Returns are a double-edged sword. A study by MIT Sloan Management Review found that about 52% of customers make justified returns, and they contribute $1,289 to a retailer’s profits each year. Furthermore, the ability to return an item and request a refund is an important factor for them in choosing a retailer. Abusive returns, on the other hand, represent less than one percent of customers but cost a retailer $1,119.
Cost of refund and abusive returns
Source: MIT Sloan Management Review
Unfortunately, serial returners are on the rise. A study gambling data philippines by Brightpearl found that 42% of US retailers report an increase in this type of activity over the past 12 months, particularly among customers aged 18 to 34. This is partly due to the rise of bracketing in online retail – more on that later.
Flatly refusing returns would likely lose you customers, but there are a number of steps you can take (from minimal to extreme) to reduce the number of serial returns you encounter.
Make your return policy clear and easy to access on your website. It would also be best to include it in the confirmation email you send after a purchase. Ideally, you would include the following information:
How to initiate the return process?
Are the deadlines for the customer to return or calling list exchange the purchased item?
What are the return procedures?
What should the customer include (packing slip, return form included in the packing slip or available online, original packaging, price tag, etc.)?
Who pays the return shipping costs?
What items are not returnable (e.g. used items, underwear, or custom orders)?
How can the customer contact you if they have questions?
It’s important to make your returns, exchanges and Start with your refunds process as simple and transparent as possible. In fact, nearly half of consumers will review it before making a objective, they are based on purchase, according to Narvar’s 2018 Consumer Reports study, The State of Returns: What Today’s Shoppers Expect . Seventy percent of respondents also said that being able to easily return an item would increase their loyalty to a retailer.