MINIMIZE PRODUCT RETURNS – 10 WAYS TO FEWER RETURNS

MINIMIZE PRODUCT RETURNS – 10 WAYS TO FEWER RETURNS

❏ Today, I’m speaking on Minimize Product Returns: 10 Ways to Fewer Returns. Customer returns are the bane of doing business. The cost of taking back a product is often more than your profit! Additionally, you have an unhappy customer that you have to handle. Want to learn how to minimize this pain? Let’s get started!

As an executive coach, I help founders find the right help at the right time. Whether you run an early-stage business or are doing millions per month online, returns can cripple your cash flow.

Returns create issues, starting with negative customer reviews up through chargeback issues. I want to share ideas that will minimize all your return issues. Ready? Let’s get started!

Issue 1: The Wrong Item Ordered

Ordering the wrong item is one of the most frequent reasons for returns. People are in a hurry. Sometimes, they “fat finger” the wrong color, size, or quantity. This mistake is going to happen. The question is, how do you minimize it?

Start with a review of your website item page layout. Look at the method you use for each input you require a user to provide to put an item into the shopping cart. Are the buttons and selectors appropriately sized for the desktop and the phone?

Often, buttons need to be bigger and closer to each other.

Sometimes, you have an error on a product page where the user can add an item to the cart without selecting the required option. Do you have a default color or size in a selector? Remove it now! Every selector needs customer input.

Ensure the “add to cart” button is not visible or selectable until the user has made all the required selections.

How would you show the customer the cart items as soon as you get to the cart? Most people use a written list. People need to read! Instead, use a prominent image of each object. If the article had a color choice, show the item in that color. Size options should appear directly next to or below this image in a large font. Now, next to or below this image in a large font. Show the quantity, if more than a single unit, in a large, bold font. Even better, if the user orders two identical items, show two images side-by-side to catch their eye if they only meant to call one.

Issue 2: Product Description Not Accurate

We’ve all seen it. An overzealous marketer writes an over-the-top product description. The product description reads like you’re getting a Ferrari, but what shows up is a Pinto. A common reason is that the color, size, or quality of the look and feel do not match the images on your website. That is how the color, size, or quality looks and feels. Color and size are seen most often in clothing and jewelry. It isn’t easy to meet color expectations, but you can take steps. Ensure your image is large enough for the customer to see the colors. For sizes in clothing, measure it yourself. If a manufacturer labels it a size 10, but it is closer to a 12, say so clearly in your sizing table. For jewelry, could you show it next to the coin currency?

Give sizes in both English and Metric systems.

Issue 3: No User Reviews – Fake Product Reviews

Many sites don’t allow users to post reviews. Often, this is for fear of getting lots of one-star reviews. More modern websites (think Amazon) can only allow reviews from “confirmed buyers.” This method stops one-star spam attacks. Enable user reviews on your site. Respond within one business day to all five-star and one-star review rankings.

We’ve all seen this. You have a new product launch, and there are hundreds of 5-star reviews instantly. Consumers recognize these as “fake” reviews, and most will move on to competing products. Don’t use fake product reviews. Don’t pay people to do product reviews. If you give a product for free or at a deep discount in return for a product review, clearly state so in each review. Confirmed buyer reviews are compelling for generating new and repeat business. Don’t screw things up trying to “game” the system. Provide a great product at a fair price, and ask for reviews in your shipment and post-shipment emails.

Issue 4: The Wrong Item Shipped

We’ve all received the wrong item if we’ve lived long enough. Why does this happen? Usually, one of two reasons. The shipper slapped the incorrect label on the box. Another is that the person packing the box put the wrong item in the box. There is an excellent way to catch both. Track the box size and the total weight. If you scan each shipment before leaving your facility, you can read the box size and box total weight. Your shipping system should assign a box size to each load. If the items are too large or small for the specified box, your packing team will flag them.

An incorrect item in the system-identified box will often cause the total weight to be larger or smaller than expected, and a weight check at outgoing QA should flag it. If your process requires scanning an item before being boxed, your system should stop that error type. Bottom line: setting up the proper procedure and software should eliminate shipping the wrong item.

Issue 5: Damaged Items

Which of you still needs to get a box that looks like an orangutan jumping up and down? Not you? Your turn is coming! Crews that handle boxes in shipment are sometimes the most careful. Plus, anyone can have a bad day and drop something. The key is using appropriate shipping materials for the goods before shipment. Ever open up an Apple iPhone box? They are an excellent example to follow. A 200-pound person could step on an unopened iPhone shipping box, and the iPhone inside would be undamaged.

You don’t have to design a custom box, but use some common sense. If you have a “soft” item (clothing), ensure it is in a plastic bag to protect it from the elements should the shipping box open. If it’s a breakable item, use copious amounts of bubble wrap or similar material that is ideally recyclable.

Issue 6: Poor Product Quality

Everyone expects most items they buy to last a “reasonable” time. Sadly, reasonable is different for every person. If I pay $1 for an iPhone case, most people’s expectations will be low. If I pay $50 for an iPhone case and what I get looks like many $1-$10 cases, many of your customers will not be happy. I’m all for maximizing one’s profit margin, but the quality of the product you ship must meet or exceed your customer’s expectations.

Issue 7: Charge for Opened Item Product Returns

Sadly, some customers buy an item, use it briefly, and then ask to return it. Most large retailers accept returns today, and many large businesses allow returns for any reason. If you sell items that a customer wears, this can lead to a form of showrooming. The customer buys an article for a party, wears it, and then sends it back afterward. You’re stuck with a used item that you can’t resell as new, if at all. What can you do?

One option is not to allow product returns on opened items. This policy will likely negatively affect your sales if your competitors allow returns for any reason. You can probably get away with “All Sales Final” for electronic downloads, such as courses, if the item is below $20. Such a policy on higher-priced items will likely dramatically reduce your sales. Allowing a return for any reason within 7 to 14 days is the norm for most products. The business has found that this return policy has increased sales. Yes, you will get returns, but you need to figure that into the “cost of doing business.”

Another option has what many call “a 15%–20% restocking fee” and requires the consumer to pay shipping costs for returns. Shipping costs are not charged up front but instead subtracted from the check or credit adjustment after the return. Again, this will likely negatively affect your sales if your competitors allow product returns for any reason. Yes, you will still get product returns, but you need to figure that into the “cost of doing business.”

Issue 8: Fire Bad Customers

If customers regularly return items, you need to “fire” them. These people are abusing your return policy and are costing you more than you are making on them. Ensure your CRM tool can identify customers ranked by product returns and return rates. Review this weekly. When you find such a customer, inform them you cannot accept future orders. Block both their address and credit card from being processed through your system. Unless you do both, they’ll likely change one and keep buying from you.

Issue 9: Change Packers

Sometimes, your packing service packs the wrong item in the box, even though all the paperwork is correct. To me, this is inexcusable. Your packers should always pack the correct product. If they do, it usually means they don’t have the right processes. It seems that it is not your job to suggest fixes for them. Find another packing service. Ask candidates to go through the details of their packing process. They should be able to bring out workflow diagrams showing their packing workflow and how it ensures 100% correct packing. If not, keep looking until you find one, then fire your current packing service.

Issue 10: Change Shippers

Sometimes, you are in a shipping service that ships the correct item to the wrong person or address, even though all the paperwork is proper. To me, this is inexcusable. Your shippers should always ship to the correct person or address. If they do, it usually means they must have the right processes. It seems that it is not your job to suggest fixes for them. Find another shipping service. Ask candidates to go through the details of their packing process. They should be able to bring out workflow diagrams showing their shipping process and how it ensures 100% correct shipping. If not, keep looking until you find one, then fire your current shipping service.

Conclusion

I hope I have educated you on how to minimize product returns in 10 Ways to Fewer Returns. If you follow my advice, you’ll have fewer unhappy customers, lower return rates, fewer chargebacks, and better social media rankings.