The vexed topic of returns remains a persistent challenge facing online retailers. Approximately 286 million returns occur annually in online retail, with rates varying significantly by product category. But returns are not inevitable -- there are proven strategies to get them under control.
How to Get Returns Under Control
Several strategies can meaningfully reduce return rates while improving the customer experience:
1. Product Presentation
Meaningful, realistic product images and descriptions reduce return likelihood. When customers know exactly what they are buying, the gap between expectation and reality narrows significantly.
2. Consultation Tools
Size recommendation systems using customer data -- height, weight, age -- help customers select appropriate sizes. This is especially impactful in fashion, where fit-related returns account for a large share of total returns.
3. Communication Strategy
Individualized and seamless shipping communications influence whether customers complete or abandon returns. Effective shipping communication represents an underestimated factor in return management -- proactive updates can reduce buyer's remorse and build excitement for the incoming order.
Returns by the Numbers
The infographic covers the essential dimensions of e-commerce returns:
- Primary reasons customers initiate returns
- Cost drivers associated with processing returns
- Return rates across different product categories
- Handling procedures for returned items
- Processing of non-resellable merchandise
Returns are an inherent part of e-commerce, but they do not have to be an uncontrolled cost center. With better product presentation, smarter sizing tools, and proactive shipping communication, retailers can significantly reduce return rates while improving the overall customer experience.
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