We here at Ebulking understand that consumer shopping comes with a less desired activity for retailers:
” RETURNS “
Many a times retailers experience increased sales as a result of a festival or an event. But at the same time they also have heavy sections of sales that are also affected by returns.
‘Returns in Sales” is a whole concept in itself. It has a lot of parameters and is highly factor driven.
The impact of “Return in sales” is profound. Excessive shopping returns can affect profit margins drastically, and often requires staff and resources to handle and manage the high volumes of returns.
Hence, it’s important for us to have an understanding as to how & why does it happen and how can our retailers minimize this.
Variety of shopkeepers now a days do home delivery of products especially when the quantity is large. This activity gives rise to a lot of return activities.
Let’s find out why.
Reasons Consumers return Products:
1. Received the wrong product :
Many a times the customer expectation is not well met by the retailer. This could be due to various factors- the miscommunication of color, size or pattern etc.
Products need to represent high quality as compared to their price point. This is the best way to ensure customer satisfaction and build a successful setup. If you know that your product fits this description but you’re still witnessing a lot of returns, examine your marketing tactics.
This makes the customer unsatisfied and eventually they return back the product.
2. Damaged Product:
At times despite every bit concentration and planning, the delivering process of a fresh product goes haywire. So, this results in the biggest blunder i.e the delivery of the product that is damaged. This not just angers the customer but also results in ample quantity of returns.
3. Product doesn’t look familiar:
Many a times a sample product seen by the customer is liked greatly but somehow after the delivery of that product, the customer tends to not like it anymore saying that what they saw before was completely different from what they received later.
4. Other Reasons:
This comprise of all the reasons that we generally aren’t able to categorize as such.
Reasons like :-
- The product is longer needed or wanted by the customer.They may no longer use or need the product. Or an upgraded product is available, and they want to own that product instead. It can also happen because a customer was forced to move, change jobs or just downsize their personal life.
- Wardrobing is a serious and a specific type of consumer fraud, where a customer buys a product and the uses it for a one-time-trial basis with the intent of returning it back.
There neither much that could be done about nor could it be monitored.
What can retailers do to manage this situation :
1. Triple Checking of every order in the given time frame:
At the rarest times even a little delay in time is forgiven but not the deliverance of the wrong product. Recheck your orders and make sure from your end that you deliver exactly what your customer asked for.
2. Having a stricter Return Policy :
You as a retailer should have a stricter return policy that should be outlined in great detail.
You could introduce and implement a shorter return timeframe and could state what products, and scenarios, can justify an acceptable return. Also, ensure your return policy is included on each of your receipt.
3. Customers should be assumed as fickle minded:
As consumers explore variety of products offered by their go-to-retailer. It’s your ownership as a smart retailer to help your customers step out of their comfort zone. But at the same time , you must keep them from buying something that you know they won’t like.
To escape returns resulting from this scenario, recommend your best customer’s alternative or complementary products that go with those they have already purchased. As in that way they wouldn’t have to experiment with unfamiliar products on their own.
4. Having a dependable wholesaler:
Having a good wholesaler is an underrated factor, but it is major savior for the most of the times. If supposedly a stock isn’t performing well as per the customer behaviour and sales figures, then after examining the situation the retailer wouldn’t have to leave the his shop and run an errand for a new stock.He could easily order a fresh set of small catalog from an online wholesaler to a run a consumer test on the new stock.
Having an online wholesaler provides convenience and relevancy of things. E-commerce like Ebulking gives a great platform of choice and convenience – giving retailers the ability to shop from any device, whenever and whenever they want.
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