Avoiding returns in online retail
What customers appreciate so much is a big annoyance for many retailers, because returns cause high costs, an enormous organizational effort and they are also harmful to the climate. The fashion sector in particular is badly affected. According to an EHI study on shipping and returns management in e-commerce (2019), the return rate here is almost 40 percent, since the customer likes to order more items to choose from. Although this is part of the business model, fashion retailers can also avoid some of the returns if they know the reasons for this.
Record reasons for returns
For online shops, there are numerous levers in returns management, because the reasons why customers return items are often known. A survey by Statista (2016) shows that 62 percent of those surveyed returned an item because it did not fit. 39 percent did not like it and 30 percent have already returned an item because it was damaged or defective or did not match the description.
These results show that many returns can be avoided — and sometimes with very simple measures.
10 tips for avoiding returns:
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High-quality product images: Pay attention to high-quality and meaningful images and show the item from all sides or from different perspectives. Offer a zoom function and 360-degree images. Models should be used, especially in the fashion sector, and videos are also helpful to show how the garment falls and how it works when you move. For other items, it helps to put it in perspective, such as your hand, a pencil, etc., to illustrate the measurements.
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Detailed product descriptions: Provide all relevant information clearly: material, size, dimensions, instructions for cleaning and use, technical details, compatibility, scope of delivery, etc. Use clear language and refrain from emotionally charged marketing language.
- Sizing: Clothing sizes can be a challenge for retailers as they vary from manufacturer to manufacturer. Offer fit guides and sizing charts so customers can measure their body size and then size with confidence. It is also helpful to indicate the measurements of the model and the size of the item of clothing, as well as whether the item of clothing is rather small or large, which customer reviews and return forms can provide information about. Zalando, for example, now recommends a size based on its own orders and customer reviews.Obtain customer ratings and make them available online: The opinions of other customers are very helpful when choosing the right product. Stay honest and also post critical reviews online, after all, the customer should get a comprehensive picture and, if necessary, look for an alternative in the shop, not send the product back angrily and switch to the competition.
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Offer personal advice and help: Offer your customers the opportunity to contact you in real time with questions via chat or phone. In the case of products that require explanation, contact is also important after the purchase has been completed in order to avoid frustration on the part of the customer and thus returns.
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Availability and Delivery Information: Make sure your stock levels are up to date and the products you offer are sure to be available. Delays in shipping annoy customers, especially if you're buying a product for a specific occasion. There is also an increased risk that they will buy the item somewhere else in the meantime. Correct your information on standard deadlines upwards if you cannot meet them, for example around Black Friday. -
Safe and attractive packaging: In order for the product to reach the customer undamaged, it must be inspected before shipment and then packaged well. The packaging should not only protect, but also look good and contribute to customer loyalty. For example, tissue paper is accepted differently than a plastic sleeve. Even a small note, for example in the name of the packing employee, arouses emotions and turns a neutral package into a personal gift that you are reluctant to part with.
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Easy way to cancel: Give customers the option to cancel before the package is delivered.
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Optimizing shipping options: The standard includes parcel shops and packing stations. You can also offer your customers same-day delivery and the option of specifying a preferred time or storage location.
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Ask directly for the reasons for the return and enclose a printout of the return label. On this basis, you can optimize your ordering and shipping process and, for example, improve the product presentation in the online shop if weaknesses appear here.
In the future, new technologies such as augmented and virtual reality will certainly also help to avoid returns, because they enable, for example, virtual fittings and the exploration of products in 3D.
Product selection and review
In addition to the customer-oriented measures, range-oriented measures are used to avoid returns: regularly check the quality of your products and make sure that a certain article is returned particularly often. Does the item have a defect? Is the product packaging not designed for this type of item and is there damage as a result? Or does it help to work on the product presentation in the shop?
If you cannot rectify the problems and the item remains a high return, you should consider removing it from your range and possibly replacing it with an alternative.
You should also check proven products regularly, after all, manufacturers occasionally change the materials or change the production facility, which in turn can have a negative impact on the quality of the item — and ultimately also drives up the return rate if expectations are based on the once good ones Customer ratings are no longer met.
Return avoidance vs. return prevention
Many measures to avoid returns contribute to improving the shopping experience: customers can easily and conveniently get a comprehensive picture of the products. Return prevention, on the other hand, can damage customer satisfaction and lead to customers no longer visiting the shop. Return fees, missing return labels or high hurdles when requesting these notes quickly cause resentment.
Research results on return avoidance
A study by the Darmstadt University of Applied Sciences in cooperation with the Federal Association of E-Commerce and Mail Order (bevh) has shown that customers find it perfectly acceptable when online retailers take action against so-called frequent returns. 56 percent of those surveyed find such an approach okay, only 14 percent are against it, and 30 percent are divided on the question. Women are much more critical of the consequences of many returns than men.
The Wedel University of Applied Sciences has meanwhile examined which measures are effective for avoiding returns. The result: For women, a CO2 account that illustrates the effects of their own shopping behavior on the climate works well, while men are more helped with size recommendations and size advice online.
