The verdict is in: offering easy and hassle-free returns will increase your profits. How can this be, you might be wondering? Because newer studies have come out that show that the stores that offer the easiest returns actually make more money than the stores that don’t.
Remember, that when you are competing online it’s not just against other internet merchants. Rather, it’s against brick and mortar AND online competitors. That being said, shoppers want returns to be as simple as they are at Target or Best Buy. Offer this, and you can win them over for the long haul. But it's all about how you manage product returns for them.
So how do you manage product returns and earmark profits from your customers? Keep reading to learn how this unique approach can work for your business. You’ll quickly learn why your returns policy should favor the customer, something that will ultimately play into driving more revenue to your online store.
OFFERING FREE RETURNS CAN SUPERCHARGE PROFITS
According to a recent study that was cited in a CNBC article, offering free returns can actually increase profits for your online store by a staggering 357%. The study followed hundreds of stores, and found that the average store increased profits by over $600 per customer in just 24 months.
ADVERTISING MONEY CAN’T BUY
A better way to think about offering free online product returns is not in the amount of money that they cost you when you pay for return shipping or restocking. Rather, think about them as the best form of advertising that money simply can’t buy. Customers become increasingly loyal to stores that make returns hassle-free. This means repeat business for you by managing product returns more effectively.
RETURN WEBSITE VISITORS
When you have a powerful product returns software solution that’s integrated into your website, customers have to return to your website to initiate a return. This is organic traffic that you can offer special deals to, in efforts to accommodate them for the inconvenience of having to make a return. Imagine what you could up-sell customers on even while they are returning a product they previously purchased.
