Why Customer Returns Are Increasing And How To Reduce It

Introduction

For many stores, dealing with returns can be a bit of a headache, especially when they have to foot the bill for return shipping. However, despite the hassle, returns aren’t as damaging as chargebacks, which can dent a store’s finances.

Implementing a customer-friendly return policy is a strategic move for stores. When customers feel confident about returning items and getting refunds without any fuss, they’re likely to shop again with your store.

So, now let’s explore reasons why customer returns are on the rise, the impact of customer returns, and strategies to minimize it.

Why Do Customers Return Their Purchases?

Customers occasionally return items because they’re unsatisfied with them, and if they believe the merchant deceived them, this might result in refunds and returns. Determining the reasons behind dissatisfied consumers’ behavior might help you address issues and maintain their loyalty. Here are a few common reasons for returns of purchases:

1. Placed an incorrect or oversized order: Customers may purchase an item and then discover it fits incorrectly or isn’t what they require. Retailers may assist by providing sizing guidelines and information on unambiguous product specifications.

2. The merchant shipped the incorrect item or size: Errors sometimes occur. Customers are likely to return an item if they receive the incorrect item or size since they expect to receive what they bought. Before delivery, merchants must verify orders again to prevent these mistakes.

3. Product malfunctioned or damaged: It makes sense that buyers want to return a product if it comes damaged or malfunctions. To guard against damage during transit, merchants should verify their items before shipping and utilize secure packing.

4. It arrived too late: Some purchases are time-sensitive. If a product takes too long to arrive, customers might not need it anymore. Merchants should aim for prompt shipping and provide tracking information to keep customers informed.

5. Didn’t need it anymore: Sometimes, customers change their minds or find an alternative solution before their order arrives. 

6. Impulsive purchase: From time to time, people make quick decisions that they subsequently regret. To manage these situations and preserve good customer relations, merchants should have accommodating return policies.

7. Did not match the advertisement: Customers can feel duped if a product appears different from what was advertised. Sellers need to provide accurate photos and descriptions to set realistic expectations.

8. Didn’t live up to expectations: A product could suit the consumer’s demands even when exactly as described. Personal tastes and other subjective factors might be the root of this. To minimize surprises, sellers should try to be as open and honest as possible while discussing their items.

9. Unwanted gift: Gifts may not always hit the mark. Since the recipient didn’t choose the item, they might want to return it. Merchants should have hassle-free return processes for gifts.

10. Found a better deal elsewhere: Buyers may decide to return their purchase to save money if they discover the identical item being offered for less somewhere else. Price matching guarantees can help retailers stay competitive.

11. Fraudulent purchases: One of the main causes of refunds is fraudulent transactions. Some consumers purchase products with no plans to retain them; instead, they frequently use them briefly or try to return them while keeping the item. Businesses incur higher expenditures and return rates due to this kind of activity. Fraudulent purchases can abuse the returns policy of online retailers, particularly those made using stolen credit cards. 

Impact of Return on Businesses

Returns can affect things for sellers. Here’s how they return on businesses:

• Returns hit sellers financially, causing lost sales and extra expenses for refurbishing items.
• Dealing with returns requires additional spending on customer service, including hiring and training staff.
• Returns can lower a seller’s visibility on a platform like Amazon, making it harder to attract buyers.
• Excessive returns may lead to warnings on product listings, scaring off potential customers.
• Returns often result in negative reviews, damaging a seller’s reputation and deterring future buyers.
• Sellers risk account suspension or closure if return rates are too high.
• Returns exacerbate environmental problems since unsaleable goods are frequently thrown away or burned, leading to pollution and landfill trash.

How to Reduce Returns?

Businesses can generate income while increasing customer satisfaction and loyalty by employing these proactive strategies that can help reduce returns:

1. Improved Product Details: Make sure your product descriptions are clear and concise and contain excellent images that faithfully represent what customers will receive.
2. Guidelines for Size: Help clients choose the correct size for clothing or other things by providing assistance on your website. Display reviews according to size and compile comments using charts.
3. Quality Control: Check products thoroughly before sending them out to customers. Also, strong and protective packaging should be used, especially for delicate items.
4. Faster Shipping: Improve your processes for handling orders and choose reliable delivery services. Keep customers updated on the status of their orders and offer tracking options.
5. Price Match: Promise to match prices from competitors to avoid customers returning items just because they found a better deal elsewhere.
6. Teach Customers: Provide clear instructions or videos to help customers understand how to use your products properly.
7. Stop Abuse: Watch for customers who return items frequently without good reason. Consider blocking them from making future purchases if they’re abusing your return policy.
8. Anti-Fraud: Use security filters and multi-factor authentication to protect against fraudulent returns. Only refund to the original payment method or offer store credit for card purchases

Conclusion

A growing number of customers are returning things they have purchased, which can cause problems for companies. However, there are strategies to reduce returns. Enhancing product descriptions, giving hassle-free return procedures, and increasing customer service are ways that firms may lower the frequency of returns while maintaining customer satisfaction. It all comes down to making everyone’s buying experience more enjoyable and seamless.