Returns tracking is becoming increasingly common in the eCommerce industry as more and more retailers are determined to find out how, why and if returns are really affecting their bottom line.
But as it turns out, those previously dreaded returns may actually benefit your bottom line more than you would think. That’s because studies are finding that returns can make retailers profits in the form of repeat customers, who quite often spend more on their average purchases while also making the most returns.
The fact that your loyal customers spend more money but return more products aside, there are ample good reasons to look into getting a returns tracking system in place at your online store. We’ll provide three for you in this article so you can start to wrap your mind around this concept.
Finding Out Why Products Are Being Returned:
The foremost reason to get a returns tracking system in place at your online store is to learn why products are being returned. Finding out who is returning what items, when and why will deliver powerful, deep analytic.
- You can then use these analytic to adjust your fulfillment method and to make changes to your product lines that help reduce the rate of returns. You may find that certain clothing fits oddly and just requires better descriptions, updated sizing charts or more ordering options.
- You may also learn that some products are not worth having returned because their order value is not great enough; so you can just send a replacement product back to save on shipping.
Either way, you will be able to take a good, long look at your returns and know why they happen. Doing so will enable you to make positive changes to your operation that reduce cost and help improve retention.
Improving Reverse Logistics:
Your reverse logistics system matters. Customers want to know that there’s an easy way to return any product they no longer want, or they will not shop at your store for very long. With returns tracking software, you can provide an automated online system for customers to process returns with tracking that updates you both until the product has reach your fulfillment warehouse.
There’s no more guessing. That’s because returns tracking software will tell you when the return was made, what its tracking number is, what’s in the box, what customer placed the return and its expected time of arrival at your warehouse.
Reengaging Customers Who Made Returns:
Finally, and most importantly, being able to reengage customers who make a return is an essential aspect in driving future revenues to your online store.
For instance, TrueShip’s returns tracking solution plugs into your store. Customers come back to process their return and can be offered other special deals and even bonus in-store credit, influencing them to spend their money again at your online store, even if they are making a return.
As you can see, there’s a lot more than meets the eye with a good returns tracking system.
