5 Ways to Reduce Product Returns

Facilitating order payment may be one of the happiest things for e-commerce sellers, but there is a worrying hidden danger: product returns.

In this era of fast and free shipping and returns, no matter whether the products can meet customer expectations, they will face the risk of being returned. In this article, we will provide you with five ways to reduce product returns.

Why reduce product returns? In short, it increased the company’s operating costs and caused financial pressure. Product returns will cause the following risks to the cost of e-commerce:

  • Refund cost: The company loses profit opportunities and may lose customers.
  • Transportation costs: Companies that provide free transportation and return goods to take care of transportation costs to invest in their customers.
  • Product disposal costs: returned products must be inspected and then resold, liquidated, or discarded. If the products are liquidated, the company will lose money because these products must be sold at a price lower than the original value. In the worst case, the project will be discarded and no cost can be recovered.

Fortunately, there are ways to reduce product returns.

Reduce-Product-Returns-RepricerExpress-ChinaDivision
Reduce-Product-Returns-RepricerExpress-ChinaDivision

An Important Way to Reduce Product Returns

Accurate and clear product pictures

Display the appearance of the product with maximum clarity and accuracy. A 360-degree product is an ideal way to provide your customers with a view from all angles, especially to showcase furniture or technical products.

But if you cannot provide this type of image, try to provide an image that can zoom in to see close-up details. Make sure that the image you provide can be displayed clearly on the mobile device because the mobile terminal often has more order opportunities than the desktop computer.

Use video to showcase products

Although pictures are useful, videos can make your product display more clearly, especially for product categories with a high customer return rate, such as electronics, clothing, etc. Clothing videos show the upper body effects of models; household appliances or electronic products show how the products are used.

Value customer feedback

Customer reviews or feedback on the product is the best way to better understand your product and how to improve it. Comments can provide you with ideas to better describe the product or discover product problems. You should not avoid this but encourage customer feedback. Your return and exchange form should provide the customer’s description of the problem, such as the product size is different from expected or not as shown in the advertisement, etc. Secondly, you can also encourage customers to leave comments by using discount coupons or free gifts.

Correct packaging

The correct packaging method is a key factor in avoiding returns, as they help prevent items from being damaged or broken. Please make sure that the packaging materials you use can protect the product from external shocks. In addition, please ensure that the product information on the package is consistent with the packaged product.

Clear delivery time limit

When customers browse the product page, please indicate the approximate delivery time of the order. This detail should be paid more attention to products that need to be customized. Please also pay attention to the logistics on weekends and holidays. Provide customers with the ability to select a specific delivery date, even if customers need to pay additional shipping costs can also improve customer experience.

Although offering free returns can help improve the customer experience, if you find that the number of returns is unacceptable, try using the methods described above to reduce returns.

Suggestions on Controlling Fulfillment Warehouse Loss Rate

What is the utilization rate of the warehouse to prove the strength of an e-commerce order fulfillment center? In a sense, it covers the control of loss rate, the lower the loss rate is, the better the utilization rate will be. Nevertheless, the turnover rate of goods in the e-commerce warehouse is quite high, and there will be losses in the process of turnover and movement. What’s worse, it is difficult to predict where these losses will occur, how many losses will occur, whether they will be registered timely, what causes it, and the most important question is how to effectively control the rate of loss of inventory.

The following aspects will tell you how ChinaDivision carry out this work:

  • List Loss Points

All warehouse staff will participate in the discussion, starting with the process of e-commerce warehouse management, studying which operations are easy to cause the loss of goods, and recording these possible problems timely. Second, we need to count historical data, classify according to the cause of loss, and see how much loss is caused by each loss point. To determine the percentage of each loss that accounts for the overall loss of the e-commerce warehousing.

  • Set the Standard for Los

According to the data, ChinaDivision will calculate the loss value and percentage of the loss point to determine the loss standard and determine how much the loss standard should be kept. Zero loss is always just an idealized number. In reality, there is no such zero loss situation. 3pl fulfilment It is better to work out a more reasonable control target at a time and gradually improve it. Besides, the loss prevention standards mainly  referred to  two aspects, one is the target value, and the other is the loss prevention operation standard, which is used to regulate the staff in the e-commerce cloud storage in order to control within the target loss value operational requirements.

  • Record Data Timely

It is not for the operator to clarify the target value of the loss to be controlled, to receive training to understand how to prevent loss, and the loss will naturally fall below the target. It is necessary to record and account for the loss of the operation. In some places where management is not standardized, there are certain hidden rules, such as underreporting of losses, concealment, or staring at target values. These actions will affect the timely search for the cause of the loss, and then take effective measures to reduce subsequent occurrences. We have formulated the rules for accurate accounting. The loss is classified according to the reason for loss and scrap in the finance. When the reason is more general, the specific loss point is written in the remarks, which is convenient for the next round of combing and reducing the entire warehouse management. There must be a mechanism for inspection, supervision, and assessment, and actions that are not properly accounted for should be dealt with and punished in a timely manner.

Only by sorting out these loss issues, determining specific loss standards, and confirming the data in time, can the loss be controlled within the target range, so both the drop shippers and their customers can benefit a lot.