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5 Reasons Improving Returns Leads to Improved Sales (and Happy Customers)

Published on February 3, 2024 by Claire Sanford, Content Marketing Intern at ShipStation

Returns are a reality for anyone who sells online. Regardless of which channels you sell on, it’s important to make your returns policy straightforward. A simple returns strategy can make the process simpler for you and your customers. According to a study by ShipStation, 72% of shoppers say that return policies directly influence their online buying decisions. Understanding what consumers want and expect when it comes to returns can be transformative for your brand and your profits.

Why Are Returns So Important? 

While returns are costly and time-consuming for businesses and customers, they are also a great opportunity to convert consumers into customers and to retain customers even after they’ve made a return. 49% of consumers become repeat customers after a positive returns experience. Understanding what customers expect from the returns process is important for crafting an effective returns policy and bringing customers back. 

Two-thirds of consumers have left their cart without buying because of a bad return policy. Ecommerce shopping contains an element of risk for consumers because they are unable to tangibly experience the product before they purchase. A good return policy is important for eliminating or reducing this risk. In turn, it creates a better brand image for your business.  

What Do Customers Expect in a Returns Policy? 

84% of customers say fast and easy returns make them more likely to purchase. Free returns will not be affordable for every ecommerce business. Luckily, consumers are willing to pay up to $5 or 11% of a returned item’s cost. Here are other customer expectations to keep in mind when crafting a returns policy: 

78% of consumers would rather have a prepaid return shipping label with the return cost deducted from their refund. 

  • Consumers are aware that there will sometimes be costs associated with returns. If there are, strive to make the process as easy and convenient as possible. Providing a prepaid return label and deducting the return cost directly from the refund reduces the effort needed on part of the customer and may make them more willing to buy from you again.  

Consumers expect an average return window of 32 days. 

  • Give customers a reasonable amount of time to decide whether they want to keep or return their product, and then ship it back to you. Since most brands offer a 14-day or 30-day return window, offering a slightly longer returns window can give consumers the peace of mind to place an order with you over the competition.

Returns are an inconvenience for everyone involved. Understanding what consumers expect around the returns process can help transform the headache of returns into a brand booster for your business. To learn more about mastering the returns process, download the returns ebook from ShipStation.