If you’re a seller, the holiday season can be a very stressful time. Whether you have an online store or a physical store, or a mix of both, a return policy is inevitable.
The reasoning behind the word "black" on Black Friday is to suggest that this is the first time the store owners are profitable this year. It’s about to get even busier for sellers with Small Business Saturday, Cyber Monday, Green Monday, Free Shipping Day and Super Saturday leading into Christmas.
As a seller, you may be thinking right now, how important is a return policy? How should my return policy look? How much revenue will cut into my bottom line? What do customers expect from a return policy? Read below to find the answers to all of these questions, and how you can actually use your return policy to increase sales.
This is the main reason people won’t buy from you
Not having a visible return policy is the biggest turnoff for potential customers. In a recent comScore survey, 82% of respondents said they would complete a purchase if they could return the item to the store or get it shipped free of charge. This is more important to customers than the initial free shipping, delivery date, or mobile experience.
Plus, with e-commerce sales growing rapidly, brick-and-mortar stores are hoping to successfully translate their success to the online world. However, in-store shoppers say the number one reason they don’t shop online is because of the returns process. Despite this, 89% of customers said they would shop again if they had a positive returns experience.
So how do you manage to convince online shoppers that they can return items for free if they want…
You are talking to humans
As important as this is to you as a customer, no one wants to read a return policy. Lines of black text with decimal points and references to practices you've never heard of will make your customers unhappy.
Use clear and concise language, or even better, use the example of Zappos who use a video on how to complete a return.
Customers also don’t have a lot of time to spare and don’t want to hunt around for your policy. So, make it visible on all product pages, checkout page, and in all confirmation emails sent after a purchase.
“The benefits kept cutting into my bottom line”
The mindset of rewards is that they are going to happen. This does not make you a bad businessman, and its inevitability should always be considered when calculating gross profit.
It’s vital not to react or panic when you receive an email, as this can lead to negative feedback on social media or review sites such as Trustpilot. This can seriously affect your reputation as a seller.
Returns increase sales
So, instead of taking it personally, be proactive about your rewards and turn them into positive ones. You should already have a return form in your package, but does it ask the customer to explain what was wrong with the product? Give them options like mistake, didn’t fit, wrong item, not wanted. This way, if a trend is forming, you can stop it.
If you have a multi-channel store, allow customers to return items in your store. That way, they might buy something else while they're there.
As mentioned before, if your returns process is smooth, people will come back. So let them know when you received the goods and when you want a refund. Serial entrepreneur Grant Cardone couldn’t have done it any better…
“Your return policy isn’t enough to keep unhappy customers happy. It’s there to increase sales. Your return policy should result in an increase in sales that is greater than the expense of returns, restocking, and other costs.”
What customers want
Offering in-store returns is important, but offering free online returns is even more important. This is now a given in eCommerce sales, and failing to do so could be the difference between a sale to your competitor.
Customers also want to see reviews, and lots of them! Others consider this important to potential buyers. Reviews will significantly reduce your returns as the details will help customers make the right choice.
For details, a tab appears on the product page showing more in-depth specifications. This way it won't be degraded by the page itself.
Can you show videos of your products? A great example is ASOS, who show a model wearing an item of clothing on every product page.
Maintaining the correct inventory
Since multi-channel selling has become the only option for retailers to increase sales, managing your inventory across all channels may become difficult. In addition to physical stores, you can also sell items on your website, as well as marketplaces like eBay and Amazon.
When customers start returning items, it can be difficult to know what to return, where to return, and how to display your inventory across all channels. Therefore, an inventory management software solution can help you manage your stock and keep your customers happy during the busy holiday season.
Summary of our Return Policy
Display your return policy at checkout, on product pages, and in all emails
Ask them why they want to return the product.
Offer free returns
Give them the option to return their products to help increase sales
Use customer reviews and videos to reduce return rates
Manage inventory across all channels
