With the increasing number of marketplaces and services that sell products, there is more competition.
Running a business can be difficult, especially when dealing with returns. It’s estimated that between 15 and 40% of online purchases are returned.
This means that limiting the number of returns you receive is important because it can affect your profitability and efficiency.
Get Data From Returns
Collecting data can help you analyze your returns and make better decisions. This will lead to lower return rates in the future.
Keep an eye on the type of product and how much time has passed between purchase and return. You should also be aware that specific products are more likely to be returned during a particular season.
Create Amazing Product Descriptions
It’s essential to provide accurate and complete descriptions of what you’re selling. If your customer doesn’t know what they’ve bought, it can lead them to feel dissatisfied with their purchase or even a return.
When writing product descriptions, it’s important to include the following:
- Color or color options
- Manufacturer location
- Return Policy
One way to avoid returns is by creating a buyer’s guide. This can be done with tables, charts, and infographics used for customers, so they know which product will work best for them.
When people know what your product does and how it is supposed to be used, they are more likely to buy it.
Include several clear photos to give shoppers an idea of what they’re buying.
Be sure to take close-up photos of specific features and get shots from all angles.
Create Product Videos
It’s vital to make sure your customers know what they’re buying and how it works. Product videos are the perfect way for you to stand out from competitors because if people don’t understand their purchase, then there is a high chance that they will be dissatisfied with the product.
If you sell products that require assembly, consider adding a video to your website of how it’s done. Videos are beneficial when showing the functionality of an item.
Help Customers Pick the Right Size
The main reason customers return products they’ve purchased is incorrect sizing. When you buy clothes or furniture online, it’s almost guaranteed to be the wrong size, and if so, there will always be a high chance for returns.
Even if you make a mistake, it’s always best to have sizing charts and dimensions visible. This way, your customers can easily see the size of what they are buying.
Use a Niche
That’s why it pays to be aware of the pricing trends in your industry. If you know that everyone else is charging less for a particular product, then so should you.
One of the main problems with selling products in a competitive market is that you have to compete on price. However, when your product had more specialized needs and fewer competitors, it made for higher returns.
One of the best ways to keep customers coming back is by making sure that your prices are competitive. This means you can’t get lazy with setting price tags for items because it’s not just about what people want but also how much they’re willing to pay.
Pricing is a lot more than just generating revenue. It’s also about staying competitive and on top of the market by researching how your competitors are pricing their products.
We will look at some of the best pricing strategies for Amazon sellers.
Check Product Packages
The packaging of a new product is meant to be unique and exciting for the customer. As such, you should make sure that your box looks good before they open it.
One of the most important things you can do when opening your order is to make sure it’s packaged correctly.
Create a Replacement Agreement
For private label sellers, you can negotiate with your supplier to cover the cost of shipping defective products back to Amazon. Whether it’s a small dent or there is no function, make sure that they are on board before sending anything in.
It turns out that if you ask for this credit monthly, it’s not as much of a hit to the supplier at year-end. They’re less likely to turn down your request.
Not only will this agreement help your profit margins, but it’ll also ensure that you get high-quality items from the supplier by incentivizing them to provide a good product.
It’s not uncommon for people to order something online and return it. That being said, most successful retailers use returns to promote their products.
However, if you find that your return rate is too high and affecting your bottom line, then maybe it’s time to take action. A lower return rate can help increase profit margins while also reducing stress.
If you’re struggling with high return rates, these tips will help. If not, please share any other tricks that have worked for you in the comments below.