Uploaded on Mar 10, 2023
Product returns have been a significant challenge for online retail businesses. Every year about 20-30% of the products sold online face returns. That is not only a loss in revenue but also doubles up the costs for the sellers, not to mention damage to the reputation. Handling product returns require a robust after-sale process, something which, small e-commerce retailer would find challenging to build. You can, however, work to reduce product returns and after-sale issues. Addressing avoidable challenges like sizing, multiple purchases, and setting correct expectations are a few things every online retailer should consider. However, after this, you can also have specific consumer promotion campaigns to reduce the chances of returns even further. The first thing to do before you start investing in consumer sales promotion campaigns is to estimate a budget. That will depend on how much product returns hurt your business overall. This is the maximum amount you should set aside for sales promotion to minimise returns.
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