20 ways retail executives reduce returns and increase exchanges in 2020
Online returns are a thorn in the side of retail executives, costing billions every year. While shoppers return only 10% of what they buy in stores, they send back up to 50% of what they buy online. Not only is this a hassle for customers, it’s also a headache for retailers who pay for “free” returns.
While traditional retailers have tried to reduce their return rate,
today’s leading retailers are flipping the model by empowering staff to
optimize exchanges.
Are you curious how you can:
Reduce costs up to 40% in one year?
Optimize exchange rates 33%?
Make reverse logistics sustainable immediately?
Acquire and keep loyal customers with programs that boast 40 or 50% adoption in their first year?
To celebrate the start of 2020, we’re sharing 20 ways you can inspire your team to do just that. Based on real-world examples and data-based insights, these fresh strategies can be implemented immediately to drive meaningful results.
1. Optimize your return page for purchases. Apply the following concepts to your return policy: describe exchanges first, reduce word count, and give one clear call-to-action. American Giant offers a great example.
2. Offer consistent sizing, cuts, and material. Shift from numerical to alpha sizing, which tends to be returned less often.
3. Give fit quizzes. Quizzes help first-time customers find the most suitable styles and sizes while giving them confidence that purchases will look and feel great. Design your own quizzes or work with a trusted partner like True Fit.
4. Offer a ‘Try Before You Buy’ program. REVOLVE offers to ship customers multiple sizes at the time of purchase, in case one size is too small or big, and they only charge for the extra size if the item is kept longer than 15 days.
5. Give a gift with purchase. Nearly 90% of shoppers who received a free gift with purchase were more brand loyal and somewhat more likely to buy more often.
6. Offer free exchange shipping. Incentivize exchanges and pay just a fraction of the lost-sale cost.
7. Steer clear of vanity sizing. Stay true to your sizes to avoid unnecessary returns and disgruntled customers.
8. Be strategic with in-box inserts. Including a pre-printed return label invites customers to send products back—without giving you valuable data on their reason for return.
9. Give gift exchanges. No gift receipt? No problem. Drive customer loyalty by offering to exchange gifts. Grandma doesn’t need to know that sweater was returned. Trust us.
10. Guarantee fit. Put comfort first. For tricky items like bras or swimwear, consider offering a Fit Guarantee Program that allows customers to wear, wash, and exchange the item.
11. Incentivize exchanges. Encourage shoppers to exchange for a better fit if an item isn’t working, and offer a discount off their next purchase if they do so.
12. Limit exchange and return reasons. Keep it short, sweet, and actionable for your team. Our research shows that less than eight options is best and three to five is optimal.
13. Offer one-click exchanges.
Suggest new colors, sizes, or styles based on the reason for exchange. Make exchanges easy and simple by doing the leg work for your customers; retailers who do, see their exchange rate increase up to 33%!
14. Remove the requirements of a customer service call. Automate online returns and save customers a call to a service center.
15. Give multiple exchange methods. Adoption is highest when customers have multiple options for exchanges, like in-store or by-mail.
16. Offer in-person returns. Give Millennials and Gen Z what they want: 51% of shoppers under 30 said they’d prefer to return a product in person.
17. Aggregate shipping to minimize your carbon footprint. When packages are shipped en masse, they require significantly less fuel than when they’re shipped individually. Consumers prefer sustainable brands, with over 60% of consumers believing corporate sustainability is a moral imperative.
18. Reduce your cardboard footprint with reusable packaging. Over a billion trees are cut down each year to create cardboard packaging, which produces more greenhouse gas than certain plastic counterparts.
19. Request product reviews. Ask why consumers exchange, return, or adore your product. Not only is this information valuable to your company, it helps inform what size, fit, or color other shoppers purchase.
20. Have an exchange conversation. Increase the chance shoppers will revisit lapsed shopping carts by reminding them of your exchange program.
Caitlin Roberson
VP of Marketing
Caitlin Roberson is the Vice President of Marketing at Happy Returns. Previously, she served as Director of Enterprise Marketing at Lyft and Partner at top-tier venture capital firm Andreessen Horowitz. Before that, she started and sold a content marketing agency.
