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Manage Returns and Keep Customers
Keep your customers coming back – despite returns  
© 2013 Bigcommerce Pty. Ltd.
What should you expect?
20% to 30% of
your holiday sales	


Holiday
ecommerce sales
expected to
increase +17%	


Products with a
10% or lower
return rate.	

•  Gifts 	

•  Home Products	

•  Toys
Did you share enough product information?
•  Was product information written clearly?
•  Did you provide as much technical data as possible?
•  Do you have multiple images with multiple views?
Process for package and send the goods

Outside shipping
and packing help to
reduce returns	


What is the visual
impact when the box is
opened?	


Build in quality
checks on picking
and packing	


Dr. Foster and Smith Pet supply reduced returns from 5% to
2.28% with tighter controls on shipping
Triple check customized product before shipping
Details of the order

Billing history of customer
Include that extra message
-  Biggest return reason when goods
are quality; not knowing were
battery goes

-  Extra directions/diagrams on how to
start using

-  Consider additional email with
directions or just say “Thanks”

© 2013 Bigcommerce Pty. Ltd.

Thanks for purchasing! Not
sure how to start having
fun with your toy? 	

	

1)  You will need 6 AA
batteries	

2)  Find the battery
compartment on the
bottom of the car.	

3)  You will need a
screwdriver to open
the compartment.
Return Policy
-  Clear and easy to understand- 10 second rule
-  How long do I have to return
-  Refunds or store credit? When and why
-  Who is responsible for shipping back?

-  Don’t hid it, make it easy to find
-  Not sure how to explain the policy? Inspiration from the best.
-  Apple - http://store.apple.com/us/help/returns_refund
-  Steve Madden- http://www.stevemadden.com/ContentDisplay.aspx?pageID=1023
-  Zappos (Check out their use of video directions- http://www.zappos.com/shipping-and-returns
Plan for your return costs
Plan for approximately 20% of sales to
be returned, plan labor time & cost

Merchandise defective? Contact your
supplier for refund

Each return left unprocessed = lost
dollars in sales

If you are at fault, (color, product,
size) do right by customer and eat
the cost.
Merchandise only seasonal offering?
Clearance section or “left on the counter” for deep discounts

Consider putting info in
the box about seasonal
sales.
To offer free shipping on returns or not?

•  Your mistake- you offer free shipping for that

return
•  Free shipping on returns leads to future sales
“One sale vs repeat sales”
Not offering free shipping on
returns?	

81% less likely to purchase
again	

Over two years return
shoppers decrease spending
by 75% to 100% 	


More trust you show in the
customer the more their
spending will go up. 	

	

Think like your customer:
(Ship to Me)+(Ship back)=
Cost to me to find out it
does not work
Questioning if free shipping is right for you?
•  Offer only on orders that margin on goods
will offer cost of shipping on return.

•  Example: Orders (not products) with a
value over $150 will be eligible for free
shipping on returns

•  Profit from the balance of items
remaining in the original order
Returns need to be easy and set up to sell
• 
• 
• 
• 

Provide “how to start” directions in the box or where they look
What paperwork is needed?
Should they visit a site to start the process?
What replacement options exist?
Set expectations on both sides
Provide timeline in
notice of return email.
Cover the when, what
happens and how to
connect

What format refunds
come in and make sure
to log into gateway to
complete

Don’t leave in the box,
get back in inventory
and ready for a sale
Keep the sales coming
−  In return confirmation email offer immediate discount to
say “Thank you”

−  Feature similar products to return goods and link to
seasonal sale section of store
−  Most often returned due to color or size
−  Motivate to repurchase right size/color at a discount
Keep the customer who returns

•  Proactively ask for
their experience

•  Listen to feedback in
social media

•  Identify and Act
Nurture the gift certificate sale
•  81% of holiday shoppers will buy
at least 1 gift certificate = $30
billion in sales for the season

•  Look at your store records who
purchased and who received

•  Treat your credit holders the

same as the gift card holders
Nurture the gift certificate sale
•  Custom email to holder that includes

amount and specific discount inviting to
shop

•  Encourage registration in store of you to
feature specific benefits to gift card
holders

•  No purchase yet, feature merchandise in
the price point = gift card value

•  Share customer reviews on the store

quality of the service and merchandise

•  Connect in social with helpful info about
lifestyle around the product
Start nurturing for sales today!

Bigcommerce has all the selling and
marketing tools you need to sell built right in.
Free trial of Bigcommerce to use all the tools
www.bigcommerce.com

Use #BCHolidayTips to continue the conversation

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Managing Returns and Keeping Customers

  • 1. Manage Returns and Keep Customers Keep your customers coming back – despite returns   © 2013 Bigcommerce Pty. Ltd.
  • 2. What should you expect? 20% to 30% of your holiday sales Holiday ecommerce sales expected to increase +17% Products with a 10% or lower return rate. •  Gifts •  Home Products •  Toys
  • 3. Did you share enough product information? •  Was product information written clearly? •  Did you provide as much technical data as possible? •  Do you have multiple images with multiple views?
  • 4. Process for package and send the goods Outside shipping and packing help to reduce returns What is the visual impact when the box is opened? Build in quality checks on picking and packing Dr. Foster and Smith Pet supply reduced returns from 5% to 2.28% with tighter controls on shipping
  • 5. Triple check customized product before shipping Details of the order Billing history of customer
  • 6. Include that extra message -  Biggest return reason when goods are quality; not knowing were battery goes -  Extra directions/diagrams on how to start using -  Consider additional email with directions or just say “Thanks” © 2013 Bigcommerce Pty. Ltd. Thanks for purchasing! Not sure how to start having fun with your toy? 1)  You will need 6 AA batteries 2)  Find the battery compartment on the bottom of the car. 3)  You will need a screwdriver to open the compartment.
  • 7. Return Policy -  Clear and easy to understand- 10 second rule -  How long do I have to return -  Refunds or store credit? When and why -  Who is responsible for shipping back? -  Don’t hid it, make it easy to find -  Not sure how to explain the policy? Inspiration from the best. -  Apple - http://store.apple.com/us/help/returns_refund -  Steve Madden- http://www.stevemadden.com/ContentDisplay.aspx?pageID=1023 -  Zappos (Check out their use of video directions- http://www.zappos.com/shipping-and-returns
  • 8. Plan for your return costs Plan for approximately 20% of sales to be returned, plan labor time & cost Merchandise defective? Contact your supplier for refund Each return left unprocessed = lost dollars in sales If you are at fault, (color, product, size) do right by customer and eat the cost.
  • 9. Merchandise only seasonal offering? Clearance section or “left on the counter” for deep discounts Consider putting info in the box about seasonal sales.
  • 10. To offer free shipping on returns or not? •  Your mistake- you offer free shipping for that return •  Free shipping on returns leads to future sales “One sale vs repeat sales” Not offering free shipping on returns? 81% less likely to purchase again Over two years return shoppers decrease spending by 75% to 100% More trust you show in the customer the more their spending will go up. Think like your customer: (Ship to Me)+(Ship back)= Cost to me to find out it does not work
  • 11. Questioning if free shipping is right for you? •  Offer only on orders that margin on goods will offer cost of shipping on return. •  Example: Orders (not products) with a value over $150 will be eligible for free shipping on returns •  Profit from the balance of items remaining in the original order
  • 12. Returns need to be easy and set up to sell •  •  •  •  Provide “how to start” directions in the box or where they look What paperwork is needed? Should they visit a site to start the process? What replacement options exist?
  • 13. Set expectations on both sides Provide timeline in notice of return email. Cover the when, what happens and how to connect What format refunds come in and make sure to log into gateway to complete Don’t leave in the box, get back in inventory and ready for a sale
  • 14. Keep the sales coming −  In return confirmation email offer immediate discount to say “Thank you” −  Feature similar products to return goods and link to seasonal sale section of store −  Most often returned due to color or size −  Motivate to repurchase right size/color at a discount
  • 15. Keep the customer who returns •  Proactively ask for their experience •  Listen to feedback in social media •  Identify and Act
  • 16. Nurture the gift certificate sale •  81% of holiday shoppers will buy at least 1 gift certificate = $30 billion in sales for the season •  Look at your store records who purchased and who received •  Treat your credit holders the same as the gift card holders
  • 17. Nurture the gift certificate sale •  Custom email to holder that includes amount and specific discount inviting to shop •  Encourage registration in store of you to feature specific benefits to gift card holders •  No purchase yet, feature merchandise in the price point = gift card value •  Share customer reviews on the store quality of the service and merchandise •  Connect in social with helpful info about lifestyle around the product
  • 18. Start nurturing for sales today! Bigcommerce has all the selling and marketing tools you need to sell built right in. Free trial of Bigcommerce to use all the tools www.bigcommerce.com Use #BCHolidayTips to continue the conversation