Ecommerce product returns are a costly problem for retailers. The average return rate for online retailers is 16.2%, which means that for every 100 items sold, 16.2 are returned. This can eat into profits and damage customer satisfaction.
Fortunately, there are a number of ways to use data to reduce ecommerce product returns. By tracking and analyzing data, retailers can identify trends and patterns that can help them to prevent returns in the first place.
Here are some of the most effective ways to use data to reduce ecommerce product returns:
- Track your returns data: The first step to reducing ecommerce product returns is to track your returns data. This will allow you to identify the products that are most often returned, as well as the reasons for the returns. Once you know this information, you can take steps to address the issues.For example, if you find that a particular product is being returned frequently because it is not as described, you can update the product description or add more photos. If you find that customers are returning products because they are not the right size, you can offer a size guide or free returns.
- Analyze your customer data: In addition to tracking your returns data, you should also analyze your customer data. This will help you to understand your customers’ needs and preferences, which can help you to prevent returns in the first place.For example, if you find that a particular group of customers is returning a lot of products, you can reach out to them to see if there is anything you can do to improve their experience. You can also use customer data to create targeted marketing campaigns that are more likely to result in successful sales.
- Use predictive analytics: Predictive analytics can be used to identify customers who are at risk of returning a product. This information can be used to intervene before the customer returns the product, which can save you time and money.For example, you can use predictive analytics to identify customers who have returned products in the past. You can then reach out to these customers to offer them a refund or exchange, or to provide them with additional information about the product.
- Improve your product descriptions : Accurate and detailed product descriptions are essential for reducing ecommerce product returns. When customers know exactly what they are getting, they are less likely to be disappointed with their purchase and return the product.Be sure to include all of the relevant information in your product descriptions, such as the size, color, material, and product features. You should also use high-quality images and videos to show off the product.
- Offer free shipping and returns: Offering free shipping and returns is a great way to reduce e-commerce product returns. When customers know they can return a product for free, they are less likely to be afraid to buy it.
Free shipping and returns can also help you to attract new customers. When customers know that they can get a product for free and return it for free, they are more likely to give your store a try.
- Make the return process easy: The easier it is for customers to return a product, the less likely they are to do so. Make sure that your return process is clear and easy to follow. You should also offer a variety of return options, such as in-store returns, mail-in returns, and drop-off locations.
- Provide excellent customer service: Excellent customer service can help to reduce ecommerce product returns. When customers have a positive experience with your customer service team, they are more likely to be satisfied with their purchase and less likely to return the product. Be sure to respond to customer inquiries promptly and courteously.
Not only will these tips help you to save time and money but will also improve customer experience and satisfaction. NextBee helps e-commerce brands analyze customer engagement behavior with intelligent analytics. You can harness the power of predictive analytics to discover engagement patterns and opportunities.
Talk to us now to watch how NextBee’s Product Returns Slasher can help your e-commerce brand reduce product return rates.