Shipfusion Blog

Is Your eCommerce Return Policy Costing You Money?

Although it is an important concern for online businesses, developing and implementing a free and easy eCommerce return policy for customers barely gets the attention it deserves.

Even though we get a lot of questions regarding free shipping, many startups still fail to realize the importance of an easy eCommerce return policy.

Typically, return policies are important for clothing and other products like footwear. But considering the fact that online shoppers are becoming savvier by the day, and have an increasing number of options, this is something that really deserves your attention.

How To Create An Effective eCommerce Return Policy

What Is A Lenient Returns Policy?

When online shoppers say they are looking for a lenient returns policy, what are they really looking for?

According to most customers, an important aspect here is including a returns label with the original order. Other customers believe that an easy returns policy should include an easily printable return label.

With the growth in ecommerce, most customers now believe they should be offered exchanges and returns without any additional charges. So you don’t just have to offer free shipping but free returns as well.

It Can Be Costly

The costs largely depend on what you are selling. Companies that sell clothing may experience a return rate of at least 30% while it is lesser for companies selling other products.

Similar to other promotions, free returns will require you to analyze your order history and evaluate how much it will eventually cost you through the year. It is recommended that you aggregate returns and deal with holiday returns separately to have a clear idea. The next step would be to forecast sales based on the number of your customers.

It Is Largely About Trust

When an online retailer offers an easy returns policy, it goes a long way towards business growth and development. For most customers, an online retailer that offers easy returns policy stands accountable for its brand and this accountability leads to more trust, security and eventually, more sales.

Moreover, an easy returns policy also allows you to step up your game. If you are offering low quality products, you will get rid of them once you start noticing a high rate of returns.

Professionally photograph your products to get better images.

If there are errors in your order fulfillment, make changes to ensure that only the right products reach customers.

Shipfusion sets your business on autopilot and combines flexible, reliable fulfillment with powerful, real-time technology. Shipfusion has multiple fulfillment centers across the US and Canada– making it easy to manage your eCommerce business. For more information on how to set your business on autopilot, contact one of our fulfillment specialists today.

“Part of the theme at Shipfusion is that we don't constrain our clients. We work with them as business partners, which allows them great flexibility to work with other 3PL solutions and still take advantage of Shipfusion services.”

Dean Bentley-Falcke
Senior Solutions Architect and eCommerce Specialist
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