Returns are a fact of life for online retailers. But they can also be a major drain on profits.
According to research, refunds can cost an ecommerce business some 66% of the original item's price, even when it is sent back in good condition.[1]
However, there is a way to reduce the cost of returns. By running a digital returns process, retailers can convert up to 30% of returns to exchanges.
What are the benefits of a digital returns process?
There are several benefits to using a digital returns process:
- Converting returns to exchanges – a consumer-friendly returns interface makes it easier for the customer to exchange the item they are sending back for something else from the brand or retailer. With the right returns software, ecom companies can automate the process of offering an exchange. nShift Returns customers typically convert 30% of returns to exchanges, helping retailers retain revenue
- Gaining crucial returns data – manual returns processes make it difficult to gather information about items being sent back. But when the process operates digitally, it creates a wealth of data for businesses to analyze. This makes it easier to spot trends and patterns. Teams can identify and rectify common problems that are causing items to be sent back. This can reduce returns volumes over the long term
- Creating remarketing opportunities – emails about returns have significantly higher open rates than other retail communications. By weaving marketing messages into these emails, ecom companies can create additional sales opportunities
- Driving customers in-store – a digital returns process makes it easier to give customers the opportunity to take their items back into store. Here they will speak with a member of staff who can encourage them to exchange the item. The customer will also encounter additional products and marketing messages in-store
In today’s ecommerce environment, providing a clear returns policy is essential. If they can’t see how they can send back a product, many shoppers simply won’t complete the purchase. But returns also serve as an opportunity to build the business. When retailers get this right, they will convert more returns to exchanges, create new marketing opportunities and reduce returns volumes over the long term.
To make the most of returns, online retailers and webshops should deploy a returns software solution that creates a cutting-edge consumer experience and captures useful data on sent-back items.
Read more about nShift Returns.
