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Ecommerce Solutions to Reduce Holiday Returns

  • Alyssa Ehinger
  • November 3, 2022

Ecommerce holiday returns are an epidemic to retail revenue. Ecommerce Times, an ecommerce news journal, suggests that a total of $120 billion in merchandise was returned in 2021. With the rise in inflation, this number is bound to increase in the 2022 holiday season. But fear not, all’s not lost yet. You can implement solutions for ecommerce holiday returns by following the tips discussed in this blog. 

Customers are 2x as likely to return online purchases, which increases the imporance of ecommerce returns solutions.

 

Image statistic source: Red Stag Fulfillment

6 Solutions to Reduce Ecommerce Holiday Returns 

    1. Improve Product Descriptions

    Product descriptions often get brushed under the table but they are a crucial part of customer conversion. Research by Retail Dive, a retail journal, states that more than 40% of consumers return products due to poor descriptions. 

    Reduce your ecommerce holiday returns this season with the following tips for product descriptions:

      Write Accurate Content

        Your customer will make the decision to buy a product after reading the written description. Make sure the product description does not include any inauthentic information.

      Use Appealing & Genuine Content

        Pictures and videos are important when it comes to buying items online.  Include real pictures and videos of products to reduce product returns.

      Automate Product Classification Processes

        Classify products into accurate categories and subcategories. For example, ensure that all shoes are a part of a single, main group. Then further group boots, sneakers, and other subcategories of shoes. Unrelated products that show up while shopping does not create a positive customer experience.

    2. Showcase Customer Reviews

    Power Reviews, a user-generated content vendor, suggests that nearly 95% of customers browse reviews of a product before making their purchase.

    Ecommerce holiday returns are reduced when consumers have access to verified customer reviews. They influence the customer’s purchasing decision and help the buyer make the right choice for their needs.

    Read the blog Customers Ratings and Reviews: Social Proof Your Products to understand how you can increase customer conversions with reviews and ratings on your website.

      Promote Authentic Reviews

        Some ecommerce platforms plant fake positive reviews on their website. Only publish verified reviews to avoid harming your customers’ trust in your brand. Customers can distinguish between fake and authentic easily. Deceptive reviews create a poor brand image and customers start to assume that your website is a scam.

      Respond to Negative Reviews

        Bad reviews are a natural part of the ecommerce business. Don’t let poor reviews frustrate you, instead learn from them. Improving your products and their descriptions is an easy solution to reduce ecommerce returns. Here is how to deal with a negative review: 

        • Acknowledge the customer’s issue. 
        • Look into the problem. If it’s valid, provide a genuine solution.
        • Give a detailed explanation of the issue and solution in your reply. 
        • Compensate the reviewer appropriately, thank them for taking the time to leave a review, and consider offering a discount code for a future purchase. 

    Learn how to collect and present Customer Ratings and Reviews to build trust and promote authenticity with UpStart Commerce. 

    3. Market Products With Accuracy

    Deceptive marketing campaigns not only hurt your brand’s identity but also lead to many product returns. Do not misrepresent product details in advertisements and marketing content. When a customer feels misled about a product’s details, they are likely to not only return the product but also leave a review.  

      Keep Ad Content Accurate

        Ads are vital in marketing, whether they are sent via emails, chats, or placed on social media. Make sure the content is true to the product and does not contain any misleading information. Clearly state shipping and delivery estimates if using quick delivery as a unique selling point (USP). Check that product colors, textures, and sizes are not misrepresented in the visual ad content. Also, make sure that your ad copy is not overzealous and over-promising.

      Place Ads in the Right Places

        Understand your target audience by defining their demographics and characteristics. Select websites for Google Ads that your customers are likely to visit. Place ads on social media platforms where your ideal audience is likely to spend most of their time. Send emails and follow-up emails to opt-in subscribers about ecommerce sale dates and promotions.

    4. Update the Return Policy

    According to a blog post by CSA, a national retail news provider, 54% of customers in a retail survey said that they do not like to purchase from ecommerce businesses that have an unclear return policy.
    Here is how you can reduce your ecommerce holiday returns by improving your return policy:

      Update Your Return Policy

        Customers constantly want a tailored shopping experience. Make sure you update the return policy before the holiday season begins. Remember to keep the language simple and straightforward. Do not include any hidden clauses. Explicitly mention the length of the return window, any fees the consumer pays to return items, and how they will receive their monetary refund. 

      Keep Your Return Policy Visible

        Make sure customers can easily find your return policy on the platform. Return policies are often found on ecommerce website footers, links in the checkout process, and banners that highlight extended returns during the holiday shopping season.

    5. Promote Exchanges

    According to Optoro, a return management platform, 2 out of 3 customers will return at least one product.

    If consumers return your products for a direct monetary refund, it will result in a loss. This is why it is best to mention in your return policy that you offer exchanges instead of only offering monetary returns. Many customers are happy to exchange their product for one that better suits their needs. This solution for ecommerce returns benefits both the retailer and the consumer. Use the following tips to catch the interest of customers for like-for-like transactions: 

      Give Credit or Bonus Points

        Provide bonus points or extra credits to customers who exchange an item that they did not like instead of getting a monetary refund. Allow credits to accrue in your structured point system to redeem a free product or discount. 

      Free Shipping on Exchanges

        Everyone loves free shipping. Ensure customers that exchanges include free shipping both ways to create a frictionless experience.

      Learn more about shipping trends by reading the information discussed in “Keeping up with Shipping Trends for Ecommerce in 2022”.

      Extend Return Windows

        If you want your exchange policy to be successful, increase the window of time allowed for returning products. Give customers ample time to decide whether they want to keep the product or not, but the option of returning versus exchanging can dissipate after a shorter amount of time. After a specific time period, many ecommerce stores only offer exchanges.

    6. Omnichannel Post-Holiday Support 

    According to Insider Intelligence, m-commerce (or mobile-commerce) will drive 50% of total sales in ecommerce.

    Solutions for ecommerce holiday returns are simplified with unified customer support. Ecommerce organizations should have a dedicated team of employees who respond to social media messages and answer phone calls. Use the following methods to stay one step ahead of the competitors in terms of customer service:

      Perform Diligent Social Listening  

        Employ tools that identify comments, posts, and other forms of relevant brand mentions. Respond to them in a timely and reasonable manner that follows your brand guidelines. Do not respond negatively to hate comments or feedback on social platforms. Instead, provide solutions for valid complaints while thanking them for their time.  

      Respond to Query Emails

        Monitoring emails is crucial when it comes to successfully creating solutions for holiday returns. Customers often have multiple questions about the return policy, the return window, shipping speeds, and many other topics. Answer each query timely with all the details. 

      Monitor Website Reviews

        Some customers will leave online reviews about your products. Thank the reviewer for taking the time to leave positive feedback. If there is a negative review, do not dismiss it. Look into the complaint and find a solution to resolve the issue that does not result in a return.

    Learn more about the concept of unified commerce to develop a truly omnipresent organization.

Create Solutions To Reduce your Holiday Returns and Amplify Ecommerce Revenue

Insider Intelligence predicts that ecommerce sales will climb 15.5% to $235.86 billion in 2022. This means that the ecommerce holiday returns will increase as well. According to Ship Hero, around 80% of returns in 2020 were the result of a damaged or broken product, and 7.5% were from a delay in delivery.  Develop a clear shipping and handling policy with the help of trusted vendors. Preparing yourself for the return season in advance can increase revenue and reduce losses. 

The holiday season is tough. Navigate your way through it by following the tips in our blog: Black Friday Ecommerce: 13 Retail Website Preparation Tips for 2022.

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