CX will help you make money on returns

Customers' expectations of online stores are rising. As many as 66 percent of them check whether the return policy is favorable to the buyer before making a purchase. But e-shops don't have to be at a loss with rising expectations - they just need to turn their attention to customer experience. And they will treat the return of goods as an opportunity to win the hearts of customers.

In terms of the number of returns, Polish e-commerce is slowly moving in the direction of mature Western European markets. Depending on studies, in the more mature e-commerce markets, between 30 and even 50 percent of all purchased products are returned to sellers. Stationary sales experience several times less turnover - only one in ten items sold is affected.

E-commerce returns are a challenge that can be turned into a competitive advantage. In a market where it is virtually impossible to compete anymore with a product, where there will always be comparable quality and cheaper offerings, the shopping experience is the differentiator.

Returns as a shopping experience

Shopping experience, or customer experience (CX), is looking at the buying process from a psychological perspective, not just a technical one (site optimization, job automation, etc.). CX is all the customer's interactions with the store, interacting with their emotions and senses, responding to their expectations.

Returning goods is an important customer touchpoint with a brand, even though it is initiated by the customer's abandonment of the purchase. The reasons are various - he may have misunderstood the description or photo of the goods, have certain associations about the product, expectations that do not coincide with reality. The answer to such a problem is a well-designed shopping experience, i.e. a path that will change this feeling, make the customer feel good, and satisfy his needs, says Jacek Zientkiewicz, Brand Manager of Shoper.

Fine-tuning CX in an e-store provides a good chance for the word of mouth marketers highly value - referrals. A company that demonstrates an understanding of a customer's plight and convinces them with the right procedure will gain a brand ambassador. According to Temkin Group analysis, a good shopping experience increases the chance of recommending a store by five times.

The basis of returns - regulations that sell and customer education

Returns regulations seem an unattractive element of an online store for sales. Meanwhile, it can determine customer interest. According to UPS, 66 percent of online shoppers make purchases after checking the return policy, and 15 percent flee the store if it is unclear. The key to success is a clear message and for customers to quickly find information about returns. The zappos.com store conveys its approach in a very simple way. Their rules are summed up by the slogan: "Fast and free delivery and returns." The full terms and conditions are also available, but the customer sees right away what is most important to them.

Returns are a natural part of e-commerce operations. Their share of sales in the cosmetics industry depends on the product category and is about 2-4%. In our online store we record less than 2% of returned goods. In the case of cosmetics, the procedure is made more difficult because, as a rule, the effect of their use can be seen only after contact with the skin, which from a legal perspective precludes the possibility of return. Therefore, our main role is to educate the customer, present the characteristics of the product as accurately as possible and inform about the rules of returns, which we present already during the checkout. Of course, we approach each request individually and keep the customer informed about the status of their case," says Maria Dziedzic-Aleksik, E-commerce Manager of the Paese.com store.

Free shipping

The biggest challenge for e-commerce owners is offering free shipping. However, caring only about the company's bottom line can deprive a store of recurring revenue from a returning customer. According to a study by the Universities of Washington and Virginia, customers who were able to return merchandise with free shipping came back and spent 158 to 457 percent more compared to their first order.

E-commerce must change

Constant changes in the market, customer tastes and expectations require e-commerce owners to constantly keep their hand on the pulse. And to assess which trends will hold, what is applicable to their industry, and what is better not to try. What is certain, however, is that online commerce requires testing various possibilities - including free returns, which may turn out to be the next major change - as previously fast delivery, short checkout, or instant payment.