How to Tackle the Higher Ratio of Returns and Exchanges in eCommerce?

Updated 10 November 2022

eCommerce is gradually expanding with time. Now, more consumers are exploring it and getting benefited with advantages and the convenience of it. 

It is allowing long-distance consumers to get delivered their ordered items to their doorstep. Hence, a user can check their required items online and can conveniently order them via a mobile app or website. 

Due to several advantages of eCommerce business as well as the shift in the userbase, now retail users also started exploring eCommerce. But it comes with another pain which is the returns and the exchanges. 

Because the biggest disadvantage of eCommerce is the absence of the look and feel of the product. And in the case of fashion products and accessories the right fit. 

Due to that, online retailers are facing a large number of returns and exchanges. And it comes with a cost as well. Which lowers their profitability. 

Why do People Return and Exchange Products?

Products exchange and return are normal in eCommerce. For a customer, there are various reasons to return and exchange products.

 Because some customers might have chosen the incorrect size, color, or style. Some people may have changed their minds after seeing the product. Additionally, some people might have gotten damaged items.

If the ratio of return and exchange is increasing daily, it could create an unfavorable situation for eCommerce sellers.

Returns and Exchanges in eCommerce

It impacts online sellers’ business, such as reducing profit margins, decreasing conversion ratio, and ultimately sellers could lose their business.

According to Invesp, online purchases are returned in 30% of cases, Furthermore, 92% of consumers surveyed said they would be more likely to shop with a company again if the product return process was easy and hassle-free.

While 79% of shoppers want free return shipping. Data suggests that to keep customers happy and coming back to the purchase, businesses need to focus on making their return policy as simple and convenient as possible.

More and more retailers are offering free return shipping these days. According to recent data, Before buying 7 % of buyers check the returns policy, and 62% of buyers prefer online shopping if any option is available to return items in-store.

Most customers want to easy return policy, shoppers value convenience when it comes to returns, so if you’re not already offering free shipping on returns, it might be something to consider.

Why do the Majority of Returns and Exchanges happen After Sale Season?

Sale seasons are great for sellers because the demand for products is increasing. This time is a chance for the seller to earn a lot of money. However, along with that, the chances of returns and exchanges are also increased. Buyers buy those things that are not needed. 

They are more likely to purchase during the sale season due to the discounts. Most shoppers think that they have the option of returning and exchanging. That is why most eCommerce sellers receive returns and exchanges after season sales.

How did Covid impact eCommerce returns?

Most courier companies saw a 20 percent decrease rate of returns during starting phase of the pandemic. The reason for this is that everybody wanted to protect themselves from covid-19. 

Although most people disliked interacting with others, it’s important to take precautions to keep everyone safe. Many consumers wanted to avoid the stress of returns during the pandemic, as many people were hesitant to go outside. 

Returns and Exchanges in eCommerce

However, understanding the pandemic situation. Every eCommerce seller was increasing their returns and exchange time duration. And some eCommerce sellers also offered more flexibility enabling the in-store return of online orders once they have been open. And as well as most of the companies collaborated with the courier to provide door-to-door pickup facilities.

Strategy to Manage Exchange and Returns in Our eCommerce.

If you are running your eCommerce business, then you should expect a certain number of returns. We cannot avoid this. But yes, we can aim for fewer returns by following a return strategy. 

Returns and Exchanges in eCommerce

Improve Product Quality

Customers never want to compromise on the quality of the product. Whenever customers purchase from an eCommerce store, they are unable to touch and feel the products at that time so they are unable to predict the quality. So improving product quality is important to prevent the return of items or exchanges from the customers’ end.

Maintain Proper Product Information

In an online business, maintaining product information is important for every expectation. Being a customer before making a purchase, We check the correct information about the product specification, quality, and color. 

So to avoid returns and exchanges, this process is beneficial. Products with the correct information can create a positive impact on your e-commerce. As a result, you will get a positive review.

Use Virtual Try-On and Size Chart Tools

Virtual Try-On- With virtual try-on, your customers can try the product in a virtual environment. To use this feature the customer simply needs to upload an image via a camera or file browser.

Once the customer’s face is detected, they can choose a specific variation or size for their product. These tools allow customers to virtually try on products before making a purchase. It could reduce the chances of returning or exchanging the item.

Size Chart- If you are dealing in fashion and apparel then this size chart tool is helpful for your customers. Before making a purchase, customers can check their size according to their preferences. It helps to prevent any issues with incorrect sizes.

Prepare a transparent Return Policy

In e-commerce, a return policy allows customers to shop confidently because they know that the items can be returned with no questions asked.

 As a seller, our priority should be customers. So before making any returns policy make sure it should not complex. Clarify your refund policy and the timing of the payment refund. 

Take Customer’s Feedback

Customer feedback is key for eCommerce to understand what potential and actual customers want and need. By listening to customer feedback, the seller can make necessary changes to improve the customer experience which will, in turn, lead to more sales.

Remark At End

As eCommerce sellers, we should always focus on customer needs. if you want to increase your online sales, it an important to maintain this strategy.

Because before making a purchase, every customer wants their product as per their expectation. And if you maintain this process it could lead to a successful eCommerce business. It’s always important to take customer feedback and reviews. This process could help to increase your revenue.

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