If you’re running a brick-and-mortar store, it’s important to know what the return rate is. Read this blog post to find out what is the return rate for brick-and-mortar stores and everything else you need to know about returns!
I remember when I first started my store, I had no idea what the return policy should be. Do we accept returns? What if the item is damaged? So many questions! Luckily, there are some great resources out there that can help guide you in creating your own return policy. And knowing what is the return rate for brick-and-mortar stores can also be helpful in setting expectations.
What Is the Return Rate for Brick-and-Mortar Stores?
In 2020, customers in the United States returned $428 billion worth of merchandise.
That’s a little over 10% of total retail trade.
Please let that thought sink in.
As more companies turn to e-commerce, so will returns.
COVID-19 has helped contribute to a large increase in e-commerce sales in 2020 compared to 2019.
While online retail sales may slow in 2021, they will still continue to grow at a rapid rate. Ecommerce returns are 2-3 times more than in-store, and that’s within the exact same category of products.
When it comes to retail, customers will always return items. But, why? And, can anything be done to reduce the incidence of customer-initiated product exchanges?
A survey of 1,000 consumers and 100 retail executives conducted by Inc. Magazine revealed that there is room for improvement in the retailer’s return policy.
Retailers could improve their return rates by an average of 11% annually, according to our survey. Only 3% of respondents said that current return rates were optimal.
Our survey found that 11% of returns are returned annually, but 3% of respondents said their rates are ideal. This means there is an opportunity for 31% of annual returns to potentially be reduced. For an omnichannel retailer with a 10% average rate, this would mean 3% of revenue or $30 million per year.
Reducing return rates can have a significant impact on a retailer’s bottom line. By taking a closer look at the factors that influence return rates, retailers can identify opportunities to reduce the number of retail returns and improve their profitability.
A $10 Billion dollar company could save $75 Million dollars a year by decreasing its return rate by 10%. This would have a tremendous impact on the business and customer experience.
The negative impact of returned products can be huge, not just in terms of the financial cost of the return, but the impact on the customer, the brand’s reputation, and the environment.
More than four in 10 customers will discontinue shopping at a retailer if they experience multiple returns that are the fault of the retailer.
Most business owners aren’t aware of how much return costs them. Only 4% of them monitor how returning items affect their customers, their brand, or the planet. This lack of information makes it hard to have discussions about the true cost of returned items and their impact on the business.
It is difficult to have a significant discussion about product returns without knowing the full extent of how it affects the business.
Returns are an unavoidable part of the retail industry. In fact, merchants often plan their inventories around expected rates of returned items.
Some retailers include a baseline rate of return into projected income statements and balance sheets.
Although returns may be seen as a cost, they don’t have to be unmanaged.
Returns are a company-wide issue, but no one has ownership of it.
Just over 75% of survey respondents said that reducing the return rate is not a priority for their C-Suite.
The misconception that most consumers buy things with the intention of sending them back is not totally accurate. In reality, few customers actually make purchases with the express intention of sending the products back to the store. The notion that people return too many goods because of an abundance of choice is partially correct.
The majority of customers would rather avoid having to make returns. After all, it’s inconvenient and annoying to have to take time out of their day to go back to the store or mail something back.
Shoppers returned more than 6,200 items across various non-grocery retailers.
73% of returns happen because of something the retailer did or didn’t do.
Some shoppers may return a purchase if they received an inaccurate product description, received the wrong item or SKU, or if the product fit was not as expected.
This is important, but retailers should also focus on reducing the number of returns in the first place. Retailers should focus on reducing the number of returns in order to improve the overall experience for their shoppers. By improving processes and focusing on prevention, retailers can provide a better experience for everyone involved.
In order to reduce the occurrence of returned items, retailers should focus on improving their internal processes and systems. By doing so, they can ensure their customer’s shopping experience is as positive as possible when a return does take place.
A great returns experience should minimize the number of returns that a customer has to make and provide an excellent experience when they do.
Remember: Returns are an opportunity to create customer loyalty
Companies want to ensure their customers are happy while generating revenue.
While high returns can negatively impact your profits, you should look at them as opportunities to create better shopping experiences for your customers.
By offering a smooth return process through Richpanel, your customers will continue to shop at your store.
Making someone’s return experience easy can go a long way in satisfying them. By providing detailed size charts, you can help customers avoid returns altogether.
If you’re looking to improve your online returns experience, Richpanel can help. We offer a range of features to streamline the process for both you and your customers.
In just minutes, you can set up workflows that let customers process their returns, and view their order history.
You’ll have the ability to analyze why customers are returning their purchases and to ensure each customer has a great experience with your company.
What percentage of sales are returned?
It varies greatly from business to business. Some businesses may have a very low return rate, while others may have a much higher return rate. Additionally, the percentage of sales that are returned can also vary depending on the time of year and the type of product that is being sold.
What is a good return rate for a product?
There is no definitive answer to this question as it depends on a number of factors, including the type of product, the price point, the target market, etc. However, a good rule of thumb is that a return rate of 5-10% is considered acceptable.
If you’re running a brick-and-mortar store, it’s important to know what the return rate is. So what is the return rate for brick-and-mortar stores? The average return rate for retail stores is between 5 and 10 percent. Knowing this can help you set expectations and create a solid return policy for your store.