The 12 Most Common Reasons for Returns

The Most Common Reasons for Returns

The inevitable part of the business is product return by the customer. There might be many reasons for the product return, but undoubtedly it is the weary part of running a shop or e-commerce business. However, making return policies will help create a good relationship between you and your customers. Consider, if the business does not have a return policy and intends to sell the product, how it is feasible or possible to sell your product to the target audience. 

We might have seen big e-commerce sites like Amazon, Flipkart, Messho, Mintra, and much other e-commerce has return policies. So, before making a return policy, you must understand that it should not create consequences for both business runner and customer. Moreover, your return, exchange, and refund policies should be as explicit as possible. For the best outcomes, every small business requires a well-written return policy. A few things to consider when drafting a return policy for your eCommerce website; we shall discuss them further. 

This blog will discuss why a return policy is essential for running a business, reason for high percentage of returns, what is return outwards and cause of no refund no exchange. 

How do you avoid money returned in business?

Customer returns may not be your favourite aspect of managing a store or online company, but they are a necessary component of retail sales. Despite this, no federal laws require a return and refund policy. However, it does not follow that your store should not have. There are numerous justifications for having and making customers aware of a return and refund policy.

Product returns from customers are an unavoidable aspect of doing a company. The return shipping costs, however, might be expensive for an online store. Specific methods will help you lessen or stop returns.

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How to write return policies

A return policy is essential for the proper running of an eCommerce website. It will help you provide good customer service and make handling returns easier if you maintain the correct return policy. Take the following actions :

  • Establish the time frame for return acceptance.
  • Establish whether the thing is in an acceptable state.
  • Specify actions that the client should undertake (e.g. performing their return through a return merchandise authorization

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What is a return policy?

A company may receive return goods at any of its time. A return policy is an agreement that elaborately outlines your company’s return policies and procedures. Additionally, it discusses what clients should anticipate and how they should go about starting a return. 

Your return policy is a buffer between your company and potentially costly credit card chargebacks and unauthorized returns. It also acts as a guide to ensure that both you and your customers follow the same procedure. An outstanding return policy hits the right balance between keeping your clients as happy as possible and preventing your organization from being overly harmed by returns.

Why do customers return the product?

  • Incorrect product size
  • Product no loge required
  • Wrong product shipped
  • The mismatch between product and description

How to reduce the product return?

  • Post the high-quality product image
  • The description that compiles the size and fitting tools
  • Outstanding customers service
  • Appropriate package of the right product
  • Ensure product code before delivering

Now, we shall discuss in detail about these factors.

Why Do Customers Return Their Purchases?

The three most common causes of product returns are a disappointment, damaged or defective goods, and poor fit. These issues could result from the merchant’s faults or inevitable external causes.

Understanding why customers return products is essential because these reasons sometimes damage chargebacks. A customer dissatisfied with their purchase product or service might occasionally be the source of a benign fraud chargeback. Returns and chargebacks are both addressed by stripping away that dissatisfaction.

Understanding the possible causes of customer dissatisfaction will help you identify any chargeback issues you may be experiencing and can point out areas where your customer service and other business procedures need to be improved.

Although it is hard to know every customer’s thoughts, the following are some of the more frequent causes of returns:

The customer ordered the wrong product or size

Customers frequently order the incorrect item, whether it be a garment that doesn’t fit, a replacement part for the wrong model, or a peripheral incompatible with their device. 

They would have profited in these situations from carefully considering their purchase, but it makes sense that they wouldn’t want to end up with a thing they can’t utilize.

To reduce the frequency of returns caused by incompatible products, ensure they are explicitly specified in the product description, particularly at or near the top. Additionally, you ought to provide clients with an extensive list of compatible goods that is simple to look for.

Many online shops now ask customers about the product’s size when they submit reviews for items of various sizes. A chart next to the offered sizes shows the percentage of reviewers who said the item ran large, small, or true to size.

The customer might change their mind once they receive it

Finding someone who has never made a mistake or changed their mind about a purchase may be difficult. There is a good chance you did it yourself. You can’t stop a consumer from having a different opinion of an item they’ve bought once they see it, and you can’t stop them from making mistakes. To ensure that the customer knows what they’re getting, you can ensure that all your product specifications and pictures are accurate, precise, and complete. Giving the consumer detailed product information will lessen many of the repercussions of this return, while it won’t completely stop it.

The merchant shipped the wrong item

You might be curious about how frequently it happens if you’ve never received the wrong item in the mail. It occurs frequently, and even well-known retailers like Amazon and Flipkart will make these common mistakes. 

Any minor error made throughout the pick, pack, and ship process can result in a consumer receiving a mystery item when they open their delivered package.

So, after receiving the wrong product, it can be a garment or anything, the customer will contact you for replacement. So, in such as case, you need to accept their demand because it is the misken done by us, not the customer. 

The consumer is under no duty to return the product to you, even if you give a refund because it’s unlawful to bill a customer for something they didn’t order (even if they did order something else), according to the Federal Trade Commission. 

Some people may offer to return the product, but you’ll have to pay the shipping and handling fees. So, if you have shipped the wrong product, the merchant must accept the return and ship the correct product. It’s essential to take all possible precautions to stay away from this situation.

The purchase arrived too late, or the customer no longer needs it

A customer may consider a purchase to be “late” for several reasons. Maybe the customer might order the product expected to arrive before the meeting or an occasion and imagine it could not arrive on time. However, they may have been impatient and bought it elsewhere. So, the product they ordered is no longer needed due to late arrival; this can also happen when a customer changes their mind.

In either case, the only thing you can do to reduce this kind of return is to give customers accurate, up-to-date shipping information, preferably with tracking numbers. So they can know the precise time frame in which they will receive their order. It also processes your orders quickly so they can ship out on schedule.

The customer was wardrobing

The unethical practice of “wardrobing” involves a buyer purchasing a product they only intend to use momentarily and then returning. You are certainly familiar with the tale of the woman who bought a dress for a specific occasion, wore it with the tags tucked inside, and then returned it a few days later. This is a type of wardrobing. 

Another instance of wardrobing is when a businessman purchases a trendy new briefcase to bring to an important meeting and then returns after impressing his clients. Even though many consumers wrongly think this is a normal activity but is fraudulent. 

Wardrobing encompasses more than just clothing items; it can also apply to gadgets, housewares, or anything else you can think of that might be used for a special event. For example: The knee braces have been used and returned after two weeks, and dirty plates returned as well. 

Wardrobing might be challenging to avoid because specific consumers who indulge in it are genuine experts at it. Putting preventive measures, such as placing clothing tags where they can’t be concealed while being worn, is the most accessible approach to guard against this kind of fraudulent return. 

It’s also advantageous to use an RMA system that enables you to request pictures from the customer before you accept the item; make sure your eCommerce software is reliable and has this feature.

The product was damaged or defective

Even if you send a product out in perfect condition, accidents can always happen during shipment, and it could wind up arriving in a thousand pieces. Reconsider your packaging strategy and improve your measures to secure your products if you frequently receive criticism regarding broken things.

Frequent reports of the merchandise being damaged during transportation may indicate that some things aren’t adequately protected. It can be challenging to package purchases, particularly those involving fragile goods or several products of varying sizes, so it’s critical to look out for any patterns of persistent problems.

When things return regularly damaged, it may be a sign that the shipping company the merchant has chosen isn’t doing a good job and needs to be changed.

The product did not meet the customer’s expectations

It’s not always the merchant’s fault when expectations and reality diverge. Customers occasionally make their assumptions and expect the product to perform that the seller has never guaranteed. Since a client cannot determine how a product will appear on them from a product image, fashionable products are usually the subject of these returns. In these instances, providing a refund can prevent chargebacks and maintain client loyalty.

The Customer Found Better Product Price Elsewhere

The next valuable reason for return is that customers might find other e-commerce product services offered best for the same product they ordered. So, in such cases, the customer may return the product, and it is challenging for all competitors to provide the best quality offers. 

Purchasing a Good During the Holidays

Sometimes we might purchase lots of products for friends and family. The products that we are buying for others might have no benefit for them. So, we tend to return the goods we have purchased or ordered. As business owners, we cannot blame the customer for these.       

In such a case, we should understand customer expectations and problems. It is an excellent opportunity to propose something else they would enjoy, turning the return into a trade.

Returns and Chargebacks

  • The same factors mentioned above frequently cause chargebacks and returns. 
  • The only distinction is in how the buyer requests a refund.
  • Merchants who are personable, easy to deal with, and quick to issue refunds when a customer is dissatisfied have a higher likelihood of minimizing disputes and avoiding friendly fraud.
  • Refunds are always preferable to chargebacks, even though no business owner loves to lose sales. 
  • Any chargeback prevention strategy should include a customer-focused return and refund policy.

The client felt regret after making the purchase

Another annoying scenario is when a customer makes an unplanned purchase and returns it for no apparent reason. Although it may be tempting to require a rationale for returns to safeguard your revenue, such policies rarely benefit merchants. Though clients cannot return the item, they may instead submit a chargeback even if they have no justifiable grounds.                                                

As was previously said, there are almost as many causes for money returned. With the aid of this article, perhaps you now have a clearer understanding of 12 common causes and feel more equipped to handle them. Since there is still much to learn about eCommerce returns, you can stay tuned to read our further blogs.

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