Why Offering Free Online Product Returns Actually Makes You More Money
Just how conducive is your online returns policy towards the forward-leaning customer? Because if you are not offering free online product returns, you could be playing directly into the hand of your competitor. Much like a round of Texas Hold Em’, returns management plays a critical role in future sales.
If you don’t think this is true, make sure you stick around and keep reading. We’ll pound some facts your way and help you better understand why offering free online product returns is actually smart thinking that will pad your profits in the long run.
All Shoppers Want Free Online Returns
According to Michael Lazar, Growth Hacker for TrueShip, maker of a powerful returns management software solution for ecommerce stores called ReadyReturns, “Studies show that over 80% of customers are loyalists to companies that offer easy and free product returns.”
Of course, you might be thinking, who doesn’t want to shop at an online store that offers free online returns, such as those that are offered by Zappos and Amazon (in most cases). But what you are missing here is that ALL shoppers want them. If your store doesn’t offer them, they are likely to go elsewhere.
OK – maybe not ALL shoppers, but MOST. According to a comScore report, over 81% of your shoppers want easy returns with no return shipping cost or restocking fees. If they don’t get this, they’ll find a merchant that does offer it.
Study Shows Offering Free Returns Increases Sales by 357%
A recent CNBC article highlighted a study that was conducted to find out if offering hassle-free returns was profitable in the long run for ecommerce merchants. It found that such was indeed the case. Dozens of businesses were followed and the results were astounding.
Companies that offered free online product returns increased business by a whopping 357%. Over the course of two years, this averaged to an increase of $620 per year per customer. Bear in mind that your most loyal customer is also the one who is making the most returns; so this naturally makes good sense.
Reverse Marketing Increases Sales
One final consideration is the power of reverse marketing. If customers need to make returns, you can allow them to initiate self-service returns from your website. Guess what? This means repeat traffic. Now you can advertise to your existing customers and offer them a coupon code for a discount they can enjoy just for the inconvenience of having to make a return.
Shoppers who return items will also buy more items. The profits get padded quickly. Sure, you eat some bucks on a return here and there. But in the long run, you actually stand to make a lot more money just because of them.