But keep in mind that most returns are not the result of serial returns behavior. Many are simply cases of misaligned expectations.
As many of us know, it can be extremely difficult to shop online without the tactile experiences that come with in-store shopping.
This is particularly the case in fashion and apparel, as well as other verticals that are heavily reliant on aspects such as fit and feel.
Above, we have a breakdown of returns by return reason for a women's fashion brand. It's clear to see that sizing issues - manifested in “Too Big" and “Too Small" - are responsible for the bulk of their returns.
Unfortunately, new shoppers are often impacted by returns more than repeat shoppers. This effect can be demonstrated by looking at the return rate of each type of shopper.
For this merchant, new shoppers have a return rate of over 5% more than that of repeat shoppers. This not only negates the effort to convert these customers, but can also jeopardize the future customer relationship.
Regardless, ecommerce retailers need a process to handle the logistical and customer-facing challenges that come with them.
You need the abilities to effectively process returns and ease the customer experience. You also want to collect powerful insights to prevent returns in the future.
Returns management comprises all of the policies, rules, workflows, and processes that build a return for a shopper as well as the systems used by the retailer to receive, grade, and complete the return.
As we mentioned above, the returns workflow is often full of manual steps.
Smart automation empowers merchants to dramatically streamline their process by mechanizing the more repetitive and labor-intensive while preserving visibility and control.
With return rates typically falling between 15% and 30% in ecommerce, it's no surprise that many retailers want to reduce their return rate.
Often, the greatest challenge is transforming data into actionable insights. It takes more than data; you need a structured analytical process to identify opportunities for improvement and dive in to extract insights.
Insights in hand, you're now equipped to make changes with the goal of reducing your return rate. It's important to remember here that a return indicates that expectation did not match reality.
So, in order to prevent returns, we can either focus our attention on the expectation of the product, or the reality of the product.
By reducing your return rate, you prevent returns before they happen. This allows you to retain sales revenue, prevent shipping and processing costs, and avoid a volatile experience in the customer relationship.
Returns management that works
ReturnLogic knows that operations are foundational to the customer experience. A better returns process means happier shoppers.
We design automations that streamline the most labor-intensive parts of the process, while allowing you to maintain visibility and control over your returns workflow.
Returns data is pivotal to maximizing your profit. You can reduce your returns, saving revenue and preventing a delicate event in the customer relationship.