Reduce holiday returns: 5 actionable strategies for e-Commerce success
Product returns are something your e-Commerce business will always struggle with—more so when it’s the holiday season.
In fact, January is the month that sees the highest amount of returns, making it a stressful time for e-Commerce brands.
And if you don’t have a strategy in place to reduce holiday returns, you’ll find yourself in the midst of many tough situations and unhappy customers.
Also, in the heat of the situation, you don’t have a choice but to allocate more resources to process the returns. Instead, you should actually be finding alternative resolutions that save your business time and money and those that work for the customer.
So, to help you stay prepared for the holiday season ahead, here are 5 tried and tested holiday season return strategies. Read ahead!
Why is it important to reduce holiday returns?
Every product that is returned loses up to 30% of its original value. Why? Because of expenses incurred in the e-Commerce management of returns. From the shipping and transportation to the manpower it takes to process and restock the items, it all adds up and takes a toll on your business.
This is, of course, a result of having liberal return policies. But having those also helps you build customer satisfaction and trust.
So, where should we draw the line? Here are
5 actionable strategies to help you minimise product returns
1. Promote exchanges Or store credit
Returning the products customers receive as gifts can be pretty disappointing. Therefore, it makes more sense to offer them an exchange on their product of equal value or store credit to provide them with a satisfactory replacement while saving yourself the profits you made on the original purchase.
However, the costs associated with shipping the exchange product and the labour will still apply. But, at the end of the day, it will provide a better customer experience and keep your bottom line protected.
Truth be told, returns are an inherent part of the retail and e-Commerce business, and you can’t fully eliminate them. But through thoughtful e-Commerce return management, you can reduce holiday returns and keep your customers feeling satisfied and valued.
2. Improve your customer service
More often than not, it’s the customer’s inability to understand the product or get it working that leads to its return. If your customer support team isn’t easily reachable during this time to help, the likelihood of a return increases.
So, make sure your support team is accessible via phone, email, and live chat. Moreover, your executives should also be adequately trained to handle any issue that your customers throw at them.
Over time, this establishes your reputation as a provider of high-quality, responsive customer service.
Also Read: ERP vs WMS: which inventory platform is better for your business?
3. Set restrictions for habitual returners
Did you know, 58% of customers buy more products than they intend to keep? Also known as ‘Bracketing,’ it’s common for customers to buy products and try them for once, or send them back because they wish to try a new colour or size.
Whatever the reason may be, it can cost your company a lot of money in the long run. You can stay one step ahead by preparing your team to flag such chronic returners.
If you see a pattern emerge among a group of consumers, you can establish restrictions for these specific shoppers, or even temporarily ban them from purchasing.
Return policy optimisation like this helps you save a lot of money in the long run and improve your bottom line.
4. Extend your return window
If you have a slim return window, it helps if you remove the sense of urgency around returns during holiday seasons.
After all, they won’t be storming your online store the next day from Christmas to return or exchange unwanted gifts.
Take advantage of this by extending your return policy to meet your customers’ expectations and remove that expediency.
Whether the extension is a permanent fixture or a temporary holiday perk is secondary. The main thing is, that it will contribute to your brand and help you build greater customer loyalty.
5. Maintain platform hygiene
There are also simpler steps you can take to reduce holiday returns, the first of which is providing accurate product descriptions. For instance, if yours is a fashion brand, highlight the colour options, care instructions, and materials/fabrics in the descriptions.
Next, capture high-quality photos and videos. Blurry images can deter shoppers and increase return rates if the product received differs from the online photo. Ensure each product has clear images from various angles, and consider including videos to demonstrate the product.
Lastly, depending on the manufacturer, sizing can vary greatly. So, include a detailed size chart that will help your customers determine the correct size, buy the right product, and reduce holiday returns.
Improve your e-Commerce return management with Ordazzle
Another way to reduce holiday returns is through thorough analysis of customer data.
For instance, if your product is getting returned due to delivery delays and extended shipping times, you can optimise your fulfilment processes by connecting with other carriers to provide faster delivery.
Also, if your products are getting delivered damaged, invest in better packaging, collaborate with better logistics partners, and insure your products.
Of course, to use data effectively, you need the right logistics management system by your side. And, Ordazzle can fulfill that responsibility exceptionally well.
With all your data unified on a single source of truth, you can easily keep track of customer behaviour, supply chain status, and logistical nodes to control the fulfilment adequately and ensure minimal returns.
An end-to-end e-Commerce data management system like Ordazzle will also help you analyse customer behaviour and optimise your return policy.
Such a platform will ensure that your brand pages on marketplaces and online stores have all the right information customers need and the right processes to handle returns efficiently by integrating key mechanisms through a single platform.
Contact us today to know more!