Is Your Return Policy Costing You Money?

By | October 30, 2016

It may be an important concern for online businesses. However, free and easy return policies for online shoppers barely get the attention they deserve.

Even though we get a lot of questions regarding free shipping, many startups still fail to realize the importance of an easy returns policy.

Is Your Return Policy Costing You Money?Typically, return policies are important for clothing and other products like footwear. But considering the fact that online shoppers are becoming savvier by the day, and have an increasing number of options, this is something that really deserves your attention.

What Is A Lenient Returns Policy?

When online shoppers say they are looking for a lenient returns policy, what are they really looking for?

According to most customers, an important aspect here is including a returns label with the original order. Other customers believe that an easy returns policy should include an easily printable return label.

With the growth in ecommerce, most customers now believe they should be offered exchanges and returns without any additional charges. So you don’t just have to offer free shipping but free returns as well.

It Can Be Costly

The costs largely depend on what you are selling. Companies that sell clothing may experience a return rate of at least 30% while it is lesser for companies selling other products.

Similar to other promotions, free returns will require you to analyze your order history and evaluate how much it will eventually cost you through the year. It is recommended that you aggregate returns and deal with holiday returns separately to have a clear idea. The next step would be to forecast sales based on the number of your customers.

It Is Largely About Trust

When an online retailer offers an easy returns policy, it goes a long way towards business growth and development. For most customers, an online retailer that offers easy returns policy stands accountable for its brand and this accountability leads to more trust, security and eventually, more sales.

Moreover, an easy returns policy also allows you to step up your game. If you are offering low quality products, you will get rid of them once you start noticing a high rate of returns.

Professionally photograph your products to get better images.

If there are errors in your order fulfillment, make changes to ensure that only the right products reach customers.

Adapting an easy returns policy is more about implementing contingency plans so that you don’t lose out on the business you have worked so hard to build. As a leading order fulfillment company, at ShipFusion, we make sure that all your returns are handled in an effective manner. Get in touch with us to learn more about our services.