Should your store offer free returns?

Ever thought about your return policy? Yeah, it’s not the sexiest topic, but hang with me. Free returns could be the secret sauce your business needs.

TL;DR 🎯

Offer free returns, no questions asked, and cover the shipping. Do this for a reasonable period (think 30 days). It might pinch your wallet short-term, but it pays off big time in customer loyalty and future sales.

To reduce returns and make this work even better, use a product recommendation quiz to help customer find the right product in the first place.

The evidence 📊

Let’s talk numbers. A study on a Swedish fashion retailer that offered free returns in Denmark but not in other markets found some pretty cool results:

• 9.15% increase in spending per order
• 9.71% increase in gross margin per order
• 8.74% increase in product variety per order
• 7.87% increase in item returns per order (you can reduce returns with a product quiz)

Now, before you get all twitchy about the return rate going up, hear me out. Long-term data shows that customers who return products for free are 158% to 457% more likely to buy again. Compare that to a 75% to 100% drop in spending from those who had to pay for returns. Mind-blowing, right? 🤯

But why does this work? 🤔

Think of it like this: free returns signal quality. It’s like a trust fall with your customers. They know you’ll catch them if something goes wrong. This makes them more willing to take the plunge and buy from you, even if they're unsure about the fit or the product itself.

Plus, with free returns being the norm online, not offering them is like bringing a spoon to a knife fight. Customers will choose a competitor who does offer free returns, especially when they’ve been burned before by return fees! (we've all been there, right? 😑)

The catch ⚠️

Yeah, there’s a catch. This strategy works best for items that don’t cost an arm and a leg to ship back. If you’re selling grand pianos or diamond-studded dog collars, you might want to rethink it. Also, the boost in returns will increase your shipping and processing costs, but it's a trade-off worth testing (always test, test, test!).

Steps to implement ✅

Here’s the game plan:

1. Set a reasonable timeframe: Offer free returns for 30 to 45 days. It gives customers enough time without dragging it out.
2. Find a solid logistics partner: Partner with providers who have convenient drop-off points. Google Market Finder can help you track down options.
3. Include return labels: Make returns hassle-free by including a return label and allowing customers to use the original packaging.
4. Leverage physical stores: If you have physical locations, offer in-store returns. It’s super convenient and drives foot traffic.
5. Shout it out: Make it crystal clear on your website and in your marketing that returns are free. Customers need to know!

So, next time you’re sweating over the cost of returns, remember the long game. Free returns can transform hesitant first-time buyers into loyal repeat customers. And that, my friend, is worth every penny.

Happy selling!

Want to learn more? 🤓

If you want to learn more about this topic, you can dig into the nerdy details in the original marketing study.

Quote of the week 💬

"Generous return policies are not just expenses, they're investments in customer loyalty."