having a transparent return policy helps build customer loyalty. Customers are more likely to trust stores that are open and honest about their return process, fees, and conditions.

Communicate your return policy clearly to your customers to make sure that your customers know exactly what to expect from the return process.

Be sure to explain what types of returns you accept, what fees they are responsible for, and the expected timeline for returns. By being transparent and upfront with your return policy, you can build a customer base that trusts you and will come back and buy again.

• Reduce Customer Support Queries

Making it clear to customers what to expect from your store’s return process can reduce the number of customer support queries your team has to handle about returns.

Your return policy should answer all questions customers might have about the return process, so they won’t need to contact your customer support team.

The more customers know about the return process, the less likely they are to feel frustrated or confused later on when trying to return an item, and the fewer customer support queries your team will need to handle regarding returns, freeing them up to focus on other tasks.

How to Write a Return Policy in 7 Steps

Write a return policy for your online store following these 7 steps that will take you from defining your return conditions to formatting, editing, and publishing your return policy.

This guide will help you write a return policy that is effective, clear, and reflects your brand.

Are you ready? Let’s dive in.

Step 1 – Prepare to Write a Return Policy

Before you start writing your store’s return policy, it is important to take the time to think, plan, and decide what will be included in it.

Questions to Answer Before Writing a Return Policy

Decide on answers to some basic questions before writing your return policy. These answers will help you define your return policy and set customer expectations.

It’s important to understand what your store requires, how it handles returns, and what the return process looks like before writing a return policy.

Some of the essential questions you need to decide on answers to include:

• How long do customers have to return items?
• What condition do items need to be in?
• What types of returns do you offer?
• What steps do customers need to take to request a return?
• Do you charge any fees for returns?

Your answers to these questions will be based on considerations such as your costs, processes, item value, customer base, and brand values.

The decisions you make at this stage will be used to define your return conditions later on in the process.

What to Consider When Writing a Return Policy

When deciding on what to include in your return policy, there are several factors to keep in mind. 

Depending on your business considerations, your store may prioritize some of these over others. For example, while some stores may be more concerned with standing out from their competitors, others may be more concerned with meeting customers’ expectations. 

Review the list below and take these factors into consideration when creating a return policy for your store.

1. Competition

When writing your return policy, it’s worth taking a look at your competitors’ return policies. Your return policy should aim to create a competitive advantage and help you stand out from other eCommerce stores in your industry.

While staying competitive, it is also important to create a return policy that meets the specific needs and requirements of your store.

2. Shipping Costs 

Take into account your shipping costs when deciding whether to offer free return shipping or not.  Your return shipping costs may vary depending on the size and weight of the products. 

For example, offering free return shipping on large, bulky, or heavy items may not be worth your time since shipping can be expensive for those items.

3. Customer Expectations 

Consider customer expectations when writing your return policy. A clear and straightforward return policy will help customers feel secure in their purchases and encourage repeat business.

Create a customer-centric return policy that offers a reasonable return window, provides a range of return methods, and is easy to understand. 

By taking into account customer expectations when writing your return policy, you can provide a positive customer experience that will help drive customer satisfaction, loyalty, and trust.

4. Profit Margins 

Consider your profit margins when deciding what return fees to charge and what types of return resolutions you offer for each product or category.

Look at factors such as the impact the return rate has on your profits, and think about whether you should charge customers the cost of returns or cover them yourself.

Your return policy should help your online store stay profitable while meeting customer expectations.

5. Reverse Logistics 

When writing your return policy, take into account how your store handles reverse logistics.

Consider how you process returns, how return shipping works, and how customers are refunded, as well as your costs of processing and restocking returned items.

Take a look at how your store handles returns and see if that process can be streamlined and scaled. Consider using an automated returns management system to streamline your returns process, reduce logistics costs, and save time and energy.

6. Laws and Regulations

Many countries and states have laws regarding return policies, so make sure yours meets the requirements in your country.

Some laws address cancellations, while others are focused on making sure customers see the return policy on the store’s website.

For example, in New York, stores are legally required to advertise their return policies, and if they don’t, they must accept returns within 30 days.

Review your country or state’s return policy laws to ensure you are following them properly.

Step 2 – Write Down Your Return Conditions

Once you’ve decided on your return conditions, it is important to put them into writing. Writing everything down in one place will help you to organize and refine your return conditions, and ensure you’ve covered everything. 

Break your conditions down into different categories, such as: which items can be returned, how long customers have to return them, what documentation is required, etc. This will make it easier for you to structure your return policy. 

What Should a Return Policy Include?

When writing down your return conditions, make sure to include the following elements. This will help you make sure you’ve covered everything customers need to know to request a return.

Return Window

Specify the return window, that is, the timeframe within which customers must return their items.

The return window should be clearly defined and long enough to provide customers with enough time to try out the product, decide if they want to keep it, and initiate a return if it does not meet their needs or expectations. 

While there is no right or wrong length of time for a return window, many eCommerce stores use 30 days as a standard. However, every eCommerce store should take its own considerations into account when deciding on a return window. This can include the types of products, how often they are returned, and anything else that might affect your return window length. 

There are stores with 14-day return windows, stores with 365-day return windows, and everything in between. ReturnGO data shows that the most common return window is 30 days, and that very few stores have a return window smaller than 14 days. 

It’s important to remember that you get to define your store’s return window based on your business needs and considerations.

You may want to experiment with different return windows in order to strike a balance between establishing trust and preventing return fraud.

Whatever length of time you choose to define for your store, make sure to be clear about the definition of your return window. When does the return window begin? When an order is shipped or once it’s delivered?

For example, Zappos is an eCommerce brand that is known for its generous 365-day return policy. In spite of the higher return rates this leads to, customers end up spending more money and staying loyal to the brand since they know they can easily return anything that doesn’t fit.

Return Fees

Return fees are the costs associated with returning an item, such as return shipping costs or restocking fees.

Be clear about what types of fees your store charges and under what conditions. This will help ensure that customers understand what they are responsible for when returning an item.

For example, you may want to specify that there are no return fees if the item is returned within a certain amount of time or under a certain condition. 

Offering free returns or free return shipping can lead to increased sales and customer loyalty. On the other hand, it may also lead to an increase in return fraud and cost your store a considerable amount of money. 

86% of customers say they’re more likely to come back to an online store that offers free returns, and 75% say that free returns will make them buy more from a store over time.

When deciding whether to offer free returns, consider the associated costs. Depending on the value of the item and the size of the item, you might want to offer free returns on some items and not others.

While it can be costly for your store to cover the return shipping, handling, and restocking costs, it can pay off in the long run since happy and confident customers are more likely to buy from your store again.

Return Methods

In your return policy, define how customers can return their items.

There’s a variety of return methods you can offer, such as shipping back the products, returning them to a physical store location, or donating them.

• Ship With Any Carrier – customers ship items back with a shipping carrier of their choice. 

• Ship With Pre-Paid Label – customers ship items back using pre-paid return labels you provide.

• Return to Store Location – customers bring items to your physical store instead of shipping them back. 

• No Shipment Required – customers keep or donate the items instead of shipping them back. 

Different customers will prefer different return methods. Offering a range of options gives customers the ability to choose their preferred return method, but on the other hand, offering too many options can make it hard to choose.

By offering bonus credits or fees, you can encourage customers to choose the return methods that are most convenient and cost-effective for your store.

• Incentivize customers to choose certain return methods by giving them bonus credit for choosing a certain return method. 

For example, offering an extra 10% for returning products to your store location encourages customers to choose that return method, saving you the cost of handling return shipping and handling.

• Disincentivize customers from choosing certain return methods by charging fees for a certain return method. 

For example, charging a shipping fee for returning products with a pre-paid label can discourage customers from returning products that way, leading them to choose another method that is better for your store.

You can specify return methods in your return policy based on product, location, or customer. 

For example, if your physical store location is in California, you can define that only customers in California will be offered the option of returning their items to a store location.

Return Resolutions

Depending on your store policy, you can choose to offer refunds, exchanges, store credit, or gift cards as return resolutions. Define which option you will offer under which circumstances, as each has its benefits and downsides.

• Refund

The simplest and most common form of return resolution offered by online stores is a refund, which involves refunding your customers for returned items. Refunds are direct and straightforward and are what many people think of first when considering returns.

• Exchange

A great alternative to a refund is an exchange, where customers return their item and get a different one – either a different variant (size, color) or a completely different product. Exchanges can help retain revenue and keep customers.

• Store Credit

Store credit is a return resolution that can keep customers with your store by giving customers account-based store credit which they can use to purchase another item from your store. Store credit keeps customers loyal and retains revenue that might have been spent elsewhere.

• Gift Card

Offering a gift card as a return resolution means that customers receive a virtual gift card with the refunded amount on it, which they can use for future purchases and combine with other gift cards and discount codes. Gift cards are a great way to keep customers loyal to your store without being account-based.

Visit our blog to learn more about refund and exchange resolutions you can offer your customers and the pros and cons of each.

Special offers can incentivize and disincentivize customers to choose certain resolutions. For example, to encourage customers to ask for an exchange instead of a refund, you can offer free return shipping exclusively for exchanges.

Defining exactly what return resolutions you offer and under what conditions lets your customers know exactly what they will receive if they request a return, and what their options are.

Conditions for Accepting Returns

Set clear expectations for your customers by defining what condition items must be in to be returned. Do the products need to be undamaged? With the original tags on?

Make it clear which items are and aren’t eligible to be returned, and what conditions they must be in to be returned.

Specify if products must be returned unopened, in their original packaging, or with the tag still on, and if customers need an authorization number, a shipping address, or a receipt to request a return.

Additionally, define which items are not eligible for a return, such as clearance items, undergarments, or customized items.

Clearly defining the conditions for returning items can help reduce return fraud because people will know that if they try returning something that doesn’t meet those conditions, they won’t receive a refund.

Process for Requesting a Return

Lay out the steps customers will need to take to request a return and what the return process will look like so that customers know what to expect. 

Use a self-service return portal so that customers can easily request returns and you can process them without manually handling emails or phone calls. Within your return policy, include a link to your return portal or explain exactly how customers should request a return. 

Clearly outline all the steps customers need to follow to request a return, as well as what to expect once their return request has been approved, how long it will take for them to receive their refund or replacement item, and what they will need to do with the returned item.

Being transparent about your return process will help build trust with your customers and prevent misunderstandings.

Step 3 – Draft Your Return Policy

Once you’ve decided on and written down your return conditions, it’s time to draft your return policy and put those conditions into a format.

There are two main ways to create a return policy:

1. Use a free return policy generator to automatically generate a return policy.

2. Manually input your return policy into a template.

1. Automatically Generate a Return Policy

ReturnGO’s return policy generator takes the information you give about your return conditions and automatically generates a return policy in a suitable format. 

Automated return policies are quick and convenient, and save you time while ensuring everything has been covered with minimum effort.

The downside to using an automated return policy generator is that you don’t have much control over the layout of the return policy. If you want to customize your return policy to fit your brand style and language, you might prefer to write out your return policy yourself.

2. Write Out Your Return Policy Yourself

If you prefer to write out your return policy yourself instead of using a return policy generator, you can do so without too much difficulty.

The easiest way to write a return policy is to take a layout from a free return policy template. 

With a template as the basic structure, you can customize your return policy by adding relevant sections and adjusting font and color styles.

Make sure to include all your return conditions in a way that makes sense and is easy to understand. Format your return policy with headers and bullet points, and use a clear font that’s easy to read.

Once you’re done writing out your return policy, read through it one last time as if you were a customer, see if there are any questions left unanswered, and add any information that is missing.

Step 4 – Edit and Proof Your Return Policy

After you’ve drafted your return policy, it’s important to review it and make sure it’s clear, easy to read, and reflects your brand.

Use Easy-to-Understand Language

Write your return policy in simple language to make it easy to read. Help customers quickly and easily understand the return process. Customers should be able to look at the return policy and immediately know what to expect from the return process. 

To help customers understand the return process, don’t use confusing jargon or make it too complicated. Your return policy should be clear and concise, explaining your return process in detail without being too long-winded. 

Reflect Your Brand Values and Voice

When writing your return policy, make sure it reflects your brand values and voice. Keep your tone consistent with the rest of your brand, use the same words used on the rest of your site, and use your brand’s colors and fonts.

82% of customers want to buy from stores that share their values. Your return policy should convey your store’s values and priorities and reassure customers that they are in the right place.

For example, if your store has a focus on sustainability, make sure to reflect that in your return policy with green return shipping options or “donate the item” return resolutions.

Having a branded return policy instead of just a generic one makes customers trust your store more and keeps your messaging consistent throughout the customer experience.

Make Sure it’s Scannable

In today’s world of TikTok and Instagram, people’s attention spans are shrinking. If it takes more than a few seconds to scan and understand your return policy page, customers are likely to get discouraged and leave. 

Create a return policy that’s easy to scan. Use bolding, headers, and bullet points to break up the page and make it easy to skim.

Start with the most important information so that even if customers don’t read through the whole policy, they’ll understand the most important points.

Be Clear on the Next Steps

Make it clear what customers need to do in order to return an item. Provide a link to your return portal, and let them know what to expect during the return process.

Explain the steps customers must take to request a return, how long it will take them to receive a refund or replacement product, and what the return requirements are.

After reading your return policy, customers should know exactly what to expect from the return process, without any confusion or misunderstandings.

What to Avoid in a Return Policy

When writing a return policy, it can be easy to overcomplicate things and confuse customers. Here are some common mistakes to avoid when writing your return policy.

Don’t Be Too Technical

Make sure your return policy isn’t too technical. Write as if your customers have never returned an item before – don’t assume they know anything about returns. 

Use clear, straightforward language and break everything down into simple steps. Avoid using technical jargon or terms customers might not be familiar with.

Avoid Ambiguities

Be straightforward and transparent with your customers. Your return policy should be clear and without ambiguity.

Make customers fully aware of the terms and conditions associated with returning a product before they make a purchase. Your return policy should be straightforward with no ambiguity or confusion in what is expected of customers in order to return a product. 

Providing a clear and transparent return policy helps build customer trust and loyalty, as customers are more likely to feel confident in their purchase, knowing they can easily return items if necessary. 

Avoid Grammatical Errors

Make sure your return policy is grammatically correct, as a return policy with grammatical errors is likely to be perceived as unprofessional.

It can make your store appear less trustworthy if your return policy contains grammatical errors.

Use a grammar-checker such as Grammarly to ensure your return policy is error-free.

Make Sure There are No Formatting Inconsistencies

It is important to format your return policy consistently to make it appear professional and to make it easy for customers to understand.

Use consistent capitalization for headings and proper nouns, as well as consistent spacing and list types (bullet points, numbers, etc). You can use formatting such as bolding and italics to make words stand out, but make sure to use them consistently and in a way that makes sense.

Avoid formatting inconsistencies in your return policy as they will reflect negatively on your store.

Step 5 – Publish Your Return Policy

When your return policy is ready, publish it on your store site. Add links everywhere so customers can easily find it. Make it impossible to miss. 

Where to Display Your Return Policy

Display your return policy everywhere you interact with customers. 

Some of the places you can link to your return policy include:

• Website footer
• Website header
• Checkout page
• Emails
• Product pages

Include a link to your return policy in the footer and/or header of your website so that customers can easily find your return policy no matter what page they’re on. 

Additionally, consider including a brief summary of your return policy on each item’s product page, to make it clear what your return policy is before customers place an order.

Make sure that your return policy is clearly visible wherever you interact with customers.

By making your eCommerce return policy easily accessible, you can establish trust and transparency with your customers and ensure a smooth return process.

Step 6 – Implement Your Return Policy

Once your return policy is in place, you need to make sure that you have a system for implementing and upholding it.

An effective way to implement your store’s return policy is by using an automated returns management system such as ReturnGO.

ReturnGO automatically implements your store’s return policy using a self-service return portal, where customers are offered return methods and resolutions based on the return conditions you define in your policy.

Manually implementing a return policy can take a lot of time, effort, and manpower. By automating your returns process, you can uphold your store’s return policy conditions while freeing up your team for other tasks.

Step 7 – Review and Update Regularly

Lastly, it is important to review and update your eCommerce return policy on a regular basis.

Make sure that your return policy is up-to-date, accurately reflects your brand values, and accounts for any changes to your products or services.

By reviewing your return policy regularly, you’ll be able to keep up with changes in your store and customer behavior and ensure that your customers have a positive return experience.

The 7-Step Process of Writing a Return Policy

Before we wrap up, let’s take a moment to review the steps involved in writing a return policy:

1. Prepare to write your return policy

• Decide on answers to questions 

2. Write down your return conditions

• Make sure to include all the conditions

3. Draft your return policy

• Use a return policy generator or a template

4. Edit and proof your return policy

• Make sure it’s clear and formatted correctly

5. Publish your return policy on your site

• Clearly display your return policy anywhere customers will see it

6. Implement your return policy

• Use an automated return system to effectively implement your return policy

7. Review and update regularly

• Keep your return policy up-to-date

Set Clear Expectations With a Well-Written Return Policy

A clearly-defined return policy sets expectations with customers and shows that your business is professional and reliable.

Follow the steps laid out in this guide in order to write an effective return policy that is easy to understand and represents your store in the best way possible.

Include all the information customers need about the return process, including how long they have to return items, what condition the items need to be in, and how they should go about requesting a return.

Writing a return policy can be easier than it seems – by following a step-by-step process and thinking it through carefully, you can create a return policy that drives sales, increases customer trust, and prevents fraud.

The more confident customers are in their decision to buy a product, the less likely they’ll be to return it later on. It’s worth taking the time to create clear, scannable, detailed product descriptions to provide customers with as much information as possible before they place an order.

Why Are Product Descriptions Important for Reducing Returns?

Product descriptions are important because they give potential customers a clear idea of what a product is and what it does, reducing the likelihood of returns due to miscommunications or false expectations. 

Since your customers can’t physically touch your products before buying, your product descriptions become an important factor in whether or not they buy from your store. 81% of customers think that better product descriptions would help reduce false expectations and returns.

When customers have a clear understanding of a product and know what to expect from it, they are more likely to be satisfied with their purchase and less likely to return it.

Product descriptions are more than just a list of features; they are an opportunity to communicate values, increase engagement, and build customer trust.

What’s the Difference Between a Clear and Unclear Product Description?

Whether a product description is clear or unclear can make the difference between a customer buying the right product and buying one they later return.

A clear product description will be clear and concise and give customers a good sense of what the product is and what it can do for them. An unclear product description, on the other hand, will often be vague, hard to understand, and likely to turn potential customers away. 

To make sure your product descriptions are helping you make sales and reduce return rates, ensure they’re clearly written, benefit-focused, and give a good overview of the product. Customers should be able to see at a glance what the product is and what its benefits are.

If customers read a product description and still have questions about it, then it didn’t do its job.

What to Include in a Product Description

A product description should describe the product’s features and benefits, and answer common questions about the product.

Product descriptions should include:

• Descriptive product title to entice customers.
• Detailed paragraph that explains and tells a short story about the benefits of the product.
• Bulleted list of technical product features.
• Answers to any questions your customers may have about the product.

7 Steps to Writing a Clear Product Description

Follow these steps to write a clear product description that will help reduce returns.

1. Define Your Target Audience

The first step to writing clear and powerful product descriptions is to define your target audience – who is going to buy your product?

For example, if you sell high-end, professional computers, you probably have a different target audience from a store that sells gamer laptops or kids’ tablets. It is important to consider your customers’ intent and motivation in buying these products when you write about them.

As you write your product descriptions, keep these questions in mind:

• How did your customers arrive on your page?
• What are their interests?
• Why would they be interested in your product?
• How would they describe the product to a friend?
• What features or benefits would interest them most?

Considering these questions will help you write product descriptions that are tailored to the type of customer who will purchase the product, increasing the chance they will be satisfied and reducing the likelihood they will return it.

2. Tell a Story

Besides giving relevant product details and convincing customers of its benefits, product descriptions should pack an emotional punch and tell a story.

When writing product descriptions, it’s important to remember that emotions influence customer behavior. Therefore, your product description should be written in a way that elicits emotions. 

Lead your customers to imagine what it would be like to own and use your product. How would they feel? How would their lives be improved?

3. Focus on the Product Benefits

Features are technical information about a product, while benefits describe how the product can improve the customer’s life. While features are important, it’s not enough to just list out the product’s features – customers want to know how those features benefit them.

Explain in relatable terms what effect your product will have on the customers, how it will make them feel, and what result they will gain from using your product.

4. Make Product Descriptions Easy to Scan

Nowadays, people have short attention spans and read only a fraction of the text on a page, so it’s important to make your product descriptions scannable and clearly formatted. 

• Use bullet points to highlight the most important features and benefits.
• Make sure your product descriptions aren’t too long.
• Include plenty of white space.
• Use headers and bolding to break up the page.

Make your product descriptions easy to read by designing them in a clear, scannable format.

5. Use Photos and Videos

In addition to describing your products with words, it can be better in some cases to show than to tell. Consider incorporating product photos and videos to describe the product more clearly. 90% of customers say that product images influence their buying decisions.

Display your products using icons, images, and mixed media such as video to get across as much information as possible and reduce returns.

6. Reflect Your Brand Values and Voice

Is your brand voice casual or professional? Do you like to use tongue-in-cheek humor, or do you keep things more straight-laced?

Use a consistent tone that matches your brand to build customer trust and make your brand memorable.

The way you write about your products should also reflect the values your brand stands for. For example, if your brand has a focus on sustainability, write about how your products are eco-friendly in your product descriptions.

7. Include Sizing Charts

Customers are often hesitant to buy online because they can’t try on the products before purchasing, and each store has slightly different sizing, which can be difficult to determine from images. One of the most common reasons for returns is sizing issues. Providing accurate sizing charts/guides will ensure customers get the right size, which will lower the chance of returns.

Make the sizing charts easily accessible by displaying them clearly on your product pages, and include as many details as possible. Help customers make confident and informed purchasing decisions so that they won’t need to return their products later.

In addition to sizing charts, it is also important to include information about the fit of a specific product in its product description. For example, use descriptive words such as oversized, flowy, or stretchy when describing the product. This will give customers a better idea of what to expect when they purchase the item. 

It Pays to Have Clear Product Descriptions

Product descriptions play a huge part in conversion and in reducing returns. Invest the time and effort into writing powerful product descriptions, and you will quickly see results.

Make product descriptions easy to read, and use complementary resources like sizing charts and media to give customers a clear idea of what your products are and how they can benefit from them.

The more confident customers are in their decision to buy a product, the less likely they’ll be to return it later on. Make sure your product descriptions are clear, scannable, and detailed so customers can get as much information as possible before placing an order.

Follow these tips to keep your return rates and return costs low, and maximize your profits from the holiday season.

What’s the True Cost of Holiday Returns?

Factoring in transportation, processing, and other costs, holiday returns cost online stores anywhere from 17-66% of the price of the original item. 

Regardless of whether the returned item is in good condition, the entire return process can still be expensive due to labor, transport, and inspection costs, as well as the environmental impact of returns.

Because of the high cost of returns, it’s essential to know how to reduce your holiday return rates and properly handle product returns in order to increase your profits this holiday season.

Reverse Logistics Costs

Reverse logistics costs include shipping, labor, processing, and restocking costs. Expect reverse logistics costs to rise during the holiday season as a result of increased sales and returns.

The influx of returns can slow down distribution centers during the peak holiday season. During the holiday season, the focus is more on delivering outbound products, so accepting returns can slow down operations.

Finding ways to make shipping, warehousing, and processing returns more efficient is essential for reducing your return costs. 

Loss of Customers

If it’s a pain to return products, customers are likely to stay away from buying holiday gifts from your store in the future. In fact, 84% of customers would stop buying from an online store after a negative return experience.

Losing customers comes at a great cost to your store, as it is more expensive to acquire new customers than to retain existing ones.

The lost lifetime customer value (LTV) and the expense of winning back customers or acquiring new ones add up to a significant cost in both revenue and reputation.

Damaged Reputation

Returns can have a negative impact on your store’s reputation if not handled properly. If someone receives a holiday gift and can’t easily return it, they are unlikely to recommend your store to their friends and family.

Each customer you lose can have a ripple effect, costing you further business down the line, as negative reviews can prevent future customers from completing their purchases.

If your reputation is damaged, you could lose potential customers and referrals, which can have a long-term negative impact on your business.

Environmental Cost

While nearly half of customers and gift recipients will return unwanted gifts in the weeks after the holidays, what many holiday shoppers may not know is that shipping back returned products contributes to carbon emissions, and each year, billions of pounds of returned products end up in landfills. Returns have a huge environmental cost unless handled wisely.

Online returns typically result in more emissions and waste than returns made to brick-and-mortar stores, due to the extended transportation process required. 

When customers return items bought online, they often have to ship them back to the retailer or drop them off at a designated location, after which the product is shipped to a warehouse and then very often to a landfill. 

Tips to Reduce Your Holiday Return Costs

This holiday season, reduce your holiday return costs by following these tips.

Offer “Just Keep It” Returns

Give customers the option of keeping items instead of shipping them back with a returnless return. By eliminating the shipping, processing, handling, and restocking of returned products, your store can save on reverse logistics costs and reduce the environmental impact of returns.

The “just keep it” option is great for products you can’t resell and is based on customers’ purchase history, the value of the products, and the cost of processing the returned products.

It often makes sense to let customers keep lower-priced items as processing the return of these items often isn’t worth it. Products that are difficult or unhygienic to repackage are also often eligible for a returnless return.

Returnless returns during the holidays are already implemented by many leading eCommerce stores such as Amazon, Walmart, and Target.

Give the Option to Buy Online, Return In-Store (BORIS)

Providing customers with the option to return online purchases to brick-and-mortar stores can reduce transportation, labor, and processing costs. 

More than half of customers plan to do their holiday shopping online. Customers are more likely to shop online if they can return an item in-store. If they’re buying a gift, they’ll want their gift recipient to have the choice of how they can return the gift if they don’t like it.

Offer the option to buy online and return in-store to create a seamless shopping experience and increase customer satisfaction, while reducing your return handling costs. 

Reduce Return Rates

Reducing your return rates minimizes the costs associated with returns. Reduce your holiday return rates by optimizing your eCommerce store to ensure customers have as much information as possible up-front and optimizing your workflows to reduce the likelihood of returns after the holidays.

• Create a Special Holiday Return Policy

It’s important to have a well-thought-out holiday return policy in place, as 44% of customers say that return policies influence what holiday gifts they purchase. 

When creating your holiday return policy, take into account that some customers may be purchasing gifts well in advance of Christmas, and a return policy with a 30-day return window may not be sufficient. 

Consider making your holiday return policy more lenient, with a 60- or 90-day return period, so gift recipients have plenty of time to return items.

Display your holiday return policy clearly on your website and make sure to highlight any special rules in place for the holidays. 

• Optimize Your Delivery Times

Every year, overwhelmed supply chains, unexpected weather events, and understaffed delivery drivers lead to millions of packages not arriving in time for Christmas. This is a problem, as no one wants to receive their Christmas gifts in January.

Reduce post-holiday returns by guaranteeing on-time delivery. Make sure you check your shipping carrier’s cut-off dates and update the holiday shipping cut-off dates on your product pages. 

•  Learn from Last Year’s Holiday Returns

To reduce post-holiday returns, collect holiday return data from past years and determine what you can learn from it. 

Look at data such as: 

• How many items were returned? 
• What were the most common reasons for returns? 
• Which items were most often returned?

With in-depth return data and customer feedback, you’ll have the information needed to implement new workflows, forms of communication, and ways to ensure product integrity. All of these can help you reduce the number of holiday returns this year.

Automate Returns Management

An automated returns management system like ReturnGO can reduce your holiday return costs by automating the return process from start to finish. This saves you time and money by reducing the need for manual processing, and improves customer satisfaction by providing an efficient returns process. 

Automating your return process during high-volume seasons like the holidays can free up your team to focus on other tasks such as fulfillment and customer service inquiries, which often peak during the holiday shopping season.

Reduce return rates, encourage repeat business, bring down costs, and improve your store’s reputation by automating your returns process.

Optimize Your Reverse Logistics

Reverse logistics during the holiday season can be tough for even large, well-established eCommerce stores because with returns come increased shipping costs, disruptions in warehouse operations, and questions about what to do with returned products.

Having efficient reverse logistics processes in place before the holiday return rush is essential for reducing return costs and environmental damage.

A great way to optimize your reverse logistics processes is by using a third-party logistics provider (3PL). 3PLs handle inventory management, return shipping, and returned product processing, which can save you time and money compared to managing these tasks yourself or using multiple different providers.

Using a 3PL for reverse logistics is becoming an increasingly popular choice for eCommerce stores – 40% of retailers use a 3PL to handle returns.

Integrating your 3PL with your returns management system gives you a complete and efficient solution for handling the reverse logistics process during the busy holiday season.

Reduce Your Return Costs This Holiday Season

Make sure your store is ready for the holiday return rush. Provide cost-effective return methods and optimize your returns process to reduce the costs of holiday returns, maximize your profits, and start off the New Year ahead of the game.

What are Return Notification Emails? 

Return email notifications are automated emails that your customers get throughout the returns process, updating them on the status of their return requests.

Different actions trigger different email notifications. Email notifications that customers receive will depend on various actions taken by the store, customer, or automation rules during the returns process.

Notify your customers throughout each stage of the return process, from when they request the return to the point when the refund or exchange is approved and issued. ReturnGO makes it easy to customize your store’s return email notifications to match your brand colors, voice, and style.

Why are Return Notification Emails Important?

Return notification emails are an important part of the return process as they help to keep customers updated and informed, reducing customer support queries and improving the customer experience.

Customizing Return Notification Emails

When customizing ReturnGO return email notifications, the general structure of email notifications is maintained, while the subject and the middle section of the email body can be customized to fit your needs. 

ReturnGO automatically inserts your store and customer information into your notification emails, while all other texts can be edited manually.

You can customize the logo, colors, and text of return notification emails to make them match the rest of your eCommerce store’s brand style. This helps create a seamless brand experience for your customers and helps them instantly recognize emails with updates about their return status as coming from your store.

What Types of Return Notification Emails Are There?

During the return process, different types of return notification emails are sent to address the various stages of the return process, including notifications about the status of the customer’s return request, return shipment, and resolution.

Return Request Notifications

Once a customer has initiated a return request in your return portal, they receive an email updating them on the status of their request. 

Depending on your return automation rules, these emails may be sent automatically once they submit a return request, or once you have manually approved or rejected the request.

Pending Approval 

If a customer requests to return an item that requires manual approval, they will automatically receive an email notification letting them know that you have received the return request and will update them once it has been reviewed.

Request Approved 

Customers receive an email when their return request has been approved. This email includes instructions for what to do with the returned items, whether shipping them back or returning them in-store. If necessary, a pre-paid return shipping label will be included.

Request Rejected

When a return request is rejected for not fitting the return policy rules, customers receive an email letting them know that it has been rejected and why.

Return Shipment Notifications

Once a customer’s return request has been approved, they receive email notifications updating them on the status of their return shipment.

Shipment In-Transit

If the shipping carrier used offers live tracking, customers will receive an email once the return shipping label has been scanned and the shipment is in transit. This email usually includes a link to the shipment tracking page. 

Shipment Received

When you mark the return shipment as Received, the customer receives an email letting them know that their shipment has been received.

Return Resolution Notifications

Customers receive email notifications with the details of their return resolution, such as refund, store credit, or open invoice.

Refund to Payment Method 

When customers select the option of receiving a refund to the original payment method used at checkout, they get an email confirming that they have received the refund. This email comes directly from Shopify and includes the refunded amount and order summary.

Store Credit

When customers select the option of receiving store credit, they get an email confirming that they have received the store credit. This email includes the store credit amount, discount code, and redemption instructions.

Gift Card

When customers select the option of receiving a refund as a gift card, they receive an email that includes the gift card amount, which triggers Shopify to send a separate email with the gift card information and the next steps to take – whether that’s shipping, keeping, or donating the items.

Order Canceled 

When customers request to cancel an order, they receive an email confirming the cancellation request, followed by a separate email from Shopify confirming that the order has been canceled.

Invoice for Exchange Price Difference

When customers request a product exchange that has a price difference (exchanging one product for a more expensive one), they receive an email from Shopify with an invoice for the amount to be settled and a link to pay the remaining balance.

Tips for Setting Up Return Email Notifications

Set up effective return email notifications by following these tips.

Personalized eCommerce Emails Get Opened More

Personalization is essential to email marketing because customers want to be seen as individuals, and 71% of customers expect businesses to provide personalized interactions.

Sending personalized emails can:

• Help you stand out in your customer’s inbox.
• Make your emails more likely to be opened and clicked on.
• Improve the customer experience.
• Build customer trust and loyalty.

When sending return notification emails, always use the customer’s name and make sure the content is personalized, relevant, and has a clear purpose. You can make each email more personal by including direct links to the customer’s account page, wishlist, or recent orders.

Personalized emails can lead to an 81% increase in click rates, a 133% increase in conversion rates, and a 22% increase in open rates compared to only sending static, generic emails. 

Consistency is Key

Email notifications are important for conveying a consistent brand experience across every customer touchpoint.

By keeping your branding consistent, you create a seamless customer experience that boosts customer trust and loyalty. In addition, branded email notifications help you stay top-of-mind with your customers, keeping them engaged with your store.

Use Return Notification Emails to Keep Customers Updated

Including return notification eCommerce emails as part of your return process is a great way to keep your customers updated on the status of their return requests in real-time to provide a smooth return flow. 

Use ReturnGO to send effective return notification emails and show customers that your eCommerce store is dedicated to providing a positive customer experience.

Customer Expectations in Returns

The explosion of fast-fashion eCommerce with effective return services has increased customer expectations when it comes to online returns.

In recent years, businesses such as Amazon, ASOS, and Zappos have set an exceptionally high standard when it comes to choice, delivery times, and easy returns.

Customers want a quick, easy, and flexible return process. 92% of customers say they’ll buy again if the return process is easy, which is why it’s important to optimize your returns in order to improve customer loyalty and retention.

How to Measure eCommerce Customer Loyalty and Retention

Loyal customers are one of the most valuable assets your eCommerce store can have. The average amount spent per purchase by loyal customers is 67% higher than by new customers.

Keep your customers coming back to your business by focusing on their post-purchase experience. Retaining existing customers is much more cost-effective than looking for new ones.

What is Customer Loyalty?

Customer loyalty is what prompts people to buy over and over again from the same store, even when cheaper or more up-to-date alternatives are available.

Each time customers make a repeat purchase, they are more likely to feel confident that your business will deliver what it promises, leading to increased customer loyalty and increased lifetime value (LTV).

How do you measure customer loyalty? Loyalty is, after all, an emotion, a sense of belonging.

While customer loyalty isn’t directly measurable, tracking your customer retention rate is a good indicator of customer loyalty.

What is Customer Retention Rate?

Customer retention rate is the percentage of customers who continue to do business with your store after a specific timeframe (month, year, etc). Tracking this metric can help you understand what keeps customers loyal to your store, and identify opportunities to improve your customer experience.

To calculate your customer retention rate, subtract the number of new customers you acquired within the timeframe from the total number of customers you have at the end of the timeframe. Divide that number by the number of customers you started the timeframe with, and multiply by 100 to get the percentage.

Keeping track of your customer retention rate is a good place to start when it comes to measuring your customer loyalty and improving it.   

How to Optimize Your Returns to Improve Customer Loyalty

The ideal return experience keeps customers coming back to your store over and over again instead of looking for new stores to buy from. 

According to the Pareto principle, 20% of repeat customers generate up to 80% of your profits. This is why optimizing your returns process is essential for improving customer loyalty and increasing LTV.

Here are some ways you can improve your returns to boost customer loyalty.

Create a Return Policy That’s Easy to Understand

Make sure your store has a clearly-defined return policy so that customers know exactly what to expect before buying from you.

Your eCommerce return policy can have a big impact on customers’ purchasing decisions. 61% of customers check the return policy before buying, and customers are less likely to click ‘buy’ if they aren’t sure they’ll be able to return the items.

In your return policy, define clearly what you will and won’t accept as a return. How long do customers have to return items? Do customers have to pay for return shipping? What kind of return resolutions do you offer (refunds, exchanges, store credit, etc)?

Make sure your return policy is clearly displayed on your website and is easy to understand, with no confusing jargon. An easy-to-understand return policy builds customer loyalty by ensuring customers know what to expect before making a purchase.

Provide Flexible Returns Options

Providing easy and flexible return options will help improve customer loyalty and ensure that customers will buy from you again.

Complicated return methods can be frustrating for customers, so making the returns process as hassle-free as possible is important.

Keep in mind that not everyone has easy access to packing materials or a printer to print out shipping labels, so you may want to send customers pre-printed return labels with their order or partner with a third-party location for non-packaged items to be dropped off.

Different customers will want to return their items in different ways, so give your customers a choice of return methods. Most customers ship back their returned items, while a smaller percentage prefer to drop them off at a physical location, such as a drop-off point or brick-and-mortar store.

Offering flexible return options to your customers will increase customer loyalty and retention by making it easy for them to return items. Customers will be more likely to choose to buy from you regularly if they know they can easily return items if necessary.

Process Returns Quickly

Processing returns quickly will make your customers trust you more, increasing the likelihood that they will buy from you again in the future.

52% of customers say they would spend more if they knew they would receive a refund quickly. This plays out with customers spending an average of 23% more when offered faster refunds.

If the returns process is too long and complicated, customers may give up and keep the unwanted items, and simply not buy from your store again. 

Communicate clearly to your customers that they will receive a refund quickly – efficient handling of returns will improve customer loyalty.

Encourage Exchanges Over Refunds

By enabling customers to exchange their purchased products, you can keep the money they have already spent with your store while providing them with the product they need. This benefits your customers without impacting your profits. 

Incentivize your customers to ask for an exchange. Some ways to incentivize customers to request an exchange instead of a refund include offering coupons, discounts, or free shipping exclusively on exchanges.

Make exchanges easy for your customers to keep them coming back to your store instead of getting a refund and taking their business elsewhere. A hassle-free exchange process can turn a potential customer loss into a lifelong loyal customer.

Automate Your Returns

The most effective thing you can do to improve your returns experience and build eCommerce customer loyalty and retention is to use an automated returns management system like ReturnGO.

Automating your returns speeds up the returns process and enables you to resolve return requests in no time. 

Using a self-service return portal and a powerful setup of automation rules, eligibility conditions, and seamless integrations, you can process returns efficiently, accurately, and securely. 

Having an automated returns process makes it easier for customers to return products, making them more likely to buy again.

Improve Customer Loyalty Through Returns

Use the returns process as an opportunity to improve customer loyalty. Encourage customers to stay loyal to your store by making it easy to return products. 

Make returns easy by providing a flexible, fast, automated returns experience that will make your customers stay loyal to your eCommerce store, make repeat purchases, and recommend your store to family and friends.

ReturnGO makes it easy to offer returnless refunds which can increase customer loyalty while reducing your shipping, handling, and restocking costs associated with returns.

What is a Returnless Refund?

A returnless refund is a type of product return where the customer isn’t required to return the item in order to get a refund/replacement. This type of return is typically offered when the item is damaged, bulky, or not worth the price and hassle of handling the returned item. 

Letting customers keep or donate the item instead of shipping it back is beneficial for both customers and for your eCommerce store. Customers benefit from not having to spend time and energy returning items, while you benefit from not having to handle processing, validating, and restocking returned items.

Using ReturnGO, you can set up returnless refunds by adjusting your return policy to match your store’s requirements, then displaying the option to “keep the item” or “donate the item” in the return portal when customers meet the conditions.

Why are Returnless Refunds Important in eCommerce?

Offering returnless refunds is a great way to provide customers with convenience while cutting down on your return handling costs and minimizing the environmental impact associated with returns.

Increased Customer Loyalty

Returnless refunds are convenient for customers as they can receive a refund without having to wait for their return to be processed before receiving the refund. By making the refund process easier, customers are more likely to shop again with your store in the future. 

Reduced Costs

Offering returnless refunds with no shipment required can be a cost-effective solution for your store, as they reduce costs associated with return shipping and processing, especially in the case of products that can’t be resold.

Better for the Environment 

Letting customers keep items instead of shipping them back reduces wasteful packaging, transportation emissions, and energy usage associated with traditional returns.

Many of the leading eCommerce stores offer returnless refunds, including Amazon, Target, and Walmart. The popularity of returnless refunds is growing as online stores look to reduce costs associated with returns and increase customer satisfaction.

Disadvantages of Offering Returnless Refunds

The main disadvantage of offering returnless refunds is that you run the risk of customers taking advantage of your return policy and committing return fraud.

Mitigate the risk of return fraud by setting conditional rules for offering returnless refunds depending on the value of the item and shipping cost, and requiring photo proof for damaged products.

Setting Up Returnless Refunds

ReturnGO makes it easy to set up returnless refunds for your eCommerce store. You can customize your returnless refund settings for different products, categories, or customers, and update your return policy to reflect your eligibility conditions.

Inform customers of your returnless refund policy before purchase so that they know what to expect. Having a clear understanding of the requirements for a returnless refund, such as if the item is defective or below a certain price, will enable customers to make informed purchasing decisions.

Set up automated emails to be sent to customers when their returnless refund is approved, confirming their refund, store credit, or exchange, and letting them know what to do with the item (e.g. keep it, donate it).

When Should You Offer Returnless Refunds?

In most cases, you will want to receive returned items back so that you can restock and resell them. However, in some situations such as low-value or damaged products, returnless refunds may be the more cost-effective option to offer.

Low-Value Products

In the case of low-value products, it is often more cost-effective to have the customer keep the item rather than deal with the shipping and processing costs.

Bulky Products

For items that are particularly large or bulky, such as furniture, appliances, and mattresses, it may be more practical to have customers keep them with no shipment required, as bulky items can be difficult to package and costly to ship.

Damaged Products

If customers receive damaged or defective products, it’s often better to have customers keep the damaged items and just send them a replacement or refund, instead of having them ship back products that can’t be resold and may not be worth fixing.

Products with Hygiene Issues

Due to the potential hygiene concerns associated with products such as underwear and cosmetics, it can be a good idea to let your customers keep such items instead of shipping them back.

Single-Use Products

Single-use products are not often resellable and therefore it may make more sense for you to have customers just keep them.

Seasonal Products

Since it can be difficult to resell seasonal products off-season, you may not want to have them shipped back to you.

The requirements for returnless refunds will vary from store to store, so it’s up to you to decide when it’s worth having customers ship back their returned items and when it’s worth having them keep the items, while you provide a refund or replacement.

What Types of Returnless Refunds are There?

ReturnGO enables you to offer a few different types of returnless refunds, which you can set up to match your store’s return policy.

Keep the Item

The simplest type of returnless refund is having customers just keep the item and do whatever they want with it, while you send them a refund or replacement.

“Keep the Item” is the most hassle-free return method as it does not require the customers to do anything with the original items.

Donate the Item

ReturnGO offers the unique option of asking your customers to donate their unwanted items to a charity instead of shipping them back to your store.

By donating their “returned” items, customers get a sense of satisfaction from being able to contribute to a good cause, while helping to reduce waste and minimize the environmental impact of returns.

Returnless Exchange

Offering returnless exchanges is a great way to keep customers satisfied while retaining revenue for your store. You can have customers keep the original item while you send them a replacement – either a functioning version of the original item or a different item altogether.

Customers are more likely to buy from you again if you offer an exchange rather than a refund, as exchanges encourage repeat purchases and keep customers loyal to your store.

Use Returnless Refunds to Save Time and Money

By offering returnless refunds, you can minimize the time and costs associated with returns while keeping your customers satisfied. 

In the case of defective, bulky, or low-value items, it often isn’t worth dealing with the returned items, especially when you’re not able to resell them – and that’s where returnless refunds come in.

ReturnGO enables you to use returnless refunds strategically, which are often more cost-effective and eco-friendly than traditional returns.

In order to keep customers coming back, provide a simple and straightforward Christmas holiday return process. A positive return experience will improve customer loyalty, repeat business, and may lead to after-season purchases.

Make your post-holiday return process as smooth and painless as possible by planning ahead.

7 Tips for Preparing for the Holiday Returns Rush

In 2021, US holiday eCommerce sales grew 10.4% year over year (YoY) to $204.20 billion. Increased sales lead to increased returns. The more returns your business receives, the more efficient your return process will have to be to keep up with the spike in returns.

Here are a few things you can do to prepare for the holiday return rush:

1. Take Proactive Steps to Manage Holiday Returns

Take proactive steps to manage holiday returns to avoid being overwhelmed by the increased volume of returns after the holidays.

Here are a few proactive steps you can take to manage your Christmas returns more efficiently:

• Have a clear return policy in place. 

Make sure your customers know what your policy is before they make a purchase.

• Make it easy for customers to return items. 

Provide a pre-paid shipping label or offer free return shipping.

• Process returns quickly. 

Create a system for processing returns quickly and efficiently. 

• Improve your customer experience. 

Take the time to understand why customers are returning items and make changes accordingly.

By taking these steps well in advance of the holidays, you can minimize the impact of holiday returns and avoid last-minute stress.

2. Create an Effective Holiday Return Policy

It’s important to have a well-thought-out holiday return policy in place, as 44% of customers say that return policies influence what holiday gifts they purchase. 

By being upfront and honest with your customers about your policy, you can avoid any confusion or frustration down the line, ensuring that customers are satisfied with their purchase and that your business runs smoothly.

Here are a few tips to create an effective holiday return policy:

• Keep it clear and concise.

Use clear and concise language when writing your holiday return policy to make it easy to understand.

• Set realistic expectations.

Promise only what you can deliver, and be generous with your return policy to keep customers coming back.

• Be flexible.

Make your holiday return policy flexible to allow for gift returns. 

Make sure your customers can easily find your holiday return policy by prominently displaying it on your store website. Make sure to highlight any special policy rules for the holidays.

Create a clearly-defined return policy to keep things running smoothly during the holiday season.

3. Provide an Easy Gift Returns Process

When it comes to gift returns, the process should be easy and effortless for both the gift giver and the recipient. No one likes the hassle of returning a gift, so make it as easy as possible for everyone involved.

All too often, people are stuck with gifts that they do not want or cannot use. The global gift market is expected to reach around $68.5 billion by 2024, and eCommerce holiday return rates are about twice as high as the rest of the year. 

Gift returns are an anticipated part of the holiday season, which is why it is so important to have an easy gift return process in place.

By making the gift return process easy and convenient, you will take the hassle out of gift-giving and make it a more enjoyable experience for everyone involved.

4. Offer an Extended Return Window for the Holidays

‘Tis the season of giving, and what better way to show your customers that you care than by offering them an extended return window for purchases made during the holiday season?

When creating a holiday return policy, be sure to take into account the fact that some customers may be purchasing gifts well in advance of Christmas. A return policy that allows for a 30-day return window may not be sufficient. 

Instead, create a more lenient holiday return policy for the holidays, with a 60- or 90-day return window. This will give gift recipients plenty of time to return items.

For example, Amazon’s holiday return deadline is January 31 for orders shipped between October 11 and December 25, providing plenty of time for gift recipients to issue gift returns.

An extended holiday return window shows that you are confident in the quality of your products, and also gives your customers the peace of mind that comes with knowing their gift recipients can return an item if it’s not quite what they were looking for.

5. Provide a Self-Service Returns Process

This holiday season, simplify your return process by offering self-service returns. Provide a self-service return portal so that customers can easily request a return, explain why they’re returning the item, and receive a refund or exchange – all without having to contact customer support.

Self-service returns enable customers to initiate and track their own returns, which reduces the amount of time and resources required to process returns, and makes the customers feel in control of the process.

If you have a return process that’s easy to navigate, customers are much more likely to exchange items rather than ask for refunds. 

The holiday return season can be a busy time for your customer support team, with an exceptionally large amount of return requests coming in. Handling each return request manually can lead to delays in processing returns, and a poor return experience for customers.

A self-service return portal makes the returns process as easy as possible both for you and your customers, and takes a load off your team, freeing them up to focus on other tasks.

6. Encourage Exchanges Over Refunds

Encourage customers to exchange products instead of asking for refunds. 

An easy exchange process is key for keeping customers happy and encouraging them to shop with you again in the future. By making it simple and easy for customers to swap out their purchased items for something else, you’ll build their trust and loyalty. 

Exchanges also present a great opportunity to increase order value by upselling or cross-selling. By making it easy to exchange items, you can keep your customers happy and reduce the number of refunds you have to process.

Providing coupons, discounts, or free shipping on exchanges can help you incentivize customers to request exchanges instead of refunds.

Easy exchanges promote brand loyalty by ensuring the right product reaches customers, resulting in repeat purchases and increased customer lifetime value.

7. Automate Your Returns Process

An automated returns solution like ReturnGO can help your store streamline the return process and improve the customer experience. 

By eliminating lengthy, manual return processes during the holidays, you can turn returns from a point of friction into a positive experience that boosts customer satisfaction.

An automated return solution enables customers to request returns or exchanges without needing to speak to customer support. Automatically encourage exchanges, enforce your return policy, and approve or reject returns as needed. This makes it easy to keep track of returns and make sure that your policy is being followed.

An automated returns management system like ReturnGO is the perfect solution for managing your returns. ReturnGO is designed to integrate seamlessly with all the other tools your business uses, such as helpdesks, 3PLs, and ERPs. 

Automating your returns process makes managing your returns a breeze, freeing you up to focus on other aspects of your business.

• Manage all your return requests in one place.
• Sync your Shopify store to automatically update inventory levels whenever a return is made.
• Enable customers to choose between exchanges, store credit, and refunds.
• Track return trends using in-depth analytics.

When it comes to managing your Christmas returns, automating your returns process is a must. By automating your returns in time for the holidays, you can free up valuable time and resources and keep your business running smoothly.

Streamline Your Holiday Returns

Plan ahead and streamline your eCommerce return process to make handling Christmas holiday returns easy.

A few simple steps like updating your return policy and automating your return process can make a real difference in the efficiency of your Christmas returns.

While returns may be inevitable during the holiday season, by planning ahead you can make the return process less stressful for you and your customers.

What are Return Eligibility Rules? 

Return eligibility rules are the sections of your eCommerce return policy that define the conditions under which items are eligible to be returned.

You define your eligibility rules as part of your return policy, and then the return portal shows customers the relevant resolutions based on how the customer and order information relates to the eligibility rules you defined.

Return eligibility rules are made up of three elements: Result – Condition – Logic

Result – Whether the return request will be eligible or not

Condition – Properties to be checked

Logic – Connects multiple conditions (and/or)

ReturnGO offers one of the most flexible return policy settings on the market, with over 25 different types of return eligibility rules you can define, in any combination.

Why Are Return Eligibility Rules Important?

Return eligibility rules are important so that you only receive return requests that are eligible and so that customers can see what’s eligible and what’s not, without any miscommunications or complications. 

When you have return eligibility rules set up in your return policy, you can be confident that your returns process flows the way you want it to, based on your store’s requirements.

Several important aspects of your eCommerce return policy are defined in its eligibility rules:

• How long customers have to return items
• Which items are eligible
• How many times an item can be exchanged
• And much more

For example, you can define return eligibility conditions for different return windows, categories of items, or return reasons.

Setting Up Return Eligibility Rules

Define return eligibility rules based on a wide range of criteria ranging from order creation date to payment type, customer location, item price, and more.

When setting up your return policy, you can define return eligibility rules to determine when each return policy rule applies. You can define any number of combinations of eligibility conditions to create a comprehensive return policy that fits your needs.

For example, if you want customers to be able to return items only if they live in California, purchased the items less than 30 days ago for less than $100, and returned them with the return reason “Does not fit” – the return eligibility rules are where you can define all of that. 

You can set up any combination of return eligibility rules, to automate even the most complex return policies. 

What Types of Eligibility Rules Can You Set Up?

There are 4 types of return eligibility rules you can define, each based on different criteria.

Order-Level 

Order-level eligibility rules are conditions the order must meet in order for the return request to be eligible.

Return eligibility rules that apply to the order help you limit which orders are eligible to be returned.

For example, you can have an eligibility rule that states that orders that have been created within 30 days are eligible to be returned, and that orders that were paid for using store credit are not eligible to be returned.

Customer-Level 

Customer-level eligibility rules are conditions customers must meet in order for their return request to be eligible.

Eligibility rules based on customer information let you limit return requests by customer; you may want to offer different return methods for customers depending on their location, or offer different types of refunds depending on customer tags.

For example, you can have an eligibility rule that states that customers are only eligible to return items if they have created less than 3 return requests in the past. Limiting the number of times customers return items can be useful for preventing return fraud.

Item-Level 

Item-level eligibility rules are conditions that items must meet in order to be eligible for return.

You may want specific items to be ineligible for return due to hygiene reasons, or you might want to allow returns only for items under a certain price. Item eligibility rules let you limit which items are eligible to be returned.

A unique feature that ReturnGO has is the ability to limit the number of times an item can be returned – for instance, you can decide that an item cannot be returned if it has previously been exchanged, or only exchanged once, etc.

RMA-Level 

RMA-level eligibility rules are conditions that return requests, otherwise known as RMAs (Return Merchandise Authorizations) must meet in order to be eligible for return.

For example, you can limit the number of items that are being returned at once, or define that items over a certain weight are ineligible. This helps you control which items are returned.

Use Eligibility Rules to Define Your Returns Process

Well-defined return eligibility rules are what makes your return policy effective. Every store has different needs and different conditions that must be met in order for a return request to be eligible. 

Using the many combinations of return eligibility rules you can create, you can automate even the most complex return policies.

Whether you want to allow returns only for damaged items, or you want to give your customers a longer return window, ReturnGO enables you to build your own combination of eligibility rules to fit your store’s requirements.

1 in every 3 customers returns what they buy on Black Friday, with around 30 million unwanted products being sent back each year. For eCommerce stores, this sudden spike in returns can be a major logistical and business challenge.

Use these tips to manage your eCommerce Black Friday returns more efficiently and minimize the impact on your bottom line.

How to Manage eCommerce Returns after Black Friday and Cyber Monday

What can you do to manage all of your eCommerce Black Friday returns efficiently and without too much stress? Here are a few tips:

Analyze Sales Data

Analyzing your sales data from Black Friday and Cyber Monday can help you better manage your product returns.

Black Friday and Cyber Monday sales data helps you understand which products are most in demand and which get returned most frequently. By tracking this data, you can determine which products are most popular and identify any trends. This information can help you plan your inventory and marketing to maximize future sales.

Looking over your sales data can provide important insights into your customers’ needs and wants. This, in turn, can help you improve your products and services. 

Stay ahead of the competition and keep your business thriving by analyzing your customers and sales patterns.

Automate Your Returns

The best way to manage the influx of returns that comes after eCommerce Black Friday and Cyber Monday is to automate your returns process. This will help you to keep track of returns and ensure that they are processed quickly and efficiently.

Automate your returns by implementing a returns management system that will automate the return process from start to finish.

Integrate your returns system with your chosen shipping providers to ship and exchange products; this can save you time and money and help you easily keep track of your return shipments. 

By automating your eCommerce returns, you can speed up the return process and make it more efficient, which saves you time and money and helps keep your customers happy.

Offer Self-Service Returns

Offering self-service returns with a branded return portal is a great way to streamline your returns process and provide a great customer experience. By enabling customers to initiate their own returns and track their progress, you can reduce the burden on your customer service team and improve customer satisfaction.

Self-service returns also have the added benefit of reducing return processing time, as customers can enter all the necessary information themselves and you can set up automation rules to speed up the process even more. This can be a huge time-saver, especially during peak return seasons such as after Black Friday and Cyber Monday.

If you’re not already offering self-service returns, now is a great time to start. Your customers will appreciate the convenience and you’ll be able to free up your team to focus on other tasks.

Follow Up With Customers

While it can be easy to get caught up in the post-holiday sales frenzy, it’s important to remember to follow up with your customers after they’ve made a purchase. 

Sending a “thank you” email is a great way to show your appreciation for your customers’ business. While it may not result directly in another sale, it can make customers think positively about your brand – which could lead to new sales in the future.

You can also use this opportunity to ask for feedback or offer a coupon for their next purchase. If you offer excellent customer service, your customers will be more likely to come back the next time they need something.

Simple, automated “thank you” emails have double the open rate of dedicated marketing emails. “Thank you” emails are about more than just thanking customers for their purchase – they’re about creating a customer experience that keeps them coming back.

Take the time to reach out to customers after they’ve done business with you to build customer relationships and ensure customer satisfaction.

Turn Refunds into Exchanges

Product exchanges are a great way to keep your customers happy and keep your return rate low. Encourage customers to request an exchange instead of a refund after Black Friday and Cyber Monday.

Offer discounts or other incentives for exchanging products to encourage customers to request an exchange instead of a refund. This can help to reduce your refund rate and improve customer satisfaction.

Exchange incentives can take many forms, such as offering a discount on the exchanged item, giving store credit that can be used for future purchases, or providing free shipping on exchanges. Whatever form the incentives take, they should be designed to make the exchange process as smooth and easy as possible for your customers.

Encourage product exchanges to show that you are committed to customer satisfaction and that you are willing to go the extra mile to make sure your customers are happy.

Look Ahead to the December Shopping Holidays

While Black Friday and Cyber Monday are some of the busiest shopping days of the year, the holiday shopping season is far from over.

As the winter holidays approach, now is the time to reflect on the successes of Black Friday and Cyber Monday and use those profits to invest in attracting even more customers in December. 

Analyze your sales data and Black Friday returns to identify what strategies worked well and replicate them to drive even more success. 
Many time-consuming tasks associated with product returns can be automated with software like ReturnGO. This holiday season, automate your returns process to free up your time and set your business up for a successful end to the year.

What are Refunds? 

A refund is when your customers get their money back for returning an item. Refunds are the simplest and most well-known type of eCommerce return.

Refunds can come in various different forms, such as store credit or refund to a payment method.

With ReturnGO, you can streamline the refund process by configuring automatic approval of refunds under certain conditions, and setting up a self-service return portal that makes it easy for customers to request a refund.

Why Are Easy Refunds Important?

Based on our 2022 data, refunds account for 60% of product returns. As the majority of product returns are in the form of refunds, it’s important to make the refund process easy for your customers and handled efficiently by your team.

Across all Shopify businesses, 65% of refunds are handled manually and the remaining 35% are managed using a return portal like ReturnGO.

ReturnGO simplifies managing product refunds and exchanges and enables you to automate many parts of the refund process, so you don’t need to take any manual steps to ensure your customers receive their refunds.

Setting Up Refunds

Configure the different types of refunds, including how they are handled and under what conditions each type is offered.

Refund resolutions are linked to your return policy, where you can specify how refunds work and when customers qualify for refunds depending on order value, customer history, number of returned items, etc.

When customers issue a refund request on the return portal, they will able to choose from the refund methods their order is eligible for.

What Types of Refunds Can You Offer?

There are 4 main types of refunds you can offer. You can set the eligibility conditions for each type of refund based on the customer, order, product, or return request details. 

Different refund types will be appropriate for different circumstances, and in certain situations, you can give customers the choice of their preferred refund method.

Refund to Payment Method 

The most direct form of refund is a refund to the payment method that was used at the time of purchase, such as credit card, Paypal, etc. While this might be most the common and straightforward type of refund, try and avoid it because it’s more costly for your store.

Store Credit

Store credit is a great way to refund a customer without losing the sale. Customers may like your brand but not the product they received, and if they don’t want to take the time to pick out a new item right now, it can be helpful to offer store credit that they can use later. 

When a refund is given as store credit, the customer can use that amount to purchase another item from your store in the future. 

While this isn’t ideal since your customers aren’t obliged to take immediate action, this is ultimately better for your store than giving refunds directly to a payment method, as your customers can use the store credit only at your store. Store credit helps you retain customers and revenue at the same time.

Refund to Bank 

A refund can be issued directly to a customer’s bank account. To do this, you’ll need the customer’s IBAN. 

When a customer purchases through an offsite transaction, outside of your Shopify store, such as cash on delivery, the only way to issue a refund may be a bank transfer.

Gift Card

Gift cards can be used as a refund that keeps customers loyal to your store. When you offer a gift card as a refund, the customer receives a gift card with the refund amount on it, which they can use for future purchases.

The advantage of gift cards is that they can be combined with other gift cards and discount codes.

Special Refund Features ReturnGO Provides

In addition to standard refunds such as refund to payment method and store credit, ReturnGO offers some special features that simplify the refund process and give you more flexibility when it comes to managing refunds and returns.

Refund of Exchange

With ReturnGO you can issue a refund for an item that was previously exchanged. 

This can be useful in cases where a customer buys an item, exchanges it for another item or variant, and then isn’t satisfied with the new item or there’s a problem with the new item. By offering a refund for the exchanged item, you can ensure a positive customer experience.

Store Credit as Rewards or Penalties

Store credit can be used to reward or penalize customers.

Reward:

You can give a bonus amount of store credit to reward or incentivize customers. 

For example, you can define that in cases where customers are returning an item due to 

it being damaged or defective, you can refund them an extra 10% store credit.

Penalty:

You can deduct penalties from the store credit refund and reduce the amount of store credit given. 

For example, you can deduct a return shipping fee from the refunded amount of store 

credit.

Instant Refund

You can set up instant refunds so that customers will receive their refunds immediately upon submitting a refund request. 

Instant refunds can be activated by integrating your ReturnGO account with an instant refund provider such as Reveni or Refundid, and then defining under what conditions customers will be eligible for an instant refund.

Use instant refunds in cases where you know that a refund is eligible and there is no need to approve it manually.

Use Refunds to Boost the Return Experience

ReturnGO makes it easy for you to manage online refunds, so you can create a seamless return experience for your customers. 

The easy-to-use platform enables you to customize refund types to meet your store’s needs, while automating and streamlining your refunds and returns.

Return automation helps take the hassle out of managing returns and exchanges while also providing a better customer experience.

Follow these simple tips to ensure that your Shopify returns and exchanges are handled smoothly and efficiently.

Why You Should Automate Your Shopify Returns & Exchanges

Although Shopify offers basic functionality for returns and exchanges, it involves a lot of manual work and isn’t very customer-friendly.

In order to deliver a better returns experience, use a returns management app that integrates with Shopify. 

By automating the returns process, you can provide a much better customer experience while reducing the amount of time and effort required to manage returns.

An automated returns management system:

1. Makes it easier to manage returns.

2. Allows for different processes for different types of items.

3. Increases the efficiency of your returns process.

4. Provides a better post-purchase customer experience.

There are always exceptions you need to be able to solve as quickly as possible, so instead of wasting time and energy on basic tasks, automate them and focus your attention where it’s needed.

Benefits of Automating Shopify Returns & Exchanges

Using a returns management app can help streamline the returns process and make your life much easier when selling on Shopify. 

Trying to keep track of returns, associated values, and customer correspondence can be daunting and time-consuming using a manual system such as an excel spreadsheet.

Here are a few benefits of automating your Shopify returns:

Offer Self-Service Returns

Set up a self-service return portal for customers to easily request a return or exchange.

Include visible links to your return portal on all your online store’s pages so they can easily request a return or exchange.

On the return portal, customers can:

• Easily find their order. 
• Initiate a return themselves instead of contacting customer support.
• Select which item they want to return and why.
• Request a refund, exchange, or store credit.

You can customize your return portal to match your brand colors, fonts, and voice, so that your customers get a consistent experience across your entire store.

Easily Track Returns Data and Analytics

Using an automated returns management system makes it easy for you to track your returns and collect data, giving you insight into your products, customers, and business operations.

Returns data you can track includes:

• Common return reasons
• Frequently returned products
• Product return and exchange rates
• And more

Analyzing customer returns behavior can help you identify which parts of the business can be improved to reduce return rates and increase customer loyalty.

Manage All Your Returns in One Place

Track and manage your return requests in one place with a returns management dashboard. 

Keep track of all your return requests at a glance and track the status of each one.

Automate return processing, so that you don’t have to approve each return manually. Set up custom return policy rules and conditions to make sure your customers only return eligible items.

Integrating your return workflow with your Shopify store allows you to manage returns and exchanges quickly and efficiently without involving your customer support team. 

5 Steps to Automate Your Shopify Return Process

The best way to streamline your business is to automate your Shopify return process. Automating your returns makes it easy for customers to return items and minimizes the impact on your business. 

Set yourself up for success by automating your return process:

1. Create a Clearly-Defined Return Policy

Create a clearly-defined return policy to ensure that customers feel comfortable making purchases knowing how they can return items if needed.

Clearly state the following in your return policy:

• Types of items that are returnable
• Return window length
• Process for returning an item
• Conditions of the return (e.g. must be in original packaging)
• Restocking fees
• Shipping costs for returned items

By taking the time to create a return policy that is clear and concise, you can give your customers the peace of mind they need to buy from your business with confidence.

2. Clearly Display the Return Policy on Your Website

Be sure to communicate your return policy clearly to customers, displaying it prominently on your website footer, header, product pages, and checkout.  

Most customers read a return policy before placing an order, making your return policy one of the most frequently visited pages on your site, so make sure it’s easy to find and understand. 

Easy access to your return policy helps ensure your customers understand what to expect and feel confident in buying from you.

3. Design a Branded Return Portal

Create a fully branded return portal to match your brand to provide a consistent brand experience for your customers and make it easy for them to return items.

By taking the time to design a branded return portal, you’re showing your customers that you care about their experience even after they’ve made a purchase.

A generic return portal can create suspicion about entering personal details, which can result in more pressure on your support team to field inquiries from confused customers. Therefore, it is important to have a branded return portal in place.

Customizing a branded return portal helps build customer loyalty and creates a seamless return experience. By using your brand colors, logo, and messaging, you strengthen your brand identity and improve customer relationships.

4. Integrate Your Shipping Carriers

Connect to the shipping carriers and logistics providers you already use to streamline the returns process and sync all your information.

By integrating with these providers, you can take advantage of their features and benefits to make the returns process simpler and more efficient. By integrating with these providers, you can ensure that your inventory, shipping, and tracking information is up-to-date and accurate.

Generate return shipping labels automatically and integrate your order data for easy returns and exchanges. Connect to your favorite tools and systems to save time and streamline your workflow.

5. Collect Customer Feedback

Collecting customer feedback is crucial for improving your products and services and increasing your NPS. Have customers submit reasons for returning items, and track your returns analytics to gain actionable insights into your returns process.

By tracking your returns data you can identify patterns and trends that can indicate products or services that have room for improvement.

Track the reasons your customers give for returning items, and request images as evidence to see what the problem was with the product they returned.

Making changes based on customer feedback is essential for staying relevant and improving. 

Shopify Returns and Exchanges Made Easy

If you’re looking to streamline your returns process, a returns management app like ReturnGO is a great option. ReturnGO integrates seamlessly with your Shopify store, making it easy to manage returns and exchanges. 

Check out ReturnGO on Shopify and start streamlining your returns now. Automate your returns to provide a smoother and more convenient experience for your customers while reducing the amount of time and effort you need to put into managing returns.

With ReturnGO, you can manage exchanges easily and more conveniently than ever before thanks to its unique exchange features such as exchanges with a price difference, multiple-item exchange, and more.

What are eCommerce Exchanges? 

ECommerce exchanges are when customers return a purchased item for another item from your online store.

An exchange can be a variant exchange (different size, color, or style of the same product) or a product exchange (different product altogether).

With ReturnGO, customers can request an exchange using a self-service return portal by selecting the item they want to exchange, the reason for the exchange, and the new product or variant they want. 

An automated email will then be sent to the customer with return shipping instructions, and a draft order will automatically be generated in Shopify, which you can then go and fulfill. 

This saves you a great deal of time by not needing to manually create a new order for every exchange.

Why Are Exchanges Important?

Exchanges are important because instead of refunding a customer, you retain the revenue that would have been lost. Exchanges also help you keep customers happy, which can result in repeat purchases and referrals.

Your return and exchange policy should make the online returns process seamless and hassle-free, and give customers a clear incentive to choose an exchange over a refund.

Keep Customers Coming Back

Exchanges are an important part of maintaining customer loyalty and retention. By ensuring that the right product reaches your customers, you create repeat customers who are more likely to make future purchases and increase their lifetime value. 

Additionally, exchanges help build customer trust and confidence in your brand, which leads to more word-of-mouth recommendations.

Retain Revenue

In contrast to refunds, in which you lose the sale and return your customers’ money, exchanges benefit both your customers and your store. You retain your revenue and your customers get the products they need.

Setting Up Exchanges

Set up your exchange resolutions and specify how variant exchanges and product exchanges work.

Define your exchange policy, including the conditions for items to be eligible for exchange and how exchanges will take place. 

Create auto-exchange automation rules to help you streamline your exchange process and enable the automatic release of an exchange when certain conditions are met.

You can set up incentives such as bonus credit or free shipping to encourage customers to request an exchange instead of a refund.

What Types of Exchanges Can You Offer?

There are two main types of eCommerce exchanges you can offer: variant exchanges and product exchanges. 

The different types of exchanges will be relevant in different circumstances. You can define different eligibility conditions and automation rules for each type of exchange.

Variant Exchange 

Variant exchange is when customers exchange a product for another variant of the same product – for example, another size or color. This can happen for a number of reasons, such as the customer finding that the variant they purchased doesn’t fit or is the wrong color.

Making it easy for customers to exchange an item for a different variant that fits better or is the right style for them shows that you care about their satisfaction.

Product Exchange

Product exchange is when customers exchange a product for another product altogether. 

For example, customers are likely to request a product exchange when an item arrives damaged or defective, or when an item isn’t what they expected. 

By offering easy product exchanges, you can keep customers loyal instead of just refunding them and possibly losing them as customers.

Special Exchange Features ReturnGO Provides

Besides standard exchange types such as variant and product exchange, ReturnGO provides special features that simplify the exchange process and give you more flexibility with how you manage exchanges.

Exchange of Exchange

Offer customers the ability to exchange an already exchanged item for another item of their choice.

For example, if a customer buys a pair of shoes in size 10, receives them, tries them on, finds them too big, and exchanges them for a smaller size, say a size 9, but then tries them on and still finds them too big – you can enable them to exchange the shoes again to ensure they get the right size.

Define how many times an item can be exchanged in your return & exchange policy.

Exchange With Price Difference

Provide customers the option to exchange an item for a cheaper or more expensive one, and automatically calculate the price difference. 

If the new item costs less, the customer will receive a refund (or store credit, or gift card, depending on your configuration) for the price difference. If the new item is more expensive, the customer will be sent an invoice to pay for the price difference.

Exchange One Item For Multiple Items

Let customers exchange one item for multiple items. 

For example, a customer can exchange a $50 item for a $30 item and a $20 item, all within the ReturnGO return portal.

Having an easy exchange process encourages customers to simply swap out their purchased items for something else instead of asking for their money back. 

Use eCommerce Exchanges to Retain Revenue

ReturnGO’s unique exchange features and easy exchange process make it easy to manage eCommerce exchanges, so you can retain revenue that would be otherwise lost on refunds.

Streamline your exchange process and make it easy for customers to exchange their items. 

Start thinking about how your eCommerce store will manage Black Friday returns as efficiently as possible.

15 Strategies to Prepare for Black Friday Returns

Here are a few strategies that you can use to prepare your eCommerce store for Black Friday returns.

1. Adjust Your Return Policy

Your return policy is the first step in the return process and it is important to set the right expectations for customers. 44% of customers say that return policies influence what holiday gifts they purchase. 

Your return policy should be clear and concise, laying out the rules and procedures for returns. 

If you plan on altering your return policy for Black Friday, make sure the changes are in place well before the Black Friday sales spike, to avoid unnecessary friction among customers.

Black Friday sales generally lead to more returns, and you can reduce these returns or turn them into exchanges by setting up a special Black Friday return policy:

• Make it clear up front which items are eligible for return and which are not. 

• Offer flexible exchange options as part of your return policy.

• Provide clear and concise instructions on how to request a return.

2. Turn Refunds into Exchanges

A hassle-free exchange process is essential to keeping your customers happy. By prioritizing exchanges over other types of returns, you can save your store time and money. 

When a customer requests a refund, you lose the sale and often the customer too. Instead, try to offer an exchange. When a customer exchanges a product for another size, color, or another product altogether, you keep the sale as well as the customer. 

Offer quick and easy product exchanges, so your customers can get the items they need as soon as possible. 

Keep your exchange process as simple as possible to minimize returns and maximize your profits.

3. Offer Incentives on Exchanges

Offering incentives on product exchanges instead of refunds is a great way to keep customers happy and encourage them to do business with you again in the future. 

Exchanges boost brand loyalty by ensuring the right product reaches your customers, resulting in repeat purchases as well as increased customer lifetime value.

Incentivize customers to request an exchange instead of a refund by offering coupons, discounts, or free shipping exclusively on exchanges.

Offering these incentives encourages customers to exchange their product instead of returning it for a refund. More exchanges mean reduced refund processing costs and more satisfied customers.

Use exchanges as a second chance to make a good first impression and build brand loyalty.

4. Extend the Return Window

Many eCommerce stores give a return window of 15-30 days. However, this length of return window can cause a problem for customers who go shopping for gifts on Black Friday in November to give away a month later at Christmas. By the time Christmas rolls around, the 30-day return window has passed and the gift recipient is stuck with a gift they may not want. 

To make your customers feel confident that they can buy gifts from your store, extend your return window during the holiday season. This way, if the gift recipient is not happy with their gift, they can return it without any hassle.

Consider offering an extended return window during the busy months. For example, Amazon’s holiday return deadline is January 31 for orders shipped between November 1 and December 31, which gives gift recipients plenty of time to return gifts.

By having a generous return window, you send a message that you are confident in your products and stand behind them. This builds customer trust and encourages them to shop with you again in the future.

5. Communicate Your Return Policy

Make sure your return policy is prominently displayed on your website and in any email correspondence with customers. If you have any changes to your return policy for Black Friday, be sure to highlight those as well. 

Use a visible button or place links in easy-to-find places, such as in your site’s footer, on the checkout page, and in emails to your customers.

The easier it is to find your return policy, the better. Display your policy in a way that’s impossible to miss.

6. Reward Loyal Customers

Black Friday is one of the best times to acquire new customers and reward loyal customers. With more people looking to shop on Black Friday, your store has the potential to reach a larger audience.

The key is to make sure new customers from Black Friday join your brand for the ride, and setting up a loyalty rewards program is a great way to do that. By offering exclusive deals and discounts to loyal customers, you’ll keep them coming back for more. 

Set up your loyalty program for success this Black Friday season:

1. Promote Your Loyalty Program

Inform or remind customers that you have a loyalty program and how it works.

2. Offer Welcome Points

Build customer loyalty and increase your customer base by offering welcome points.

3. Match Your Brand Style

Set your loyalty program colors, name, and VIP tiers to match the rest of your brand.

4. Display Your Loyalty Program

Clearly display your loyalty program on your site to increase participation.

5. Give Extra Black Friday Rewards

Offer extra reward opportunities for Black Friday – everybody loves getting a little something extra.

Use your loyalty program to reward your loyal customers and turn your one-time Black Friday customers into lifetime brand advocates.

7. Automate Your Returns

Black Friday is one of the busiest shopping days of the year, and having a streamlined, automated process for returns will save you time and money. Your team can focus on fulfilling orders and keeping your customers happy, without having to worry about the logistics of returns.

Managing the Black Friday return spike is easier with an automated returns management system such as ReturnGO. Using an automated returns system can boost customer satisfaction by making the return process faster and easier for both you and your customers, which is especially important around Black Friday. 

Automating your returns can benefit your business in many ways:

• Reducing the time it takes to process returns
• Lowering the costs of processing returns
• Increasing accuracy due to fewer manual errors
• Enhancing customer satisfaction
• Minimizing the number of customer support queries

An automated returns process can help you keep track of returns, process refunds, and keep your customers updated about the status of their returns, which is a valuable time-saver during the busy Black Friday season.

8. Secure Your Inventory Levels

Give yourself time to make purchasing and production decisions. Plan ahead of time which products you’ll promote over Black Friday so that you can stock accordingly, which will help you avoid last-minute rush and make sure you have enough inventory to meet customer demand.

Make sure to restock returned products as quickly as possible to get them back into circulation. 

ReturnGO’s inventory automation rules make it simple to update your inventory when items are returned, so you can maintain your inventory without any extra work.

9. Prepare a Black Friday Shipping and Returns Plan

In order to ensure a successful Black Friday, make sure you have a plan in place for dealing with the increased volume of shipments and returns.

Your Black Friday shipping and returns plan should include everything you need to have set up for fulfillment, shipping, returns, return shipping, and restocking. Make sure you have the right providers in place, and that everyone on your team is clear on how shipping and returns will work.

Keep in mind that there may be bottlenecks in logistics such as production or fulfillment. Make sure you plan for buffers and find alternate logistics companies and suppliers who will be available as backup. 

By having a shipping and returns plan in place, you can provide a better Black Friday shopping experience for your customers and avoid potential bottlenecks or delays.

10. Use a 3PL to Manage Fulfillment

Wouldn’t it be great if you didn’t need to spend a lot of time overseeing how your products are received, distributed, and returned?

To make your returns process easier, outsource your reverse logistics to a company that specializes in transportation, handling, and restocking. These external logistics companies are called Third-Party Logistics providers (3PLs).

When using a 3PL you can automatically generate return shipping labels, track return shipments, and make sure that returned products are processed and restocked or disposed of appropriately. This can save you time and money, and ensure that your customers will be satisfied with their return experience.

Using a 3PL is becoming an increasingly popular solution among eCommerce stores. In fact, 40% of retailers use a 3PL to handle returns.

ReturnGO integrates with various 3PLs such as Deliverr to optimize your reverse logistics process and make sure returns are handled efficiently.

By entrusting your reverse logistics to a 3PL, you can free up your focus to take care of other areas this Black Friday.

11. Track Customer Return Data

Take a look back at last year’s Black Friday return data. This will give you a good starting point for tracking returns this year. 

Look at metrics such as the total number of returns, the average return value, and the most common reasons for returns. This information will help you to set up systems and processes to track returns more effectively this year. 

By understanding the patterns of customer returns, you can make better decisions about stocking levels, product selection, and customer service.

12. Build a Black Friday eCommerce Strategy

Reducing your Black Friday return rate starts with having a good strategy in place for your eCommerce store. By planning ahead and being prepared, you can make sure everything runs smoothly when Black Friday arrives.

To maximize your Black Friday eCommerce strategy, consider the following tips:

1. Plan Ahead and Start Early 

Get a jump on the competition by starting to promote your Black Friday deals well in advance.

2. Prepare Your Website

Make sure your website is ready and can handle the increased traffic and orders on Black Friday.

3. Promote, Promote, Promote 

Use all of your marketing channels to promote your Black Friday deals.

4. Offer Discounts and Incentives 

Offer discounts and incentives to encourage people to shop from your store on Black Friday.

5. Provide Excellent Customer Service 

Ensure your customer service is up to par to provide a positive shopping experience for your customers on Black Friday.

Prepare for Black Friday by developing an effective eCommerce strategy and implementing it ahead of time.

13. Make Returns Easy

After Black Friday, there is usually a spike in returns, so it’s especially important to make it easy for customers to return items. 

92% of customers say they’ll buy again if the return process is easy. By making returning items fast and convenient, you can retain your customers and keep them coming back year after year.

How to make returns easy for customers:

1. Have a return policy that is easy to find and understand. 

2. Provide clear instructions and a streamlined return process. 

3. Extend the return window for Black Friday purchases.

By making returns easy for Black Friday shoppers, you’ll be sure to win their business – and their loyalty.

14. Send Cart Abandonment Emails

Online shopping cart abandonment rates are at a staggering 69.82% worldwide. By sending a reminder email to customers who have abandoned their shopping carts, you can boost sales and prevent returns.

Cart abandonment emails are an effective way to win back customers who may have been distracted or simply changed their minds about a purchase. By offering a discount or incentive, you can encourage customers to complete their purchases.

Sending cart abandonment emails is a great way to boost sales and prevent returns this Black Friday. Make sure your email marketing strategy is set up accordingly.

15. Use Returns as a Marketing Strategy

This Black Friday, use returns as a marketing strategy to promote your store. By offering customers a hassle-free return process, you can attract customers who might otherwise be hesitant to shop online and retain existing customers. 

Clearly display your return policy on your website and in any ads or emails you send out. Highlight any special features in your return policy for Black Friday, and make sure your return process is easy to understand and follow. 

Use returns as a way to let your customers know that you’re making it easy for them to shop with you this Black Friday.

Perfect Your Black Friday eCommerce Strategy

Black Friday can be a busy time for returns. Get ready for Black Friday by creating a plan to make the returns process as simple and painless as possible for both you and your customers.

Use these 15 strategies for managing Black Friday returns to keep your customers happy and your business running smoothly during one of the busiest shopping days of the year.

What Are Return Automation Rules?

Return automation rules automate actions within your return process based on criteria that you define. 

By automating your team’s processes and workflows, you eliminate the need to perform repetitive manual tasks. 

Return automation rules follow a Trigger > Condition > Action workflow.

Trigger: An event that triggers the activation of the automation rule.

Condition: Requirements that must be met in order for the automation rule action to 

happen.

Action: The part of the automation rule that completes a task.

Let’s take as an example an automatic refund approval process.

A return automation rule can be set up to automatically approve refunds when certain conditions are met. This automation rule might look like this:

Trigger: A customer requests to return an item and receive a refund.

Condition: The system detects that the date of purchase was less than 14 days ago.

Action: The refund request gets automatically approved and the customer receives the 

refund without your team needing to manually approve the refund request.

Return automation rules enable you to replace time-consuming manual tasks with smart, automated return processes, saving time and improving efficiency.

Why are Return Automation Rules Important?

Return automation rules are an important part of improving your returns management workflow. With return automation rules, many key steps in your return process can be automated, increasing efficiency and saving time.

Return automation helps you:

• Boosts profits
• Improves customers’ return experience
• Streamlines the returns process

Set up return automation rules such as auto-refund and auto-exchange to eliminate the need for manual data entry and make the return process more reliable, accurate, and efficient.

By automating key steps in your return process, you can free up your team to focus on other tasks.

Setting Up Return Automation Rules

ReturnGO provides great flexibility when it comes to setting up return automation rules to fit your needs. 

In order to set up your return automation rules, let’s break down how your return policy translates into conditions for the automation rules.

Your return policy has conditions such as return timeframe, location, item returned, and more. These conditions are used to activate the return automation rules you define.

For example, if your return policy defines a return timeframe of 30 days, you can have a return automation rule in which, when a customer tries to return an item within 30 days, the return request will be automatically approved. In this case, the 30-day return timeframe is the condition that enables the automation rule to be activated.

Set up your return automation rules according to the conditions you define in your return policy, and choose the timing of the automation rule in relation to the condition.

One of ReturnGO’s top features is the flexibility that you get in defining your return policy, automation rules, and other settings, enabling you to configure your returns process to your exact requirements.   

What Return Automation Rules Can You Set Up?

Here are some of the return automation rules you can set up to help streamline your returns workflow:

Auto-Refund 

The auto-refund automation rule enables you to automatically send a refund under certain conditions – for example, if an item is returned because it was damaged or defective.

Automating refunds in cases where you know they will be eligible saves you time in your workflow.

Auto-refund can be set to be initiated based on triggers: item validation, RMA approval, shipment in transit, or shipment receipt. You can configure the timing so that auto-refund is activated immediately or within a set amount of time after the trigger.

Auto-Exchange

The auto-exchange automation rule enables you to automatically release an exchange when a certain condition is met. 

For example, you can set up auto-exchange so that when an item is returned and is in transit back to your store/warehouse, the exchange is released and a new draft order is generated in your Shopify account, which you can then fulfill and dispatch to the customer.

Like with auto-refunds, auto-exchange can be initiated based on various triggers, such as once the returned items have been validated, once the RMA has been approved, or once the shipment has been received.

Configure the timing so that auto-exchange is activated immediately or within a given amount of time after the action has occurred.

Auto-Approve

The auto-approve automation rule enables you to automatically approve return requests based on criteria you define. 

For example, you can define that if a customer requests a refund in the form of store credit and this is the first time that this customer has returned this item, the request will be automatically approved. The customer will immediately receive a confirmation email with a return shipping label or instructions on how to return the item.

Auto-approve will automatically be enabled for auto-refund resolutions.

By setting up auto-approval automation rules for certain conditions, you can automate the RMA approval process, saving you the time of manually going into the RMA card and approving each return request. 

Auto-Mark as Done

The auto-mark as done automation rule enables you to automatically mark the RMA (return merchandise authorization) status as Done once all required actions are completed for each item.

Auto-mark as done applies to the entire RMA, so only once all policy rules are completed for all the items will the RMA be marked as done.

In other words, once all the steps of the return have been completed, the RMA status will automatically be marked as done.

Use Return Automation Rules to Save Time

If you’re looking to streamline your returns process, return automation rules can be a big help. By automating repetitive and time-consuming tasks, you can make your returns workflow much more efficient.

Use ReturnGO’s return automation rules to automate key parts of the returns process. Save time, minimize errors and reduce your costs.

By taking a closer look at what bracketing is and why it happens, you can start to put processes in place to reduce online return bracketing while improving the customer experience.

What is Online Bracketing?

Online bracketing is when customers order multiple versions of the same item to try at home, planning to return what they don’t want. 

Whether it’s size, style, color, or pattern, customers use bracketing to explore different options and return any items that don’t quite hit the mark. 58% of customers over-order with the intention of returning items that don’t fit or they don’t like. 

Why Does Bracketing Happen?

Bracketing happens when customers who are uncertain of their size or aren’t sure which color or pattern they prefer order a few different ones.

Other categories other than apparel are also affected by bracketing. For example, when customers aren’t sure if a rug will look good between their couch and their TV, they are likely to buy the rug, try it, and then decide. 

When shopping in a physical retail store, customers typically pick out items, try them on in the fitting room to make sure they like the look and fit, and then buy the items they want. 

Similarly, bracketing turns customers’ bedrooms into personal fitting rooms. Instead of trying on items and then purchasing them, customers buy items and then try them in their own time, returning whatever doesn’t fit or they don’t like.

What Are the Effects of Bracketing?

Bracketing affects eCommerce stores by costing money on packaging, labor, shipping, and warehouse space.

This can put a strain on your store’s resources, and it is important to manage returns efficiently in order to reduce the impact on your business.

Another reason bracketing is problematic is that it can create artificial inventory shortages. A bracketed purchase involves several variants being taken out of inventory at once, only for some to reappear later. This makes it hard to keep track of inventory and anticipate replenishment needs.

Returned items often aren’t resellable and are discarded, which leads to significant revenue loss and huge environmental damage.

The negative effects of bracketing on your resources are a good sign to take a closer look at your customer experience and see what you can do to reduce online bracketing.

How to Reduce Online Return Bracketing

In order to reduce bracketing, focus on making it easier for customers to be sure of what they want to buy before placing the order, and to exchange items they don’t want for ones that will suit them better.

Here are a few steps you can take to discourage online bracketing. 

Provide Detailed Product Pages

Make sure to include plenty of details on your product pages to ensure that customers are informed about products before making a purchase, so they can act with intention and feel confident in their decision.

Provide clearly written and accurate product descriptions, and make sure to include all the details customers might need.

Start by imagining your ideal customer. What level of humor do they appreciate? What type of language do they use? What questions do they ask?

Consider how you would speak to your customers if you were selling to them face to face. And then incorporate that language into your eCommerce site, creating a similar depth of communication.

Include sizing charts and high-quality photos and videos on your product pages to help your customers make their purchasing decision. 

A combination of high-quality product descriptions, sizing guides, and imagery will ensure your customers can be confident they are buying the right product for them.

Include User-Generated Content

User-generated content (UGC) is original, specific content created by customers such as reviews, photos, testimonials, and more.

89% of customers factor customer reviews into their buying decisions. Display user-generated content directly on your product pages to reassure customers and help them make sure they’re buying the right thing for them. Use an app like Loox to collect user-generated content and display it clearly on your product pages.

USG is an authentic source of information that customers are more likely to trust than your branded content. This is because 88% of customers trust recommendations from people they know more than from any other channel. 

Customers turn to user-generated content in the same way they’d ask their friends or family for an opinion. Think of user-generated content as modern-day word of mouth.

Track Buying Trends

As an online merchant, it can be challenging to identify a widespread bracketing problem. This is because you are only able to see a problem when a product has high sale rates as well as being returned often. 

The returns process is a great opportunity to gather data on which items are most often returned and why. 

Asking your customers for reasons for their returns can help you identify areas of friction in your online shopping experience that may be prompting bracketing.

By determining which items are bracketed most frequently, you can adjust sizing, improve product pages and look for other ways to reduce bracketing.

Offer Easy Exchanges

Make it easy for customers to exchange items. 

Save them the hassle of buying an item, trying it at home, finding out that it’s not suitable, returning it, and then making an entirely new order for the right size/color/type.

Make the exchange process more efficient so that customers can quickly and easily exchange their purchased item for one that fits their needs.

Use a returns management system to encourage customers to exchange rather than return items. Make it easy for customers to exchange their items by automatically suggesting alternative sizes when they list ‘size’ as their return reason, and other smart resolutions.

Offering a convenient exchange process is a great strategy to reduce bracketing at your online store. Improve the returns and exchange experience so that bracketing is no longer necessary, instead of punishing customers who bracket.

Less Uncertainty Means Less Bracketing

Bracketing happens when customers aren’t sure exactly what they want. Reduce the element of uncertainty by providing clear product details, photos, and customer reviews. 

Use an automated returns solution to make exchanges easier so that customers can replace items that don’t fit without a hassle.

Reducing bracketing improves the online shopping experience for all sides involved.

While there are a number of eCommerce return KPIs that are important to track, some of the most relevant ones include conversion rate, repeat purchase rate, and average order value. 

By tracking relevant KPIs, you can get a better understanding of how your online store is performing and make informed decisions to improve your profitability and customer retention.

What are eCommerce Return KPIs?

Key Performance Indicators (KPIs) are measurable metrics that help you track how your eCommerce store is performing.

Measuring eCommerce KPIs provides you with updated and relevant information about your revenue, customer behavior patterns, return trends, and more.

Tracking eCommerce KPIs relating to returns can help you make more informed decisions on how to improve your returns process.

The Importance of Tracking eCommerce Return KPIs

Tracking eCommerce return KPIs provides valuable insights into your customers’ buying behavior and the effectiveness of your returns process. 

By monitoring these metrics, you can identify patterns and trends in returns, which can help you address the root cause of returns and make improvements to your products, shipping process, and customer experience.

Your returns data can be used to optimize your returns strategy, reduce costs associated with returns, and increase customer satisfaction and loyalty. 

Monitor and analyze your eCommerce return KPIs regularly to better understand your returns process and optimize your store.

7 eCommerce Return KPIs to Track

A successful eCommerce return strategy depends on tracking the right return KPIs.

So which eCommerce return KPIs should you be tracking? And what do those metrics mean? 

1. Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is how much it costs your eCommerce store to acquire a new customer. Acquisition costs can include marketing and advertising expenses, sales commissions, and any other costs associated with attracting potential new customers.

Tracking your customer acquisition cost helps you determine whether your marketing strategies are effective and how to maximize your return on investment (ROI).

When tracking CAC as a KPI, you’ll be able to see exactly how much more expensive it is to acquire new customers than to retain existing ones, and focus your efforts accordingly.

How to Measure Customer Acquisition Cost

To calculate your customer acquisition cost, divide the amount spent on marketing and onboarding efforts by the number of new customers.

2. Conversion Rate (CR)

The conversion rate (CR) is the rate at which visitors are converting on your site. Usually, when talking about eCommerce stores, conversion means purchases.

An effective way to reduce the perceived risk of making a purchase is having a customer-friendly return policy that’s easy to find on your site. 66% of customers check a return policy before making a purchase. 

Making your return policy and return process easier and more convenient will improve your conversion rate, since visitors to your online store will feel more confident about making a purchase.

How to Measure Conversion Rate

To calculate your conversion rate, divide the number of conversions by the total number of visitors, then multiply by 100 to get the percentage.

3. Average Order Value (AOV)

Average order value (AOV) is how much customers spend per order. 

Tracking your average order value gives you a clearer view of your revenue per customer and helps you make informed business decisions such as when to offer free shipping.

Your AOV determines how much you are getting out of each customer, and as a result, out of each dollar spent on customer acquisition.

Increase your average order value by getting high spenders and frequent customers to sign up for a loyalty program and rewarding them for their loyalty, and by targeting low spenders with special offers and cross-sells.

How to Measure Average Order Value

To calculate your average order value, divide your total revenue by the number of orders.

4. Repeat Purchase Rate (RPR)

Repeat Purchase Rate is the percentage of total customers that come back for a second purchase. 

Having a customer return for a second time increases their likelihood of becoming loyal customers and buying from your store again and again.

Repeat purchase rates vary depending on the industry. For example, groceries naturally have a higher rate of repeat purchases than electronics. Additionally, the size of the eCommerce store plays a role, with larger and more diverse stores such as Amazon receiving more repeat purchases than specialized stores.

Product returns have a direct impact on your repeat purchase rate. Providing an easy and reliable returns process shows your customers what to expect if they need to make a return again in the future. Although it may seem counterintuitive, providing a hassle-free returns process makes your customers more confident to buy from you again.

How to Measure Repeat Purchase Rate

To calculate your repeat purchase rate, divide the number of repeat customers by the total number of customers, then multiply by 100 to get the percentage.

5. Return Rate

Product Return Rate is the percentage of products that are returned.

It’s no surprise that tracking your product return rate is a central KPI for returns management. By tracking your eCommerce return rate, you can measure customer satisfaction, identify the reasons customers return orders, determine order accuracy, and take corrective measures to reduce your return rate.

How to Measure Return Rate

To calculate your product return rate, divide the number of returned products by the total number of sold products, then multiply by 100 to get the percentage.

6. Shopping Cart Abandonment Rate

Shopping Cart Abandonment Rate is the percentage of customers who add items to their shopping cart but then abandon it before completing the purchase.

Your shopping cart abandonment rate is an indication of how intuitive and trustworthy your checkout process is. Tracking your cart abandonment rate can help you identify hiccups in the checkout process that might be preventing customers from finalizing their purchases.

How to Measure Shopping Cart Abandonment Rate

To calculate your shopping cart abandonment rate, divide the number of completed purchases by the number of shopping carts created, subtract that from 1 then multiply by 100 for the percentage.

7. Customer Lifetime Value (LTV)

Customer Lifetime Value (LTV) is the total value of a customer based on their overall sales. This KPI provides important insights into how customers interact with your business and if your marketing plan is working as expected.

Keeping track of your LTV helps you increase customer loyalty and retention, which is important because returning customers buy more often and spend on average 67% more than first-time customers.

Having a high customer lifetime value is a great sign of good customer retention, and boosting your customer LTV should be one of your eCommerce store’s key goals.

How to Measure Customer Lifetime Value

There are multiple definitions of LTV, from basic calculations that only look at revenue to more complex calculations that factor in gross margin and operational expenses. For the sake of simplicity, we’re calculating LTV using revenue.

To calculate a customer’s lifetime value, multiply that customer’s Average Order Value by the number of purchases they’ve made. You can calculate an overall average LTV by calculating the average order value and the average number of purchases made per customer.

Track Return KPIs with ReturnGO

Tracking the right eCommerce return KPIs can hugely improve your eCommerce returns strategy. 

Use an automated platform like ReturnGO to help you track the relevant return KPIs and streamline your returns process to maximize customer retention and sales.

Keeping an eye on these eCommerce return KPIs will help you grow your business, keep more customers, and retain more revenue.

Wardrobing makes up nearly 70% of all fraudulent returns, which cost the retail industry a total of $23.2 billion a year.

It’s time to take action to prevent your customers from taking advantage of your return policy to get away with wardrobing.

What is Wardrobing?

Wardrobing is a type of return fraud where customers “rent” items by ordering them online, using them once or twice, and returning them for a refund.

37% of shoppers admit to wardrobing apparel, shoes, or accessories. Wardrobing is essentially a fraudulent way that customers use an item temporarily at no cost. 

For example, a customer may buy an outfit for a special event, wear it with the tags hidden, then return it the next day and get their money back.

While wardrobing might seem like an innocent thing to do, it’s considered return fraud and is illegal. The problem is there aren’t any real legal consequences, and it can be difficult to tell if someone wore a piece of clothing only once.

Who Does Wardrobing and Why?

Customers may engage in wardrobing for a few different reasons:

• Trying out the item for a short period of time to determine whether or not it truly meets their needs. 
• Returning items that were only used once or twice as a means of generating fast cash in the case of a change in economic circumstances.
• Using an item for a one-time special occasion and not wanting to absorb the price of an expensive item.
• Feeling pressure to keep up with fashion trends and not wearing an outfit more than once.
• Enjoying the thrill of getting away with what might be considered a negligible crime.

When tags are attached with safety pins or knotted ribbon, it’s especially easy for customers to remove and reattach them to an item without any evidence of tampering.

Preowned items are also particularly susceptible to wardrobing because they already show existing wear and don’t have tags, so there won’t be any evidence of fraud if returned after use.

No matter the reason for wardrobing, it is illegal and there are various steps you can take to prevent eCommerce wardrobing return fraud.

3 Ways to Prevent Wardrobing

The impact of wardrobing on eCommerce merchants is growing, as online shopping is becoming more popular and customers have more flexibility. 

Returned items often aren’t in good enough condition to be resold at full price, and wardrobing adds to the cost of processing returns and of lost sales to non-wardrobing customers.

Wardrobing can be prevented in a number of ways:

1. Establish a Clear Return Policy

Create a clearly-defined eCommerce return policy with terms and requirements designed to minimize the effects of wardrobing, which is a type of return policy abuse.

For example, you can set a limited return window, define specific conditions for product returns, and offer refunds only in the form of store credit instead of a direct refund.

Although a lenient return policy may give your customers peace of mind, it can also expose you to return fraud. Keep this in mind when creating your return policy, and make sure to clearly define your conditions for accepting product returns.

2. Inspect Returned Products

Inspect returned items as soon as possible and don’t issue a refund until you are sure the item was returned legitimately and is not a subject of wardrobing.

When inspecting returned items, avoid letting the tendency to process items quickly affect the effectiveness of your inspection.

There are many ways to tell if an item has been used or worn and is return fraud. An item may be wrinkled, spotted, stained, soiled, smelly, have a broken seal or damaged tag, or put back together wrong. 

Assess the returned item and then implement the return policy accordingly. If the item looks fine and can be restocked and resold, go ahead and move forward with the refund or credit. 

If the item has clearly been used and isn’t resellable, it’s okay to stand your ground and refuse to accept the return, based on the conditions defined in your return policy, on the grounds that the item was returned as a form of wardrobing fraud.

3. Use Anti-Wardrobing Tags

Anti-wardrobing tags allow customers to try on an item while being specifically designed to be difficult to replace or hide when wearing an item. 

Using anti-wardrobing tags is effective in deterring wardrobing return fraud because they are highly visible and extremely difficult to replace once removed. Some of the most popular anti-wardrobing tags include 360 ID and Alpha Shark.

Make it clear in your return policy that the tag must not be tampered with in order for returned products to be eligible for a return.

Protect Your Store Against Wardrobing

Wardrobing has become the largest proportion of return fraud. Stay ahead of the curve by developing and implementing procedures that help you identify and prevent wardrobing, such as updating your return policy, inspecting returned items, and implementing anti-wardrobing tags.

Prevent wardrobing return fraud while delivering a positive and trustworthy customer experience by using a return portal to collect information about return reasons, request photo evidence, and set eligibility conditions.

Step up and take action to protect your eCommerce store from the harmful impact of wardrobing return fraud.

Why do customers return items? Tracking the reasons customers give when returning products makes it easy to identify the most common return reasons and determine how to prevent them.

The 7 Most Common Return Reasons

1. Item Doesn’t Fit

Product size is a key factor and major reason for returns, especially in the fashion, footwear, and clothing industry. This is the most common return reason – 70% of customers say they returned products due to size or fit issues. 

Shoes that are the wrong size or a bathing suit that doesn’t fit are of no use to customers, and returning them becomes the only option.

How to Prevent This:

Provide Sizing Charts

Including clear sizing charts or measurement instructions on your product pages is a good idea so that your customers can be sure they’re choosing the right size.

Make sure to provide:

• Multiple points of measurement
• Instructions on how to measure each point on the body
• Sizing guidance for the different brands that you carry

A great example of an eCommerce store helping their customers find the right size is Universal Standard’s ‘Find My Size’ page. 

Offer Easy Exchanges

Provide a convenient exchange process to encourage customers to swap out their misfitting items for something else instead of just asking for their money back. 

Make it easy to exchange items for a win-win situation – your customers end up with what they need, and you don’t lose the sale.

2. Item is Different Than Described

Product accuracy is important for reducing returns, because when a customer orders a product online based on the product description and receives something that doesn’t match those expectations, they’re likely to return it.

There are many ways that a product can end up being different than expected: color, pattern, size, material, durability, and more. Misguided expectations can often result from vague or confusing product descriptions.

How to Prevent This:

Write Clear Product Descriptions

Provide detailed product descriptions and high-quality product photos. Make up for your customers’ inability to physically touch the products by showing and describing textures and material, and providing views from different angles.

The goal is to show customers exactly what your products can do for them and for them to be able to visualize themselves using the products.

3. Item Arrived Damaged

Damaged items are a frequent return reason you may hear from your customers.

Products sometimes get damaged during shipping, and fragile items such as glassware, ceramics, and books are most likely to arrive damaged. Carefully packaging the products you ship out is extremely important for ensuring they will arrive safely.

If many of your products are being returned as defective, you may want to check your warehousing method because temperature, moisture, and other environmental factors may be damaging your inventory.

How to Prevent This:

Check Your Packaging

Make sure your packaging is appropriate for your products so they don’t get damaged along the way. 

Boxes should be only slightly larger than the products. Make sure they have enough space for padding to prevent the products from moving around during shipping.

If your products are fragile, such as ceramic plates or artwork, make sure they’re carefully wrapped in plenty of cushioning material.

Whether your eCommerce business fulfills and ships 10 or 10,000 packages a day, the way you package your products is a key component to getting your products into the hands of your customers undamaged.

Partner With Reputable Fulfillment Providers

Improper package handling or warehousing can result in damage to the products.

In order to minimize losses, partner with only reputable shipping and fulfillment companies, get shipping insurance, and set up a system to double-check items before shipping them out.

If you’re working with a new carrier or shipping partner, send a few test orders to make sure they deliver packages without being damaged. 

4. Item Arrived Late

Orders may get delayed due to unexpected shipping or supply problems. 45% of customers say they are unlikely to continue ordering from a company after one instance of late delivery.

How to Prevent This:

Work With a Reliable Shipping Carrier

Make sure you choose a reliable shipping carrier to take care of your shipments. Work with a shipping carrier that you can trust to get your deliveries out safely and on time.

When choosing a shipping carrier, do some test orders to make sure the carrier is consistent and reliable, and sticks to their time estimates.

Provide Constant Shipping Updates

Clear communication and transparency can help can reduce customer frustration, especially in situations where the shipping timeline is out of your control.

Send your customers real-time updates about their order, preferably with tracking numbers so they can be aware of the exact time frame in which they’ll receive their order.

Over-estimate your shipping times, so that you don’t promise something that you can’t commit to. While fast delivery is appealing to customers, knowing when to expect their delivery is far more important.

If the shipment does end up getting delayed, make sure to let your customers know. Customers want to hear the truth and know what’s going on.

Offering credit or free gifts to customers whose deliveries are late can help your store retain customers who might otherwise leave.

5. Wrong Item Was Sent

A common reason products get returned is the wrong item being received. This can often happen due to pick and pack errors during fulfillment. 

If a customer orders a set of ceramic plates and receives a set of bowls instead, they will naturally return the product, as they did not order bowls. Human error is the most common cause of these mistakes, which is more likely to occur when your fulfillment team is overworked or understaffed.

How to Prevent This:

Outsource the Fulfillment Process

One of the best ways to keep up with order fulfillment and improve its quality is by working with a Third-Party Logistics (3PL) Provider. 

Outsourcing to a 3PL can help you reduce your fulfillment errors and make sure your customers receive the right products.

Offer a Convenient Return Process

Make it easy for customers to let you know about the mistake and return the incorrect product they received.

Providing a self-service return portal makes the return process simple. By simplifying the online return process you’ll build trust and increase the likelihood of that customer buying again.

A return portal also lets you easily track return reasons and view insights into your customers’ return patterns.

6. Item is Poor Value

Returns due to poor value are one of the most challenging return reasons to address, as it can be difficult for your customers to accurately evaluate a product’s value when shopping online, and “poor value” can be very subjective.

While an occasional return due to poor value may be unavoidable, if you receive this complaint frequently it may be worth re-evaluating your pricing strategy or the language you’re using to describe your products’ value. 

How to Prevent This:

Be Transparent Up Front

Over-praising the quality of your products can lead to unfounded expectations. Be transparent about your products so your customers know exactly what to expect before purchasing. 

A good way to demonstrate the true value of your products is by including user-generated content, such as reviews, photos, and videos.

In fact, 2 out of 3 customers say they would be less likely to return a product if they had been able to read or view user-generated content before buying.

7. Customer Changed Their Mind

Customers changing their mind is a common reason for returns. Customers may receive their order and then change their mind and decide they don’t like the product or don’t need it anymore. 

Online shopping can be much more impulsive than shopping in-store. Customers are likely to order things they don’t need just because it’s so easy to buy with just a few clicks. 

For example, a last-minute earphone purchase made when ordering a laptop may be of no use if the customer receives the package and then realizes they already have a pair of earphones at home.

How to Prevent This:

Have a Clearly-Defined Return Policy

Be clear about your return policy – under what conditions you allow returns, how long customers have to decide they don’t want the products, and which products are eligible for returns.

Make it easy for your customers to find your eCommerce return policy. Display it clearly on product pages, at checkout, and in confirmation emails so that they know what to expect.

Take Action to Prevent the Most Common Return Reasons

Return reasons from misleading product descriptions to fulfillment mistakes can be prevented  when you know what the most common return reasons are and what you can do to prevent them.
Using a return portal can help you track what your store’s most common return reasons are. When you identify the most common reasons customers return items to your store, you can take action to prevent similar future returns.

Many of the products that you get returned are probably in great condition and can be resold online as “used”. Reselling returned products online is called reCommerce. 

What is reCommerce?

Reselling used products online is known as reCommerce.

More and more eCommerce retailers are reselling used products online. In fact, 50% of second-hand sales are expected to come from online resale by 2024. 

There are many leading eCommerce companies that have online reCommerce outlets. For example, Best Buy has an online outlet where it sells open-box appliances, and HP has an online outlet with refurbished computers and more.

What are the Benefits of Reselling Returned Products?

The benefits of reselling your returned products include making money on otherwise wasted inventory and increased sustainability since products are reused rather than discarded. 

Affordability

Handling returns is costly – from return shipping to returned inventory handling. Reselling those returned products saves you money and makes your eCommerce store more profitable.

With return rates at an all-time high, and many eCommerce stores offering free returns, you lose money twice on shipping for every returned item, as well as on handling costs, warehousing costs, and more.

By reselling your returned products, you can help to offset the costs associated with returns and keep your online business running smoothly.

Customers often return products because they change their minds or receive an item that doesn’t match their expectations. Rather than throwing away the products and losing money, you can resell them if they’re in good condition.

For example, if a customer orders a pair of jeans that don’t fit right, and returns them for another size, those jeans are still in great condition. The jeans could easily be resold, regaining some of the money you lost on the processing and shipping.

So is it worth reselling your returned products? Think about it this way – if you don’t resell those returned products, where will they go? 

If the answer is to the garbage dump, or to sit on your warehouse shelves for an indefinite period of time, it’s definitely worth putting them up for sale again instead of losing money on wasted products. 

Sustainability

There’s a high environmental cost to eCommerce returns. “Easily, 25% of all these returns get destroyed,” says Jason Goldberg, chief commerce strategy officer at Publicis and founder of RetailGeek.com. By reselling returned products you contribute to sustainability and reduce the environmental impact of returns.

Product returns in the US generate an estimated 27 million metric tons of carbon emissions and 9.6 billion pounds of landfill waste each year.

Reselling returned products creates a circular economy that reduces a lot of the environmental impact of returns.

Demand for the production of new products can be reduced by recycling and reusing used products. Producing fewer new products reduces raw material consumption, factory energy consumption, and landfill waste accumulation.

Fashion is a particularly important industry in this regard. It’s no secret that fast fashion causes significant damage to the environment.

Although reCommerce doesn’t completely eliminate fast fashion, it can cushion it by reselling pre-owned clothing and accessories that are in good condition, preventing them from going to landfills and making your eCommerce store more sustainable. 

How to Resell Returned Products

70% of customers say it’s easier to shop second-hand than ever before, thanks to the growth of technology and online marketplaces.

There are many ways you can resell your returned products – in bulk, on third-party reCommerce sites, to liquidation companies, and more. 

Two of the simplest strategies for reselling your returned products are directly on your site or through a third-party reCommerce service.

Add a reCommerce Section to Your Site

An easy way to resell returned products is to add a reCommerce section to your online store. 

Resell returned items at a discount through a ‘sale’ or ‘used’ category on your website. This provides easy access for customers seeking used and discounted products.

For example, Best Buy has a section of its online store dedicated to used, clearance, and refurbished products.

When listing returned products on your website, be honest about the condition of the products, and include high-quality images so that customers know exactly what they’re buying.

Another thing to consider when reselling products is what your return policy is for returned products. Some online stores don’t offer returns at all for used products, some offer a restricted return policy, and some offer the same return policy as regular products. 

When defining your used products return policy, make sure your eligibility conditions for returns are clear and that your return policy is noticeably displayed on the product page, checkout page, and in confirmation emails to your customers.

Use a Third-Party reCommerce Site

An alternative to reselling returned products yourself is using a third-party reCommerce service. If you want to resell your returned products but don’t know where to start, third-party reCommerce sites can help you streamline the process by listing your returned products on all the best resale platforms and getting you the best price.

Track and manage your reCommerce listings in one place, with full transparency and control.

The Positive Impact of reCommerce

Take a moment to think about the way your online store handles returned products and consider whether it’s worth reselling returned products. 

Reselling returned products through reCommerce is becoming a more and more popular solution for returned inventory, and the online resale market is estimated to skyrocket in value to $50 billion by 2026. 

Start reselling the products your customers return to recover costs and make your online store more sustainable.

Understanding why and how your customers return items will help you reduce returns and keep your customers happy.

Important eCommerce Return Metrics

There are a few ways to track your returns – by looking at your overall return rate or by breaking it down further to see what percentage of those returns are refunded and what percentage are exchanged.

Return Rate

Your return rate is how many products were returned relative to the total number of products sold. 

The average return rate for eCommerce has doubled in the last few years, bringing it up to 20.8%, and many eCommerce merchants are left scratching their heads about how to cope with this new situation.

View your return rate as a high-level metric, and then dig into the specific types of returns and the reasons for returns. Looking at your returns this way lets you evaluate the efficiency of your returns process and return policy.

How to Calculate Your Return Rate

To calculate your return rate, divide the number of returned products by the number of total products sold, then multiply by 100 to get the percentage.

For example, if you sold 15,000 products this year and 5000 of those products were returned, your return rate would be: 5000 / 15,000 x 100 = 33%

Return Rates by Category

Some industries are more susceptible to high return rates than others. 

For example, an apparel company may have high return rates because customers can’t try the clothes on before ordering. 

Analyzing your category’s product return rates will help you compare your business with your competitors.

How to Reduce Your Return Rate

Improve Product Descriptions

Customers can’t touch or feel online products, so your product descriptions matter. Make sure your customers know exactly what they’re ordering.

Make sure each product page includes:

• Relevant and accurate title
• Details of what makes the product unique
• List of product specifications and features
• High-quality product images and videos
• User-generated content such as reviews and images

The more information your customers have before they place their order, the less likely they are to return products.

Make Returns Easy

Customers like things to be easy. When your customers feel they can rely on your returns process, they’ll be more likely to buy from you again. 92% of customers say they will buy again if the returns process is easy.

Provide customers with a self-service online return portal where they can easily return products without dealing with back-and-forth emails or waiting for someone to get back to them. 

Create a return process that is hassle-free for your customers and cost-effective for your business. Having a good system in place for handling eCommerce returns gives you a competitive advantage, increases profitability, and reduces your return rate.

Refund Rate

Your refund rate is the percentage of refunds out of your total number of returns.

Returns and refunds are often mixed up when discussing returns management, but it’s important to understand that they represent very different things.

Just because a customer has returned a product doesn’t mean they got a refund. In many cases, customer issues can be easily resolved by exchanging their product for a different size or offering them store credit.

If customers do insist on a refund, this could indicate a much deeper issue. A defective product or a product that fails to meet their expectations could cost you a customer. That’s why it’s important to track your product refund rate as a measure of customer retention. 

How to Calculate Your Refund Rate

To calculate your refund rate, divide the number of refunded products by the number of total returned items, and then multiply by 100 to get the percentage.

For example, if you had 5000 products returned last year, and 1000 of them were refunds, your product refund rate would be: 1000 / 5000 x 100 = 20%

How to Reduce Your Refund Rate

Encourage Alternatives to Refunds

Focus on offering alternative solutions to customers who ask for a refund.

Refund alternatives you can offer include:

• Product exchanges
• Store credit
• Gift cards

By encouraging exchanges over refunds, you can reduce your refund rate, increase customer loyalty, and retain revenue that would have been lost through refunds.

Exchange Rate

Your exchange rate is the percentage of returned products that were exchanged for something else. 

More than half of Shopify returns are due to customers ordering the wrong size or style. Providing customers with the option of exchanging their product for a more suitable one leaves them with a positive customer experience and increases the chance that they’ll buy from your store again.

A hassle-free exchange process keeps your customers happy by giving them what they need and want. Prioritizing exchanges over other types of returns can save your eCommerce store a lot of time and money.

Tracking your exchange rate can help you understand how well you’re managing to convert refunds to exchanges.

How to Calculate Your Exchange Rate

To calculate your exchange rate, divide the number of exchanged products by the total number of products returned.

For example, if you had 5000 products returned last year and 3000 of them were exchanged, your exchange rate would be: 3000 / 5000 x 100 = 60%

How to Improve Your Exchange Rate

Incentivize Exchanges

Give your customers clear incentives to choose an exchange over a refund. 

Incentivize customers to request an exchange instead of a refund by offering coupons, discounts, or free shipping exclusively for exchanges.

Make Exchanges Easy

Having an easy product exchange process encourages customers to simply swap out their purchased items for something else instead of asking for their money back. 

Many of us have purchased clothing only to discover that it is the wrong size, color, or style, and wonder if it is even worth returning. Providing a convenient exchange process turns refunds into revenue and increases customer loyalty. 

Use Return Metrics to Optimize Your Returns

It’s important to take a long-term outlook of your returns, to figure out how to optimize your process. 

Track and analyze your returns metrics to understand your customers’ return patterns, determine what your customers need and want, and optimize your process to increase customer loyalty and retention.

Take a proactive approach to returns management by making the end-to-end customer experience a positive one for your customers as well as profitable for your business.

You won’t have a complete understanding of how much refunds cost your business without taking into account these hidden costs.

It’s important to remember that while returns may be difficult to avoid altogether, they don’t necessarily have to come in the form of refunds. 

What’s the Difference Between a Return and a Refund?

Before we dive into the associated costs of a refund, it’s important to understand that a return doesn’t always have to mean giving a refund and there are a few different types of returns you can offer, such as exchanges and store credit.

When a customer asks specifically for a refund, they’re signaling that they weren’t satisfied with the purchasing experience and are likely to take their money elsewhere.

Every time you give a refund, you lose a sale and often a customer, and you can’t reverse the time, effort, and money that you invested in that customer.

The Hidden Costs of an Online Refund

Refunds result in hidden costs (that are often difficult to track) that can have a significant impact on your company’s bottom line. 

Customer Acquisition Costs

When a customer refunds an order, you lose the money you spent on acquiring that customer.

With every refund, you’re losing out on the money you spent to acquire that customer, and then you have to invest the same amount again to replace them with a new customer. Acquiring a new customer can cost up to 7 times more than retaining a customer. 

Focus on keeping the customers you have, and avoid losing customers through refunds.

Shipping Costs

Many eCommerce stores offer free return shipping. This means that, with every refund, you’re absorbing the shipping costs, and you’re not retaining any revenue or preserving your relationship with your customers.

Labor Costs

There are a lot of labor costs associated with refunds, especially when handling your returns manually.

When calculating how much a refund really costs, you need to take into account administration, warehouse, and transportation labor costs.

• Customer service – handling customer requests, manually approving returns, and solving issues with payments and orders.

Reduce customer service costs by offering self-service returns through a return portal. This takes the pressure off your support team and enables you to encourage exchanges over refunds.

• Transportation – shipping carriers, damage incurred in transit, coordinating shipments with the warehouse, and tracking returned items.

Shipping costs can be reduced by doing your research on shipping carriers, comparing shipping 

costs, and constantly looking for the best price.

• Warehousing – you need to pay for the upkeep of your warehouse(s), and depending on the condition of the returned items, your team needs to return items to inventory, repair or repackage items, or dispose of them. 

You can streamline your reverse logistics by outsourcing shipping and warehousing to a 3rd Party Logistics (3PL) company that can handle your return shipping, process returned items, and track returns.

Opportunity Costs

A refund can sometimes lead to the end of a customer relationship, making you lose out on the future revenue that you could have made from those customers. 96% of customers will leave you because of bad customer service, and you don’t want your return process to be a part of that experience.

While the exact opportunity cost depends on your average customer lifetime value, there is no doubt that keeping your customers coming back and buying from your store again can lead to a huge increase in profitability.

Environmental Costs

While there are clearly huge financial costs to refunds, there is another kind of cost you’re paying: returns produce 16 million tons of carbon emissions a year. 

Many returned items are thrown out, leading to 5.8 billion pounds of landfill waste a year. Getting your products into your customers’ hands has a huge impact on the environment, and bringing them back doubles that impact.

Reducing your return rates will help reduce the amount of waste and emissions caused by returns. 

What’s the Solution to Refund Costs?

The solution to the cost of refunds is to encourage exchanges instead.

With exchanges, you have many of the same shipping and labor costs as refunds, but you don’t lose your acquisition costs, and your customers remain engaged with your store and are likely to come back and buy from you again.

Offering a replacement instead of a full refund can help you keep a positive cash flow, minimizing these hidden costs and retaining your customers. 

Fewer Refunds, More Exchanges

You may think that refunds aren’t such a big deal, when in fact, they cost you a great deal of money and energy.

It’s important to be aware of all your costs and expenses so that you can take steps to reduce them. 

Shift your focus from refunds to exchanges and store credit, which are more cost-effective than refunds, and will ultimately save you lots of time and money.

We’re now seeing return policy transparency going even further by giving customers a preview of your store’s return policy before even visiting the website.

Search Engine Land shares about Google’s new feature in product search results, which displays products’ return windows directly in the search result snippet.

Under the main search result snippet, Google now displays a short section with the number of days you have to return a product, e.g. “30-day returns”, “90-day returns”, etc.

Why is Displaying Your Return Window Important?

This new Google feature that highlights the return window reflects the growing importance of returns and of clearly displaying your return policy on your eCommerce store.

It’s important to let your customers know how long they have to return an order. The easier it is to find your return policy, the better. This new Google feature helps to put your return policy front and center.

When defining your return window in your return policy, there are a few things to consider:

An extended return window reassures customers that they have plenty of time to decide if they want to keep their order or return items that aren’t quite right for them.

On the other hand, it’s always important to find a balance. For example, L.L.Bean offers a whole year for customers to return items. Until 2018 they offered lifetime returns. Having some kind of time limit is important, even if it is a wide one.

Although 63% of customers expect a 30-day return window, each eCommerce store has its own considerations, and there is no one correct way to go about it. 

Ask yourself – which product would you click on, when shown the return window in the search results?

There are online stores with return windows ranging from 7 days to 365 days, and it’s up to you to decide what works best for your store, depending on your products and customer base. 

Once you decide on your return window, make sure to clearly display it on your site, on your checkout page, and in emails to customers. With Google’s new feature, your return information will be more easily accessible to your customers.

How Does Google’s New Feature Work?

Google has not yet officially commented on this new feature, so it is still unclear exactly how to define the return window that appears in search results.

The return window information may be pulled from the data from the Google Merchant Center as part of the Google Shopping experience card. 

Google may also be pulling this information from the website page’s structured data or from the page text itself. 

A Google representative told Search Engine Land: 

“This is an experiment that surfaces shipping and returns information on search results, bringing in signals from a variety of sources from across the web and platforms like the Merchant Center. We’re always testing new ways to improve the shopping experience for our users but don’t have anything specific to announce right now.”

The Importance of Returns

Google’s new search feature helps put returns in the front of customers’ minds before placing an order. 

Returns are the future of eCommerce, and when customers know what to expect from the return process, they will be more confident to purchase from you.

The global gift market is expected to reach around $68.5 billion by 2024. Gift returns are an expected part of the holiday season and an essential part of your store’s relationship with your customers throughout the year. 

With so many gifts being given every year, it’s essential to have a plan in place to handle gift returns.

The Gift Problem

While holiday eCommerce return rates are about twice as high as the rest of the year, customer satisfaction with those returns is lower. Not every gift is a success. Even the most thoughtful family members and friends often end up gifting something that gets sent back or simply never used.

Every holiday season, people receive gifts of clothes and accessories, but sizes are often guessed wrong and gift recipients are stuck with a shirt or pair of pants that don’t fit. When people buy gifts from a physical store, gift receipts are usually included so that they can take back what doesn’t fit and exchange it for the right size. 

More and more people are doing their holiday gift shopping online, and unfortunately, many online stores don’t offer online exchanges.

44% of customers say that return policies influence what holiday gifts they purchase. Provide an attractive solution by offering online gift exchanges and making the customer experience as easy as possible for gift recipients.

Handling Online Gift Exchanges

Put the Gift Recipient in Control

It’s hard to get sizing right when buying a gift for someone else. In fact, 52% of Shopify returns are due to sizing issues.

Unless you offer online gift exchanges, your customers are stuck either asking for a refund (which awkwardly goes back to the gift giver) or being stuck with something they can’t wear or use.

Put the gift recipient in control by enabling them to exchange their gift online, without needing to go through the gift giver or contact your support team. Offer convenient self-service exchanges, and give gift recipients the power to get an item they can actually use.

Make Sure Your Return Window is Long Enough

If a customer has to exchange gifts from a few different eCommerce stores, which do you think is going to leave them the happiest? The store that lets them seamlessly exchange gifts on their own time? Or the store that forces them to jump through hoops just to get a t-shirt in a different size? Gift exchanges are a great opportunity to make your store stand out from your competitors.

People often begin buying holiday gifts as early as October or November, and if your return window is say 30 days, by the time the gift gets to its recipient it will be too late for it to be returned. 

Consider offering an extended return window during the busy months. For example, Amazon’s holiday return deadline is January 31 for orders shipped between November 1 and December 31. This gives gift recipients plenty of time to return gifts.

On the other hand, you should also consider extending your return window year-round. Gifts aren’t just for the holidays; people give gifts throughout the year for birthdays and anniversaries as well.

Offering a generous return window shows gift recipients that you care about them getting the right product, which can lead to them becoming new customers.

Automate the Gift Exchange Process

Manually handling gift exchanges can be difficult to near-impossible, especially during the busy holiday season.

Automating your return and exchange process makes it easy for gift recipients to exchange their gifts for a different size, color, or different product altogether. 

Gift exchanges online are important, especially during the busy holiday season. Make your customer experience as smooth as possible and save yourself time and money by automating the gift exchange process.

Embrace Online Gift Exchanges

The holiday season can be a stressful time for shoppers. It’s no surprise that many gifts fall flat, given that there are so many expectations around gift-giving. 

By offering an easy gift exchange process, you reassure your customers that if their gift recipient doesn’t like the gift or it doesn’t fit, they can easily exchange it for something they’ll enjoy.

While it may seem counterintuitive that customers who want to return items would be likely to buy from you again, here’s what’s happening: providing an easy and reliable returns process shows your customers what to expect if they need to make a return again in the future. This makes your customers more confident to buy from you again.

Here are some tips for using your returns process to improve your repeat purchase rate.

What is the Repeat Purchase Rate?

Your repeat purchase rate (also referred to as repeat customer rate) is the percentage of your customers that have bought from you more than once. 

Tracking your repeat purchase rate helps you determine how to improve your customer experience and increase the likelihood of customers buying from you again.

How do you calculate your repeat purchase rate?

Divide the number of returning customers by the total number of customers, then multiply by 100 to get your percentage.

For example, say you have a total of 250 customers, of whom 36 have bought from you more than once. In this case, your repeat purchase rate would be 14.4%: 36 / 250 x 100 = 14.4.

What’s a good repeat purchase rate?

Every industry has different levels of what’s considered a “good” repeat purchase rate, depending on your products and which customer segments you’re targeting. That being said, a reasonable repeat purchase rate to aim for is 20-40%.

Repeat Customers are More Profitable

Getting your customers to come back and buy from your online store again is a key factor in long-term profitability. Loyal customers spend more and refer more people, making them way more profitable than one-time shoppers. 

When eCommerce stores focus on building customer retention, they’ll ultimately be more profitable than stores that focus only on transactional metrics such as number of site visitors, total number of shoppers, etc. 

So why exactly are repeat customers more profitable?

• Repeat customers are easier to sell to. Customers become increasingly more likely to buy from you again with each purchase they make. 
• Repeat customers spend more. They buy more frequently and spend more on each purchase. 
• Repeat customers refer more people. Word of mouth is the most effective and economical way to bring in more customers.

How to Use Returns to Boost Your Repeat Purchase Rate

Many eCommerce merchants view refunds and exchanges as costly and negative, when in fact, having your customers make returns can actually be better for your bottom line. 

A positive return experience can increase your customers’ confidence in purchasing from your store again. In short, the easier you make your online returns process, the more likely customers are to come back and buy again.

Let’s break down some key strategies for using returns to boost your repeat purchase rate.

Create a Customer-Friendly Return Policy

Your return policy is what helps customers decide whether to buy from your eCommerce store. In fact, over 60% of customers look at the return policy even before they make a purchase.

When customers read through your return policy, they are looking to see how easy it will be for them to request a return, and based on that, they’ll decide if it’s worth buying from your store.

Having a flexible, customer-friendly policy makes customers more likely to ask for returns, leading to more repeat customers.

Make it Easy to Return Items

Your customers want a fast and reliable returns experience. 92% of customers say they’ll buy from the same store again if returns are easy. 

Help your customers help themselves. The less they have to jump through hoops to initiate a return, the better.

With the right technology in place, you can automate many parts of the returns process. Using an automated returns system you can provide a self-service return portal where customers can easily request to make a return, saving time and energy and making returns easy.

A returns management system also helps you track and manage all your return requests in one place, decreasing the likelihood of return requests getting lost or forgotten along the way.

Automating your eCommerce returns helps you reduce the amount of time your team spends processing returns and increase the number of customers who will buy from you again.

Incentivize Exchanges Over Refunds

Exchanges are by far the best type of return option for customer retention. Exchanges keep the customer relationship going.

When customers choose an exchange over a refund, your store retains revenue, and you also build customer loyalty by putting the right product in the customers’ hands.

Ways to incentivize exchanges over refunds:

• Offer free return shipping for exchanges
• Extend the exchange return window
• Add bonus credit for exchanges
• Make exchanges easy

Prioritize turning as many of your refunds into exchanges as possible. You’ll keep your customers happy, retain revenue, and build customer loyalty. 

Increase Your Repeat Purchase Rate With Returns

Increasing your eCommerce store’s profitability starts with keeping the customers you already have. Repeat customers spend more at your store, and bring in new customers – making them a powerful tool. 

Streamlining your return and exchange process keeps customers coming back and buying from you again and again.

The more you know about your repeat purchase rate and strategies for increasing it, the faster your store can grow organically. Implement these strategies and watch your customers come back for more.

With a small Shopify store, you might only be dealing with a couple of returns a month, so handling them via email doesn’t seem like too big of a deal. When you run a bigger store it can be difficult to change the existing processes, even when what started off as a few emails back and forth starts adding up to hours of work a week.

No matter the size of your store, it’s all about setting up the right foundation to help your business as you grow. Small things like handling returns by email can add up in the long run.

Here are 5 reasons why you may not want to continue handling returns through email.

5 Reasons Not to Manage Returns by Email

1. Long Process

Extensive back-and-forths with customers take up a lot of time and energy for both sides. Customers expect to receive a refund quickly, and the longer the returns process takes, the less likely a customer is to buy from you again. 

Automating the process using a returns portal enables your customer to easily select the item they have a problem with, what the issue is, and what solution they want. They can instantly receive store credit or exchange the item for a different size or color.

This saves you time and energy and provides your customer with a quick, convenient, and seamless returns process.

2. Lack of Defined Eligibility Rules

Take into consideration that customers might not know which products can be returned or exchanged, and what the solutions may be. You then have to analyze each return request individually, decide what to do with it, and let your customer know what solutions are available. This turns into a long and complicated process. 

With a returns portal, the customer knows under what conditions the product can be returned, for what it could be exchanged, and what to expect during the returns process. This prevents misunderstandings and enables the whole process to flow smoothly.

3. Reduced Customer Satisfaction

Your customers are likely to get frustrated by the long and complicated email chain, by feeling misinterpreted, or not knowing what to expect next. 

Customers want a fast and easy returns process. As soon as the process becomes complicated or requires too much effort from them, customers may not feel it’s worth their time and might choose to buy from a seller who offers a more convenient returns process. 

It’s not worth losing customers over a refund or exchange.

4. Miscommunications

Emails can easily be misinterpreted or miss details. Requesting images as proof, understanding the customer’s request, and clearly communicating your solution all become complicated when sent over email. It’s also difficult to keep customers updated throughout the shipping process. 

Customers may get frustrated if they are unsure how the return process works, when to expect a refund or replacement, or what information is required from them.

5. Hard to Track

It’s difficult to monitor and keep track of multiple return requests at different stages for different customers. Without having them all laid out in one place, it’s easy to forget or overlook customer requests. 

Automating the process with a returns management system helps you keep track of all your return requests in one place, reducing the likelihood of customers feeling neglected or forgotten.

Conclusion:

While it is possible to handle return requests via email, especially when you’re only dealing with a few returns a month, you really shouldn’t have to keep track of everything yourself and manually analyze every return request. 

Ideally, the returns process should be smooth and convenient both for you and for your customers. It’s not worth losing customers over a long and complicated returns process. Save yourself time and energy by automating your returns process with our return management system. 

Make it easy for your customers to request an exchange, credit, or refund through a branded returns portal. Keep track of your return requests on your personalized dashboard, and sit back as your customers receive automated email updates and solutions.

60% of product returns are due to size or style issues, which can easily be solved by offering to exchange the product for the correct size or color. In other cases, a simple refund might be appropriate.

Understanding why customers return items and what types of return solutions you can offer can help you keep your customers happy and retain revenue. 

Whether it’s simply refunding your customers their money or offering a product exchange, you can keep your customers satisfied by fitting the right type of return to each situation.

What are the 4 Main Types of eCommerce Returns?

Returns are an inevitable part of eCommerce, and it’s important to be familiar with the different types of returns in order to optimize the customer experience and retain revenue as much as possible. 

There are various types of eCommerce returns, such as refunds and exchanges, and each serves a different purpose. 

It’s important to offer the relevant return solution for each situation, as this can have a significant impact on customer satisfaction and retention. 

By understanding the different types of returns, and offering the relevant one for each situation, you can improve the overall customer experience and encourage repeat business, leading to a more successful and profitable business in the long term.

1. Refund

Refunds are the simplest and most well-known type of eCommerce return. A refund is when your customers get their money back for returning an item. 

You can offer full or partial refunds and decide whether to charge a return shipping fee or not. 

Your customers’ return experience depends largely on them receiving their money back quickly and easily. 77% of customers are less likely to recommend an online store if it takes a long time to receive a refund. Providing a quick refund process will keep customers coming back to your store again and again.

Although refunds can be a simple and convenient form of return, they are less than ideal for your store since you lose revenue and, potentially, the customer’s return business. This is why it can be a good idea to convert refunds into exchanges as often as possible.

2. Exchange

A good way to reduce your refund rate and retain revenue is by offering easy exchanges as an alternative. This way if your customers want the same item in a different size or color, they can simply exchange it for the item that they need. 

Offering an exchange can in many cases save the sale and keep your customers happy since their needs are being met.

Types of exchanges you can offer include:

Variant Exchange

60% of product returns are due to size or style mistakes, meaning that more than half of your returns can be resolved by offering a variant exchange. A variant exchange involves swapping a product for a more suitable variant of the product.

For example, if a customer buys a dress that is too small, the ideal solution is to exchange it for the correct size. This gives your customer what they need, and helps you retain revenue since you’re not refunding any money to your customer.

Offering variant exchanges also strengthens your relationship with your customers, and a positive exchange experience makes them more likely to shop from you again. 

More than 50% of online retailers offer free returns, and 73% of online buyers think free returns are an important factor in online shopping.

Product Exchange

A full product exchange is when your customers exchange a purchased item for a completely different product from your store. 

When the replacement product is of higher value than the original product, you can have your customers pay the additional amount, and when it’s of lower value you can refund your customers the price difference.

For example, say a customer decides to try a style of shoe they thought they would like, although it’s a different style from what they usually wear, but when they receive the shoes they realize that they don’t actually like this style of shoe. They still love your brand though and might be happy to return the shoes and exchange them for a backpack instead.

3. Store Credit

While full refunds may seem like the obvious choice for dissatisfied customers, offering virtual currency such as store credit or gift cards instead can help you retain revenue and customers in the long run.

One of the main benefits of offering virtual currency instead of full refunds is that it incentivizes customers to return to the store to make additional purchases. 

When customers are offered store credit or a gift card, they are more likely to return to the store to use that credit, and potentially even spend more money than the value of the credit. This helps you retain revenue and fosters a sense of loyalty and satisfaction among customers.

Instead of losing the entire value of the sale, you can retain a portion of that revenue by offering store credit or a gift card.

Store Credit

Customers may like your brand but not the product they received, and if they don’t want to take the time to pick out a new item right now, it can be helpful to offer store credit that they can use later. 

While this isn’t ideal since your customers aren’t obliged to take immediate action, it’s better for your brand than a refund since your customers can only use store credit with your store, keeping them loyal to your store.

Another option is to use store credit as an incentive, offering an additional 10-20% credit on returns to encourage customers to use specific return methods or other solutions.

Gift Cards

Another form of virtual currency that you can offer instead of a refund is a gift card.

Offering gift card refunds can be a smart strategy as it enables you to retain revenue while also keeping your customers happy. When a customer requests a gift card refund, you retain the original revenue from the sale, while also ensuring that the customer remains satisfied with their shopping experience. 

Gift card refunds can be an effective way to retain customers, as it encourages them to return to your eCommerce store to use their gift card credit, potentially leading to additional sales. 

4. Warranty Return

Although it can be easy to overlook warranties as a type of return, handling a product warranty return is just like processing any other form of return. The main difference is that returns under warranty may be eligible even if they don’t meet your regular return policy conditions.

There are a few main types of warranties:

Extended Warranty or Service Agreement

When your customers pay for an extended warranty, the duration of the protection is extended beyond the manufacturer’s warranty. This provides customers with peace of mind, especially when purchasing high-value items.

Third-Party Warranty

Offering a third-party warranty policy guarantees that you will repair or replace damaged products even if they weren’t bought directly from your store but rather through a third-party retailer.

Although it can be difficult to verify orders that weren’t bought directly through your store, offering protection even on products that weren’t purchased directly from you can make you stand out with exceptional customer service.

Accidental Damages and Handling (ADH) Plan

ADH plans protect products that are damaged during the shipping process. Customers are likely to get frustrated when they receive a damaged product, and an ADH plan reassures customers that they can make high-value purchases because they know the product is protected in case of damage.

Implied Warranty

An implied warranty is a form of spoken or written assurance that guarantees that products will live up to basic expectations.

There are two kinds of implied warranty: 

• Implied warranty of merchantability – Implied warranty of merchantability means that products are assumed to fill basic expectations. 

In short, products are guaranteed to do what they are supposed to, be of reasonable quality, and have nothing significantly wrong with them.

• Implied warranty of fitness – Implied warranty of fitness means that a product is guaranteed for a specific purpose beyond the basic threshold of merchantability. 

The warranty of fitness is usually implied through the recommendation of an item for a specific use, such as quickly-drying paint as opposed to ordinary paint.

Different Types of Product Returns for Different Situations

Being familiar with the different types of product returns is essential so that you can provide your customers with what they need. 

Having a fast and easy return and exchange process that takes into account all the different types of returns creates a positive customer experience, making your customers more likely to buy from you again.

Using an automated return portal can help you easily provide your customers with relevant return solutions based on your return policy, and handle the whole returns process smoothly and efficiently.

Returns have been a challenge for Shopify merchants around the world for years. The returns process is expensive and hard to manage. In our digital age customers have come to expect a fast and easy returns process. In fact, 92% of consumers say that they will buy again if the returns process is easy.

Shopify merchants are increasingly turning to automated and simplified returns solutions. This is where returns portals come in.

What is a Returns Portal?

A returns portal is an automated returns system that helps customers easily request returns and exchanges through your website. The portal seamlessly integrates with your Shopify store and prompts your customer through a series of questions to determine which items need to be returned and why. Your customers then receive automatic emails with updates about their return request.

The return portal provides a self-service experience for your customers to easily select items to return or exchange, and choose their method of return or refund, with no need for phone calls or back-and-forth chats and emails. This removes pressure from your support team and enables you to easily process returns while ensuring a smoother experience for your customers.

A branded returns portal is the first step toward a more efficient and reliable return experience for your customers and for your team.

How a Returns Portal works:

Branded vs Unbranded Return Portal

Just as you put thought and effort into designing your website, your return portal shouldn’t be any different. Customized return portals that are consistent with your store’s style make your customer feel connected to your brand, and positively associate the returns experience with your store.

Redirecting your customers to a generic returns portal can confuse them and create suspicion about entering personal details. The returns process should be a natural extension of your store.

Customizing your return portal from end to end with your brand’s colors, fonts, and voice creates a consistent message across your online store.

Having a user-friendly return experience leaves a positive impression on your customers, making them more likely to buy from you again. 

One-Click Exchange

Your return portal can reduce your return rate by offering easy exchanges as an alternative. This way customers who want a different size or color of the item they ordered can exchange it in a click.

The portal takes into account price differences of variants and also provides the option of exchanging the product for a different product altogether, depending on the eligibility conditions that you define.

Comprehensive Return Management Dashboard

As far as your customers are concerned, the return portal is where the return takes place. But as we know, there’s also the back-end of returns. Fortunately, this side of the returns process can be made simple as well. You can seamlessly manage your return requests on a personalized return management dashboard. 

On your returns management dashboard, you can customize what your customers see and how the return portal works. Define your custom return policy, select eligibility conditions for returns, and set up integrations with your shipping carriers of choice. 

Insights and Tracking

The data you gather from your return portal lets you see frequent return reasons and how your customers like to handle returns. The return management dashboard is designed to provide you with insights into your customers’ return statistics and enable you to track all your return requests in one place.

The analytics dashboard also provides insights into what items people most commonly return so that you can make data-driven decisions to reduce your return rate. 

Conclusion:

An automated, self-service returns portal that reflects your brand helps you support more customers in less time while increasing loyalty, profits, and customer lifetime value.
Make returns easy for your customers and for your team. Using our return & exchange portal, your customers can easily return items and you can efficiently manage all your return requests in one place.

Making it easy to return items is essential for customer loyalty and satisfaction. Unfortunately, this poses a challenge in preventing retail return fraud. 

The US retail industry suffers annual losses of about $24 billion in return fraud and return policy abuse, accounting for an average of 8% of returns. 

How can you spot fraud and take action to prevent it? Let’s break it down.

What is Return Fraud?

Return fraud is a form of online scam in which someone claims a refund they’re not entitled to.

While it is common for return fraud to involve stolen credit cards or false delivery claims, there are many types of return fraud ranging from honest shopping mistakes to malicious large-scale criminal operations.

Why Does Return Fraud Happen?

There are many reasons for return fraud to happen and is a gray area. While return fraud is often committed by criminals, it can also be done by regular customers who may not even realize they are doing something wrong. 

Retail return fraud can happen due to unclear return policies, a lack of security, or a manual return process that leaves room for human error.

Common Types of eCommerce Return Fraud

While there are many types of eCommerce return fraud, here are some of the most common ones.

1. Wardrobing

Wardrobing is a form of retail fraud where a consumer purchases an item while planning to only use it for a short period of time and then return it after use. Although wardrobing sounds like it might be only for clothing, it can apply to any item someone may want to use only once or twice.

For example, someone might buy an expensive dress for a special occasion, wear it with the tags hidden or removed, and then return the dress with the tags attached under the claim that it was the wrong color or size. Another example is where someone purchases plates, uses them for a dinner party, and then repackages them and asks for a refund. 

Fraudulent returns of this type take advantage of the store’s return policy.

2. Retail Sabotage

Retail sabotage is a type of fraud where a competitor purchases large numbers of an item to deplete your inventory or floods your system with small purchases with the intention of damaging your business.

3. Bricking

Bricking is a form of fraud that typically happens with electronic devices. The buyer removes valuable parts of the device to resell for a profit and then returns the item as defective or without even mentioning the removed part, which poses a challenge for you since you might unknowingly resell the now-defective device.

4. Empty Box Fraud

Empty box fraud is when customers claim they received an empty box and request a refund while secretly keeping the item. Alternatively, they may claim that they never received the package at all, or return a box filled with something to simulate the weight of the product, while keeping the item.

5. Stolen Merchandise Fraud

Stolen merchandise fraud is when someone makes a purchase on a stolen credit card and then returns the stolen item for cash or credit on another credit card.

Alternatively, a fraudster may use a stolen credit card to buy the item online, and then return the stolen item in-store for a refund. Without reliable cross-department tracking, this can be difficult to catch.

Other Types of eCommerce Return Fraud

A few other common forms of online return fraud are:

• Price Arbitrage
  Purchasing two similar-looking but differently-priced items and returning the cheaper item as if it’s the more expensive one.
• Switch Fraud
  Purchasing a working product and returning a previously-owned damaged or defective item in its place.
• Cross-Retailer Returns Fraud
  Purchasing an item from one retailer and returning it to a different retailer for a refund, store credit, or another higher-priced item.

How to Prevent Online Return Fraud

With the right processes in place, you can minimize eCommerce return fraud attempts. It’s important to find a delicate balance of preventing fraud while providing good customer service.

Follow these steps to prevent online return fraud:

1. Immediately Inspect Returned Packages

Inspect packages as soon as they are returned and don’t issue a refund until you are sure this is the same product that was ordered. 

2. Place Product Tags in Visible Locations

The tags should be visible on products so fraudsters can’t remove and replace the tags or wear the item with the tags hidden. Additionally, when you receive a returned product, look for signs of wear such as make-up, deodorant, or scuff marks.

3. Require an ID and Contact Information for Returns

When processing a refund, retailers often require only a receipt, making it hard to prove the validity of the transaction. Ask for customers’ contact information and cross-reference it with the order details to prevent fraudulent returns. 

4. Create a Clearly-Defined Return Policy

Your return policy is one of the most significant factors in preventing eCommerce return fraud. While it is important to have a convenient return policy for your customers’ peace of mind, having a return policy that is too lenient can leave you vulnerable to fraud.

Prevent return fraud by having a clearly-defined return policy with a limited return window, clear-cut conditions for product returns, and refunds only in the form of store credit or refund to the original payment method.

5. Don’t Offer Cash Refunds

Instead of offering cash refunds, either apply the refund to the original method of purchase or issue store credit or gift cards. Issuing the refund in a certifiable way helps deter criminals who are looking to launder money through your store.

6. Improve Your Returns Technology  

Having an automated return management system in place can help you manage and monitor return requests. Avoiding fraudulent returns is easier when you can track your customers’ orders, define return conditions, and implement your return policy all in one place.

From streamlining return workflows to improving the customer experience, automated returns management technology like ReturnGO gives you better control over the process of processing, verifying, and tracking returns.

ReturnGO integrates seamlessly with your existing supply chain systems, giving you a complete view of your return requests, reasons, and resolutions. 

Automating your returns makes your return process more efficient and accurate, and reduces your return fraud rates.

Take a Stand Against eCommerce Return Fraud

Retail return fraud is a big problem in eCommerce and can lead to huge revenue loss. 

While it’s impossible to completely prevent eCommerce return fraud, implementing these best practices can help mitigate the damage it causes.

The big benefit of print-on-demand products is that every order is custom-made and tailored exactly to each customer’s needs. However, each order being unique also makes returns and exchanges an exceptional challenge, since products can’t easily be returned and resold to another customer.

Since print-on-demand returns pose such a unique challenge, it is important to learn how to handle them effectively, as returns play a key role in providing a positive customer experience.

The Challenge of Print-On-Demand Returns

Returns can be a hassle if you’re a print-on-demand seller because it can reduce your profits, especially if you can’t resell the product. 

Communicating clearly with your supplier and having a well-defined POD return policy can prevent a lot of return requests due to misunderstandings. 

6 Tips For Handling Print-On-Demand Returns

Knowing how to handle print-on-demand returns gives you a huge competitive advantage since they’re a type of return that has more elements to take into consideration.

Here are some tips to help you handle print-on-demand returns more effectively:

1. Clearly Communicate Your Return Policy

It’s important to have a clear and concise return policy in place for your print-on-demand products, to set expectations for your customers regarding the returns process.

Fit the Policy to the Product

Return policies for print-on-demand (POD) products are different from those for regular products. 

Your POD return policy should include:  

• Who is responsible for return shipping 
• Return conditions
• Supported return types
• Return time frame

Your return policy should be suited to the types of print-on-demand products that you offer. 

For example, you might decide that if your customer receives a damaged, misprinted, or faulty product you will refund or replace it, however, if your customer simply changes their mind after placing the order, they won’t be able to replace the item.  

Consider the types of products you sell and whether they can be resold. Make it clear how the POD product may look different from how it appears on the listing page. 

Clearly Display Your Return Policy

After creating your POD return policy, post it everywhere. Put it in the FAQ section of your site, in product descriptions, on the checkout page, and in confirmation emails.

Having a clear return and exchange policy for print-on-demand products helps your customers know what to expect in the case of an incorrect or damaged product, and reassures them that they are making the right choice by purchasing from your eCommerce store. 

According to a UPS study, 66% of customers will review a store’s return policy before buying, so it’s important to make it clear and easy to find.

2. Verify Your Supplier’s Return Policy

As part of creating your store’s POD return policy, find out what your print-on-demand supplier’s refund policy is. 

Supplier Refund Options

Check whether your supplier offers partial refunds for returned products and exchanges, whether they can resell returned products, and whether they accommodate exchanges and returns. Your return policy will be largely influenced by your POD supplier’s policy. 

Supplier Restocking Fee

Many POD suppliers don’t charge for returned products if they are undamaged. 

If your supplier does have a restocking fee and you choose to have your customers be responsible for that fee, make sure to communicate the restocking fee price and conditions in your POD return policy.

Supplier Shipping Policy

Your print-on-demand supplier may have different policies regarding shipping. Depending on the situation, they might prefer to send a replacement product before receiving the returned item, or delay sending the replacement until receiving the returned item.

Additionally, if the returned item cannot be resold, your supplier may not want to receive the item back at all. 

In such cases, you may choose to refund the customer or replace the product and have the customer keep the damaged or incorrect product since you won’t have anything to do with the returned product.

Make sure your store’s shipping policy is compatible with your POD supplier’s shipping policy and clearly communicated to your customers.

3. Define Return vs Exchange Options

Explain what return resolutions you offer, and under what circumstances. When do you accept exchanges, and when only refunds?

Specify Exchange Turnaround Time

Be clear on exactly how your print-on-demand exchange process works, how long the process is expected to take, and whether or not the return shipping is free.

Decide on Return and Exchange Conditions

Determine which POD products require a return and which can be handled through an exchange or store credit. 

Depending on the product, and whether it can be resold or not, you might decide to send a replacement product or issue a refund without requesting the old one to be returned.

4. Simplify Your Returns Process

Simplifying your POD returns process can help you provide a positive customer experience, increase customer loyalty, and reduce the costs associated with managing returns.

Automate Your Returns

Automating your returns process can be particularly beneficial when it comes to handling print-on-demand returns. 

Since each POD product is unique and custom-made for the customer, processing returns can be more complex and time-consuming than with regular products. 

Here are some ways in which automating your returns process can help you handle POD returns more efficiently:

• Self-service returns – Using a self-service return portal, you can let your customers select which item they want to return and how they want to handle the return, and then easily manage your returns on the back end using a returns management dashboard.

• Better accuracy – Automating your returns process can help you ensure that each return request is processed accurately, helping you avoid errors and reduce the risk of unhappy customers.

• Improved communication – Return automation can improve your communication with customers, with automated emails sent to customers to confirm the return request, provide updates on the status of the return, and notify them when the refund or exchange has been processed.

By automating your returns process, you can handle print-on-demand returns more efficiently and provide a better customer experience. 

5. Track Return Trends

Tracking your returns data can help you identify patterns and common issues with your print-on-demand products. 

By analyzing the reasons for returns, you can gain valuable insights into what customers are looking for in a product and where your products may be falling short. 

This information can help you improve your POD products in the following ways:

• Identify product quality issues – By tracking returns, you can identify recurring quality issues with your print-on-demand products such as poor material quality or printing errors. 

• Improve product descriptions – If customers are frequently returning products due to incorrect sizing or fit, it may be necessary to improve your product descriptions to provide more detailed sizing information.

• Identify design flaws – Tracking returns can help you identify design flaws that may be causing customers to return products. 

• Increase customer satisfaction – By improving the quality of your POD products and product descriptions, you can increase customer satisfaction and reduce the likelihood of returns. 

By using this information to improve your product descriptions and products, you can reduce returns, increase customer satisfaction, and ultimately improve your bottom line.

6. Reduce Return Requests

By implementing strategies to reduce returns, you can improve the efficiency and profitability of your business while retaining revenue, increasing customer loyalty, and reducing restocking and shipping costs.

Here are some tips for reducing the number of return requests that come in:

• Provide detailed product descriptions – Make sure your product descriptions are accurate and include all the relevant information about the product, such as materials, sizing, and customization options. This can help customers make informed purchasing decisions and reduce the likelihood of returns.

• Use high-quality materials – Use high-quality materials to produce your print-on-demand products. This can help ensure that the products are durable and meet customers’ expectations.

• Conduct quality control checks – Conduct thorough quality control checks on all of your products before shipping them to customers. This can help catch any defects or issues before the product is shipped.

• Provide clear customization instructions – If your print-on-demand products are customizable, make sure the instructions for customization are clear and detailed. This can reduce the likelihood of returns due to errors or misunderstandings.

• Offer samples – Consider offering samples or swatches of your products or materials to help customers make informed purchasing decisions. This can help reduce the likelihood of returns due to customers not liking the product or materials.

By implementing these tips, you can help reduce your return requests and improve the overall efficiency of your print-on-demand business. 

Streamline Your Print-On-Demand Returns Process

Managing print-on-demand returns can present a unique challenge. However, by implementing effective strategies and taking proactive steps to prevent return requests, you can reduce the negative impacts of returns and improve the overall efficiency and profitability of your business.

Whether it’s providing accurate product descriptions, using high-quality materials, automating the returns process, or tracking return trends, you have various options to manage returns effectively. 

By prioritizing customer satisfaction, providing an excellent customer experience, and incentivizing repeat business, you can maintain positive relationships with your customers and build customer loyalty.

While managing returns for print-on-demand products can be complex, investing in effective strategies and taking a customer-centric approach can create a positive and efficient business model that sets you apart from competitors.

Returns are an inevitable part of running an eCommerce store. The way you handle online returns is a determining factor for your customer experience and your store’s profitability.

A fast and easy return process can make the difference between an “I-want-to-buy-here-again” customer experience and a negative experience. 84% of online shoppers would not buy again from an eCommerce store where they had a bad returns experience. Streamlining your return process and making it easy for your customers can save a lot of sales and keep a lot of customers’ business.

The ideal returns management process is hassle-free for your customers and cost-effective for your business. The way you handle online returns can differentiate your brand, create a competitive advantage, and make you more profitable. 

What is returns management?

Returns management, also known as reverse logistics, includes the entire process of returning or exchanging a product for any reason.

Returns management is comprised of the return shipping process, handling the returned products at your warehouse for restocking, and providing suitable return solutions to your customers.

Why is streamlining your returns management process important?

Lots of precious time, energy, and money are lost when returns are handled inefficiently. Having a streamlined returns management process in place enables you to focus on growing your business instead of dealing with avoidable returns and unhappy customers.

Analyzing your Shopify store can help you learn how you can improve both your return management process and your customers’ return experience. 

Understanding what your customers need is the first step toward streamlining your return process and effectively providing your customers with easy returns.

5 Tips for Efficient Returns Management

1. Write clear product descriptions

64% of customers return products because they didn’t match the description. Adding clear product descriptions helps customers know what to expect and lets them make informed decisions. 

Online shoppers don’t have the option of seeing and feeling the product before making a purchase like they can in brick-and-mortar stores, so they rely heavily on the product description and photos to determine if the product fits their needs.

Make sure product descriptions are detailed and clearly written, with as many specifications as possible. Add photos from multiple angles and title your products accurately.

2. Analyze return patterns

By tracking patterns of returned products, you can identify specific products that are returned more often than others and then optimize those products based on the return reasons commonly given.

Products that are frequently returned may be defective, packaged poorly, or have an unclear product description. Once you recognize which products are often problematic and what the issue is, you can take action to correct the issue.

An easy way to track your frequently returned products and return reasons is with an automated returns management system, where you can see all your return data and analytics in one place.

Additionally, it can be a good idea to conduct regular quality assurance testing to understand why some of your products are often returned and to make sure they continue to reach a high standard of quality. Product quality assurance testing enables you to make the necessary adjustments and reduce the number of future returns.

3. Give customers enough time to return products

63% of customers expect a 30-day return window. Extending the return time limit to 60-90 days can make customers feel more confident with their purchase because they know they’ve got plenty of time to return products they aren’t satisfied with.

With a longer return window, customers don’t feel pressured to make a quick decision to send back items rather than risk waiting too long and missing the deadline. 

The downside to having a long return time frame is that customers may procrastinate dealing with the return and end up not returning products that they’re not happy with or don’t want.

The ideal time limit for your store’s return window depends on your products and customer base. You can consider experimenting with different time limits to find the right balance between establishing trust and discouraging abuse. Make sure to clearly communicate the return window in your return policy, so that customers know how long they have to make returns.

4. Make it easy for customers to return products

Build trust by making it easy for your customers to make returns. A seamless return experience is an essential part of eCommerce and can make a huge impact on your customer loyalty. In fact, 92% of customers say they will buy again if the return process is easy.

Ways you can make the returns process easy for your customers:

• Offer free return shipping
• Have a clear return policy
• Provide them with shipping labels
• Use an automated returns portal

The easier your return process is, the more customers are likely to return and exchange items they aren’t satisfied with instead of issuing a chargeback or simply not buying from you again.

5. Automate your returns process

Using an automated returns portal gives your customers an easy interface to easily request a return, and helps you manage the back-end of returns. Our returns management system enables you to easily manage and track all your return requests in one place, as well as view analytics and insights to help you optimize your Shopify store.

Instead of manually handling each return request, using an automated returns system makes your life easier, and gives your customers a self-service return experience that is efficient and convenient.

Conclusion:

Making your customers’ buying and returning experience easier, faster, and more convenient begins with understanding what they need. When you know what factors to pay attention to in your returns process, you can continually improve your Shopify store and your customers’ returns experience.

Streamlining your returns process keeps your customers coming back to your business again and again, and sets you up to manage returns efficiently and effectively.

Running a dropshipping business has the advantage of having lower costs and risks than a traditional eCommerce business. Nearly 33% of eCommerce retailers use the dropshipping fulfillment model. Even though dropshipping can be a great way to run your business, you must consider how not handling inventory hugely affects the returns process.

Refunds and returns are sometimes requested due to an order being fulfilled incorrectly or failing to meet a customer’s expectations. Knowing why returns happen, how to deal with them, and what policies to put in place can help you streamline your Shopify store’s dropshipping returns process.

Handling Dropshipping Returns

Having a process in place for handling returns as quickly and efficiently as possible is important when running a dropshipping business. Having a well-defined return policy helps customers know what to expect, and streamlines your returns management process.

Depending on the types of products you’re dropshipping, you may choose to have returns shipped back to your warehouse as opposed to straight to the supplier, or you may prefer customers to keep returned items instead of shipping them back.

Given that dropshipping returns can be more complex than standard eCommerce returns, it’s important to plan ahead and develop a policy that suits your business model.

Set Expectations with an Effective Return Policy

Having a clear and easy-to-find return policy is important to provide customers with all the information they need to be confident in buying from your Shopify store. 68% of online shoppers read the return policy before making a purchase, so having a clear return policy is essential.

Find Out Your Supplier’s Return Policy

Before you create your store’s return policy, check with your dropshipping supplier what their policy is. If they charge restocking or shipping fees or have a limited time frame for returns, those are important for you to consider when writing your store’s return policy.

Find out which products can be returned and under what conditions, any extra fees they charge, and how they handle the return process.

Working with several dropshipping suppliers can complicate things since each supplier will have a different policy. You can formulate a general return policy that covers everything, or alternatively, you can set up an automated Return Portal with all the different conditions and settings automatically in place.

Create Your Return Policy

Your store’s return policy lets your customers know what items they can return, how long they have to request a return from the date of purchase, and what kind of compensation they’ll receive. It’s important to specify any additional fees such as shipping fees and restocking fees so that customers know what to expect.

Important things to include in your return policy:

• Eligibility Conditions – The conditions items must be in to be eligible to be returned.
• Returns Solutions – The return solutions you offer – refunds, exchanges, store credit, etc.
• Return Time Frame – How long the return window is and how long to expect to wait before receiving a refund/replacement product.
• Return Instructions – The steps customers need to take in order to request a return.

Simplify the Returns Process

Dropshipping returns may be initiated because customers are unhappy with the order they received, or simply ordered the wrong item. It’s important to be prepared for the different situations you may encounter so that you can plan accordingly and take action to streamline your returns process.

Here are a few of the main reasons customers request a return:

Common Return Reasons

The customer ordered the wrong product or size/style

Customers will often order the wrong size or accidentally order the wrong product altogether. It might be a replacement part for the wrong model, or clothes that don’t fit. Since the customer can’t see and touch the products before purchasing when shopping online, it is easy to order the wrong thing.

It is not uncommon for people to purchase a few different sizes or styles of a product with the intent of returning anything that doesn’t fit. The best way to handle this is by having a good return policy that facilitates easy returns while offering incentives to exchange instead of just returning items for a refund.

The product doesn’t match the description

If a product doesn’t match its description, you might have made a mistake when writing the product description and uploading images, or your supplier may have given you incorrect information.

Regardless of whether the mistake was yours or your supplier’s, it’s your responsibility to offer a satisfactory solution to keep your customers happy.

The customer received a damaged or defective product

When you run a dropshipping business, you don’t have much control over the quality of your products. When a customer receives a defective product, it’s your responsibility to compensate them and make sure they remain satisfied. 

By exchanging their order or offering store credit plus an additional bonus, you can keep their business without giving them a refund and potentially losing them as customers.

The product arrived too late/the customer no longer needs it

Depending on how long it takes for the order to arrive, customers may no longer need the product. They might have purchased the product somewhere else, or a change in their circumstances may have made it no longer necessary.

For customers to know when to expect their orders, it is best to provide delivery estimates, real-time updates, and tracking codes.

The wrong product was sent

It may happen that a customer receives the wrong product. This might happen due to mistakes when manually inputting orders to be sent to dropshipping suppliers, or during dropshipping fulfillment. It’s possible that the supplier packed the wrong product, or the wrong shipping label was applied to the package.

In these cases, the customer is not at fault and it’s important to make up for the inconvenience by sending the correct item or providing a refund.

Coordinate the Return Process

When a customer wants to return a product, the dropshipping return process will look something like this: 

1. The customer contacts you and requests a return. 
2. Find out why they want to return the product. Assess the return reason and calculate the costs involved.
3. Determine a suitable solution, such as a full refund, product exchange, or store credit.
4. The customer sends the product back to your supplier and notes the RMA (Return Merchandise Authorization) number.
5. The supplier confirms the return and refunds your account for the cost of the product or sends out the new product if issuing an exchange.
6. You refund the customer or update them about the delivery of the replacement product.

Throughout the return process, always be polite to your suppliers and customers, as maintaining your relationship with them is important.

Streamline Your Dropshipping Returns

How your dropshipping store manages returns has a huge impact on both customer loyalty and sales. 

In summary, it’s important to: 

• Set expectations with a clear returns policy. 
• Coordinate with your dropshipping supplier to ensure that the return process goes smoothly.
• Communicate with your customer and do what you can to keep them happy.

Another great way to make your returns process more efficient is using a return management system. An automated returns system helps you keep track of returns, send automated updates to customers, and coordinate shipping labels and fees.

It is common for customers to accidentally order the same item twice, to choose the wrong size or color, or to decide they were being impulsive and want to cancel the order. As a Shopify merchant, handling cancellations can be costly and take up precious time and energy, especially if you don’t have a well-defined order cancellation policy in place.

Make it easy for customers to cancel orders, to avoid future returns and disappointed customers.

If your customers are unsure of how they can cancel their order or if they can cancel it at all, they may become confused and discouraged from placing their order.

What is an Order Cancellation Policy?

Order cancellation policies are documents, often part of a store’s return policy, that specify under what conditions customers can cancel their orders.

Eligibility for canceling orders can be based on the amount of time since the order was placed, specific products, or the fulfillment status of the order.

Make sure your order cancellation policy is clearly displayed on your website and is easy to understand. Give customers all the information they need about canceling an order, including eligibility conditions as well as the cancellation process.

What is an eCommerce Cancellation Rate? 

Your eCommerce cancellation rate is based on the percentage of orders that are canceled by customers.

How to calculate your eCommerce cancellation rate: 

Divide the number of canceled orders by the number of total orders, then multiply by 100 to get the percentage.

Cancellation rate = Number of canceled orders / Number of total orders x 100

5 Benefits of Having an Order Cancellation Policy

Here’s why your eCommerce store should have an order cancellation policy:

1. Save Yourself Time and Money

When there is no clear cancellation option, customers are likely to contact your support team to request to cancel their order. Without a clear order cancellation policy in place, customers have no way of knowing whether their order is eligible to be canceled, and what kind of refund they are eligible to receive. Handling each order individually takes up your team’s time and energy that can be spent more efficiently.

Make sure your eCommerce cancellation policy is prominently displayed on your store’s website, and clearly states the conditions for canceling an order. 

With a well-defined order cancellation policy, your customers can know exactly what their options are and what they need to do if they want to cancel an order, making the whole process more efficient and convenient both for you and your customers. Customers won’t try to request to cancel ineligible orders, and you won’t need to individually explain your policy to each customer.

2. Keep Your Customers Happy

Customers are more confident about placing their order when they know they can cancel their order if they make a mistake in their order or no longer require it, and are reassured by having all the information about the cancellation time frame, fees, and process in advance.

Having a transparent order cancellation policy helps retain customers and build customer loyalty.

3. Reduce Return Rates

Giving customers the option to cancel their order before it is fulfilled can cut down on future returns caused by mistakes or orders your customers changed their minds about.

By offering the option to cancel orders you save yourself and your customers a lot of time, money, and energy, and as a bonus, you reduce your carbon footprint by avoiding redundant returns. 

4. Create Accountability

Informing your customers what to expect from the cancellation process helps them know what they need to do and what they can expect from you.

Clear eCommerce cancellation policies can help prevent ambiguity and serve as proof of what was agreed upon when your customer made the purchase from your store.

For example, when customers are provided with a clear timeframe in which they can cancel an order, they won’t be surprised if they cannot cancel an order after the deadline. Make sure to be clear about how they can request a cancellation and if there is a cancellation fee. Your customers having all the relevant information in advance leaves a lot less room for misunderstandings.

5. Protect Your Business

An order cancellation policy provides security to your business in the event that your customer cancels an order. You may reasonably charge a cancellation fee after a certain deadline, covering costs you suffered due to the cancellation. 

How to Create an Order Cancellation Policy

Having an order cancellation policy is essential for setting clear expectations for customers and minimizing disputes and returns.

Here’s how to create an effective order cancellation policy:

1. Determine the Timeline for Cancellations

Decide on a timeframe within which customers can cancel their orders. 

The timeframe for cancellation could be time-based, such as 24 hours or 3 days, or it can be status-based, such as before the product is fulfilled or before it is shipped.

2. Specify the Cancellation Process

Clearly outline the steps that customers must follow to cancel their orders. Set expectations regarding how long the process takes and what customers need to do to cancel an order.

Make sure to include the specific details that customers will need to provide to cancel their orders, such as their order number or email address.

3. State the Refund Policy

Let your customers know whether they will receive a full refund, a partial refund, or no refund at all upon cancelling their order. 

Be transparent about any fees or charges that may be deducted from the refund.

It’s important to clearly communicate your policy to avoid misunderstandings and disputes with customers.

4. Communicate Any Restrictions

If you have certain restrictions on cancelling orders, such as for customized products or items that have already been shipped, make sure to clearly communicate them to your customers. 

You might also consider including information on what happens if a customer cancels an order after it has already been shipped, such as whether they will be responsible for return shipping costs.

5. Include Contact Information

Provide customers with contact information for any questions or concerns they may have about cancelling their order. 

This could be a specific email address, phone number, or contact form on your website. 

Providing a clear point of contact can help to reassure customers that they can easily get in touch if they have any issues with cancelling their order.

What Should Your Order Cancellation Policy Include?

When creating an order cancellation policy, it’s important to include everything that is relevant and necessary to provide clear guidance to your customers. 

Your order cancellation policy should cover the following:

• The timeline for cancellations
• The cancellation process
• The refund policy
• Any restrictions on cancellations
• Contact information

By including all of these components, you can create a comprehensive eCommerce cancellation policy that covers all possible scenarios, avoids misunderstandings and disputes, and ensures a positive experience for your customers. 

Be sure to clearly communicate your cancellation policy on your website, order confirmation emails, and anywhere else to make it easy for customers to understand and follow.

By having a clear and concise order cancellation policy in place, you can minimize the risk of customer disputes and ensure a smooth and hassle-free cancellation process for both you and your customers.

Save Time and Money With an Order Cancellation Policy

Customers are inevitably going to place orders they sometimes don’t end up wanting. Offering the option to cancel orders before they are fulfilled gives your store an advantage over your competitors, and customers will feel confident purchasing from you again and again. 

Every eCommerce store should have a clear order cancellation policy, saving time and energy for both merchants and customers.

Use a returns management system to easily offer your customers the option to cancel orders that have not been fulfilled based on your store’s eCommerce cancellation policy.

Even if you’re only processing a few returns or exchanges a month, this can take hours of your time and could quickly become overwhelming. 

One of the most important things you can do as a new eCommerce merchant is set your store up to succeed. Many parts of the return process can be completely automated, leaving you and your team with time and energy to spend on more important tasks. 

By automating your store’s returns with a returns portal, you can gain more control over your return process and collect data that can ultimately improve your customer lifetime value. 

What is a returns portal?

An automated returns portal is a way to turn the return process into a self-service customer experience. With a returns portal that integrates with your Shopify store, customers can enter their order number and easily select which items they want to return, explain why they want a return, and choose a suitable solution, whether that’s an exchange for a different size or color, a full refund, or store credit.

A returns portal is a convenient way of automatically implementing your return policy and providing a fast and easy return experience for your customers.

5 ways automating your returns can help your store:

Now that you have a better idea of what having an automated returns portal can do for your Shopify store, why should you consider using one instead of manually handling returns? 

Here are a few key reasons:

1. Increases conversion

68% of customers check the return policy before placing an order. An easy returns process gives customers the confidence to complete their purchase.

If customers need to email you to request a return, they may become wary and choose not to go through with their purchase. When customers see a user-friendly return portal, they get the feeling that your store cares about making returns easy, and are more likely to buy from you again.

Remember, customers who have a good return and exchange experience may be your best customers in the long term. Use this opportunity to give them an experience they won’t forget.

2. Saves time with self-service returns

With an automated return portal, customers can clearly communicate what they’d like and easily select return options that you define. Having a self-service portal leaves little room for miscommunication, makes the returns process move along faster, and gives your online store a competitive edge.

Manually handling exchange orders, creating gift cards, and retrieving banking details for refunds can be tedious and time-consuming for you and your team. With an automated returns process, all of the order and return information is in one place, and return requests can be managed easily and efficiently.

3. Increases exchanges and reduces refunds

It’s easy to get overwhelmed by incoming return requests and you may find it simpler to offer a full refund for every product that’s returned. Refunds may be faster and simpler for you to manage but are less than ideal for your customers.

More than half of Shopify returns are due to customers ordering the wrong size or style. Giving customers the option to exchange their order for a more suitable product leaves them with an excellent customer experience and increases the chance they’ll buy from your store again.

With a returns portal, customers have the option of easily requesting an exchange. They can select the products they want to return and browse your store to find the products they would like in exchange.

4. Helps you understand your customers and products

Analyzing insights into which products customers are returning and why can help you reduce your return rate. When you know why customers keep returning certain items, you can take action on improving product descriptions, meeting customer expectations in shipping and customer service, and more. 

Having the relevant information can ultimately save you time and money. Utilize this tool to retain customers and set up your store for success.

5. Streamlines return management

Automation makes handling returns simpler. Confirmation emails and shipping labels are automatically generated and sent to your customers. An automated returns system allows your business to become extremely efficient by removing the most tedious steps in the return process.

Using a digital return management system ensures that all the information gathered throughout the return process is stored in one place and your team can always be on the same page, so there’s no risk of losing essential pieces of information.

Take Control of Your Returns

Handling returns shouldn’t slow you down or hold you back. When done right, return policies and processes can take pressure off you and your team and increase customer lifetime value.

Each brand experiences its own pain points when it comes to returns. It helps to know that a large part of the eCommerce returns process can be automated to reduce unnecessary friction and used to your advantage. 

Your return policy is an extension of your company and should represent your brand’s core values, attitude, and tone. Put time and thought into planning a return policy that fits your business and conveys your brand messaging, not just your return requirements.

Having a well-defined eCommerce return policy is essential for making returns and exchanges easy both for you and for your customers. The clearer your return policy, the better. 

How to make your return policy on-brand:

Having a branded return policy shows that you care about your customers and their satisfaction with your products and service. A return policy is more than simply a definition of how, when, and under what conditions customers can return their purchased items.

A great example of an eCommerce brand that is known for its return policy is Zappos, who have a generous 365-day return window. The extremely flexible return conditions result in high return rates, but also lead to Zappo’s customers spending more money and remaining loyal to the brand since they know they can easily return anything that doesn’t fit. 

In developing your branded return policy, there are a few aspects to consider.

Focus on the Customer

Creating an easy-to-navigate shopping journey for customers is a big part of eCommerce. The customer experience should be seamless, simple, and aesthetically pleasing.

Today, in the age of TikTok and Instagram, our attention spans are getting shorter and shorter. If your return policy page takes more than around 30 seconds to scan and understand, customers are likely to be deterred and take their business elsewhere. 

Keep your return policy concise and easy to understand.

Free Shipping 

A way to focus on your customers is by offering free shipping on returns. 79% of online shoppers expect return shipping to be free, and only 49% of online retailers offer free return shipping.

Extended Return Windows

Offering a long return window is another way to focus your return policy on your customers. An extended time frame to request returns gives customers peace of mind that they have plenty of time to decide to return something if it’s not suitable.

Self-Service Returns

Instead of making customers jump through hoops and sit on the phone for hours or wait days for an email response, you can provide an automated return portal through which customers can easily request a return.

Provide pre-paid return shipping labels that can be printed at home, and offer store credit and exchanges as alternatives for refunds. This makes customers feel rewarded and keeps them loyal to your store.

Focus on the Product

Another way to craft an on-brand return policy is by focusing on the products themselves. If your brand is all about high-quality products, your return policy should reflect your brand integrity.

Improve Your Product Descriptions

Make sure to offer as much information as possible on each product page, as well as information about warranties and the high quality of your products. It’s also worth including high-quality images and or videos of the product. 

Providing customers with as much information as possible before they make a purchase is the best way to reduce the possibility of them being surprised or unhappy with their purchase, thus decreasing the likelihood of them asking for a return.

If multiple customers return a certain item because it doesn’t match its description, the product description needs to be improved.

Communicate Integrity

Offering easy returns and exchanges implies that you’re confident in the quality of your product and reassures customers because they know that if the product is faulty or broken they can easily return it.

Collect Feedback

When customers request a return, ask them why they want to return the item and ask for photos of the item they received. Collecting the reasons for returns can give you insights on how to improve your business and increase customer satisfaction, whether that’s adding photos to your product pages or improving your customer service.

Reviewing return reasons can give you a lot of insight into where your business can be improved and how to increase customer satisfaction.

Focus on Sustainability

Customers love brands that mirror their own values. 83% of customers consider the environment when making purchase decisions and 78% think that companies could be doing more to be environmentally friendly. 

People are increasingly choosing to buy from eco-friendly brands, and advertising that your company takes steps to be environmentally friendly can encourage customers to choose you over other brands.

Offer Exchanges Instead of Refunds

Encourage product exchanges rather than refunds. Many products are returned because they don’t fit or aren’t quite what the customer expected, but aren’t necessarily damaged or faulty. A lot of products that are returned are fit to be resold, and sending customers replacements for their returned products can leave them satisfied while saving the returned product from going to waste.

Consider Where Returned Products Go

Purchasing a product begins a carbon trail that includes sourcing the materials, manufacturing, shipping, and transportation. If a customer then decides they don’t want the product, or it doesn’t work, the product probably goes straight to a landfill where it remains for hundreds or thousands of years.

Only 20% of 3.5 billion returned products in the US are defective, meaning that billions of products are thrown away for no reason.

Depending on what kinds of products you sell, there might be life left in a returned item, even if it isn’t fit for resale. Returned products can be sent to donation centers or charities that sell the products for a discounted price or donate to people in underprivileged communities. 

Create a Return Policy That Works for Your Business

It’s worth putting some time and effort into planning how to portray your brand through your return policy. Define your brand values and decide what you want your return policy to focus on. 

Your store’s return policy conveys its values and priorities and reassures customers that they are in the right place.

We’ve all had the experience of buying a shirt or a pair of pants, only to receive it and realize that it’s the wrong size, color, or style, and wonder if returning it is worth the effort.

A hassle-free exchange process helps keep your customers happy by giving them what they need. Prioritizing exchanges over other types of returns saves your store time and money.

The Importance of One-Click Exchanges

Customers’ post-purchase experience is just as essential as the pre-shopping experience. 

Returns are more frequent in eCommerce stores than in physical stores for a number of reasons, one of them being that it can be difficult to determine if products are suitable from pictures. Sizes and colors can be difficult to judge online, and customers often receive items and then discover that they don’t fit or are different from what they expected.

Having easy one-click exchanges encourages customers to simply swap out their purchased items for something else instead of asking for their money back. 

Your return and exchange policy should make the returns process seamless and hassle-free, and give customers a clear incentive to choose an exchange over a refund. 

For example, Amazon is known for having one of the most customer-friendly return policies in the world of eCommerce. With an easy-to-understand return policy, Amazon makes it easy for customers to return products and get refunds.

What is a One-Click Exchange?

One-click exchange is the ability for customers to easily exchange products using a self-service portal. 

Customers go to your Shopify store’s return portal, select their exchange reason, and choose the new variant or product they would like. The customers then get an automated email with return shipping instructions, and the new product is delivered as soon as possible. 

One-click exchange enhances the customer return experience, increasing customer loyalty and retaining revenue that would be lost with a refund.

Types of Exchanges

The two main types of eCommerce exchanges are variant exchanges and product exchanges. Each type of exchange will be appropriate for different situations and different customers.

Variant Exchange

60% of Shopify returns occur because of customers ordering the wrong size or style. These returns can easily be resolved with a variant exchange, which involves swapping the product for a more suitable variant.

Product Exchange

Full product exchanges are when your customers exchange a product for a completely different product from your store. 

When the replacement item costs more than the original item, your customers pay the additional amount, and when it costs less you refund your customers the price difference.

Benefits of Offering One-Click Exchanges

Easy exchanges lead to reduced amounts of refunds and are a great opportunity to increase order value by upselling or cross-selling. 

What one-click exchanges can do for your eCommerce business:

Customer Retention

A positive exchange experience makes customers much more likely to extend their relationship with your brand.

One-click exchanges boost brand loyalty by ensuring the right product reaches your customers, resulting in repeat purchases as well as increased customer lifetime value.

Incentivize customers to request an exchange instead of a refund by offering coupons, discounts, or free shipping exclusively for exchanges.

Preserved Revenue

Issuing a refund means losing the sale and giving back the money your customers paid. The benefit of an exchange is that customers get the items they need, and you preserve your store’s revenue.

The global reverse logistics market was valued at $540 billion in 2020, and is projected to reach $788 Billion by 2028. One way to reduce these losses is to prioritize one-click exchanges.

Instant Resolution

The last thing your customers want is to have to engage in multiple back-and-forth emails with your support team to initiate an exchange.  A complicated product exchange process is time-consuming and frustrating both for you and for your customers.

Automating your exchange process simplifies things. Using a self-service return portal like ReturnGO, customers can enter their order number, select which items they want to exchange, choose new items, and immediately a new order will be created in Shopify, which you can then fulfill.

An automated exchange process makes it much more likely that your customers will choose to request an exchange over a refund. 

Make Exchanges Easy

By taking the hassle out of the exchange process, you can reduce refunds and retain more sales. Use one-click exchanges as a second chance to make a good first impression and build brand loyalty.

Over 60% of customers read a return policy before placing an order, making your return policy the most frequently visited page on your site. Having a clear and well-defined return policy reassures your customers that they can return or exchange their order if something arrives damaged or is the wrong size. 

If you want to know how to write an effective return policy for your Shopify store, then you are in the right place. In this article, you will get a better understanding of how to create a return policy that suits your eCommerce business. 

What is a Return Policy? 

Return policies commonly include information like who is responsible for return shipping costs, what types of compensation you offer, how long the return window is, and any other relevant details your customers need to know about your returns process.

How to Write A Clear Return Policy

1. Determine Your Priorities

Your return policy is an extension of your brand and represents your company’s core values. Put time and thought into planning a return policy that fits your eCommerce business.

Ask yourself what your brand values are and what makes your store unique. Is it your high-quality products? Your commitment to sustainability? When your brand’s message has been defined, you can create a return policy that reflects that message.

2. Outline Your Conditions

Time Frame for Returns

It’s important to let your customers know how long they have to return an order. Make sure to give customers enough time to decide if they want to make a return.

While 63% of customers expect a 30-day return window, each eCommerce business has its own terms and considerations, and there is no right or wrong way to handle it. There are stores with 14-day return windows, stores with 365-day return windows, and everything in between. It is important to define your return time limit based on your products and customer base. Consider experimenting with different time frames to find the right balance between establishing trust and discouraging abuse.

Note that it’s important to be clear about the definition of the return window. Does the return window begin once an order is shipped or once it arrives?

Expected Condition of Returned Products

Specify what condition a product must be in to be returned. Do products have to be undamaged? With the original tags on?

A clear description of the expected condition of returned items ensures that customers know whether their products can be returned or not.

Product Eligibility

Make sure customers are aware of your requirements for returns. Specify if products must be sent unopened or in their original packaging, and let customers know if they need an authorization number, shipping address, or receipt.

3. Define Your Solutions

Types of Returns

Outline the types of returns and exchanges you offer, and which options are available for each type of product. Explain how refunds, exchanges, and store credit are handled, as well as how long customers can expect to wait for a refund or replacement.

Additional Fees

List any additional charges such as return shipping, restocking, or handling fees. 

Some Shopify stores charge restocking and handling fees to cover the cost of restocking or repackaging a product to get it ready for resale. 

Additionally, consider whether you want to offer free return shipping. 79% of online shoppers expect return shipping to be free, and 49% of eCommerce stores offer free return shipping.

Decide what fees work best for your business and state them in your return policy.

Instructions for Requesting a Return

Be clear about the steps customers need to take to return an item. Knowing what to expect from the return process helps reassure customers before making a purchase.

Explain what information the customers need to have to request a return (receipt, original tags, order number, etc), describe how the returns process works, and how long the process is expected to take.

4. Communicate Your Return Policy

Make your return policy easy to find. Use a visible button or place links in easy-to-find places, such as in your site’s footer, on the checkout page, and in emails to your customers.

The easier it is to find your return policy, the better. Display your policy in a way that’s impossible to miss.

Tips for Writing Your Return Policy:

Use Easy-to-Understand Language

Write your return policy in a clear and straightforward manner, using simple language, easy-to-read fonts, and a clear and uncomplicated format.

Use headlines and bullet points to divide up the page, and make sure the language you use in your return policy is clear and plain so that misinterpretations are prevented. 

In short, keep your return policy as simple as possible.

Be Transparent

Your return policy is there to provide your customers with clarity about the returns process. Make sure to clearly define every aspect of returns, and answer all the questions your customer may have. Be honest and transparent about every part of the return process, and stay true to your brand’s tone and values.

Give Your Return Policy the Attention It Deserves

Remember that your store’s return policy may be the most read page on your website. Return policies are not only an opportunity to explain your return process and requirements, but also a way to make a good impression.

When creating your return policy, take the time to map out your goals and create a plan. You can brainstorm ideas, research, create drafts, and seek advice. 

A clear and well-defined return policy gives customers confidence in your business and demonstrates that you care about your customers. Happy customers are more likely to keep coming back and refer your store to their friends and family.

Take a minute to consider – what drives a customer to choose your brand over another? What keeps your customers coming back? We’re going to give you some tips on how to make your store stand out from your competitors.

Why is Your Return Policy Important?

Returns have a huge impact on customer loyalty. Clearly defining how your returns process works and advertising it appropriately will make your customers know what to expect. 

Over 60% of customers read a return policy before making a purchase, so it’s worth putting time and effort into creating a return policy that sets clear expectations and reflects your store’s values.

How to Create a Competitive Edge with Your Return Policy

The way you choose to define your return policy can put your store at an advantage over others in your industry. The vast majority of Shopify stores don’t use AI to support their returns or offer free return shipping – these are just a few of the ways you can make your return policy stand out.

Put the Ball in the Customer’s Court

Customers like having a choice. From being able to choose different colors, sizes, or delivery options, people like feeling like they have control over their choices. So give your customers options in your returns policy, too.

There are many simple ways to let your customers have a say in the returns process while reducing your costs:

• Give your customers the option to choose their preferred return solution – store credit, exchange, or refund. This enables your customers to get the item they really wanted or to get their money back in the way that is most convenient for them.

• Let your customers choose to donate their unwanted items and receive a refund instead of sending them back. This gives your customers an opportunity to do good while saving you the expense of return processing and the hassle of restocking or disposal.

• Offer various different return methods for your customers to choose from, such as return-to-store, shipping with a pre-paid label, and drop-off points. This gives your customers the flexibility of returning their items in a way that works best for them.

Offer Plenty of Time to Return Items

One way to make your return policy stand out is by having a unique time limit for returns. Offering an extended time frame for customers to return items can reassure customers that they have plenty of time to decide if they want to keep their order or return items that don’t fit or aren’t quite right for them.

On the other hand, it’s always important to find a balance. 

For example, L.L.Bean offers a whole year for customers to return items for a refund. Until 2018 they used to offer lifetime returns. Having some kind of limit is important. Even if it is a wide time frame, setting a defined time frame is a good idea.

There are Shopify stores with anywhere between a 7-day and 365-day return window, and it’s up to you to decide what return window works for your store, based on your products and customer base. You can also experiment with different time frames to find the right time frame for your store.

If you do decide to set a particularly long return time window, make sure you advertise it to show customers that you care about them and that this is one of the things that sets you apart from your competitors. Clearly display your return policy in your store’s header, footer, checkout page, and in order confirmation emails.

Although 63% of customers expect a 30-day return window, each Shopify store has its own considerations, and there is no one correct way to handle it. 

Provide Free Return Shipping

It’s no secret that customers love free return shipping. Buying products without getting to try them out first is always a risk, especially for first-time buyers. Having to pay for return shipping adds friction to the returns process. 

79% of online shoppers expect return shipping to be free, and only 49% of online retailers offer free return shipping, so providing free shipping on returns will make your store stand out.

Offering free return shipping reassures customers that they won’t get penalized for receiving a damaged product or for discovering that the product doesn’t fit right or isn’t quite what they expected. By offering free return shipping you’re acknowledging that buying online can often be difficult and that you will support your customers in resolving any issues.

Make Your Return Policy Easy to Read

A complicated return policy that’s hidden in the fine print of your website may deter customers. In order for your return policy to be effective, make sure it’s clearly written, easy to understand, and accessible to your customers.

Make your return policy page easy to skim through by using simple language, bolding, and bullet points. Then make sure to display your return policy clearly on your website so that it’s impossible to miss.

Automate Your Return Process

Nowadays when pretty much everything is online, customers want to be in control of their online returns as well.

Customers want an easy way to request a return without having to call or email in advance. Use a returns management system to provide a self-service returns portal so that customers can easily request a return. 

With a returns management system, handling returns will be easier and more efficient for you, and your customers will experience a smoother and more convenient returns process.

83% of eCommerce retailers do not yet use AI technology to support their supply chain and returns management. Be one of the first to jump on the wave that is the future of returns.

Make Returns Your Competitive Edge

Your return policy can absolutely be the thing that makes your online store stand out from your competitors. The eCommerce industry can be extremely competitive, so you need to think about what makes your store different from others and what will make your customers choose you over them.

The ReturnGO AI-driven returns management platform lets you give your customers control of their returns and makes handling returns way easier for you. 

Stay ahead of the game and start automating your returns.

Wardrobing is actually a form of return fraud, and it’s most often done with expensive clothing, which is where the name originated. Clothing is still the most ‘wardrobed’ item, followed by electronics and shoes.

Maybe it’s for a special occasion; maybe it’s for a killer social media post; maybe it’s to impress people; it could be a sign of our obsession with instant gratification.

Did you know at least one in nine shoppers have ordered an item just to take a photo for a social media post before returning it?

With over 500 million daily users on Instagram alone, that figure will only increase. The pressure to be seen wearing the latest brands, to imitate favorite celebrities is staggering. Unfortunately, the generation that has been the most frantic in trying to live up to that pressure is usually the same one that does not have the funds to sustain it past their social media accounts. Maybe you’re trying to break into the world of Instagram influencing, naturally, you’re tempted to purchase from one of the hottest brands of the moment, keep the tags on, take an amazing photo, post it and get a ton of interest and likes and return the item as if you never wore it.

No harm is done, right?

Wrong.

Research has found that almost a third of stores in the UK alone have seen a notable increase in serial returns that can cost the online retail market billions every year.

‘Wardrobing’ is now causing a significant amount of that. For a lot of retailers, a single return means they will make a loss on that item. Over the course of a financial year that can add up to potentially 13% of online businesses’ profits. It’s not difficult to see how specialist online retailers can easily fall into hardship due to the crippling influx of return costs.

Online retailers are starting to take action, looking out for unusual patterns in returns activity. Online fashion giant, ASOS, has updated its return policy, extending the return period from 28 to 45 days. This may seem like a counter-intuitive move. They’ve always had the 28-day policy, now however if you choose to return an item within the 29–45 days period you will receive store credit. They have also reworded their policy stating ‘…We also need to make sure our free returns remain sustainable for us and the environment, so if we notice an unusual pattern, we might investigate and take action.’ Taking action could mean deactivating an account or being added to their blacklist of ‘serial returners’ which would block access to the site altogether.

There are now also multiple options for tagging your clothing items. Tags which can be easily removed if you want to wear and keep the item, but are conspicuously placed and are required to still be attached if you want to return the item. Ideally, the placement of the tag on the garment would deter shoppers from being able to wear the garment if the tag cannot be removed.

A lot of smaller businesses will offer store credit only for returns. Unless the customer can prove the item was faulty upon purchasing, in which case they should be refunded. However, offering store credit keeps the customer wearing or using an item from your store, which hopefully encourages repeat business, and costs the retailer less overall.

Hopefully, this ‘wardrobing’ crackdown we are witnessing will expand further until it is inevitably ‘the norm’.

One of the most important facets of maintaining a positive customer experience is how your store handles returns. 

6 Strategies for Increasing Customer Retention Through Returns

Returns can be a great opportunity to increase customer retention and loyalty by delivering a positive customer experience. 

Here are some strategies for increasing customer retention through the returns process.

1. Make Returns Easy

Make sure your returns process is simple and easy to navigate. No one wants to spend hours trying to figure out how to return something. The more complicated the process, the more likely your customers are to give up and never come back.

When your eCommerce store has a straightforward and simple returns process, customers are more likely to shop with you again. How do you simplify the returns process? Automating the returns process as much as possible can make a big difference. 

Use a returns management system like ReturnGO that enables customers to initiate a return through a self-service return portal and automatically generate a return shipping label. This way, they can request a return without having to contact customer service and wait for a response.

By making returns a stress-free experience for your customers, you increase the likelihood that they’ll return to your store in the future. They’ll remember the convenient experience they had returning items to your store, which helps with building customer retention and loyalty.

2. Communicate Clearly Throughout the Return Process

Communication is key to keeping your customers happy and informed. Make sure your customers understand exactly how to return an item and are kept up to date on the status of their return request.

Provide your customers with clear instructions on how to return products, as well as a clear timeline of when they can expect to receive their refund or replacement product. 

Once the return has been requested, keep your customer updated on the status of their return shipment and refund. Send post-purchase emails to keep customers in the loop about their return throughout the entire return process.

By communicating clearly throughout the returns process, you can reduce hassle and frustration and boost customer satisfaction and retention.

3. Personalize the Return Experience

One of the most underrated strategies you can use to increase customer retention is to personalize the returns process. 

The key to truly connecting with customers and creating loyalty is to provide a personalized experience. When customers feel that their returns process is tailored to them, they are more likely to return to your store for future purchases. 

In fact, 80% of customers are more likely to make a purchase when provided with a personalized experience.

Take the time to understand your customers’ individual needs and preferences, and personalize the returns process accordingly. For example, if a customer is returning an item because it didn’t fit well, you could offer them a discount on a replacement item that better fits their size. 

Utilize tools like live chat and customer feedback surveys to better understand what makes customers feel valued, and tailor the returns process to the individual customer to increase customer retention.

Making the effort to personalize the returns process shows your customers that you care about their individual needs and are willing to go the extra mile to ensure their satisfaction and keep them coming back.

4. Encourage Exchanges Over Refunds

A highly effective strategy to increase customer retention is to encourage exchanges rather than refunds. 

The idea is to offer customers to exchange for a similar product instead of getting a refund.

Exchanges can be a great way to keep customers happy and loyal to your store, as it keeps them happy by providing them with a product that better suits their needs.

It’s important to make sure that your customers are aware of your exchange policy and how it works. Make sure to clearly communicate the eligibility rules, such as the items that can be exchanged, the time limit, and any other conditions that may apply.

You can even offer incentives such as special discounts on the new product when they make an exchange.

When customers have a positive exchange experience, they’ll be more likely to turn into repeat customers.

5. Analyze Returns Data

Collecting and analyzing returns data is an essential part of ensuring customer retention through returns. 

ReturnGO helps you automatically collect and analyze your returns data and gain actionable insights into your products and return process so you can improve your store and the customer experience.

Track returns data such as return reasons, customer buying patterns, and product return rates.

Analyzing your returns can give you valuable insights that can help you boost customer retention. 

For instance, it can help you identify if customers are returning items due to sizing issues or because of misleading product descriptions. With this data, you can then take the necessary steps to address issues and improve the customer experience, helping you to increase customer retention and build long-term customer relationships.

6. Provide Fast Refunds

Providing fast refunds will make your customers trust you more, making them more likely to buy from you again.

52% of customers say they would spend more if they knew they would receive a refund quickly. In fact, customers spend an average of 23% more when offered faster refunds.

If the returns process is too long and complicated, customers may give up and keep the unwanted items, and simply not buy from your store again. 

Instant refunds are a great way to speed up the returns process. Instant refund providers such as Refundid enable you to refund customers immediately after a return request is made.

Communicate clearly to your customers when to expect to receive the refund. Getting a refund as quickly as possible will improve the customer experience and make them more likely to come back to buy from you again.

What is Customer Retention Rate?

Customer retention rate is the percentage of customers who continue to buy from your store after a certain timeframe (month, year, etc). By tracking this metric, you can identify what keeps customers loyal to your store and how to improve the customer experience.

To calculate your customer retention rate, subtract the number of new customers you acquired within the timeframe from the total number of customers you have at the end of the timeframe. Divide that by the number of customers you started the timeframe with, and multiply by 100 to get the percentage.

Retain Customers Through Returns

Customer retention should be a priority for eCommerce stores looking to build a loyal customer base and maintain a competitive edge. 

Returns can be a great opportunity to increase customer retention and loyalty by delivering a positive customer experience. By implementing the strategies discussed above, you can fulfill your customers’ expectations and keep them coming back to buy from your store again and again.