The truth is that you probably already know that returns in retail can be pretty high. Besides, it is also important not to forget about the special months of November and December that can be incredibly profitable. However, in January, a lot of retailers see a lot of returns.
While this happens, it is important to keep in mind its costs.
Discover all you need to know about returns.
Returns In Retail May Not Be That Costly
As you probably already know, most retailers accept returns. In addition, most of them even allow you to make returns in-store, through a distribution center, or even with a third-party service. However, if you are a retailer, you know that this has costs.
#1: The Sale Is Lost:
There’s no question about this fact. After all, a refund means that money is taken from you and sent back to the customer no matter the reason he states for it.
#2: Returned Goods May Not Be In Good Conditions:
As a retailer, you probably get returned products that are opened or even damaged. The truth is that even though you may have a strict returning policy related to this, it can still happen. And this means high costs.
Learn more about Lenovo return policy.
#3: Shipping And Handling Fees:
In case you are selling all or most of your items online, then you know that shipping and handling costs may become very expensive.
#4: Labor Salaries:
No matter if you sell a lot or not that much, there are some costs that you can’t avoid – labor salaries. And when you have a lot of returned products, these costs can easily increase.
#5: Lost Of Inventory:
The reality is that when you have returns in retail, these products won’t be useful or productive again. Besides, it is also important not to forget about the costs of slow-moving stocks.
Check out the best practices for return and refund policies.
How To Lessen Returns In Retail
One of the things that many retailers do is that they keep a list of serial refunders. However, this isn’t possible for small retailers since it also adds costs. However, there are things that you can do to lessen returns in retail
#1: Let Your Customers Try The Product:
One of the best examples we can give you is Costco with their sample day. While you need to ensure that there are some rules, this may definitely help you lessen returns.
#2: Let Customers Interact With Your Products:
If you think about it, it makes perfect sense for some industries to allow customers to try out the products before they buy them. Just think of toys and game shops where you can try out the games before you buy them, cosmetics and skincare retailers where you can test the products before buying, and even car dealerships that allow you to test drive as many cars you want.
Discover 6 tips to improve the return policy of your online store.
#3: Your Product Descriptions Need To Be Accurate:
When you have an e-commerce store, then you need to ensure that all your products’ descriptions are accurate and as detailed as you can. Providing all the info, including images and even videos about the products you are selling allows your customers to have a better idea about what they are buying. And this will definitely decrease returns.
#4: Make It Easy To Leave Feedback And Reviews:
Adding feedback and reviews to your e-commerce store is a must. The truth is that this doesn’t only give your customers a feeling of importance as it also helps give direction to future customers. Besides, this is also great for you since you may be able to tell which products may need to be replaced or tweaked.