7 Effective Ways to Reduce E-commerce Returns in 2024

Did you know that in 2023, the amount of returned U.S. merchandise was a staggering $744 billion? One of the most common categories of returned e-commerce falls under retail. Online shopping is one of the exclusive privileges for a modern customer, but unfortunately so are the return e-commerce items. Although online stores have benefits if a product is damaged or a wrong item is delivered, the rate of return increases. It's a tedious task that affects e-commerce returning customer rate, that takes up much time and effort. However, returns in e-commerce can be minimized. As we move forward in 2024, customers are more attuned to online shopping.

As an e-commerce business owner, you should always be prepared for a return. However, it is important to understand common reasons and ways to avoid returns in e-commerce. 

Most Common Reasons for E-commerce Product Returns

There are multiple reasons for a return in e-commerce. You can gather the information by using an e-commerce return management system that helps you scale your e-commerce business. You’d be surprised that the simplest of the factors can become the reason for the returns. 

Damaged or Broken Goods 

The most common reason for return in e-commerce happens because the online ordered products are damaged. For example, a customer ordering a smartphone on Daraz receives it with a cracked screen and will want to return it immediately. It will lead to customer frustration especially if it's a valuable gadget or electronics with a high cost. Therefore one needs to ensure that such products are properly packaged and handled carefully. 

Does Not Match Description 

Product descriptions are similar to the window display of a shop. Before making an online purchase, customers will study the product descriptions. They want to know more details about the products like color, size, manufacturing, etc. For example, a customer ordering an unstitched dress from an online store will want to know about the details of the number of pieces, embroidery, and color of the product. Imagine, if a piece is missing from the article - it will lead to heavy disappointment. Even if the measurements shared in the description do not match the actual measurements is a mis-commitment for the customer. 

Late Arrival 

Usually, every e-commerce store mentions the delivery time as per the primary locations, secondary locations (other than mainstream cities), and local and international delivery. Local deliveries are usually made within a working week. While international deliveries take longer. However, the delivery time varies from one online store to another. If an online store commits to deliver within 4 working days, for example, but takes longer than the guaranteed delivery time, customers are more likely to switch to an alternative brand. This is a lot common with time-sensitive purchases that have increased average order value when a customer is buying a gift, seasonal, or if festivities are near. 

Unsatisfactory Item 

You thought you would get a perfect-sized, red puffer jacket for the upcoming winter. Sadly, the product doesn't meet up to your expectations even if it matches the product description. It could be that color does not seem right or the usability is limited. To avoid this, you can provide detailed size guides, mention notes for color differences from photos to the original product, and also offer flexible return policies. It can help customers make better decisions if they are unsatisfied with your products. 

Poor Product Quality 

Nothing kills a mood like poor product quality. The shirt you fell in love with at first sight, which you ordered on an impulse only to lose its color after one wash is frustrating. Poor quality product impacts your brand’s reputation and can also make you lose your customers. A popular example is the unsatisfied customers of Ethnc, a retail brand, who suffered from low-quality dresses. 

Optimize Your Digital Experience and Minimize eCommerce Returns

Improve Product Descriptions and Images

Increasing the quality of your product descriptions is the best method to ensure that customers are not disappointed. Ensure that your clients are aware of exactly what they are getting. This is the basic framework to get you going:

• Write a headline for your description that will grab readers' attention.
• Explain further in the description paragraph what makes the product special. Instead of outlining the advantages, concentrate on offering a solution.
• The main features and specs of the product are listed in bullet points below the description.
• To persuade the user to make a purchase, end with a call to action that emphasizes urgency, credibility, or social evidence.

Implement a Robust Sizing and Fit Guide

Reducing product returns requires you to give your consumers a precise and comprehensive size guide. Given that the average return rate for online clothes brands is approximately 33%, this is very important if you work in the apparel industry. You can offer a detailed size chart with exact measurements and mention the units as well (cm/inches). 

E-commerce stores can offer a wonderful way of assisting clients in choosing the correct size.  For instance, you can ask the customer to add a custom size that is suitable for their height, weight, body type, and personal fit preferences.

It's a practical and effective method of cutting returns to give customers a more user-centered purchasing experience.

Enhance Product Quality and Testing

One of the protocols to follow is product testing before making it available for purchase. A customer can examine the product if they are at a physical store. You need to set a clear product description with original photos (with quality) to display the product. There are certain policies or practices you can follow for quality control like the material selection for apparel products. It is a great way to improve the customer conversion rate. 

A local platform, PriceOye, offers at-the-spot open-delivery for the products and makes an unboxing video at the time. This is to ensure a customer can examine the product before paying for it. In case of a damaged product, they can return it. This also offers another way to protect your brand image, by giving customers a chance to check the product. 

Leverage Customer Reviews and Feedback

Utilizing customer reviews to lower return rates can be achieved in part by ordering information such as height, weight, body type, and size and then providing filters based on those details. Allowing consumers to provide thorough product reviews is a terrific way to level the playing field for shoppers and increase social proof on a product description. 

Reviews provide your business with insightful information about your products that it can use to lower returns. Before making a purchase, consumers can gain knowledge and context by reading the reviews left by other customers.

Promote exchanges instead of returns

According to a Statista survey, nearly 80% of customers said they wouldn't purchase at a retailer again if they had a poor returns experience. Retailers can keep customers coming back by capturing this income by streamlining the return process. Encouraging exchanges is one approach to expedite the return process without incurring losses.

An exchange will enable your clients to stay involved with your business rather than requiring you to return their money. If you want to encourage them to request an exchange rather than a refund, you can provide further incentives. For instance, you may add a specific quantity of shop credit to the item that was

Tips to Streamline Your E-commerce Returns Process

Simplify the Return Policy for Easy Understanding

Giving clients an extended period to return items may seem paradoxical, but doing so can lower your e-commerce site's return rate. Customers frequently feel pressured to decide if you give them little time to determine whether they want to keep or return a product. It is more likely that your customers will elect to keep your product if you give them more time to get to know it before forcing them to decide whether to return it or keep it.

Offer Multiple Return Options for Greater Flexibility

Come to think of it, returns are inevitable. Increasing the focus of a customer loyalty program, such as offering loyalty points and gift cards, is one way to reduce losses from returns.

Offering loyalty points and gift cards instead of cash refunds for returned goods can encourage repeat business and long-term customer loyalty. Because it encourages customers to swap their goods rather than return them for a refund, this helps you to partially offset the costs you pay when a product is returned.

Provide Clear and Timely Communication Throughout the Process

To ensure that the package won't be returned due to a too-late delivery, it is essential to communicate information regarding the parcel delivery status. Particularly in the course of the holidays and festive occasions. This also applies to gifts and things that have a deadline.

It's not always possible to stop returns brought on by presents that arrive after the festivities. However, you may at least use customized tracking emails to inform clients about the delay and when to expect the delivery. Additionally, it saves your team time because they won't need to get in touch with your customer service about it. Furthermore, knowledgeable clients are more inclined to make additional purchases in the future.

Streamline Return Logistics with Efficient Automation

Because e-commerce products are returned so frequently and processing returns from online purchases is so expensive, product returns may be a huge burden for e-commerce businesses. You should have no trouble cutting back on this annoying expense if you adhere to a return management system like XStak OMS. 

As you can see, enhancing the customer experience can help you handle refunds more quickly and reduce the rate of returns. Once your returns are properly processed and tracked, it will make things easier for you, and that way you can improve the issues.                                              

Conclusion

A recurring feature in e-commerce return solutions is their reliance on operational efficiency along with a customer-centric mindset. Applying this to minimize returns as much as feasible is best achieved through data-driven decision-making and ongoing company improvement.

For this purpose use of an order management system can be a lot helpful. Managing your operations, inventory, and multi-location orders from day one with such an effective tool will minimize the need for return by your customer.