Returns are an unavoidable part of retail. Whether it’s the wrong size, a change of mind, or a product that didn’t meet expectations, customers will always have reasons to send items back. However, the impact of returns on a retailer’s bottom line can be significant, encompassing not just lost revenue but also processing costs, restocking fees, and even environmental impact.
While eliminating returns entirely is impossible, retailers can implement strategic measures to significantly minimize their occurrence. Here’s how:
1. Optimize Product Information and Visuals
The vast majority of returns stem from discrepancies between customer expectations and the actual product. High-quality, detailed product information is your first line of defense.
- High-Resolution Images and Videos: Provide multiple angles, close-ups, and even lifestyle shots. For apparel, consider incorporating videos of models showcasing the garment in motion.
- Accurate and Comprehensive Descriptions: Go beyond basic features. Include dimensions, materials, care instructions, and detailed specifications. For clothing, provide size charts that include actual garment measurements, not just generic S/M/L.
- Customer Reviews and Q&A: Encourage customers to leave reviews and answer questions. This peer-to-peer information can be incredibly valuable in setting realistic expectations.
2. Improve Sizing and Fit Guidance (Especially for Apparel)
Sizing inconsistencies are a leading cause of returns in fashion. In fact, studies show that as many as 70% of returns in the fashion industry are due to poor fit or style, with incorrect sizing being the most common culprit. This issue is compounded by the lack of standardized sizing across brands, meaning a “medium” from one retailer can be vastly different from a “medium” at another. But there are ways retailers can overcome these
- Standardized Size Charts: If you carry multiple brands, clearly indicate if their sizing differs.
- “Fit Finder” Tools: Implement online tools that ask customers about their usual size and preferences to recommend the best fit.
- Customer-Generated Fit Data: Encourage customers to provide feedback on how items fit, allowing others to see if an item runs large or small. It also helps to ask customers for their height and weight as part of the feedback.
- Detailed Model Measurements: When showcasing clothing on models, provide their height and the size they are wearing to give customers a reference point. Ideally, use multiple models to showcase clothes, showing a variety in how items fit.
3. Enhance Pre-Purchase Customer Support
Proactive customer support can address potential issues before they lead to a return. Investing in customer support on the front end of the shopping experience can save you more on the back end.
- Live Chat and Agentic Shopper Agents: Offer instant assistance for product questions, sizing queries, and delivery information.
- Detailed FAQs: Create a comprehensive FAQ section that addresses common concerns and potential roadblocks.
- Personalized Recommendations: Use data to suggest products that are more likely to be a good fit for individual customers.
4. Streamline Order Fulfillment and Packaging
As a shopper, there’s nothing worse than finally getting your order, only to realize the wrong item was delivered or it arrived damaged. These types of errors in the fulfillment process can lead directly to returns—but they’re preventable.
- Accurate Order Picking: Implement robust systems to minimize mistakes in picking the wrong item or quantity.
- Secure Packaging: Ensure products are packed securely to prevent damage during transit.
- Clear Packing Slips and Documentation: Include all necessary information to help customers verify their order upon arrival.
5. Leverage Data Analytics and Reporting to Identify Return Trends
Understanding why products are being returned is crucial for long-term reduction strategies. While you’ll never prevent 100% of returns, there are actions you can take in the pre-purchase shopping experience to minimize returns.
- Track Return Reasons: Implement clear categories for return reasons (e.g., “wrong size,” “damaged,” “not as described”).
- Identify Problem Products: Analyze reporting data to pinpoint specific products or categories with unusually high return rates. This can indicate issues with product quality, description, or manufacturing.
- Analyze Customer Behavior: Look for patterns in customer demographics or purchase history that correlate with higher return rates.
- Feedback Loops: Use return data to inform product development, merchandising decisions, and even supplier negotiations.
6. Consider Thoughtful Return Policies
While a flexible return policy can build trust, it’s worth reviewing if it’s unintentionally encouraging excessive returns. On the other end of the spectrum, don’t hide your return policy or make returns too difficult—it could lead to frustrated customers, negative reviews, and ultimately, lost sales as shoppers opt for competitors with more transparent and customer-friendly return processes.
- Clear and Concise Policy: Ensure your return policy is easy to understand and readily accessible.
- Time Limits: While generous time limits can be appealing, excessively long windows might lead to “wardrobing” or other misuse.
- Restocking Fees (where applicable): For certain high-value items or categories, a small restocking fee might deter frivolous returns. However, this needs to be communicated clearly.
Conclusion
Minimizing returns isn’t about penalizing customers; it’s about creating a more efficient and satisfying shopping experience for everyone. By investing in accurate product information, improving sizing guidance, offering proactive support, optimizing fulfillment, and leveraging reporting data, retailers can significantly reduce the costly burden of returns and build stronger, more profitable customer relationships. In today’s competitive landscape, a strategic approach to returns is no longer just a good idea – it’s a business imperative.
