To strike a balance between a good return policy and protecting your business, consider limiting the return period to 30 days instead of 60 or more.
Should you offer free returns?
Customers love free shipping, but you can take the lead on returns by only offering it on purchases over a certain dollar amount. This will reduce the number of smaller purchases that could be gambling data russia returned individually. And consider whether to adopt a “free returns” policy carefully, because while customers also appreciate this perk, they’ll think twice about returning an item if they have to pay for shipping out of pocket — especially if it’s to return a cheap product.
Similarly, require that an item be returned unused, in its original packaging with the original price tags attached. This will help reduce “wardrobing,” a type of fraud in which a customer uses the item before returning it to you. This is common with expensive, lightly used items, such as formal wear, tools, or some consumer electronics.
According to a study by Appriss Retail
nearly 40% of retailers have experienced this practice. Have calling list your staff carefully review returned items and enforce your return policy restrictions if they suspect abuse. Don’t be afraid to refuse the return or contact the customer, especially if they’re a repeat customer, and offer them a voucher instead of a refund.
To determine how much to offer your shipping costs, you only need to know one parameter: the median order value ( MOV ). Once you have calculated it, you know that 50% of all your orders are above this value and the rest are below — this is what a midpoint is.
You can also use your average order value ( AOV ) to calculate your free shipping threshold, but be sure to exclude any outliers—that is, orders that are extremely high or extremely low. These can make your calculations inaccurate and reduce the overall value of any free shipping threshold you determine using AOV.
This is why MOV is a more accurate metric to determine your free shipping threshold. It ignores outliers and gives you a happy medium.
Set your free shipping threshold just above your median or average order value. This will encourage the average customer to add a few more items to their cart to qualify.
We suggest testing different
free shipping thresholds based on your median and average How to Calculate order values to see which ones work best. Your ideal free shipping threshold to increase your MOV or sweepstakes on instagramthe best free AOV may change as your offer changes.
Consider visually integrating the amount from which you will offer free shipping throughout your customer’s purchasing journey: you will encourage them to add a few additional products to their cart to benefit from it.
That’s exactly what Montreal retailer C’est Beau does , from the product selection page to the final checkout page.