88% of buyers worldwide now expect the free online returns that were first made popular by major contenders like Amazon. Unfortunately, even if returns are free for the consumer, they’re far from free to manage. As well as needing to pay for return shipping, companies have to front the costs of reprocessing, package disposal, and a whole lot besides.
Of course, scrapping free shipping altogether simply isn’t an option, but there are ways to reduce the financial burden of this promotional offering, and we’re going to consider them here.
# 1 – Focus on More Feasible Order Fulfillment
If you’re handling order fulfillment in-house, then the costs of returns could quickly prove crippling. Not only will you face the fees already discussed, but you’ll also lose members of your team to this task for unpredictable periods during which you won’t earn a thing. That’s no way to run a business, but there is a better option.
3PL fulfillment services are a generally great choice for streamlining everything from e-commerce storage to delivery, but they’re also an absolute Godsend when it comes to online returns. That’s because the vast majority of 3PL providers offer return management services that will see them handling quick returns and even repackaging products for resale. All for one set fee that you can budget for in advance, never mind how many returns you get each month.
# 2 – Learn From Returns Analytics
While free returns might seem like they encourage customers to send their goods back, this is something you’ll want to avoid wherever possible. Adding a return fee would help, but it would also annoy a lot of people. Using analytics to identify and remove the main reasons for returns is a far better option.
Considering things like the reasons given for returns, or the customer groups that most often return items, can help you to make deep-seated improvements that reduce returns frequency and make your services/products better. For example, if a large volume of clothing returns happen because of poor sizing, adding specific size measurements to your site could be a far more effective solution than what you’re dealing with as it stands!
# 3 – Let Customers Test Before Buying
Consumers are increasingly using the returns policies of online stores to try before they commit. Millennial shoppers, in particular, may place bulk orders with the intention of only keeping one or two things. And why wouldn’t they, when returns are free?
Unfortunately, while brands like ASOS are now blacklisting buyers with high return frequencies, most smaller businesses can’t afford to make such a bold move. But, you can reduce this ‘buy it, try it’ mentality by giving your consumers online tools that help them try before they buy. Even just giving measurements will help with this, but tools like online changing rooms that use webcams or photos are especially useful for showing consumers what they can expect from your products, long before they’ve wasted your money to find out.
Ease the burn of free returns by putting these top tips into action for your e-commerce store.
