Business owners face many challenges. These include things like high overhead, stiff competition and market fluctuations. However, even completing a sale does not mean that revenue is safe. It can easily be wiped out when that product is returned for a full refund. If you want to protect your profitability and stay in the black, you need to minimize the number of returns you receive. Doing so requires some strategy and rethinking how you do business.
First, you need the proper shipping options to provide to customers. This means working with a shipping service that’s dependable. You have to trust them to handle your products with care or else you will end up losing a lot of money. Don’t be afraid to switch shipping partners if needed.
Product Descriptions and Listings
A common reason why customers return an item they bought is because they believe they were deceived. This can happen when the online listing for a product has an inaccurate description or image. Ensure that your listings are always accurate and up to date regarding the newest models or product revisions.
Packaging is another huge factor in determining how many returns you will receive from customers. If your packaging is designed incorrectly, it could damage every single product you mail out. Overall, you should have two goals, packaging optimization and product safety. You should use just enough packaging to ensure your product’s completely safe passage to the end consumer for the least amount of money.
It’s one thing to have packaging designed to protect your products during shipment to the end customer. It’s another thing to have those products handled correctly during each stage of the manufacturing, packaging and shipping process. Make sure you train employees well and supervise them closely to make sure all your products are handled with the utmost care. Ensure that is the case with any contractors you work with as well.
You may also get returns if there is a specific defect in your product that consumers can’t tolerate. Overall, you need to be open to criticism. This includes criticism via online reviews, social media, e-mail and phone. Make sure to take customers’ issues and complaints seriously. You can then integrate their feedback into product improvements that will prevent future returns.
Make sure you do everything you can to minimize customer returns. If you don’t, those returns could begin eating away at your bottom line in a big way. Returns are a huge threat you should take very seriously.
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.