Whether their motives are fraudulent or simply inconsistent, serial returns hurt your profits. According to Appriss Retail’s Consumer Returns in the Retail Industry report , fraudulent or abusive returns cost U.S. retailers $23 billion netherlands telegram data annually. In addition to the refund, online retailers also pay shipping and packaging fees, not to mention the salaries of the employees who process the merchandise.Returns, refunds,

Returns are a double-edged sword. A study by the  MIT Sloan Management Review found that approximately 52% of customers make justified returns, contributing €1,289 to a retailer’s profits annually. Furthermore, the ability to return an item and request a refund is an important factor in their choice of retailer. Abusive returns, on the other hand, represent less than 1% of customers but cost a retailer €1,119.

Source:  MIT Sloan Management Review

Unfortunately, serial returners are on the rise. A study by  Brightpearl found that 42% of US retailers report an increase in this type of activity over the past 12 months, particularly among customers aged 18 to 34. This is partly due to the rise of  bracketing  affecting e-commerce—more on this later.

Outright refusing returns how to search for keywords on google would likely lose you customers, but there are a variety of steps you can take (from minimal to extreme) to reduce the number of serial returns you encounter.

Start with your return policy

Clearly display your return policy and make it easily accessible on your website. It’s also a good idea to include it in the confirmation email you send after a purchase. Ideally, you would include the following information:

• How to initiate the return process?
• What are the deadlines for the customer to return or exchange the purchased item?
• What are the return procedures?
• What should the customer include (packing slip, return form included in the packing slip or available online, original packaging, price tag, etc.)?
• Who pays the return shipping?
• What items are not returnable (e.g., used items, underwear, or custom orders)?
• How can the customer contact you if they have questions?

It’s important to make your return, exchange, and refund process as simple and transparent as possible.  In fact, nearly half of consumers will review it before making a purchase, according to Narvar’s 2018 Consumer Reports study, The State of Returns: What Today’s Shoppers Expect . Seventy percent of respondents also said that being able to easily return an item would increase their loyalty to a retailer. Returns, refunds,

Should you offer free returns?Returns, refunds,

Customers love free shipping, but you can take the lead in preventing returns by only offering it for purchases over a certain amount. This will reduce the number of smaller purchases that could be returned individually. And consider adopting a “free return policy” carefully, because while customers also appreciate this perk, they’ll think twice about returning an item if they have to pay for shipping out of pocket — especially if it’s to return a cheap product.

Likewise, require that an item be returned unused, in its original packaging with the original price tags attached. This will help you reduce “wardrobing,” a type of fraud in which a customer uses the item before returning it to you. This is common with expensive, rarely used items, such as formal wear, tools, or some consumer electronics.

According to a study by Appriss Retail , nearly 40% of retailers have experienced this practice. Have your staff carefully examine returned items and enforce your return policy restrictions if they suspect abuse. Don’t be afraid to refuse the return or contact the customer, especially if they’re a repeat customer, and offer them a voucher instead of a refund.

How to calculate your free shipping threshold

To determine how much to offer your shipping fees, you only need to know one metric: your median order value ( MOV ). Once you’ve fax database calculated it, you know that 50% of all your orders are above this value and the rest are below — this is called a midpoint.

You can also use your average order value ( AOV) to calculate your free shipping threshold, but be sure to exclude any outliers—those with extremely high or low order values. These can affect the accuracy of your calculations and reduce the overall value of any free shipping threshold you determine using AOV.