4 Models for Effectively Handling E-commerce Returns

Returns are a fact of life in eCommerce. While most people keep the products they receive, others will send them back. There are myriad reasons for doing so. Perhaps a product looks different in real life than it appeared on your website. Or maybe a buyer accidentally ordered the wrong size or model, meaning a product is incompatible with their needs. Someone else may have found a better deal. Or, perhaps the product sustained damage in transit and the customer wants a replacement.

Consider these four models for effectively handling eCommerce returns. Then make sure whatever return policy your store chooses is optimal for both your customers and your bottom line. Given more than 60 percent of shoppers will read your return policy before buying, a solid one can serve as a make-or-break factor in your sales figures.

Free Returns, Free Shipping

The most appealing return policy for customers is a free one. Furthermore, they prefer the retailer shoulder the burden of paying for return shipping. Adopting this policy can drive sales if customers are aware of the incentive while shopping. This can also drum up repeat business because customers typically have a more positive experience with buying and returns. Offering free returns and free return shipping goes a long way toward cementing your reputation as a customer-centric online store.

However, critics of this approach argue it’s simply unsustainable for many retailers. With margins in eCommerce already tight, it can be a burden on the retailer to pay for return shipping plus eat the cost of the returned merchandise.