Top Reasons Why Consumers Return Products
The infographic from Loop's research sheds light on common reasons why customers return their purchases.
- A significant 81% of products are returned due to damage or defects, suggesting a need for better quality control.
- Fit issues cause 75% of returns, highlighting the importance of an accurate size chart.
- Description inaccuracies account for 56% of dissatisfaction, indicating a need for clearer product information.
- Additionally, 33% of customers simply change their minds.
- And 14% returned extra items or sizes they ordered to compare.
- Lastly, 11% of returns are due to late deliveries, highlighting the value of reliable shipping.
This information is crucial for retailers aiming to reduce returns and improve customer experience.
With the right strategies in place, it's possible to turn the challenge of returns into an opportunity for growth and improvement. Let's move on to these strategies!
12 Ways to Reduce Ecommerce Returns with Real-World Examples
1. Enhance Product Visuals and Descriptions for Clarity
Start by ensuring that all product listings have accurate, detailed descriptions and high-quality images from various angles. This foundational step helps customers make informed decisions right from the start.
- Capture Multiple Angles
- Show the Product in Use
- Zoom and Detail Shots
- Comprehensive Descriptions
Write descriptions that cover all aspects of the product, such as:
🟡 Key Features: Highlight the main benefits and what sets the product apart.
🟡 Specifications: Provide size, material, and technical details.
🟡 Use and Care: Offer guidance on how to use and maintain the product.
🟡 Unique Selling Points: Mention any special features or exclusive qualities.
🟡 Care Instructions: Explain how to clean and care for the product to ensure its longevity.
◼️ Here's a great example from Bellroy of using product images and product descriptions perfectly to reduce product returns:
Bellroy included 10 different product images and even supported this part by adding a video. In addition, although the explanations on Bellroy's product page are quite sufficient, it has added a "learn more" tab for those who need more information on this subject and directed its visitors to detailed pages.
When you scroll down on the product page, you are greeted with a section where you can see all the features:
2. Provide Detailed Size Guides to Reduce Fit-Related Returns
Next, offer comprehensive size charts and fit prediction tools to help customers choose the correct size, minimizing returns due to sizing issues.
Since 75% of returns are due to the item not fitting properly, this is likely the most crucial factor to consider.
To prepare a detailed size guide effectively to lower ecommerce returns:
- Take Accurate Measurements: Measure each product's key dimensions. For clothes, include chest, waist, and length. For shoes, measure the insole length and width.
- Create Clear Size Charts: Design size charts that list sizes next to the corresponding measurements. Make sure they are easy to read and understand.
- Show How to Measure: Provide simple illustrations or photos that show how customers should measure themselves or the item they’re measuring for.
- Use Model Sizes as a Reference: Display what size the model is wearing and their measurements for a better real-life size reference.
- Update Regularly: Keep your size guide current with feedback from customer reviews and returns data.
◼️Here's a great example from Thinx of adding detailed size charts to reduce returns:
📌If you're a Shopify merchant, you might find this blog helpful: How to Add a Size Chart in Shopify with 5 Different Methods
3. Utilize User-Generated Content (UGC) to Set Accurate Expectations
Using photos, videos, and comments from customers on your product pages helps other shoppers know what to expect. When customers see real people using your products, they can better understand what they're buying. This helps reduce returns.
In 2023, according to Power Reviews, 69% of consumers said they were less likely to send something back if they saw customer videos and photos first.
Ratings and reviews are also important; they help customers learn about the good and the not-so-good before buying.
Also, having a section where customers can ask and answer questions about your products is really helpful. If people can see these Q&As, they feel more sure about what they're getting.
Here’s what you can do:
- Show Customer Photos and Videos: Put real customer photos and videos on your product pages.
- Make Adding Reviews Easy: Let customers easily write and read reviews.
- Have a Q&A Section: Put a Q&A section on your product pages so customers can ask and see questions and answers.
- Utilize UGC Platforms: These platforms can provide tools and services to help you collect, manage, and display UGC effectively and authentically.
◼️ Here is a real example from Rhode:
4. Implement 3D and Augmented Reality (AR) Features for a Realistic Product View
Implementing 3D and Augmented Reality (AR) features on your product page can significantly enhance customer experience and help reduce returns by accurately representing your products.
Here's how to implement these features:
- Select an AR Service: Choose a service like Shopify AR or WooCommerce with built-in AR capabilities or a standalone AR solution like Augment.
- Create 3D Models: Use 3D modeling software or hire a professional to create accurate 3D models of your products.
- Integrate with Your Website: Add the AR feature to your product pages. Most AR platforms will provide a plugin or an API for seamless integration.
◼️ Here's an example from NYX: It shows an effective AR feature with a 'Virtual Try-On' button, inviting users to see how makeup products would look on them directly from the product page.
◼️ Here's an example from Moscot: The website showcases a virtual try-on feature powered by Perfect Corp technology. This tool allows customers to see how eyewear will look on their faces using their device's camera to create an AR experience.
5. Optimize Order Fulfillment Accuracy to Avoid Wrong Deliveries
Ensuring the right product reaches the customer is critical. Implement systems and training to reduce fulfillment errors.
To optimize order fulfillment accuracy and reduce the likelihood of returns:
- Implement a Barcode System: Use barcode scanning at multiple stages of the fulfillment process to ensure the correct item is being processed.
- Use Fulfillment Software: Integrate software like ShipBob or Fulfillment by Amazon (FBA) that automates order processing and reduces manual errors.
- Quality Checks: Implement a two-person check system where one packs and another verifies the order against the packing slip.
- Real-Time Inventory Updates: Keep your stock levels updated in real time to prevent overselling and sending the wrong items.
- Packaging Checklists: Create simple checklists for packers to follow that match the items with the order invoice.
About Amazon explains some of the strategies used by major company Amazon to improve order fulfillment accuracy:
- They use a barcode scanning system to process and ship the correct item.
- Automated robotics are utilized for efficient order handling.
- Real-time inventory tracking ensures consistent item availability.
- Machine learning integration helps identify and locate items in the fulfillment centers automatically.
- Quality checks are carried out throughout the process.
- These checks include both physical and automated verifications to confirm accuracy before shipping.
6. Set Realistic Delivery Expectations and Communicate Transparently
Setting realistic delivery expectations is key because, as noted by WeSupply, over 85% of customers expect to see estimated delivery dates at checkout. To implement this:
- Provide transparent tracking: You can offer accurate and transparent tracking systems that allow customers to monitor the progress of their orders with great apps like AfterShip or ShipStation.
- Use your website to explain how orders are handled: You can include this from when orders are placed to when they are expected to arrive.
- Automate tracking updates: Also, set up an automatic system to send customers tracking information via email or SMS once their order is shipped, allowing them to monitor the delivery status.
◼️ Cult Beauty, for example, provides customers with accessible dates by placing a “track order” option in their footer and order tracking.
7. Offer a Clear and Fair Return Policy to Guide Customers
Reducing product return rates starts with a transparent and customer-friendly return policy. Here's a quick steps on how to craft such a policy and communicate it effectively to your customers:
- Specify Return Window: State the time frame for eligible returns, like "30 days post-purchase."
- List Return Conditions: Clarify acceptable return states, such as "items must be new, unused, and in original packaging."
- Simplify Return Steps: Provide an easy-to-follow return process, for instance, "Fill out the online return form and print the prepaid mailing label."
- Offer Multiple Return Options: Include various return methods, e.g., "In-store, mail-in, or local drop-off points."
- Detail Refund Process: Explain refund methods and timelines, like "Refunds processed within 5-7 business days to the original payment method."
- Clarify Exceptions: Note any special cases, such as "Sale items eligible only for store credit."
- Accessibility of Policy: Ensure the return policy is easy to find, e.g., "Link in website footer and included in packaging."
8. Encourage Product Exchanges Over Returns
Exchanges are more valuable than refunds because they indicate a customer's willingness to continue their relationship with your brand, potentially increasing lifetime value (LTV).
Now, let's move with actionable steps to achieve this:
- Promote Free Shipping for Exchanges: A case study with a footwaer brand Loop worked with showed that when a brand implemented free shipping for exchanges and a fee for refunds, exchange rates increased by 25.4%, while refund rates fell by 28%.
- Extend the Return Window for Exchanges: According to Loop, with 80% of returns happening within the first 14 days, extending the exchange window encourages customers to find a suitable alternative rather than ending the transaction.
- Offer Bonus Credit for Exchanges: For example providing $10 in bonus credit for exchanges compels customers to reconsider opting for a refund, as they would miss out on free additional value.
9. Use Sustainable Packaging
According to Loop, sustainable return options significantly influence purchasing decisions, with 88% of consumers more inclined to shop from retailers offering eco-friendly return solutions.
◼️ Here is an eco-friendly packaging example from GOODEE to minimize product returns:
10. Create Educational Content for Product Usage and Care
This involves providing customers with the information they need to properly use, maintain, and care for their products, which can increase satisfaction and reduce the likelihood of returns due to misuse or misunderstanding.
Here's how this can be implemented:
- Guides and Manuals: Write detailed guides covering setup, usage, and maintenance. Use simple language and include images or diagrams.
- Video Tutorials: Produce videos demonstrating product setup, features, usage, and care. Ensure high-quality visuals and clear audio.
- Workshops/Webinars: Plan interactive sessions that cover in-depth product usage, care tips, and live Q&A for immediate customer feedback.
◼️ For example, Rare Beauty has placed a “how to use” button on the product page of each of its products, and when you click on it, you are greeted with a short and understandable guide:
11. Combine Real-Time Support During Purchase
Sometimes online shopping can be complex for all of us. We often need direct and quick help, especially when we can't find information in FAQs or product guides. During these times, real-time support isn't just helpful, it's necessary.
- Implement Live Chat Support: LiveChatAI offer robust live chat support service that can be easily integrated into your e-commerce platform.
- Incorporate Social Media Messaging: Facebook Messenger, WhatsApp Business, or Twitter Direct Messages can be used to engage with customers in real-time.
12. Collect Customer Feedback to Identify and Address Common Return Reasons
Reducing product return rates through collecting customer feedback to identify and address common return reasons is essential for improving overall customer satisfaction and retention. Here's how this strategy can be implemented effectively:
- Survey Customers Post-Purchase: Send out surveys to customers after they've made a purchase, asking about their experience with the product and any issues they encountered is a good post-purchase strategy.
- Incorporate Feedback Channels: Provide easily accessible channels for customers to provide feedback, such as feedback forms on your website or contact forms.
- Address Common Issues Proactively: Once common return reasons are identified, take proactive steps to address them.
Wrap Up
To wrap up, we've explored several practical steps to help online stores cut down on returns. From ensuring products match their descriptions with clear photos and details to fitting guides that help shoppers choose the right size, every strategy is about making online shopping more reliable.
It's not just about reducing the number of returns, though. It's about building trust with your customers by making their shopping experience as smooth as possible.
When returns do happen, a straightforward and customer-friendly process can turn a potentially negative experience into a positive one, encouraging customers to shop with you again.
What is the Best Returns Management Tool for Ecommerce?
Dealing with returns can be a complex aspect of running an ecommerce business, but having the right returns management tools can make all the difference in streamlining the process and keeping customers satisfied.
That's why we prepared a list for you to choose the one that suits you:
For Shopify Stores:
- AfterShip: It offers seamless integration and customizable return workflows.
For Amazon Sellers:
- SellerCloud: Ideal for managing returns on Amazon, providing comprehensive inventory and order management features.
For WooCommerce Websites:
- WooCommerce Returns and Warranty Requests: Offers straightforward returns management within the WooCommerce platform.
For eBay Sellers:
- 3Dsellers: Integrates with eBay to streamline returns processing and automate communication with buyers.
For Multi-Channel Sellers:
- ShipStation: Suitable for managing returns across multiple sales channels, offering centralized order processing and shipping label generation.
For In-Store Returns:
- Happy Returns: Provides a streamlined return process for online purchases, including in-person return options at select physical locations.
For Sustainable Brands:
- Loop: Focuses on reducing waste by offering a circular returns process, suitable for sustainable brands looking to minimize environmental impact.
Frequently Asked Questions
How to Calculate the Product Return Rate?
To calculate your ecommerce return rate, divide the number of returned items by the total number of items sold within a specific period, then multiply by 100 to get a percentage.
For example, if you sold 1,000 items and 50 were returned, your return rate would be (50/1000) * 100 = 5%.
What is a Good Product Return Rate in Ecommerce?
In ecommerce, a good product return rate typically falls within the range of 5% to 10%. This rate is considered acceptable for most online retailers and is often used as a benchmark for assessing return performance.
However, it's essential to note that return rates can vary depending on factors such as industry, product category, and business model.
How to Prevent Return Fraud?
Preventing return fraud is crucial for maintaining the integrity of your ecommerce business and protecting your bottom line. Here are some strategies to help prevent return fraud:
- Set a clear return policy so customers know what's acceptable.
- Always check IDs or proof of purchase to confirm who's returning.
- Give out return authorization numbers to track and approve returns.
- Inspect returns closely to catch any signs of tampering or damage.
- Keep an eye out for unusual return patterns, like lots of high-value returns.
- Consider using fraud detection tools to spot suspicious returns.
- Make sure your team knows how to spot and handle potential fraud.
- Use secure payment methods to protect against fraudulent returns.
