8 Best Practices to Reduce E-commerce Return Rate

8 Best Practices to Reduce E-commerce Return Rate


Research says that one of every three products purchased online is returned by customers and the rate is much more in terms of luxury fashion brands. There is an inevitable fact that higher return rates, unfortunately, affect profit margins, customer retention and eventually impact the company’s growth. Major e-commerce brands across the world are still dealing with reducing e-commerce return rates through innovative ways that include third-party fulfillment. The return rate of a company depends on the type of items they are selling and the type of customers who are buying. In this blog, we are going to discuss the points of considerations that e-commerce companies need to focus on while reducing the e-commerce return rate.

Best Practices to Reduce E-commerce Return Rate

8 Best Practices to Reduce E-commerce Return Rate

With the advancement of the pandemic situations across the world, most businesses and customers are preferring online shopping instead of going to shops. While online sales being the standard practice for e-commerce companies, the number of e-commerce return rates are also increasing gradually. Here are some top tips that we are sharing for reducing the e-commerce return rate drastically while increasing profit margins and satisfying more online customers.

1. Optimize Product Visuals

High-quality product images help in bridging the gap between customer expectations and product reality. Better product photos will allow 360-degree views, multiple product angles, showcase lifestyle images, offering zoom features, and playing product videos. Optimizing product visuals will ultimately help the visitors to get more clarity of your product and hence they can choose products wisely that will eventually help in reducing the e-commerce return rate.

2. Create Simplified Product Description

The biggest disadvantage of online shopping is that customers can’t feel the products online. Hence, the importance of product description is much higher than anything else. A well-crafted product description will help the customers to get an idea about the product while the high-quality images will help them in imagining and feeling the product. A simplified yet detailed product description is a must-have for all online websites that want to reduce their e-commerce return rate.

3. Collect Customer Feedback

Collecting customer feedback is very important particularly for those who are returning the products. It will help you in improving the factors that may lead the customers to return products. It is a best practice that brands must take time in understanding the probable reasons for returning products. After pointing to the reasons, you should take appropriate actions that may include adding more product reviews, writing improved product descriptions, hassle-free return policy, correct size discrepancies, and many more.

4. Establish Proper Return Policies

One of the most important aspects that brands integrate is hassle-free return policies that will not create a burden for the customers and companies in keeping a track of the whole return procedure. Many companies can feel it counter-intuitive, but hassle-free return procedures help in reducing the e-commerce return rate to a drastic level. For an online business, customers rely on the shipping process, delivery, and return policies. Return policies of a company affect customers’ purchasing decisions because everyone wants a seamless online purchase even, they must return the product for some reason.

5. Offer Accurate Size Details

Accurate product quantity and size details are the vital criteria that every e-commerce company needs to follow as it affects the mind while buying the products. Either you put all the details on the product description, or you can put an AI integrated system which is most used by many big companies that will help in customized solutions to the customers.

6. Check Orders for Accuracy

E-commerce companies need to keep track of the number of orders placed by the customers each day. A well-crafted system should be placed so that people can check the correct orders are being shipped to the customers timely and with great accuracy. It will eventually prevent negative customer experience, lost sales, extra shipping costs, time spent in processing exchanges and returns, and liquidated products. You can prevent e-commerce return rates in no time while delivering customers with the correct package within the stipulated time.

7. Segment Your Customer Database

Customer traits and personas are a valuable consideration while analyzing customer databases that will yield you more accurate depictions of the high-risk customers. Segmenting customers will not only help in reducing e-commerce return rate but also will help in market segmentation also thus helping in product development. The effectiveness of the strategy is dependent on the metrics that you have gathered in the whole process.

8. Excellent Customer Support

Customer support is the backbone of any e-commerce company irrespective of its sectors. When someone is ordering a product from an online website, you are bound to provide customer service helping them in making a purchasing decision. Companies that are known for offering excellent customer service have seen a lesser number of returns as they are focused on offering good products and services to their customers.

The Bottom Line

While there will be few customers who will probably be always unhappy or take advantage of the generous return procedures, the bottom line is that the majority of the customers don’t prefer to return their goods or expect a hassle-free return process. Creating a positive brand experience in the customer’s mind is very important as it will help in staying ahead of the competition. Make the return process as easy as possible so that they can get the best shopping experience from you along with serving customer support.

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