1/23/2025

Handling High Returns Rates: Strategies for Your Shopify Business

Returns can feel like a necessary evil when running an ecommerce business. Despite best efforts to provide QUALITY products, you'll inevitably face HIGH return rates. In fact, the average return rate for online purchases was around 17.6% in 2023, a stark contrast to just 10.02% for brick-and-mortar stores! According to the National Retail Federation (NRF), every $1 billion in sales results in about $145 million worth of goods being returned! So, how do you manage HIGH return rates effectively while maintaining customer satisfaction? Let's dive into some STRATEGIES that you can apply to your Shopify business.

Understanding Why Returns Happen

Before jumping into specific strategies, it’s crucial to understand the WHY behind returns. By doing this, you can tailor your approach more effectively. Here are some common reasons:

Incorrect Sizing: 65% of online shoppers report returning items because they did not fit properly. This massive void can indicate inadequate sizing guides or product information.
Product Discrepancies: If the item delivered does not match the online description or seems defective, customers will return it.
Changed Mind: Shoppers may have that moment of buyer's remorse, realizing they no longer need the item or found a better deal elsewhere.
Quality Issues: Products may not meet customer expectations based on marketing imagery or descriptions.

Identifying the reasons specific to your business will allow you to formulate a targeted response.

1. Create a Customer-Centric Return Policy

A clear and concise return policy builds TRUST. It indicates that you care about customer experience. Consider the following:

Make It Easy: Your return policy should be easily accessible on your site. Place links in the footer, FAQ sections, and at checkout.
Clear Guidelines: State how long customers have to return items, the condition they must be in, and what customers can expect as a refund or exchange. An example policy from IKEA shows a generous 365-day window for returns, which often leads to higher sales!
No Surprises: Ensure customers are informed about restocking fees or who covers return shipping costs. For instance, many stores choose to charge a restocking fee on high-value items.

2. Improve Product Descriptions and Images

When you don't provide accurate and comprehensive information, customers may end up unhappy with their purchase:

High-Quality Photos: Use multiple angles and zoom-in features to give a complete view of products. For example, Gunner Kennels made strides in reducing returns by using 3D technology that allows prospective buyers to view a product dimensionally.
Detailed Descriptions: Include weight, materials, size guides, and even care instructions clearly. Correctly label whether products are final sale or non-returnable items. Have you thought about creating video demonstrations? They can be game-changers!

3. Utilize Size Guides Effectively

A significant reason for returns, especially in the clothing industry, is fit. So, a comprehensive size guide could help:

Custom Size Charts: Coordinate with manufacturers to create charts that reflect your sizing and highlight how to measure accurately. Check out Wayfair’s return policy that emphasizes the importance of product condition upon return. It also caters to size discrepancies through clear guidelines.
Model Sizes: If your product line includes clothing, share what size the model is wearing to draw better comparisons for your shoppers.

4. Use Advanced Analytics to Understand Returns Trends

There’s power in knowing your RETURN rates specifically:

Trends Analysis: Use Shopify's built-in analytics tools or third-party solutions to identify common return reasons. This allows you to take immediate action on consistent issues. For instance, if one specific item has a HIGH return rate, analyze feedback and adjust product descriptions or even reconsider the item if needed.
Feedback Loops: Create channels for customers to provide feedback on why they return items. This data is GOLD and can be leveraged to refine your offerings and customer experience.

5. Streamline Your Returns Process

Much like the shopping experience should be seamless, so should the return process:

Self-Service Return Portal: Introduce a self-service portal where customers can easily initiate returns without contacting support. Shopify app features can help automate returns, reducing the burden on your team and improving customer satisfaction.
Automated Notifications: Send customers updates about their returns progress. Be transparent about when they can expect refunds. Communication is key to preventing frustration.

6. Offer Easy Exchanges Instead of Refunds

Instead of just a return, consider promoting exchanges:

Encourage Product Exchanges: Instead of issuing refunds, guide the customer toward exchanging their product. For instance, if a piece of clothing doesn’t fit, provide them direct links to other available sizes or colors.
Internal Data Analysis: Use tools like Loop or Happy Returns to manage exchanges better. They allow customers to exchange products in a click, and you can utilize their analytics to cater to high-return items.

7. Implement Customer Feedback Loops

Creating feedback loops helps survey your customers regularly:

Post-Purchase Surveys: Utilize post-purchase emails for quick surveys. Ask why the customer decided to make a return. Utilize survey tools for structured feedback.
Real-Time Adjustments: If certain items repeatedly receive negative feedback, you may need to reconsider your buying decisions or production standards. You could also leverage this feedback for better customer service responses!

8. Maintain Consistent Communication

Once the return process has been initiated, continual interaction is crucial:

Notification Emails: Keep customers informed at every step—when items are received, when processing starts, and when refunds are issued and direct into their account.
Personal Touch: Whenever possible, offer additional ways for them to contact support if they have further questions. Chat support can be a great tool here, ensuring customers feel valued.

9. Analyze Your Return Policies Regularly

Don't just set it and forget it! Your return policies should regularly be assessed:

Monthly Review: At the end of each month, analyze the return rates against various metrics such as products sold, seasons, marketing campaigns, etc. Adapt your policies based on statistical performance and customer interactions.
Utilize Tools Like Arsturn: Streamline your processes by using conversational AI for real-time customer support. Arsturn offers an instant AI chatbot solution that can engage visitors and address any queries about returns or exchanges efficiently.

10. Offer Incentives for Returns and Exchanges

Some stores still hesitate to sell products at full price, worrying it'll lead to higher return rates:

Promotional Discounts: Provide incentives for those who choose to exchange rather than return the product. Something as simple as a 10% discount on future purchases can tip the scales favorably.
Reward Loyalty: For returning customers, mix in a rewards program that reflects their engagement with your store. This encourages continued patronage rather than abandoning the brand entirely!

Conclusion

High return rates may seem daunting, but they don't have to signal doom for your STORE. By implementing strong policies, enhancing product information, optimizing your return process, and maintaining a customer-first mentality, you can curve those pesky returns while keeping your customers happy.

And remember, if you're looking to LEVEL UP your customer interaction processes, check out Arsturn. With their AI chatbots, you can create user-friendly responses to FAQ, manage your online engagements, and streamline your return processes EVEN MORE! Dive in and let your Shopify business THRIVE!

Whether you’re operating a small business or a LARGE ecommerce platform, you can implement these strategies effectively to keep your return rates low without sacrificing customer satisfaction. Let’s work toward making RETURNS a less painful aspect of your business journey!