There are many reasons to return a product: the product did not work, it differs from listings, missing parts, etcetera. In these cases, the company can at least improve their services to avoid returns, but these reasons are not always rational.
The article “4 Data-Driven Tips To Optimize Your Return Policy For The Holidays” gives us some examples: some customers order items to wear once and return them, others want to try them on without any intention of keeping them and others try different sizes and colors to pick their favorite. Not surprisingly, according to a Custora’s data analysis these customers have the highest likelihood to return items purchased online.
The problem of this returns is that is expensive for the companies to handle with them. The publication “Returns a 10 billion pain” says that returns “add up to a $10-billion-a-year headache for Canadian merchants, and the problem is only getting worse”. So why would a company have return policies if it costs them money? To build customer relationships. Many shoppers will be attracted to a specific company just because of their return policies and the facilities to return the product. They will be more willing to buy if they know that returning an item is quick and cheap, and they could become loyal customers.
Therefore making it easier for clients to return items and offering them liberal policies can increase a company’s sells. This is why improving this service is very important. Sears for example, will offer a new service in which Customers will be able to choose and pay for products online and pick them up at the store without getting out of the car, and make returns in the same way.
References
[Photograph]. (2013). Retrieved from http://www.shopify.com/blog/4767512-9-tips-on-creating-an-ecommerce-return-policy
Elkind, J. (2014, September 24). 4 Data-Driven Tips To Optimize Your Return Policy For The Holidays. Retrieved September 28, 2014, from http://marketingland.com/4-data-driven-tips-optimizing-return-policy-drive-holiday-growth-101011
Okerlund, K. (2014, April 10). Top 10 Reasons for a Product Return. Retrieved September 28, 2014, from http://www.chargeback.com/blog/top-10-reasons-for-a-product-return
Strauss M. (2006, November 22). Log In – ProQuest. Retrieved September 28, 2014, from http://search.proquest.com/docview/387272359/fulltext?accountid=14656
Tuttle, B. (2014, September 18). Sears Lets Shoppers Do Returns, Exchanges Outside Stores in Their Cars. Retrieved September 28, 2014, from http://time.com/money/3398578/sears-returns-customer-service/