Dealing with returns is challenging. You not only have to process those returns, but you also need to find out why you’re getting them in the first place. While it’s normal for every business to experience returns (or refunds for digital goods), it’s not normal to have a high volume. What can we do to decrease returns?
Every time you receive a return, it takes a chunk out of your profits. With a high return rate, it’s like having a significant expense pop up out of nowhere to overshadow your profits.
A high volume of returns indicates a problem, and thankfully, most of these situations can be resolved. If you’re searching for solutions to reduce the number of returns you receive, keep reading for some tips.
1. Focus on product demonstration videos.
If you don’t have any product demonstration videos, create some right away.
However, instead of just getting in front of the camera and talking about your product, consider creating a 3D interactive demonstration.
A 3D interactive demonstration creates a virtual environment where your customers can interact with your product online. To get a sense of what’s possible, check out the 3D demos created by Piehole.tv.
Giving your customers a virtual experience of your product allows them to take a test drive before they buy. This will simultaneously increase sales from people who were on the fence. It will also prevent purchases by people who really aren’t a match for your product.
Of course, regular product demonstration videos are still valuable. Don’t forget to make some of those, too.
And anytime you update a product, remake your demonstration videos so you don’t mislead people unintentionally.
2. Fine-tune your target market.
Sometimes returns come in when you’re not advertising your product to the right market.
For instance, say you’ve created some exceptionally warm, thick, durable, fleece-lined tube socks. Now you’re advertising them to workers who have to be out in the cold all day.
While this seems to make sense, the market might be a mismatch because fleece-lined socks make your feet slip around inside your shoe. Workers may not like this, and once their feet start slipping, they’ll send everything back for a refund.
Take a look at your target market and do two things.
- Define it more specifically.
- Look for ways your product might not meet your target market’s needs, even if only on the periphery.
3. Describe your product more accurately to decrease returns.
Product descriptions aren’t the most exciting thing to write, but they do need to be specific and accurate.
If your product descriptions and advertisements are based on hype, that could be a major cause of your high return rate.
Hype sells products, but the profits are short-lived. Once people realize a product doesn’t live up to their expectations, they won’t hesitate to return it for a refund.
Revisit the way you talk about your products on your website, in your product videos, social media posts, and emails. Have a fresh pair of eyes review everything to see where there’s room for improvement, namely to add specificity and eliminate fluff.
With clear product descriptions, you’ll get fewer returns from people who didn’t realize the product didn’t work the way they thought.
4. Ask for customer feedback.
Your customers are the ultimate source of information to help you troubleshoot your return issues.
Start collecting customer feedback through surveys to find out what they really think about your product after they’ve been using it for a while.
Take the feedback you get from your customers and look for complaints, no matter how small. That’s where you’ll find the reasons customers are unhappy, and that will tell you exactly what you need to fix.
5. Create a generous returns policy to decrease customer irritation.
It always helps to have a generous return policy. When customers know they can easily return something that isn’t working for them and get their money back in full, they’ll feel more at ease about making a larger purchase or taking a chance on something new.
Also, keep in mind that having a generous return policy is one of the easiest ways to prevent chargebacks processed through bank disputes. Excessive chargebacks can make you lose your merchant account and you’ll get hit with fines.
If you’re getting chargebacks, you’re probably also getting bad reviews online.
So revisit your return policy and make it more customer-friendly and give people less of a reason to take out their frustration online.
Returns are inevitable, but they don’t need to be overwhelming.
You’ll never eliminate returns completely, but you can reduce the volume.
If you need to decrease your returns, start implementing the tips outlined in this article and you should see your return rates drop.
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