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Are Your Products to Blame for High Consumer Return Rates? Find Out!

Evereve using WeSupply analytics

Are your products to blame for high consumer return rates? High return rates often point to issues within your products — whether it’s quality, inaccurate descriptions, or unmet expectations. This article helps you uncover these factors and offers solutions to reduce returns.

Key Takeaways

Introduction: The Financial and Reputational Impact of High Return Rates

Return rates are a critical KPI that can impact your business’s financial health and reputation. High return rates not only increase costs but also indicate potential issues with customer satisfaction and trust. Frequent returns can erode customer confidence in your brand, resulting in lost sales and diminished loyalty.

Reducing return rates is about fostering long-term relationships with customers. Confident customers are more likely to become repeat buyers, boosting overall sales and brand loyalty. Low return rates and satisfied customers not only enhance satisfaction but also strengthen your brand’s reputation.

High return rates strain operational resources. Handling returns requires extra labor, logistics, and restocking, impacting profits. Addressing the root causes of high return rates can streamline operations, cut costs, and improve the bottom line. Many consumers shop online with the intention of returning some items after trying them at home, making an efficient return process essential.

Customer loyalty is crucial in today’s market. Trusting customers are more likely to recommend your products, boosting sales and market presence. Reducing return rates is an investment in your brand’s future growth and success. Unlike a brick and mortar store, where customers can try products before buying, online shopping relies heavily on return policies to build customer confidence.

Reducing return rates involves improving product quality, providing accurate descriptions, and engaging with customers post-purchase. Creating a seamless shopping experience encourages repeat business.

Understanding Consumer Return Rates

Consumer return rates are a crucial aspect of ecommerce, as they can significantly impact customer satisfaction and loyalty. Understanding why customers return products is essential for developing strategies to reduce return rates and enhance customer satisfaction. By analyzing return data and customer feedback, businesses can identify common issues and address them proactively. This not only helps in reducing return rates but also in building long-term customer loyalty. When customers feel their concerns are understood and addressed, their overall satisfaction with the brand increases, leading to repeat purchases and positive word-of-mouth.

Ecommerce Return Rates vs. Brick and Mortar Stores

Ecommerce return rates are generally higher than those of brick and mortar stores. According to a study by Shippo, the average ecommerce return rate is around 20-30%, while brick and mortar stores have a return rate of around 8-10%. This discrepancy is largely due to the nature of online shopping, where customers cannot physically touch or try on products before making a purchase. The inability to experience the product firsthand often leads to unmet customer expectations, resulting in higher return rates. In contrast, brick and mortar stores allow customers to interact with products directly, reducing the likelihood of returns. Understanding these differences can help businesses tailor their strategies to better manage return rates in both online and physical retail environments.

Ecommerce Return Rates by Category

Ecommerce return rates vary by category, with some industries experiencing higher return rates than others. For example, fashion and apparel have a higher return rate than electronics or home goods. According to a study by Shippo, the average return rates for different product categories are:

  • Fashion: 20-30%

  • Electronics: 15-20%

  • Home and garden: 10-20%

  • Beauty and personal care: 10-20%

  • Sports and outdoors: 10-20%

These variations are often due to the nature of the products themselves. Fashion items, for instance, are frequently returned due to sizing issues or personal preferences. On the other hand, electronics and home goods tend to have lower return rates as they are less subjective and more straightforward in their functionality. By understanding these category-specific return rates, businesses can implement targeted strategies to address the unique challenges of each product type, ultimately reducing return rates and enhancing customer satisfaction.

Measuring and Understanding Product Return Rates

Managing return rates starts with accurate measurement. Calculate return rates by dividing the number of returned items by the total number of items sold, and then multiplying by 100 to get a percentage. This formula offers a clear picture of return frequency.

Comparing your return rates with industry standards helps determine if your rate is high or acceptable. Industry benchmarks vary; for instance, the apparel industry has higher return rates due to sizing issues, while electronics often have lower rates.

Identifying problematic products is crucial. Analyze return data to find frequently returned items and investigate the reasons. This analysis can reveal patterns and common issues, allowing proactive resolution.

Customer feedback is valuable for understanding return rates. Encourage customers to share their return experience, offering insights for potential process improvements. This feedback can help enhance satisfaction and reduce return rates.

Serial returners can skew return data. Identifying and understanding their behavior helps develop strategies to address their concerns. Offering personalized assistance or detailed product information can mitigate their need to return items.

A hassle-free returns process maintains customer satisfaction. Offering free return shipping and a seamless portal makes returns positive, encouraging repeat business when customers shop online. Balancing ease of returns with fraud prevention is key to a successful strategy.

Optimize Returns and Boost Loyalty with WeSupply’s Analytics & Branded Portal

WeSupply’s post-purchase software empowers eCommerce businesses to measure and understand product return rates, using data-driven insights to improve customer satisfaction and reduce return rates. Key features include:

  • Returns Analytics: Identify frequently returned products, understand reasons for returns, and detect serial returners to fine-tune your offerings.
  • Fraud Prevention: Automatically block policy abusers and sync existing block lists to protect your business from return fraud.

  • Flexible Return Rules: Customize return conditions to fit diverse product needs, providing a seamless, tailored return experience.

  • Branded Returns Portal: Offer a fully branded, omnichannel returns experience that keeps customers engaged on your platform rather than redirecting them to a third-party courier page.

With WeSupply, you gain actionable insights that transform returns into opportunities for growth. Book a demo to see how!

Simplify Returns for Your Customers and Support Team

Book a quick call with our experts to see how WeSupply can help you: simplify the Return experience with just a few clicks, reduce customer service calls and manual processing, notify your customer about their refund, automate returns and reduce user error

Common Causes of High Return Rates

Understanding common causes of high return rates is essential. Buyer’s remorse, often due to impulse purchases or changing preferences, is a primary reason for returns, especially as more consumers shop online.

Product defects, including items arriving damaged or DOA, significantly cause returns. Ensuring products meet quality standards before shipping can reduce these returns. Strict quality control measures help identify and address defects before reaching customers.

Incorrect sizing or fit, particularly in apparel, commonly causes returns, including instances where the wrong item is sent. Detailed size charts and fit guides help customers make informed decisions, reducing returns due to sizing issues. Clear, accurate product descriptions set realistic expectations.

Misleading product expectations drive returns. When products don’t match expectations, customers are likely to return them. High-quality visuals and comprehensive descriptions help set realistic expectations, reducing returns.

These factors significantly impact customer loyalty and satisfaction. High return rates can lead to dissatisfaction and erode trust. Addressing common return causes improves satisfaction and builds long-term loyalty.

Offering free returns can boost customer satisfaction, encouraging repeat purchases. However, balancing the benefits with business costs is essential. A return policy encouraging informed purchases can reduce return rates and improve satisfaction.

Investing in customer education, like detailed product information and addressing common questions, helps prevent returns. Clear understanding of purchases reduces the likelihood of returns.

The Role of Product Quality and Quality Control Measures in Reducing Returns

High product quality is essential in reducing return rates. Customers are less likely to return high-quality products that meet expectations. Poor quality leads to dissatisfaction and increased returns.

Quality control measures ensure products meet high standards before reaching customers. Regular inspections, testing, and quality assurance processes identify and address potential issues. Reliability testing ensures products perform as expected, reducing returns due to defects.

Customer satisfaction is closely tied to product quality. Satisfied customers are less likely to return items. Encouraging feedback on product quality helps identify areas for improvement and enhances satisfaction.

Offering free return shipping can increase customer satisfaction and demonstrate confidence in product quality. However, it’s crucial to balance this with measures to prevent fraudulent returns and protect your business.

Understanding and meeting customer expectations is crucial in preventing returns. Accurate descriptions, high-quality visuals, and detailed size charts set realistic expectations, reducing returns.

Enhance Quality Control and Reduce Returns with WeSupply

WeSupply’s automated post-purchase software supports robust quality control measures to reduce returns and manage inventory effectively. Key features include:

  • Quality Check Criteria: Establish clear standards for assessing returned items, ensuring only resellable products are restocked.
  • Customer Feedback & Images: Gather insights directly from customers, including images and feedback on product quality, to identify improvement areas.

  • Warehouse Inspection Notes: Allow warehouse staff to document detailed notes on return inspections, providing valuable quality insights for continuous improvement.

With WeSupply, you can enhance product quality control, minimize returns, and keep inventory optimized.

Accurately Describing Your Products to Set Realistic Customer Expectations

Accurate product descriptions set realistic expectations and reduce returns. Clear understanding of purchases minimizes disappointment and the likelihood of returns.

Detailed product descriptions should include relevant information like materials, dimensions, and features. This helps customers make informed decisions, reducing returns due to misunderstandings or unmet expectations.

Comprehensive size charts and fit guides are crucial for clothing and footwear. These tools help customers choose the right size, reducing returns due to sizing issues. Detailed measurements and fit tips further enhance satisfaction and reduce returns.

Customer feedback is crucial in improving product descriptions. Encouraging reviews and experiences provides valuable insights into product perception and highlights areas for improvement. This feedback helps refine descriptions and set accurate expectations.

Clear and accurate product descriptions reduce returns and enhance customer satisfaction. When products match expectations, customers are more likely to be satisfied and leave positive reviews, boosting your brand’s reputation and encouraging more purchases.

Set Clear Expectations with WeSupply's Return Analytics

WeSupply helps you accurately describe your products to set realistic customer expectations, reducing returns and boosting satisfaction. Key features include:

  • Product Image Review: Ensure visuals accurately represent your products to reduce mismatches in customer expectations.

  • Enhanced Product Reviews: Identify items needing more reviews to provide customers with better insights into fit and quality.

With WeSupply, you can enhance product descriptions that meet customer expectations.

Utilizing High-Quality Visuals to Reduce Returns

High-quality visuals reduce returns caused by unmet visual expectations. Clear and detailed product images help customers make informed decisions, reducing the likelihood of returns.

High-resolution images showing products from multiple angles help customers understand their purchase. Real-life setting images provide context and set realistic expectations. Videos effectively showcase features and functionality, reducing returns.

High-quality visuals enhance customer satisfaction and encourage confident purchases. Clear understanding of a product increases satisfaction and reduces returns.

Investing in professional photography and videography significantly improves product visuals. This investment reduces return rates and increases customer satisfaction.

Focusing on high-quality visuals provides customers with a clear and accurate product representation, reducing returns and enhancing satisfaction.

Enhancing Customer Satisfaction with Transparent Return Policies

Transparent return policies enhance customer satisfaction and trust. Clear expectations and confidence in the return process encourage purchases and reduce returns.

Clear and fair return policies should outline return conditions, the process, and any associated costs. Providing this information upfront sets customer expectations and reduces confusion or dissatisfaction.

Hassle-free returns significantly increase customer satisfaction. Free return shipping and a straightforward process make returns positive, encouraging repeat business. Balancing ease of returns with fraud prevention protects your business.

Customer feedback refines return policies. Encouraging customers to share return experiences provides valuable insights for potential improvements, enhancing overall satisfaction.

Transparent communication about return policies builds trust and loyalty. Confident customers are more likely to make purchases and recommend your brand.

Boost Customer Satisfaction with Transparent, Flexible Returns Using WeSupply

WeSupply enhances customer satisfaction by providing transparent, flexible return policies that make the process straightforward and tailored to various customer needs. Key features include:

  • Visible Return Policies: Display the return policy on the order lookup page, making it easy for customers to initiate returns with clear expectations.
  • Flexible Return Rules: Customize return rules to match item specifics, including conditions like free return shipping, for a hassle-free experience.

  • Controlled Return Destinations: Direct returns to specific locations, such as distribution centers, repair centers, or donation sites, optimizing logistics.

  • In-Store Returns: Connect online and in-store systems to allow drop-off returns at nearby stores, no labels or boxes required.

  • International Returns: Configure country-specific rules for returns, including return addresses and shipping charges.

With WeSupply, you can create a seamless, customer-friendly return experience that drives satisfaction and loyalty. Book a demo today to see how flexible, transparent returns can elevate your business!

Engaging Customers Post-Purchase with Customer Feedback to Reduce Returns

Engaging customers post-purchase proactively reduces returns and builds long-term loyalty, especially for those who shop online. Data-driven emails and targeted campaigns reinforce future purchases, reducing the likelihood of returns.

Follow-up emails with tips on product use or care boost customer confidence. Offering additional support or resources further enhances satisfaction and reduces returns.

Targeted campaigns address common post-purchase concerns or questions. Providing this information helps prevent returns and builds trust in your brand.

Proactive customer engagement can build loyalty and prevent returns. When customers feel supported and valued, they are more likely to be satisfied with their purchase and less likely to return it.

Encouraging customers to share their feedback and experiences can also help you identify potential issues and address them proactively. This feedback can provide valuable insights into how to improve your products and services, further reducing return rates.

By focusing on post-purchase engagement, you can build long-term customer loyalty, reduce return rates, and enhance overall satisfaction.

Offer an Alternative Product During the Returns Process

Offering an alternative product during the returns process can be an effective strategy to reduce return rates and increase customer satisfaction. When customers initiate a return, providing them with a suitable substitute can encourage them to exchange their returned item for a different product rather than requesting a refund. This approach not only helps to retain the sale but also increases customer loyalty by showing that the business is committed to meeting their needs. Additionally, it can encourage future purchases, as customers who have a positive return experience are more likely to shop with the brand again. By focusing on customer satisfaction and offering alternatives, businesses can create a more positive returns process and foster long-term loyalty.

WeSupply enables businesses to turn returns into new sales opportunities by offering alternative products during the returns process, keeping customers engaged and boosting order value. Key features include:

  • Flexible Exchange Options: Allow customers to exchange for any item, reship the same item, or choose items of equal or higher value.
  • Incentivize Exchanges: Reward customers with instant store credit when they opt for exchanges, seamlessly guiding them back to the product catalog.

With WeSupply, you can turn returns into customer retention opportunities, enhancing loyalty and increasing lifetime value.

Keep your customers engaged during the return experience

Book a quick call with our experts to see how WeSupply can help you engage your customers with relevant updates through the right channel, at the right time.

Enhance Customer Engagement and Reduce Returns with WeSupply Feedback Tools

WeSupply helps businesses engage customers post-purchase by capturing valuable feedback to reduce returns and enhance the overall experience. Key features include:

  • Logistics Analytics: Measure Customer Satisfaction (CSAT) and Net Promoter Score (NPS) to track performance, identify improvement areas, and refine the customer experience.
  • Powerful Review Integrations: Connect with platforms like Loox, Judge.me, Stamped, Yotpo, Okendo, Junip, and Reviews.io to gather and showcase authentic customer feedback and user-generated content.

Leveraging these integrations automates various aspects of the returns process, from generating shipping labels to tracking return shipments. This not only saves time but also ensures that your returns are handled consistently and accurately, improving the overall customer experience.

Leveraging Data Analytics to Understand and Address Return Trends

Data analytics can be a powerful tool in understanding and addressing return trends. By analyzing return data, you can identify patterns and common issues that lead to returns. This information can help you make informed decisions about product improvements, marketing strategies, and customer support.

Segmenting customer data is another effective way to understand return trends. By identifying high-risk return groups, such as serial returners or customers who frequently return specific products, you can tailor your strategies to address their concerns. This targeted approach can help reduce return rates and improve overall customer satisfaction.

Using data analytics to monitor return rates over time can also help you identify trends and potential issues early on. This proactive approach allows you to address problems before they become widespread, reducing the likelihood of returns and improving customer satisfaction.

Implementing data-driven strategies can help you make more informed decisions about your products and processes. By continuously analyzing return data and making adjustments based on your findings, you can reduce return rates and enhance overall customer satisfaction.

Investing in data analytics tools and resources can provide valuable insights into your return trends, helping you make more informed decisions and improve your overall returns strategy.

Boost Profits with WeSupply’s Return Analytics

WeSupply empowers businesses to leverage data analytics for a deep understanding of return trends, helping to refine operations, increase profits, and enhance customer satisfaction. Key features include:

  • Optimize Profit and Recovery: Boost profitability by identifying commonly exchanged products, collecting customer feedback, and assessing the financial impact of returns.
  • Measure Financial Impact: Track metrics such as revenue lost to returns, return costs, and return rates to develop effective, revenue-saving strategies.

  • Gain Actionable Insights: Plan resources and streamline operations by understanding daily return volumes, reducing return-related inquiries, and expediting refunds.

Balancing Liberal Return Policies with Fraud Prevention

Balancing liberal return policies with return fraud prevention is essential to protect your business while maintaining customer satisfaction. While offering free returns and hassle-free returns can enhance customer satisfaction, it also opens the door to potential fraud.

Creating customer-friendly policies that include safeguards to reduce abuse is key. This can involve measures such as tracking return patterns, requiring proof of purchase, and implementing limits on the number of returns allowed within a certain period. These safeguards can help prevent fraudulent returns and protect your business from abuse.

Potential pitfalls of overly liberal return policies include increased return rates and higher costs. Managing these risks involves finding a balance between offering a positive return experience and protecting your business from fraud. This can be achieved by implementing measures to verify the authenticity of returns and monitoring for suspicious activity.

Educating customers about your return policies and the importance of preventing fraudulent returns can also help reduce abuse. By clearly communicating your policies and the reasons behind them, you can encourage customers to make informed purchases and reduce the likelihood of returns.

By balancing liberal return policies with measures to prevent fraud, you can protect your business while maintaining customer satisfaction and trust.

Balancing Generous Return Policies with Fraud Prevention Using WeSupply

WeSupply’s Pre-built Return Policies strike the perfect balance between offering liberal return options and preventing fraud, allowing businesses to maintain customer satisfaction without compromising revenue:

  • Blocklist Fraudulent Customers: Prevent abusive returns by blocklisting email addresses or specific customer groups, effectively safeguarding business interests and minimizing the impact of return fraud.

With WeSupply’s Pre-built Return Policies, you can protect your bottom line while keeping customers happy. Discover more ways to streamline returns and boost customer loyalty with our full suite of pre-built policies!

Conclusion: Building a Strategy for Sustainable and Customer-Centric Returns

Building a strategy for sustainable and customer-centric returns involves a holistic approach that addresses all aspects of the return process. Focusing on product quality, accurate descriptions, high-quality visuals, and transparent return policies can help reduce return rates and enhance customer satisfaction.

Implementing eco-friendly practices can further enhance customer loyalty and attract more buyers, as consumers increasingly prioritize sustainability in their purchasing decisions. Creating longer-lasting products helps minimize waste and reduces the likelihood of returns, aligning with sustainability goals.

Establishing a secondary market for used products can decrease return rates while fostering a sense of community among customers. Transparent communication about sustainability initiatives can enhance brand credibility and influence consumer purchasing behavior.

Implementing efficient packaging solutions not only reduces waste but also improves customer satisfaction, leading to fewer returns. By focusing on these holistic strategies, you can build a return process that is both sustainable and customer-centric.

A proactive approach to managing returns can build long-term customer trust and loyalty. By continuously analyzing return data, engaging with customers, and refining your strategies, you can create a seamless and satisfying shopping experience that encourages customers to keep coming back.

In conclusion, a comprehensive returns strategy that prioritizes customer satisfaction and sustainability can help you reduce return rates, improve customer loyalty, and build a stronger brand.

Summary

WeSupply helps eCommerce brands uncover the root causes of high return rates by leveraging detailed analytics to understand product-specific issues. With SKU-level insights, you can identify common return reasons, such as sizing or quality, and refine product descriptions, sizing guides, and visuals accordingly. WeSupply also offers a branded returns portal to enhance customer experience, fraud prevention tools to block policy abusers, and flexible return rules tailored to diverse products. By tracking metrics like Customer Satisfaction (CSAT) and Net Promoter Score (NPS), you can continuously improve post-purchase experiences and reduce returns. Get started with WeSupply to turn returns into insights and boost customer loyalty!

Frequently Asked Questions

How can WeSupply help me identify products with high return rates?

WeSupply’s Returns Analytics provide detailed insights at the SKU and variant level. This helps you quickly spot the most returned items and the specific reasons behind each return, such as issues with sizing, color, or quality. Armed with this data, you can make informed improvements to reduce return rates.

How does WeSupply assist with gathering customer feedback on product quality?

WeSupply allows you to collect direct feedback and product images from customers during the return process. This insight can reveal patterns in product quality, enabling you to make necessary adjustments to improve the customer experience and lower return rates.

What tools does WeSupply offer to help adjust return policies based on product performance?

WeSupply provides flexible return rule settings, allowing you to create customized return conditions for different product categories or attributes. This enables you to manage high-return items differently, such as offering exchanges or store credit rather than full refunds, helping to balance customer satisfaction with business objectives.

Does WeSupply have an official Shopify App?

Yes, WeSupply does have an official Shopify App. You can download and begin to integrate it with your Shopify store.

Does WeSupply have an official Magento extension?

Yes, WeSupply has an official extension for Magento. The WeSupply x Magento integration allows for automating order tracking experiences, reducing customer inquiries, automating shipping email and SMS notifications, and providing a fully branded order tracking experience

Does WeSupply have an official BigCommerce App?

Yes, WeSupply has an official BigCommerce App. You can integrate WeSupply with your BigCommerce store to improve your post-purchase customer experience.

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