{"id":1002074,"date":"2021-11-05T18:30:02","date_gmt":"2021-11-06T01:30:02","guid":{"rendered":"http:\/\/customerthink.com\/?p=1002074"},"modified":"2021-11-05T18:30:12","modified_gmt":"2021-11-06T01:30:12","slug":"how-to-reduce-returns-8-tried-true-tactics","status":"publish","type":"post","link":"https:\/\/customerthink.com\/how-to-reduce-returns-8-tried-true-tactics\/","title":{"rendered":"How to Reduce Returns: 8 Tried & True Tactics"},"content":{"rendered":"
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Image: Shutterstock<\/figcaption><\/figure>\n

Product returns are a costly proposition for the vast majority of manufacturers and retailers.  According to the National Retail Federation<\/a> (NRF), consumers returned an estimated $428 billion in merchandise – approximately 10.6% of total U.S. retail sales – in 2020. Managing these product returns takes a significant bite out of a company’s bottom line. For every $1 billion in sales, the average retailer incurs $106 million<\/a> in merchandise returns.  Every step in the return process, from return merchandise authorization (RMA) to shipping and receiving, processing, asset recovery, and disposal, adds another cost that further cuts into product sales revenue. Consequently, a key focus for retailers is how to reduce returns. <\/p>\n

(Don’t) Return to Sender: Strategies & Tactics to Minimize or Reduce Returns<\/strong><\/h2>\n

Over the years, critical stakeholders in the reverse logistics process have developed various strategies and tactics to minimize, avoid, or reduce returns. In this article we will discuss how to reduce returns in e-commerce and explore a number of tried and true strategies. <\/p>\n

Restocking Fees<\/strong><\/h3>\n

One method used by retailers to address the challenge of how to reduce customer returns, is restocking fees. Retailers have implemented restocking fees as a mechanism to discourage consumers from becoming serial returners. The objective is to impose a financial penalty on consumers who intentionally plan to return a product after purchasing it.  <\/p>\n

An example is a homeowner who purchases a portable air-conditioner when their central air stops working and returns it once the system is repaired. The industry average fee for restocking consumer electronics items is 15%, but Amazon allows 20% to be withheld in restocking fees. If the item is used or damaged, Amazon allows the seller to keep 50% of the sale price – and even more for software.<\/p>\n

\n\"TechSee<\/p>\n

Enhanced Selling Skills<\/strong><\/h3>\n

Companies have attempted to reduce returns by taking a more thorough approach to understanding customer requirements during the sales process.  By being more thorough during the needs analysis phase, companies can offer customers products that meet their specifications.  As a result, there is a lower chance of the customer returning the product because it was the wrong fit or didn’t meet their needs.<\/p>\n

B&H Photo Video<\/a> is a NY-based photo and video equipment retailer that invests in its staff to ensure everyone is a product specialist capable of helping customers make informed decisions about the products that best meet their needs. <\/p>\n

This video says it all:<\/p>\n