Did you know that shoppers in the U.S. return approximately 10 percent of all holiday purchases? For online orders, that number is even higher. In fact, an estimated 30 percent of all ecommerce purchases are returned. Because of this high return volume, retailers need a solid return strategy in place. Otherwise, holiday returns can quickly become overwhelming. To manage returns successfully, retailers should focus on staffing, customer service, and efficient product handling.
Staff Your Store for Fast Returns
Make sure your store is well staffed. Retail stores should schedule enough employees to handle returns quickly and efficiently. Long lines and poor service can frustrate customers and damage your store’s reputation. However, a smooth and friendly return experience can leave a lasting positive impression. Fast service also encourages shoppers to continue browsing your store.
Use Returns as a Sales Opportunity
Use the opportunity to cross-sell. Returns can create valuable sales opportunities. They bring additional foot traffic into your store and allow employees to recommend other products. For this reason, many retailers encourage customers to return online purchases in-store instead of shipping them back. Offering incentives, such as discounts or store credit, can help increase store visits. Studies show that nearly 50 percent of customers who return an online order in-store make another purchase during the same visit.
Develop a Reverse Logistics Strategy
Make sure you have a reverse logistics function in place. Once customers return products, retailers need a clear plan for handling those items. An effective reverse logistics strategy can help reduce financial losses and recover product value. Retailers may choose to resell, refurbish, remanufacture, or recycle returned merchandise. In some cases, businesses can recover up to one-third of the product’s original cost through efficient return management.
Turn Holiday Returns Into Growth Opportunities
In conclusion, holiday returns are more than just a seasonal challenge. They can also create opportunities to improve customer satisfaction and increase sales. Retailers that prepare properly can turn returns into a profitable part of their business strategy.
