7 September 2022
5 min read
How to build a good returns policy
When we talk about returns policies, we automatically think of an extended document which includes all kinds of conditions established by the retailer in the event that the customer wants to return a product.
But surprisingly, it doesn’t have to be that way.
Although this might not be the most attractive section of your website, it is definitely the trigger that will determine whether or not the customer will want to make a purchase again.
According to a study conducted by McKinsey prior to the Covid 19 pandemic, a 25 percent return rate for apparel on e-commerce channels was noted, and together with the sector’s e-commerce growing about 35 percent in 2020, its returns are at an all-time high.
With these statistics, now more than ever attention should be focused on maximizing the efficiency of returns. The best policies are those that are built by adapting to the client as much as possible to give them a fast, simple and effective experience, taking also advantage of the opportunity to strengthen your relationship with them. Here’s how:
- Remember that the policy is addressed to your customers
Although stating the entire policy may be relevant, it is also very important that the client identifies quickly and easily what steps to take when making a return.
Remember that your return policy is addressed to your customers. Therefore, use simple and understandable language.
When customers wish to return a product, they do not want to find obtrusive information that confuses them. Therefore, the easier and shorter the process, the better and gratifying the user experience.
- Don’t overlook relevant information
If you offer different types of products in your store, the correct thing to do is to specify the products that can be returned and the conditions under which they can be accepted. In addition, it is remarkably important to mention those aspects that are relevant to the client, such as clarifying what will happen with the shipping costs, the maximum time available that the client will have to make the change, how long an exchange will take, etc.
- Easily attract exchanges and store credit
According to the same study previously mentioned by McKinsey, the respondents mentioned that 70% of their returns were caused by poor fit or style. Meaning that the product is to their liking, however, the sizing is not correct.
If the return policy is complicated and difficult to process, it is quite likely that the customer will never make the product exchange. That at first may seem positive, however, if a customer keeps a product that he does not want, what will he think of the brand?
Your brand is losing repeat purchases if this happens.
Seeing it from the other perspective; If you offer a simple and quick return policy, the chances that the customer will buy again increase exponentially.
Our value proposition improves the efficiency of eCommerce and the experience of shoppers. REVER has achieved an impact of converting 35% of returns into exchanges or store credit.
- Premium user experience
Having a well-detailed, customer-focused policy is key; however, it is useless if the latter does not have easy access to the returns portal.
For this reason, it is very important that the returns portal is visible and clear so that the process can be started without any impediment or confusion.
At REVER, we make returns easier and refunds faster for everyone. Shoppers can request the return in only 2 clicks, choose the compensation method (e.g. instant refund or gift card) and return method (e.g. home pickup or deliver to collection point), receive the money in 15 seconds, and then return the product through REVER’s logistics partners (DHL, Correos, SEUR, dpd). A frictionless returns experience impacts both conversion and retention for retailers.
As shoppers, we buy products online and receive them at home in 24h, but when we need to return them, we face a painful and slow process. Our conviction is that returning should be as easy as buying, and we enable this by allowing online shoppers to request their returns in just two clicks and a couple of minutes.
A well-structured returns policy allows you to establish a closer relationship with your customers as well as enhancing customer retention. In this way, their perception of your brand improves and a real connection with your customer is created!