With the rise of ecommerce, product returns have become an unavoidable part of the customer service experience. As an ecommerce business owner, understanding why customers return products and how to reduce product returns can make a huge difference in your bottom line. That’s why it’s essential to be aware of these ecommerce product returns statistics in advance, so you can learn how to best manage them.
Reasons why customers return products
When it comes to why customers return products, the reasons can vary from customer to customer. Some of the most common reasons for product returns include:
- Wrong size/fit: Customers often order the wrong size or fit of a product, leading them to return it.
- Poor quality: Many customers return products due to poor quality, either in the materials or design.
- Not as expected: Customers may return products that didn’t meet their expectations, such as items that don’t look as good in person as they do in the photos.
- Changed their mind: Some customers will return products simply because they changed their mind about the purchase.
- Damaged in shipping: If a product arrives damaged due to poor shipping or handling, customers may choose to return it.
By understanding the reasons why customers return products, you can better tailor your customer service strategies to reduce product returns.
Industry-wide statistics for product returns
When it comes to product returns, industry-wide statistics can give you a good idea of what to expect. According to a recent survey, the average rate of product returns across all industries is 25%-30%. However, the rate of product returns can vary widely depending on the industry. For example, the apparel industry has a return rate of around 30%, while the electronics industry only has a return rate of only 8%.
In addition to industry-specific return rates, there are a few other statistics you should be aware of like a recent study that found that the average cost of processing a product return is around $10. This cost includes restocking and repackaging the product, as well as any additional fees charged by the shipping company.
It’s also important to note that the rate of product returns is increasing. One related study found that the rate of product returns has increased by nearly 40% over the last five years. This is likely due to the rise of ecommerce and the increasing number of customers who are willing to purchase products online.
Factors influencing product return rates
When it comes to product returns, there are a few key factors that can influence the rate of returns. The most common reason is the quality of the product, which can have a major impact on return rates. If the product is of poor quality, naturally, customers are more likely to return it.
Another key reason products are sent back is if the consumer feels misled by inaccurate or incomplete product descriptions or images, which commonly results in them opting to return the product. Of course, some products just arrived damaged and have to be sent back, automatically factoring into ecommerce product return statistics across the board.Â
Strategies to reduce product returns
There are a few key strategies you can use to reduce product returns.Â
- For starters, you should make sure your website features up to date, accurate and detailed product descriptions as well as images. This will give your customers a clear idea of what they’re buying before they make a purchase.
- Feature a clear and simple return policy. Customers should have an easy way to return products if they need to without any hassles or confusion.Â
- Invest in quality control. Be sure to inspect all products before they’re shipped to ensure they meet high standards and to help reduce your return rates.Â
- Offer excellent customer service. Respond to customer inquiries quickly and be sure to provide helpful and friendly customer service.
- Provide incentives for customers to keep their purchases. Offer discounts, rewards, or other incentives to encourage customers to keep their purchases rather than return them.
Conclusion
Product returns are an unavoidable part of the ecommerce experience for both sellers and consumers alike. By understanding these ecommerce product returns statistics and by implementing strategies to reduce product returns, you can minimize the impact on your bottom line. Start by analyzing product return rates to identify areas of improvement and make changes to reduce the rate of product returns. With the right strategies and tools, you can manage product returns effectively and increase customer loyalty.
