Published on October 27, 2021
When website traffic is converted into sales in eCommerce, it’s referred to as conversion — this is one of the most important factors that determine profitability. One of the main reasons that online store visitors do not complete a purchase is the fear that the product will not meet their expectations. If your products cannot be returned, your sales will most likely suffer.
That being said, having a return policy that allows your customers to return products with ease is crucial in maintaining a stable conversion rate.
According to Dotcom Distribution's research, 90 percent of shoppers want a free return policy. As a poor return policy causes 10% of shoppers to abandon their carts, not having a policy may lead you to lose a higher percentage of customers.
Even then, sellers have legitimate concerns about having a generous return policy. Returns can be very expensive depending on your product and its shipping weight, and not everything you get back can be resold. To combat its impact on revenue, you must keep detailed records in order to calculate the financial impact of your return policy.
It’s also important to note that many returns are from repeat buyers, and customers are more likely to buy if they have had a positive return experience. It is beneficial to consider the big picture and compare returns to your overall business goals and growth.
A generous return policy fosters trust, and a positive brand reputation attracts new customers. In the end, what appears to be a cost has the potential to drive your profits in the long run.
Lastly, keep in mind that much of your competition may be stifling their growth by focusing on the cost of returns. Liberal policies and excellent customer service raise your company's perceived value, and adding value improves your conversion rate.
Curious about how you fare against your competitors? Visit Bliss Drive now and check out our competitive analysis services to discover how you can gain a significant market advantage.
