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Returns!
Love them?
Hate them?
Reality check
12%
19%
• Estimated 12% return rate
• Actual return rate = 19%!!
• Outbound postage and packaging – Free/Paid?
Cost of Returns
££
£
£
£
£
• Inbound postage – Free/Paid
• Repackaging
• Time
• Damages?
• Revenue reduction
• Good and bad products
• Misleading descriptions
• Returns policy unclear and restrictive
• ‘Must’, ‘must not’, ‘will not’, ‘can’t’
• ‘Quibble’ guarantee
• 14 day return period
Step 1 - Analysis
Step 2 - Prevention
• Stop them happening in the first place
• longer, more accurate descriptions
• more and better pictures
• size guide for international
• drop problem ranges
19%
13%
Step 3 – Clarity + Simplicity
• Clearer procedure
• softer, friendlier language – ‘do’, ‘please’, ‘can’• no-quibble, easy
• Offered FREEPOST address
• Extended 14 days to 30 days
13%11.5%
• Market-specific return instructions
• inserted into every order• self-service model
Step 4 – Ease + Efficiency
• Market-specific return instructions
• inserted into every order• self-service model
Step 4 – Ease + Efficiency
-90%• Return queries dropped 90%
• Guaranteed turn-round time – 24 hours
• sent exchange items before returns received
Step 4 – Ease + Efficiency
11.5%11.5%
• Increased return window from 30 days to 60 days
• Market-specific return instructions
• inserted into every order• self-service model
• Return queries dropped 90% -90%
• Amazon US – very expensive policy!
• must offer free returns for international purchases• customer-lead: costs varied from £2.75 to £54!
• Problem solved with Ezi Returns
• warehouses in Canada and USA
• Customer pays domestic postage to returns centre (Az policy)
• £1.50 per return• plus cost of consolidation: £2.50• plus shipping at cost - last time = £17.50
• Produced new return slips specifically for US and Canada Customers
• Similar arrangement for Europe, via Intercultural Elements
Step 5 - Expansion
• Which country has the highest return rate?
Quick Quiz
37%
GERMANY
• Increased window to 90 days
Step 6 - Experimentation
12.5%11.5%
• Increased window to 12 months
Step 6 - Experimentation
11.5%12.5%
• Dropped FREEPOST
except for errors and faulty goods
Step 6 - Experimentation
11.5%11.5%
• May reinstate due to new eBay policy
better placement in search
• Future?
lifetime returns window?free international returns?pro-actively encourage exchanges?
• Prevention – accurate descriptions, good pictures
• Transparent and friendly policy, no-quibble
• Make returns easy – include full instructions in package – cut queries, save time
• Rapid turn-round - make it a positive experience
• Extended window – doesn’t affect volume
• Consider free returns – eBay policy coming soon
• Convert returns to exchanges – retain profit
Lessons
Questions?
EziReturns - US, Canadian and European return services
http://www.ezireturns.com
Intercultural Elements - European return services
https://www.intercultural-elements.eu/global-international-ecommerce-return-solutions
Useful Links
