A Shopify Agency's guide to eCommerce returns during the new year

With most businesses enjoying peak trade over the extended holiday period, it should come as no surprise that the ensuing month of January sees more product returns than any other. In fact, the rate of returns doesn’t just scale in proportion with trade increasing, January actually sees a slightly higher percentage of orders returned too, with an estimated 15.4% for January 2024 compared to 2023’s average of 14.5%. For eCommerce businesses, this can even mean seeing successive, negative sales days throughout the first few weeks of the year. 

This is to be expected in some ways as, as much as we think we know our friends and families know us well, we are likely to receive a gift that we simply won’t use, or feel a sudden sense of guilt over a purchase made under the guise of “oh, go on then, it’s Black Friday!” only to find that product now only taking up space.

The impact of returns is well documented, not only on a brand’s finances, but on customer loyalty too, with 58% of customers saying that they would abandon a retailer if they had a bad returns experience. Moreover, we need not mention the environmental damage that returns can cause. Unfortunately though, returns are to be expected, and every store, both on and offline, must have some form of a returns policy. But, there are ways to not only cut down on the number of returns, but to optimise the process and turn it into a potential driver of customer loyalty rather than a process that cuts away at it.

What can be done to bulletproof eCommerce returns?

Prevention is better than a cure, and so, cutting down on the chances of returns happening in the first place is ultimately where the majority of your attention should lie if returns are proving an issue.

Improvements in, or additions to your website’s content is largely the best way forwards. Anything that can be done to better inform a customer prior to them checking out, is going to cut down on someone buying something with one goal in mind, only to have said goal squandered due to a lack of, or incorrect information. For example, clothing fitting incorrectly is the most common reason for a customer returning an item, so don’t just assume that your existing web content is perfect as is. Instead look for ways to revise your size guides to make them more user friendly, change your product photos, add videos, not only will this cut down on returns, but will likely increase conversions too. 

Standing on, and continuing to build your brand’s reputation is another step in the right direction here, as a customer is much less likely to return a product if the product itself is high quality and they’ve had a good experience purchasing and receiving it. Sure, a customer who’s had a poor experience may keep a product purely out of a combination of spite and pride, but don’t expect those kinds of customers to leave a positive review, let alone buy something from your store again. 

Your job, as an online retailer, is not finished until the customer decides to keep their order. So giving clear product tracking and dispatch information is an absolute must; you really can’t communicate enough at this stage, especially if you have a high average order value. Equally, well designed packaging, add ons, and clear product instructions all go a long way towards increasing a customer’s satisfaction with a product. 

Making eCommerce returns easy.

It’s second nature to optimise your business’ marketing, website, and checkout process to build a strong relationship with the customer and drive conversions, but we don’t think of returns in the same way.

This is one of the reasons that we are extremely pleased to be a Reveni partner. Reveni simplifies the returns process, allowing businesses to focus on providing excellent customer service and improving their overall operations. It’s available as a third party app for Shopify and for other eCommerce platforms too.

In their state of returns 2023 report, Reveni interviewed 3000 avid shoppers, and laid out everything that a brand needs for a perfect returns policy. With nearly 85% of customers saying that they read a returns policy, it’s absolutely something you should be shouting about if it’s customer serving.

Reveni’s six points for a superb returns policy.

• Make your return deadlines clear- You legally have to give customers a minimum of 14 days to make a return, but if you offer an extended returns window, you should mention it.

• Highlight what items can and can’t be returned - It’s common practice for certain items, such as underwear or digital items to be non refundable, but this must be clearly labelled in your returns policy, and ideally on the individual product itself.

• Clarify your return conditions - Does the returned product have to meet certain conditions, for example, does it have to have the tags still attached? Make sure that the customer is informed, and not have the only reason they can’t return be that they accidentally took the tags off.

• Specify what type of returns you offer - do you offer instant refunds, in-store credit, or do you offer an exchange policy? Let the customer know so that they can choose which option is best for them, 77% say that they’d prefer an exchange than a return after all.

• If there are associated costs for the customer, you must let them know - Reveni found that 80.61% of their 3000 respondents would stop shopping if they had to pay for an eCommerce return. So if there are any return costs, they must be visible: don’t try to hide them.

• Clearly detail the steps - What, specifically, does a customer need to do to complete their return? as much information here as possible is best.

Embracing eCommerce returns

If you are one of those retailers seeing consecutive sales days in the red it’s natural to get frustrated. However, returns are equally as frustrating for a customer as they are for your business. Whilst it’s estimated that 30% of online shoppers overbuy and then return the items they don’t need intentionally, these products only make up 15% of products that are returned (and you’d likely cut down on this with improvements to your content). You must assume that customers don’t want to part with their purchases, as they’re now left with the benign task of packing the item, going to the post office, sending the item, waiting for a refund…

…just another point on their list of chores.

Returns are, in some ways, just another opportunity to build a relationship with your customer. In order to actually buy from your store in the first place, a customer must have placed some level of trust in your product or brand. So, barring that customer just having an awful experience receiving their purchase, there is an opportunity to build on this trust. If your returns policy is transparent, simple and hassle free, if nothing else, that customer will have no fear if they choose to ever buy from you again: “oh if I don’t like it, returning it is really easy.” Similarly, if your returns policy is customer serving first and foremost, it needs to be highlighted, as a reported 32% of customers cited a complicated returns process as influencing them not to finalise their purchase.

If returns are going to be a part of your business, which - news-flash - they are, and there’s no way to 100% avoid them, why not view them as another opportunity rather than as a hassle. This will seem paradoxical as it can incur additional costs, but returns could net you more sales in the long run. Potentially turning a lost customer into a repeat customer will be a huge cost saver for your brand and will only create a more loyal customer base.

To find out how we could improve your content and streamline your returns process click here.