Proven Ways to Reduce Returns for Your Ecommerce Business

Name: Proven Ways to Reduce Returns for Your Ecommerce Business
Address: Kyiv, UA
Telephone: +380667454617

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Proven Ways to Reduce Returns for Your Ecommerce Business

Returns cause a major headache for online businesses

26/11/2022

16. Imagine yourself with zero money

I mean zero. There is a high probability that this will happen. I’ve had several businesses not make it for the long haul. And, I’ve come close to bankruptcy.

Launching an unsuccessful business idea is a reality for many entrepreneurs. Over half of new businesses fail within the first five years of opening. How would you handle having no incoming money?

It’s a good idea to come up with a “just in case the worst outcome happens” plan. You might need to get a job on-the-fly or temporarily live with your parents. You might have to go without comforts that you’re used to. Figure out how you would get by if your business plan went south.

Look at your current sources of income. What do you earn from your current job? How long would your savings last if you quit? What unexpected things could mess up your plan (e.g., you wreck your car or your furnace breaks)? Prepare yourself for all the situations that could happen if the business idea doesn’t work out.

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15. Count the costs

Once you start to develop your business idea, add up how much it will cost. You will need to factor in every business expense necessary to launch and operate. Some costs to keep in mind include your location, rent, supplies, marketing, and more.

Come up with the most educated number you possibly can. Then, take whatever you think that dollar amount is and quadruple it. Seriously, quadruple it. You’ll experience unexpected costs of running a business around every corner. It’s better to be over prepared than short on funds when bills start to roll in.

When you're thinking of the cost to start a business, don’t forget about your personal budget. Look at how much money you need to live, including rent, food, gas, healthcare, etc. Lay these expenses out in order of which ones you must pay (e.g., mortgage) to ones that can slide if the money runs out (e.g., entertainment).

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14. Keep it simple

If you’re like many entrepreneurs, you have a business idea and you’re ready to run with it. Be careful not to let your concept snowball into something overcomplicated. You could end up with an expensive, elaborate end-product that nobody wants to buy.

As a new business owner, try to start small and narrow your focus. Learn how to test your business idea. Create a simple, quality good or service. A successful business idea should fulfill promises to customers and exceed expectations.

Cut unnecessary features that water down your offerings and cost you money. As a small business, you don’t need all the bells and whistles of a giant corporation. It will be easier to add to your business as it grows.

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13. Be a solution

Rather than starting your idea with what to sell, think about what it will solve. It’s a lot easier to gain a solid customer base when your business is fixing a problem. Your startup should fill a hole in a certain market or niche.

For example, I didn’t create Patriot Software just because I had a passion for software. I wanted to solve an issue that small business owners like me faced. After doing some research, I found I could provide payroll and accounting software that is easy-to-use and affordable.

Home in on why you are opening your own business. Understanding your motives will help you create a brand and market your company. Know what problems your target customers face and how you can solve them.

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12. Absorb everything

Listen to what others have to say—friends, family, experts, even yourself. When it comes to things that have to do with your entrepreneurial goals, be a sponge. As you learn, start to work out the idea in your head. Write things down. Keep notes from all the resources you come across to develop a detailed plan.

When you tell people about your startup, read their body language. Do they like the idea? Or, are they just being nice and really think you’re going in the wrong direction? Encourage your listeners to be honest with you. The collective opinion you get from peers could be a reflection of how consumers will react.

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11. Address excuses

Countless people dream of becoming entrepreneurs, but they never do. They’re burdened with excuses and fears of failing. From money to time to responsibilities, you can make a million cases for not starting a business.

Let’s face it, being your own boss is scary. In most cases, new business owners have a lot to lose with little insight into their chances of success. Worrying about the risks of business ownership is normal.

26/10/2022

10. Lengthen your returns policy
Most returns policies are 30 days or less. If you want to reduce returns for your ecommerce store, double or triple this. While this might seem counterproductive, increasing the number of days a customer can return a product removes the urgency surrounding returns. This urgency is what fuels most returns, but by removing it your customers are more likely to get attached to the product they were going to return (or simply forget about it). This will reduce the number of returns you receive, and in some cases can strengthen the returns (and return reasons) you do receive, as the customer is more likely to be honest due to the increased timeframe, compared to a customer rushing to process a return and filling in any old reason to get it done before they are no longer eligible.

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9. Be the email wizard of your industry
Using a tool like MailChimp, create an email sequence that triggers when a customer orders a product. Include emails that confirm the product, its origin, where it was produced and any other important (or fun) specs. Include clear outlines of how to cancel or amend the product they ordered, as well as the time frames surrounding amending or cancellation before the item is shipped. It’s a good idea to include links to your contact information, especially live chat or instant messaging, so a customer can quickly change their order without the hassle of a phone call. A lot of customers will forget what they ordered as soon as they’ve pressed checkout, so these emails are great to reiterate the product and prevent them from returning when they realise the colour or style is wrong.

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8. Combat serial returners
Large organisations like ASOS have famously started to target those who return a lot of items at once and take advantage of more flexible return policies to essentially “rent”items. By using the item once, like wearing a piece of clothing, and then returning it afterwards for a full refund, these serial returners can cost companies thousands. Research shows that 30% of shoppers deliberately over-purchase items because they know they can easily return them for a full refund, and 19% of shoppers order multiple versions of the same item so they can make their mind up when the item arrives. If you’re worried about the amount of returns you’re receiving, it is worth considering the option that members of your customer base may be “problem returners”. The key to identifying this is to use collected data to familiarise yourself with any clear patterns. If you think a certain customer is guilty of serial returning, keep an eye on their returning habits and with enough information you can issue a warning, or even temporarily block their account to prevent them from purchasing with you. Before you do this, it is best practise to send an email to your customer base to communicate that you’re keeping an eye on high numbers of returns from the same person or business, so your customers are kept in the loop at all times.

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7. Analyse. Adapt. Overcome.
Every return you process needs to be recorded for evaluation. If you’ve never recorded returns before, do so for a month in an Excel spreadsheet with the return reason clearly highlighted. When the month is over, you can then start to analyse the figures and get some ideas on what needs to be improved.

Depending on the reasons will depend on the changes you need to make. Some ideas include:

Customer changed their mind – while you can’t prevent people changing their minds, if this is a frequent return reason, consider your advertising and customer base and potentially shift your focus on retaining customers (who are less likely to return items) compared to focusing on getting new business.

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6. Prioritise your packaging
Depending on what you sell, your packaging considerations will be different per item. A general rule of thumb is to envision the journey your item/s will take and base your packaging decisions on that. Products that arrive broken or damaged, because of insufficient packaging, are another major reason for returns (around 20% of customers report it as their main return reason!).

For fragile items, don’t shy away from bubble wrap and double or triple lined boxes – your parcels are likely to be thrown around, dropped or stacked underneath heavier products. Always label your products with what is inside (unless its marked as a gift) and storage instructions, just in case it’s sitting around for a while before it reaches the customer.

Improving the way you package products will also aid in discovering the cause of items that are still arriving broken, as you know the reason is more likely to be with the courier and not with your packaging. This means you can set aside time to evaluate the way your couriers are performing, and if you’re finding a lot of returns from the same courier, you can take steps to find a new one.

19/10/2022

5. Get every order right, first time
Sending the wrong item to a customer is an issue every business faces at one point in time. With 23% of people siting a wrong item as the reason for their return, improving your order fulfilment is a good place to start to reduce ecommerce returns. Relying on spreadsheets and post-it notes to handle orders and fulfilment sets businesses up for disaster. A simple solution is implementing a system to handle your orders, pick, pack, despatch and shipping. You can find a solution from as little as £12 a month, and as a result will deliver a high level of customer service, prevent returns from wrong items and avoid mistakes through the supply chain process.

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+380667454617

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https://www.khaoscontrol.com/business-tips/reduce-ecommerce-returns/

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