Managing Returns and Keeping Customers


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Did you know return volumes can amount to 10% to 30% of your season’s sales? It's true! Fortunately, you can minimize the impact to your bottom line by learning how to properly manage your returns process.

Keep your customers coming back— despite returns—using the tips we'll share in our upcoming webinar.

Learn how to:

Turn returns into sales
Write a clear return policy that doesn't hurt your sales
Decide if free shipping is right for you
Prevent returns during the sales and shipping processes
Cash in on outstanding credits and gift certificates

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Managing Returns and Keeping Customers

  1. 1. Manage Returns and Keep Customers Keep your customers coming back – despite returns   © 2013 Bigcommerce Pty. Ltd.
  2. 2. What should you expect? 20% to 30% of your holiday sales Holiday ecommerce sales expected to increase +17% Products with a 10% or lower return rate. •  Gifts •  Home Products •  Toys
  3. 3. Did you share enough product information? •  Was product information written clearly? •  Did you provide as much technical data as possible? •  Do you have multiple images with multiple views?
  4. 4. Process for package and send the goods Outside shipping and packing help to reduce returns What is the visual impact when the box is opened? Build in quality checks on picking and packing Dr. Foster and Smith Pet supply reduced returns from 5% to 2.28% with tighter controls on shipping
  5. 5. Triple check customized product before shipping Details of the order Billing history of customer
  6. 6. Include that extra message -  Biggest return reason when goods are quality; not knowing were battery goes -  Extra directions/diagrams on how to start using -  Consider additional email with directions or just say “Thanks” © 2013 Bigcommerce Pty. Ltd. Thanks for purchasing! Not sure how to start having fun with your toy? 1)  You will need 6 AA batteries 2)  Find the battery compartment on the bottom of the car. 3)  You will need a screwdriver to open the compartment.
  7. 7. Return Policy -  Clear and easy to understand- 10 second rule -  How long do I have to return -  Refunds or store credit? When and why -  Who is responsible for shipping back? -  Don’t hid it, make it easy to find -  Not sure how to explain the policy? Inspiration from the best. -  Apple - -  Steve Madden- -  Zappos (Check out their use of video directions-
  8. 8. Plan for your return costs Plan for approximately 20% of sales to be returned, plan labor time & cost Merchandise defective? Contact your supplier for refund Each return left unprocessed = lost dollars in sales If you are at fault, (color, product, size) do right by customer and eat the cost.
  9. 9. Merchandise only seasonal offering? Clearance section or “left on the counter” for deep discounts Consider putting info in the box about seasonal sales.
  10. 10. To offer free shipping on returns or not? •  Your mistake- you offer free shipping for that return •  Free shipping on returns leads to future sales “One sale vs repeat sales” Not offering free shipping on returns? 81% less likely to purchase again Over two years return shoppers decrease spending by 75% to 100% More trust you show in the customer the more their spending will go up. Think like your customer: (Ship to Me)+(Ship back)= Cost to me to find out it does not work
  11. 11. Questioning if free shipping is right for you? •  Offer only on orders that margin on goods will offer cost of shipping on return. •  Example: Orders (not products) with a value over $150 will be eligible for free shipping on returns •  Profit from the balance of items remaining in the original order
  12. 12. Returns need to be easy and set up to sell •  •  •  •  Provide “how to start” directions in the box or where they look What paperwork is needed? Should they visit a site to start the process? What replacement options exist?
  13. 13. Set expectations on both sides Provide timeline in notice of return email. Cover the when, what happens and how to connect What format refunds come in and make sure to log into gateway to complete Don’t leave in the box, get back in inventory and ready for a sale
  14. 14. Keep the sales coming −  In return confirmation email offer immediate discount to say “Thank you” −  Feature similar products to return goods and link to seasonal sale section of store −  Most often returned due to color or size −  Motivate to repurchase right size/color at a discount
  15. 15. Keep the customer who returns •  Proactively ask for their experience •  Listen to feedback in social media •  Identify and Act
  16. 16. Nurture the gift certificate sale •  81% of holiday shoppers will buy at least 1 gift certificate = $30 billion in sales for the season •  Look at your store records who purchased and who received •  Treat your credit holders the same as the gift card holders
  17. 17. Nurture the gift certificate sale •  Custom email to holder that includes amount and specific discount inviting to shop •  Encourage registration in store of you to feature specific benefits to gift card holders •  No purchase yet, feature merchandise in the price point = gift card value •  Share customer reviews on the store quality of the service and merchandise •  Connect in social with helpful info about lifestyle around the product
  18. 18. Start nurturing for sales today! Bigcommerce has all the selling and marketing tools you need to sell built right in. Free trial of Bigcommerce to use all the tools Use #BCHolidayTips to continue the conversation