The Ticking Time Bomb of ecommerce Returns
Returns have been quite a huge loss for retail brands in ecommerce. When a product is returned or exchanged it loses its original worth as its price has a decrement and not only had this it is a huge trouble for the retailers also as it is cannot be sold again at the original price obviously because of the damage caused by wear or tear. According to retail predictions which I have laid my eyes on it is getting worse for retailers as E-commerce increasing with increase in the amount of return is day by day. But the return rate of purchased products from stores is less than the products we get online.
Causes of ecommerce:
Back then the shipping was rarely free and there were no such things as returning and getting your money or exchanging them. Today the customer and business are a lot closer than they used to be because of the e-commece that is why compared to the previous years there is a drastic rise in returns and exchanges. We found this problem more in ecommerce, for example, if a person comes to the store to buy a product he is going to buy it until he is completely and fully satisfied with it that is why the return or exchange chances are very little or not. But in online store customer has to buy the product first there are more chances that it does not fit or suit him and something else. We made the return and exchange policy so easy that sometimes customers order more than one item in different sizes and colours to make sure they get what they really need.
Is it getting better? NO:
It is quite a shock that the return price is less in physical stores as compared to online stores although they online stores need it most as they face more returns and exchange than physical stores. It is very hard for some e-commerce businesses to manage this rate of returns as it can be that much out of control and a big motivator for them to move this online business to the physical store. Although it is a huge set back to the company regardless of this they have to offer free shipping and a good return or exchange policy in order to compete with the other brands.
How to balance your ecommerce?
As we discussed earlier there is no way for the company to “move to good old days” it will only make them suffer and especially when the brand is just being introduced in the market. According to some researchers, the huge companies or brands which are financially stable and have good monthly sales can manage to deal with it by balancing it with the profit from good sales.