Managing the returns process

For a start-up or small label returns can present a real problem.

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Today’s customers want to shop online with brands where they can buy and return with free shipping in both directions. Nearly 90% of consumers say free shipping and returns influences their purchasing decisions.

Returns can be a really high cost to a brand, but they continue to offer it because they are scared that the customer may not buy from them, instead going to their competitors who do offer free shopping and returns. But offering free shipping can push a small brand over the edge.

But it isn’t just the shipping costs that a brand needs to worry about. If you are using a distributor then the warehouse charges you to unpack and reprocess the goods. Or worse still, the goods returned are damaged or have clearly been worn and then can’t be resold. Some bigger brands, such as ASOS, are now starting to deal with these issues, by blacklisting serial returners.

There are some ways you can minimise returns:

  • Offer more information about the products on your website, including fit guides, great pictures, and showing all details. A lot of returns are due items not being exactly the same as the online description.

  • Have a clear sizing chart

  • Have good quality products to minimise returns

  • Quick delivery, the longer it takes for the product to arrive then the consumer may change their mind

  • Add the experience into the packaging, so they feel like they have a quality product – think about the Net-a-porter model with beautiful packaging etc

  • Some companies such as Everlane and Anthropologie are now charging customers for returns that are sent by mail

  • In the US there is now a company called Happy Returns which offers numerous locations for returns and I am sure a similar model will appear in the UK soon

  • Ensure your pricing takes into consideration shipping and returns costs

  • Tight fitting and tailored products and shoes are more likely to be returned, so consider the types of products you sell online. Looser fit or pieces that cover a couple of sizes (such as a size Small bomber jacket which could cover two sizes such as 8-10) are less likely to be returned.

A business can’t sustain a high return rate and it will damage your brands chance of success.

Expert AdviceAlison LoweComment