Simplifying e-commerce returns means more return customers

 

The recently wrapped-up holiday retailing season was defined by a continued shift from brick-and-mortar store purchases to online transactions — undoubtedly attributable to a rise in shopper-friendly mobile phones and tablets. Digital marketing analytics firm comScore reported a 15 percent increase in e-commerce sales between November 1 and December 26 alone.
 

Growing sales, however, are often accompanied by more customer returns. Just a week after Christmas, UPS announced that they expected multiple days of handling more than half a million returns. 
 

Now, more than ever, it is imperative for e-retailers of all sizes and inventories to use streamlined returns processes not just to recoup good customer relations, but to actively build it.
 

Large market retailers are already setting the tone for lenient online return policies. Nordstrom is one large retailer enforcing no deadline on returns. The Amazon-owned Zappos.com, purveyor of men’s and women’s shoes, clothes and home accessories, offers a 365-day returns window.  Many retailers are also offering free return shipping and prepaid UPS or USPS mailing labels to eliminate any potential inconvenience or unforeseen trip to the post office.
 

Offering prepaid mailing labels has become the newest accessory to the modern e-commerce return policy. More and more retailers are incorporating these labels, either with the shipped  product or available for the customer to print from the retail website.
 

Not only do they save time and gas for the customer, but they also expedite the entire returns process. The sooner the inventory comes back, the faster the refund gets to the consumer, and the faster the product can be restocked and resold. Everybody wins.
 

Of course, not every e-commerce enterprise has the same inventory, audience or budget flexibility as a Zappos or Macy’s; not every business can necessarily afford free shipping for all returns—and that’s fine. Straightforward, well-organized and well-advertised return policies are doable for all retailers.
 

Free incentives and mailing labels aside, the basic foundation of any simple returns policy is to make it obvious. E-retailers want their customers to spend more time perusing their websites for new products, not hunting for the fine print return policy. Target’swebsite divides up its return policy explanation into separate pages for in-store and “online returns 101.” Their online return center is a quick, four-step process of selecting your order, your items and method of return, then printing your mailing label. Think of building a streamlined returns section into your website.
 

Besides being easy to find, the simplest return policy should be easy to comprehend. Don’t charge customers with the responsibility of sniffing out hidden restocking fees or sifting through jargon to figure out if returns can be exchanged for store credit only or if complete refunds are available. A return policy isn’t a furniture installation manual; don’t let it be a potential source of frustration. Place your specifications in the forefront and consumers will be appreciative.
 

Another key step to crafting sound return policies is realizing that they are not one-size-fits-all. If you sell a specialized product or ship said products with specific packing instructions, integrate that into your policy. Return policies aren’t meant to be boilerplates; they are extensions of your brand. For example, major electronics e-retailer Newegg lists multiple, distinct return policies corresponding with their different categories of inventory, including televisions, software and mobile devices.
 

What’s more, when at all possible, e-retailers shouldn’t limit their online purchases to single-channel, online returns. Having both physical and virtual storefronts means your returns policy should reflect that multi-channel capability. Offering customer support in-store, over the phone or through live chat — even for products sold via the Internet — enhances the quality of service you can provide. As with sales, the more options the customer has to get in touch with you, the better.
 

Above all else, return policies are a great way for e-commerce retailers to reflect how well they know their customer base. Tailoring your policy to your product is important, but tailoring your policy to your buyer is critical. All retailers take on the task of winning consumers’ trust, and transforming that trust into repeat business. For e-retailers, which don’t have the advantage of supplying a physical product to be tested or tried on before purchase, this task becomes a greater challenge. Plenty of consumers are still hesitant about online shopping; all it takes is one positive experience to change that.
 

Providing a returns policy that lets customers know you care about their needs and concerns can convert their opinion of e-commerce in general and also increase the likelihood that they will shop with you again.
 

The 2011 holiday season has revealed the best and worst of e-commerce return policies. The ultimate lesson is that a user-friendly return policy is what you make it: if your message is straightforward and your process efficient, your customer will not only thank you, but they will stay loyal — and loyalty pays dividends.