How To Increase Your eCommerce Store Sales With Your Return Policy?

May 5, 2021 Written By M-Connect Media

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When you’re thinking about conversion rate optimization, returns aren’t the first thing to pop into your mind. But they should be as returns are an essential part of online business. Whether you believe it or not but, your returns policy directly impacts a sale. According to a study, 80% of shoppers won’t want to shop at your store or in the future if your return policy is a hassle.

eCommerce is a wide market and the rise of eCommerce has made returns more common than ever. ShipBob says 90% of shoppers say they will buy again if the return policy was easy. And research has also shown that more than 60% of customers review a return policy before making a purchase.

The fact is, the cost of a bad return policy can be substantial. However, as a merchant, one of your key challenges is to find the balance between offering a customer-friendly return policy and limiting your exposure to handling costs from a profitability perspective.

Well, many reasons cause all of these returns. Let’s discuss the most common reasons consumers might return a product or service. Since shoppers don’t have the luxury of trying on items to purchasing, they buy blindly knowing a liberal return policy will save them.

  • Product Size:

This could be a major reason why shoppers return a product or service, especially in the clothing industry as they return a product because size may not fit or get extra size. According to a report, 34% of customers send a product return because the size was wrong and not appropriate for them.

  • Product Damage and Defects:

Another reason why shoppers make a return is because of product damage or defects. And even if the product is in good or top condition, a customer may not be impressed with the quality of the product once it arrives at the doorstep.

  • Product Image:

High-quality images are a must when it comes to the conversion process as they play a huge role in impressing customers. Some customers send the product back because of product they got at home is not the same as the product was in the listing or it does in a picture.

  • Product Mis-shipment:

Mistakes are common and happen often but they cost a lot and at a high cost to merchants. Hence, this could be also a reason for product return.

What are the Factors to Keep in Mind When It Comes to Your Return Policy?

A return policy should be friendly to customers and it needs to be lenient enough to motivate visitors to buy, but it needs enough limitations so the customer won’t take benefit of it. No matter what you’ll want a policy that’s transparent and flexible: customers hate hidden costs and will abandon their purchase if they find them.

Remember, for online shoppers a return policy is also their safeguard. A good policy motivates conversions while also focusing on customer loyalty. Customers are more likely to buy from the store again if returns are easy.

If you’re struggling on what those needs are yet, then read on because we are about to juggle you what makes a good return policy great.

1. Take a Look at Your Competitors:

This is essential to note when it comes to making a return policy for your shoppers. You cannot judge what your competitors will do and include in their return policy as it may be good than you. What you can do is to take a look and examine it as it will help you design your return policy.

Make a note of their return policy and see if they are giving free shipping or full refunds as that’s matters a lot in making the customer happy. So, make sure that you have the right policy for your shoppers as it will help you benefit as a whole.

2. Offer Free Returns:

Everyone loves the word free, isn’t it? Just like you as people tend to get things free whether it’s shipping or returns as it makes them happy to make a purchase or buy your products. Many stores are already providing return shipping and no wonder it benefits a lot.

The fact is that online shoppers will review a store’s return policy before making deciding on a purchase. As customers are only likely to make a purchase with this return policy.

You might be wondering as a store owner that it can cost you $x but have you ever thought that the value of a lifetime customer is worth much more than a $x shipping cost. Hence, make sure you offer a free return policy and help your customers to make a purchase.

3. Provide Great Customer Service:

This is important when it comes to business whether it’s eCommerce or others. You need to take care of your customers as they are the asset of your business and no wonder, they are those who make your business. A customer-friendly policy is much important as a part of great customer service as customers appreciate amazing customer service, and leave a review when they’d an awesome experience with your store.

4. Automation works well:

With a rise in eCommerce, automation has picked a new height and no wonder at the top of business needs. In today’s growing time, you can entice customers by providing automated ways to send an automatic message once a product got dispatched to their doorstep. You can also wish them by sending deals message on holiday to remind purchase with discounts and benefits.

Here are few reasons to automate returns:

  • Make it easy for customers to request a refund without contacting customer support
  • Send an email to your customers with a status update

These can be done with the help of an app. There are many applications available in the market with you can do this and no wonder can entice your customers. Also, you can take the help of eCommerce experts to get the best help for your store.

Your store’s return policy must be easy to navigate so visitors are aware of their options. Reinforcing the message throughout the shopping journey gives peace of mind to customers.

Here are a few ways to communicate your policy:

  • Add your policy to the header/footer of your website
  • Outline your policy at the time of checkout
  • If you offer amazing things, promote it with the banner
  • Place checkout and/or add-to-cart button

Wrapping Up:

As you can see, your return policy shouldn’t be overlooked. It is an important part of your business that can help enhance your conversion rate and build customer loyalty especially when you think in terms of lifetime customer value. Hence, if you make a customer-friendly return policy, you’ll make more sales in the long run.

Need help in making a customer-friendly return policy for your store? M-connect Media can help you by assisting you on making policy that leads conversion and benefit your store. We have a team of eCommerce experts in the house who can help you guide on the same. Dial us now for more!

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