Customers don’t trust eCommerce shops.
Unlike in-person shopping, they can’t see or feel what they buy before putting down money. As such, they can’t tell if your product is as good as advertised. Not only that, if they’re ordering clothes, they won’t be able to tell if it fits them perfectly.
That’s why 79% of customers read the return policy. It helps reduce their risk aversion and convinces them to make the purchase—especially for first-time buyers.
So, let’s discuss why it’s crucial to have a return policy below. Plus, you’ll see how it can actually boost your sales and encourage long-term customer loyalty.
7 Benefits of a Return Policy
Here is a list of all the benefits you get by implementing a return policy:
- Boosts Customer Trust: People will feel secure, seeing that you’re sure of your products.
- Eliminates Perceived Risk: People feel more confident in buying online if they know they can change their mind.
- Increases Sales: 92% of customers will buy again after experiencing a seamless returns process.
- Attracts New Customers: New people won’t feel reluctant to purchase your product because they know they can return your product if they’re dissatisfied with it.
- Manage Customer Experience: There’ll be fewer disagreements and misunderstandings as you’re transparent with your customers through your policies.
- Law Compliance: While there’s no federal law in the US requiring a return policy, some state laws do. And some other countries do as well.
- Pre-emptive Problem Solving: Allowing returns with a policy in place deters fraudulent returns.
Giving the option to return an item builds a better relationship between you and your customers. It’s a win-win situation. You’ll improve your reputation while boosting customer experience in eCommerce, especially as 34% of Gen Z shoppers believe online stores are untrustworthy.
4 Steps to Set Up Your Return Policy
Here are our top 4 tips on how to set up a return policy:
1. Partner with a Capable 3PL
First, always work with a 3PL or third-party logistics that offers reverse logistics. They will have a standard for eCommerce returns that’s simple, fast, and requires no manual grunt work. This contributes to the customer’s experience, especially as they want an effortless way to return an item.
The easier it is to return products, the more they’ll be confident purchasing anything.
2. Make the Return Visible
Be proud of your return policy. Shoppers will be less skeptical if you offer the option to return purchases. They’ll see that you’re committed to making the customer experience wonderful.
So, there are two key steps:
- Highlight Your Return Policy: Don’t bury your policy in the depths of your website. Instead, make it known to your potential shoppers, so they know they can change their minds.
- Show Your Return Policy in the Cart: The last step of a customer’s buying journey is when they’re about to check out. So, this is the best time to remind them of your return policy. Doing this will decrease cart abandonment and boost conversions.
3. Make the Product Irresistible
The ultimate strategy for reducing returns is to make your product so amazing that your customer will feel like they’ll lose something by returning it to your company.
For example, suppose your business sells a fitness subscription app that tracks an athlete’s physical state at every waking moment. You can offer a return policy with a complete money-back guarantee. But that also means the customer must “return” or give up all the data collected in the app.
Considering that they must be serious about their body to buy the app in the first place, they’ll think twice before deleting all that precious data—making your product irresistible.
4. Set Your Conditions and Stick to Them
Be clear with the conditions set in your return policy. They won’t deter shoppers if they’re reasonable. Although there are plenty more conditions for you to add, here are the crucial ones:
- Time Limit: Depending on your product type, evaluate how many days a customer takes to experience your product fully. Use that time as the deadline for returns.
- Original Packaging: Get customers to return the item with its complete contents and original packaging to decrease fraudulent returns.
- Sensitive or Perishable Items: Don’t allow returns for personal or time-sensitive items, such as undergarments or food. This is because it can pose health and safety risks.
If your customer genuinely sees something wrong with your product and wants to return it, they won’t think twice about your return conditions. In fact, they may even receive them positively, realizing that your company is serious about only helping those they’ve let down.
Remember: A Return Policy is a Chance for Reconciliation
People purchase from online stores because they want the convenience of not going to a brick-and-mortar store. But if you don’t make the return process as easy as walking back to the store for an instant refund or replacement, customers will reconsider online shopping—that’s not good for business.
Instead, let your customer feel that the return policy is an opportunity to solve a possible problem. The more you foster a trusting relationship with them, the higher the chances of them returning and recommending your brand to others.
Looking for a reliable 3PL company to work with?
At San Legend, we help eCommerce businesses scale their brands and break into new markets by providing customized, agile, and forward-thinking third-party logistics solutions. Reach out today to see how we can help.