Understanding the Impact of Returns on Your Business

I’ve always thought retailers were fairly relaxed about returns, but it’s more of a burning fire behind the scenes than most shoppers realise. After all, there’s rarely much of a customer service smile about a $40 item that comes back in bad condition. Returns are a dent in businesses, even small ones, mostly from added logistics and potential loss of value when the product isn’t up to scratch anymore.
If you're struggling with returns, having accurate product details will help. These can help reduce the chances of dissatisfied buyers and most sellers see fewer returns when they are transparent about what goes into making their products. Return policies may be hard to get right - you can’t make them too strict or nobody will shop with you but if you get them right it’ll build customer confidence. A good way to do this is by having complete size charts on your website and detailed product descriptions of each item.
Apart from this, having multiple channels where people can possibly reach out to you for help in choosing the correct size or solving other problems will also work well. If you’re not prepared to handle queries on various channels, consider automating processes like an FAQ page or chatbots to solve more routine problems. The value of reducing returns is in the long-term security and stability it offers your brand or business.
Not only does it give people more confidence in your shop but also reduces the loss you may have to account for in the future. This is worth its weight in gold for any business. And customer retention is often regarded as being more valuable than generating new buyers so add that to your list of reasons why this is important.
The Importance of Accurate Product Descriptions

I've always thought that good product descriptions do two things - inform and persuade. And the reason they're effective at getting people to actually buy stuff is likely because you can't have one without the other. Some would even say 'good' is kind of not enough, product descriptions need to be accurate, clear, and detailed too.
Which I can understand, because in a world where most shopping happens online, there seems to be little room for error. Because people have no way of physically touching, feeling, smelling, seeing or trying out a product before buying it, descriptive product details are a non-negotiable. With so many online businesses and even more people shopping online, if your brand wants to stand out, it's important you share product details that are potentially thorough and easy-to-read.
Information like colour and size mustn't be misleading or ambiguous. Because if your product descriptions are not detailed enough or lack accuracy, customers could misinterpret key information, which could increase customer complaints and drive up return rates. What's important is not only what information is shared but how it is shared too - this could be through images, videos or written content. Another thing to note about clarity of communication is that sometimes a product may not match what the customer believes they ordered or the description provided doesn't match the end product delivered.
And while some brands might make accidental errors with their sizing charts and actual product measurements, some brands deliberately try to mislead customers into thinking they're buying something they're not. Whether it's intentional or by accident (and I think that's another thing altogether), online retailers must strive to ensure all their communication is as clear as possible - leaving no room for misinterpretation. After all, nothing about ordering something you thought you wanted but ending up with something you didn't order sounds like a positive experience.
Especially in an era where user-generated content (both positive and negative) can reach hundreds of thousands within minutes through various social media platforms. More or less.
High-Quality Images: A Key to Reducing Returns

Most people have been burned by online shopping at least once. You know the drill - you’re scrolling through your favourite website when a cute dress catches your eye, only to realise that the product photo was a little too good to be true. That’s the power of high-quality images in e-commerce. It has the potential to make or break a sale.
But more importantly, it can help reduce returns by giving customers accurate details about what they’re purchasing. The way I see it, as an e-commerce business, investing in high-quality images is one of the most effective ways to provide your customers with more information about your product.
It’s not only about showing what something looks like but also about conveying other important information - such as product quality, texture, and fit. When you have detailed photos from multiple angles and show what a piece looks like on different body types, it reduces guesswork for your customer base. They now know what exactly they’re getting before it arrives at their doorsteps. A poorly taken or pixelated photo has the potential to diminish trust between you and your customer base - especially if it doesn’t accurately showcase the product you’re selling.
This leads to higher returns and refund rates, which means less revenue for your business. Not everyone’s going to buy into this but adding videos and 360-degree views of your products also helps create transparency for shoppers while further minimising the risk of returns. High-quality images don’t only build credibility in your brand but also set realistic expectations for shoppers so that they can easily find pieces that match their needs.
So why take photos at all if you can’t get them right.
Utilizing Customer Reviews for Better Insights

There’s something absolutely tangible about honest customer reviews. Brings To Mind they’re the first place i go to when i’m online shopping, after all, and i know loads of others do too. One bad review can end up meaning the end of what could’ve been a beautiful love story between me and that mini-skirt, so if you’re feeling like people aren’t being fair and balanced, you’re not alone. But, negative reviews aren’t only bad news.
They help businesses see where they could do better. If people are repeatedly mentioning that something isn’t the same size as it looked online, there’s something going on there that can be fixed to avoid a higher return rate.
Not only does this mean a better shopping experience for your customers, but it also means less back and forth with shipping and refunding - and who doesn’t want that. Sometimes though, people are a little extreme in their views and you might find that even after doing everything right, they feel slighted. Don’t take it too personally - try to look at what the majority is occasionally saying. At the same time, listening to customer feedback is somewhat another way for businesses to show their customers that they care about them beyond just taking their money.
So overall, using customer reviews to improve business practices creates a much more positive shopping experience for everyone involved - one where customers feel appreciated and seen by companies that are actively working to create an authentic relationship with them. And, I think we could all benefit from having more relationships like that in our lives - even if it is with our favourite pair of jeans.
Implementing Size Guides and Fit Information

This one seems like a no-brainer but it can’t be left unaddressed - size guides and fit information are the best pals an online shopper (and business owner) can have. And yes, they’re not entirely foolproof, but they are a big step in the right direction to get your customers to pick the right clothing size for themselves. Use a universal sizing standard or specify what sizing you’re following to make things clearer for them from the get-go. Add measurements where possible and especially for separate pieces of clothing.
It’s no good to simply state that a person has to choose S or M - let them know their bust measurement has to be 30 - 33” for an S and so on. Fit can also play a big role here because a garment with a slim fit would sit very differently than one that has a regular fit. Then there’s fabric composition - some fabrics tend to shrink after a couple of washes and some have plenty of give.
Alert your shopper about this on the product page. A visual guide here can improve clarity further, helping people know exactly where to measure themselves before consulting your size chart. This might seem like unnecessary effort (and maybe even overkill), but it helps avoid much discomfort down the line when your shopper picks an incorrect size or doesn’t realise that something is meant to fit them more snugly than they’d initially thought. Well-planned tools like these can actually help you educate and inform at every stage of your shopper journey.
Continuous Improvement: Analyzing Return Data

Every new piece of tech comes with a flurry of features that promise to change our lives. Not all get adopted, though. All the features you spent months planning could flop. But once in a while, the universe gives you some hints about why through your return policies.
The way I see it, return data appears to be an underappreciated treasure trove if your aim is continuous improvement (it should be). Analysing return data isn't just about crunching numbers and chasing after trends. Sometimes, the age of customer retention seems to be more about appeasing customers than presenting them with something they would like. Learning what makes your customers abandon ship isn't exactly the most heart-warming exercise.
Still, it's essential for continuous improvement. When you look at customer feedback, comments, and behaviour on your platform, you're learning how to tweak policies and functions to work better for both parties. More or less. And it seems almost counterintuitive to say this, but the most crucial part of this process isn't finding a solution to every piece of negative feedback but finding out what's worth fixing at all.
Sort of. Not everything needs immediate attention or more resources thrown at it - especially if you're working as a small business or don't have a significant user base yet. All that said, the best course of action when dealing with e-commerce returns is always continuous improvement.
You're never going to get it right every time for everyone forever. So having these check-ins and chances to learn can mean presenting customers with better value each time they come back.