Returns have long been part of everyday life in online retail. No retailer loves them - but you shouldn't ignore them either. Because with the right returns management, you can not only reduce costs, but also strengthen the trust of your customers and sell more successfully in the long term.
Returns occur - but you can control them
You will hardly be able to completely avoid returns. But what you can do is better understand the causes, communicate expectations more clearly - and make the entire process as simple as possible for everyone involved.
A common reason for returns is incorrect expectations. This is often due to unclear product descriptions, poor photos or missing information on sizes and materials. If you are more precise here, you can prevent many returns in advance.
Customer reviews or frequently asked questions (FAQs) also help to dispel typical uncertainties before making a purchase. Fashion and furniture shops in particular successfully rely on size guides, material tips or application videos to avoid bad purchases.
Briefly summarised:
- The better the product is described,
- the more realistically it is presented,
- and the more clearly the benefits are communicated
the less often it comes back.
When it comes back: processes that have to work
Returns are no drama - as long as they are well organised. Today's customers expect transparency, fairness and simple processes. Unclear conditions or a complicated returns process quickly lead to dissatisfaction and bad reviews.
That's why you should make sure that your returns policy is clear and present - not hidden somewhere in the small print. Ideally, you should explain in the shopping basket what happens in the event of a return.
A digital returns portal can also help: Customers can request a return label themselves, see the status of their return and receive notifications. Tools like Sendcloud or DHL Returns Online offer convenient solutions here, often including brand customisation to your shop design.
To summarise:
- Clearly state how returns work
- Make the process simple & digital
- Inform customers regularly
? Return rate: what is "normal"?
- Fashion & Shoes: 30-60 % are not uncommon
- Technology & Accessories: approx. 10-15 %
- Cosmetics, food, DIY: mostly under 5 %
? The higher your returns rate, the more important prevention and automation are.
What happens in the background?
While the customer side is running, your internal processing must also be running smoothly. It is important that returns are quickly checked, recorded and refunded if necessary. Today's customers expect to get their money back within a few days - waiting too long leads to mistrust.
At the same time, you should learn from your returns. Products that are returned particularly often deserve to be analysed more closely. Perhaps there is something wrong with the quality, perhaps the presentation in the shop is misleading - or you are addressing the wrong target group.
And here comes Web analytics into play:
For example, if you work with tools such as Google Analytics, Matomo, Shopify Analytics or the cookie-free web analysis tool Trackboxx you can recognise at which point customers frequently drop out or conspicuously often return the same product. If you link returns data with click and behaviour data, you will gain valuable insights:
- Is the product often ordered in the mobile shop - but returned because important information is missing?
- Are there differences between paid and organic reach in terms of returns?
- Which landing pages lead to particularly high return rates?
These findings not only help you with returns management, but also directly with product optimisation, shop design and campaign management.
And the costs?
Of course, there is also the question of who actually pays for returns. In Germany, the right of cancellation applies - but you decide whether you want to pay for the return shipment.
Many shops offer free returns from a certain order value or for first orders - this lowers the barrier to purchase without burdening you permanently.
A clever returns concept can reduce costs even further. Avoidbefore they arise - for example through differentiated return policies (e.g. for sales goods or used items).
Possible strategies:
- Free returns from a certain value of goods
- Return shipping always free of charge - but shipping costs will be retained
- Customer pays himself - but clear communication & good guidance
? Preventive vs. reactive returns management - what's the difference?
When talking about returns, many people first think of what happens, after a customer sends something back. This is the so-called reactive returns management - in other words, everything to do with processing, refunds and warehouse organisation. It is important, efficient and customer-friendly - but often it is already "too late" to avoid costs or effort.
Much more effective (and cheaper in the long term) is the Preventive returns management. The aim is to prevent returns from occurring in the first place. This is achieved, for example, by:
- Precise product descriptions and size charts
- Realistic images and videos
- Recommendations ("larger") or advisory functions
- Clear expectations through clear communication
And here again you can Utilise dataIf you recognise which products have an unusually high return rate - or which campaigns generate a particularly high number of returns - you can take targeted countermeasures.
The ideal case?
You combine both. A strong Preventive returns conceptthat lowers your return rate - and a Efficiently organised, reactive systemthat doesn't leave customers out in the cold in an emergency.
Conclusion: returns do not have to be a loss-making business
Returns are here to stay - but how you deal with them will determine whether they do you harm or good. If you optimise your processes, focus on customer transparency and work with web analytics, you can turn returns into real aha moments. And these will ultimately benefit you more than another sale.
