Knowledge is power: why are shoppers returning their purchases?

When shoppers send back their purchases, it affects each online retailer differently.  But there’s one thing that every ecommerce company, regardless of retail sector, has in common.  When it comes to returns, they wish they had less of them.

After a quick glance at the statistics, it’s easy to see why.  About 20% of all items bought online are returned.  This could be costing retailers as much as €602 billion a year.¹

Ecom companies are experimenting with different strategies to bring returns volumes under control.  Some are charging consumers for sending items back.  Others are attempting to ban people who return too many purchases from buying anything else in the future.

But the best way of reducing returns, is to get a better handle on why they happen in the first place.  To do this, companies need actionable data.  That’s where a digitised returns process can make a big difference – to the business bottom line, as well as to the customer experience.

Why are shoppers sending back so many purchases?

There are several reasons why customers return items. Some of the most common reasons include:

• Size or fit: customers often return items because they don't fit the way they expected. This can be a problem for retailers, as it can be difficult to get accurate size information from customers
• Wrong item delivered: shoppers sometimes receive the wrong item, typically because the order was processed incorrectly.  This can be a frustrating experience for customers, and it can damage the retailer's reputation
• Damage or defects: consumers may return items that are damaged or defective
  Customer behavior: some shoppers will order a product simply to try on or test, with no intention of keeping it
• Customer no longer wants the item: sometimes shoppers simply change their mind and decide they don't want the item they ordered
  
  

Knowledge is power.  Once retailers know which specific issues are affecting their products, they can take steps to solve the problems.  If several people complain that a clothing item didn’t fit, they can change how sizes are displayed on the webshop.  If a common fault affects a particular product line, brands can investigate potential problems across the supply chain.  

Reasons for returns will differ significantly among sectors.  Each retailer may have their own particular challenges.  They need to ensure they build a bespoke understanding of why their customers are parting with their purchases.

To obtain this kind of information, retailers and webshops need to operate a digital returns process that quickly captures the data.  The right returns software will make the data easy to analyze.  Patterns become clear quickly, helping businesses identify problems and seek a solution.

We recently launched an Essential tier of our Returns solution.  It enables growing retailers to track each return centrally.  This helps ensure resalable items return to shelves without delay, while also helping to pinpoint root causes, such as incomplete product descriptions.  Meanwhile, customers benefit from a simple experience online and a choice of return shipping options – all offered within the retailer’s website or app.

Our new solution provides a straightforward upgrade path for retailers looking to further enhance their returns experience.  The full nShift Returns solution offers a highly automated platform which enables easy exchanges at the point of return and automatic refunds.  nShift Returns helps protect retailer revenues by converting up to 30% of returns into exchanges.

Find out more.

¹https://logisticsmatter.com/need-know-e-commerce-returns-europe/