You’re hoping to launch a small business in the near-future. You’re absolutely brimming with excitement to get started, but there is a nagging worry in the back of your head whenever you go over the budget: what will you do about the cost of product returns?
For e-commerce stores, product returns are inevitable. If you’re not careful, they can cost a lot of money and force you to dig into your hard-earned profits. You don’t have to panic. There are several techniques that you can try to limit the need for product returns and save your business money.
One of the reasons why product returns happen is that the packages had incorrect addresses. The customer may not have realized it, but their typo just sent the delivery person to the wrong house. As a business owner, you have to wonder if you should accept defeat or try to send the package again, hoping the second attempt won’t waste more time and money.
As a solution, you can use an API to validate entry addresses to guarantee that your package gets to the customer’s exact location — not somewhere on the other side of town.
When asked why customers return products, the website Invespcro found that a whopping 23% of customers received the wrong item and felt compelled to send it back. Their reason for returning is justified — they shouldn’t keep something they didn’t want in the first place!
This shipping mistake will make your company look bad. Make sure to check over the orders carefully when packaging products. As a fail-safe, send out confirmation emails to customers to guarantee that you are sending the right product to their front door.
Show Ratings And Reviews
You’re probably familiar with stories of people ordering items without checking the specs and ending up with comically small pieces. You can avoid these types of mistakes by placing ratings and reviews of your products in plain sight. Having all of the customer responses and recommendations on-hand will make it much easier for new customers to make informed decisions.
Cut Costs Elsewhere
You can’t please every single customer. They could simply order something and decide that they don’t like it as much as they thought they would when it arrives.
To be able to pay for the losses brought about from these remaining returns, you should cut costs elsewhere. For instance, you could save money when shipping your goods by using a courier broker instead of going to the post office and accepting the limited options there. The broker will give you a wide selection of couriers, delivery techniques, deadlines, and prices. By carefully searching through the possibilities, you can find one that accommodates a tighter budget.
Returns are just a sad reality of owning a business, but you don’t have to let them gouge your profits right off the bat. Take cautionary measures to prevent simple mistakes and misunderstandings from costing you a lot of money. After following these tips, your return rates will be surprisingly small.