Our data shows that as many as 46% of buyers give up a purchase when the rules of returning goods are difficult. As a company supporting e-commerce, we have developed a solution that can transform this large part of users into loyal customers.
Fast shipments, the possibility of choosing couriers, the option of tracking packages – these amenities are no longer enough for consumers. Today’s Internet user expects efficient and trouble-free service, also in terms of returning purchased goods. The scale of this phenomenon is getting bigger, and as proof we have several figures from reports carried out in 2020. A year of pandemic, lockdown and increased internet shopping.
No refund? Then no purchase
At Metapack, we serve online stores around the world, which is why we look at purchasing trends globally. SaleCycle’s analysis based on Global Webindex data shows that the largest number of returns relates to goods such as footwear and clothing, electronics, accessories and jewelry, health and beauty, and entertainment. What makes users decide to return the goods to the seller? The most common reasons given include:
- product damage – 80.2%,
- product inconsistency with the description – 64.2%,
- dissatisfaction with the purchase (I don’t like it) – 37.2%,
- poor product quality – 7.5%,
- delay in delivery – 7%.
The phenomenon is so common that we decided to take part in the IMRG study, which prepared an extensive report on the subject: IMRG Returns Review – 2020. It shows that customers not only value a convenient return policy, but also check it before making purchases and on this basis, they make a decision whether to make the transaction or not.
- As many as 69% of respondents confirmed that the quality of the return service strongly influences the choice of the seller.
- 57% of customers are more likely to choose to buy from a store with an easy return process.
- 82% of respondents believe that a customer-friendly return policy is the norm when shopping online today.
These are numbers that cannot be ignored by any salesperson who wants to develop their business. And indeed – stores that have noticed this trend have changed the way they operate in order to meet the growing expectations of their customers. A 14-day return, regulated by EU policy, is no longer enough. Retailers today offer much more.
Bad refund policy costs money
While returns are very loss-making for sellers, their absence or complexity can cost them significantly more. The SaleCycle study seems to confirm this. According to the data, 57% of salespeople admitted that returns management has a negative impact on day-to-day business. Unpleasant experiences related to the return of products may also deprive sellers of regular customers and subsequent purchases. The percentage of such lost consumers varies with age in the range of 30 to 60%.
So one thing is certain: even if the customer incurs costs in a one-off transaction, the long-term losses are always on the seller’s side. Fortunately, this can be remedied quite quickly. We have prepared three steps on the way to a better customer service and supported them with appropriate tools. Meet Metapack Returns.
Returns as a tool for building positive relationships with the customer
The entities that use our products are more than our customers – they are our partners with whom we build lasting relationships. Thanks to this, we can learn more about their needs and the challenges they face in order to offer new or improved solutions. This case was similar. In order to develop appropriate tools and processes that will support e-commerce businesses in their daily work, we have engaged our experts, time and numerous resources for research and analysis.
You can read more about solutions to improve returns handling in A Retailer’s Guide to Returns report. It assumes the implementation of three important steps:
1. Create a returns policy that will steal the hearts of your customers. Offer more than the competition by providing quick and convenient returns over time. Your return policy is your marketing tool – be proud of it and communicate it through all channels!
2. Optimization of returns logistics. Introduce process automation that will enable data collection and reduce customer service costs.
3. Returns as a loyalty building tool. Provide customers with various return options, put them in control and turn the return into an opportunity for another sale.
Automating the return process is a response to the latest challenge faced by small and large online stores. Metapack Returns is an all-in-one product designed just for this purpose. See how easy it is for store customers to return goods in the store:
The entire process takes place through the store’s website. The users select the items from the order that they would like to return. They then choose the shipping option that is most convenient. Possible costs and fees are charged by easy-to-use payment options. The user prints or downloads a return card, and a courier comes to collect the package. The user can track the route of the shipment thanks to a convenient application, equipped with the function of SMS notifications. The funds are automatically returned to the user’s account.
So what does Metapack Returns really offer? Thanks to this product, our clients can count on:
- cross-border returns,
- increase in store conversion,
- improving customer retention,
- gaining access to data and insights,
- reduction of return shipping costs,
- eliminating direct contact with the client,
- eliminating the need to manually manage the returns process,
- collection of fees and recovery of revenues.
Does it pay off? Definitely! A 2018 Accenture report indicates that effective return management processes can increase profits for a business by 29% over three years by:
- increasing the number of purchases by 12-25%,
- reduction of marketing costs by 18-39%,
- reduction of profit loss from returned goods by 26-50%.
Ans this is what we wish for all our partners with all our Metapack heart!