Why is it Important to Reduce The Number of Product Returns?
With the increasing rate of technology and a worldwide pandemic, eCommerce shopping has been boosted to hit figures that weren’t meant to be reached for years to come. Additionally, with the holiday season upon us, eCommerce sales will be bigger than ever. But, with the increase in online sales comes the increase in product returns.
Product returns make up a staggering 25-30% of eCommerce sales and have a massive impact on profit margins, with return processes needing numerous additional costs (eg. shipping, decreased reselling price, etc.). On top of this, product returns are usually a negative experience and can cost you customers. Studies have shown that it can cost up to five times more to attract a new customer than to retain an existing one (Power Reviews, 2020), showing the importance of ensuring your customer gets the right product.
It’s obvious how important it is to reduce the number of product returns and the benefits this can have for your profit, consumer base, and brand image (etc.), but the question is; how do you do it?
According to Experian, 95% of organizations have data quality problems that affect the consumer experience resulting in returned products due to misunderstood or inadequate product information. Therefore, it is essential to improve the quality of your product data to get the benefits of fewer product returns.
Key Ways to Improve Your Product Data For Fewer Product Returns:
- Ensure all products have specific and detailed descriptions to give consumers the greatest understanding of what they are purchasing when items are intangible. This helps to guarantee that consumers will be satisfied and receive what they are expecting, reducing the number of returns.
- When writing product descriptions it is key to highlight the benefits but don’t overstate or enhance its functions as this will also lead to disappointed customers and returned items.
- Product photos are the most beneficial feature for online shoppers as it shows them exactly what the product looks like, filling in any gaps they may have when reading product descriptions.
- It is key that product photos are of high quality, show different angles of the product, and have the ability to zoom in, to ensure that consumers know exactly what they are getting when they purchase an item.
Automated Product Systems:
- Automating data management systems is incredibly important for eCommerce companies to ensure information accuracy (eg. product descriptions), correct inventory levels, and efficiently maintained logistics. Automated systems ensure consumers are consistently seeing updated and accurate data about products, leading to less inaccurate or inadequate information, reducing the number of returns.
- Product reviews help consumers to build a greater understanding of a product through the addition of previous consumers’ descriptions and photos. This helps consumers to be completely sure that the product is what they are wanting and gives them extra valuable insight into product features.
- Product reviews also enable companies to get an understanding of why consumers are unsatisfied with the item, to improve product descriptions, or refine existing products. This process ultimately leads to fewer product returns.
Although each of these factors are incredibly important, implementing them for your eCommerce site can take hours of manual work with a lot of room for human error. Consequently, Vesta has created a process to execute many of these steps in an efficient, effective, and automated way.
How Vesta Can Help With This Process:
Vesta’s automation systems collect, clean and connect product data from your vendors into your PIM or eCommerce site. This means that automated systems are put in place, allowing for product data to be continuously updated and accurate on your online site. Vesta will also bulk upload product images and descriptions in a consistent and formatted way, ensuring each product detail page is optimized and consumers know exactly what they are purchasing. Alongside this, Vesta’s processes automate the categorization and classification of product data, making it easy for consumers to navigate your eCommerce site and find the correct products to purchase. These processes are an ideal place to start and build upon to ensure your eCommerce site is providing consumers with accurate and high-quality information, decreasing the number of unsatisfied customers and product returns.
Book a consultation with one of our friendly team to learn more about how your company can reduce the amount of time spent managing product data and improve your profit margins through better quality product information, decreasing your amount of product returns.