eCommerce Blog

So, the hustle and bustle of the holidays is behind us. Time to sit back and relax, tally up your revenue, and pat yourself on the back for hitting your sales goals, right?

Consider yourself pinched. While January may mean a break from the crazy promotions race, the breakneck email campaigns, and the rush on personalized items, it also marks the beginning of an influx of holiday returns. The volume of returns tends to be proportionate to the amount of sales, so if you had a strong gifting season, you’re likely to see a larger amount of items finding their way back into your inventory. Plus, it’s no secret that online stores see a larger percentage of returns than traditional retailers.

According to a retail study by Jupiter Research, 20% of online consumers expect to receive better service during the holidays than the rest of the year. With your customers on high alert, now’s the time to pull out all the stops and provide them with a premium shopping experience — and that includes the seamless handling of returns.

It’s no secret consumers dread the hassle of returns, but they’re no fun for e-tailers either. No online vendor is pleased to find a shipped item back on the premises. After all, isn’t it a sign that you’ve under-delivered in some way? Maybe. But with efficient processes in place and a little marketing savvy, you can give your customers the gift of a smooth, hassle-free return that will keep them coming back for future purchases. Here’s how.

Apologize. If a customer contacts you during the handling of their product return, begin by expressing regret for their negative experience. Regardless of why the item didn’t work for them — wrong size, damage during transit, missing parts — you should acknowledge that their expectations were not met, and that you’re just as disheartened as they are.

Have a clear policy. Especially during the holidays, make sure you have a prominent link on your site where customers can find the details of your returns process. We like how Target.com allows customers to view the items in their recent orders, select which ones they’d like to return, and then print off receipts for those items to take into the store.

Staff up. Many online sellers bring on extra help during the holidays to assist with managing returns, issuing credits, and controlling inventory levels.

Offer a replacement. You garnered the original sale for a reason: there was something appealing about your product that compelled the customer to fork over their hard-earned money for it. Now’s your chance to pique their interest and remind them why they wanted the item in the first place. If the product was broken or damaged, offer to ship an identical item at no additional charge. If it didn’t work for another reason, suggest alternatives.

Allow for cross-channel returns. If your company operates brick-and-mortar stores, make it easy for consumers to return online purchases in person. There’s nothing more frustrating to a customer than driving all the way to the store only to be told their return can’t be processed. Plus, roughly 25% of customers who come to your store to return an item wind up buying something else on that same visit.

Offer targeted promotions. By giving the customer a reason to come back, you can actually turn the returns process into a revenue-boosting opportunity. While you’ve got the customer engaged, offer them a discount on their next order or a complimentary gift card toward a future purchase.

Process returns quickly. If a customer doesn’t see the credit issued to their account within a few days of the return, they may start to worry — and uncertainty isn’t conducive to repeat sales. By crediting the purchase amount back to their card right away, you’ll help to build the customers’ confidence and boost your site’s credibility.

Head off next year’s returns. There are a number of ways in which eCommerce sites can help reduce return rates. The simplest strategies involve adding content — more detailed product descriptions, better images, and product reviews — to help customers formulate an accurate expectation.

To a customer, the only thing worse than having to return an item is encountering problems or rudeness during the process. By making it as easy as possible for them to send back their items, you’ll greatly increase their overall satisfaction and confidence in your company, and it’s no secret what that can lead to — many happy returns.

This entry was posted on Monday, January 12th, 2009 at 3:46 pm and is filed under eCommerce Business Issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.