According to a Happy Returns report commissioned by PayPal, a staggering 81% of US adult digital shoppers review return policies before making a first-time purchase, and 55% will abandon their cart if return policies aren’t convenient.

Yet, returns are getting so expensive for DTC brands. 

Last year, an estimated $212 billion in goods, accounting for over 16% of total sales, were returned from online purchases. Each January, following the holiday season, there's a notable spike in returns, with numerous gifts and unwanted products being sent back. 

Return rates following the holiday season for apparel alone can soar to around 30%!

As a DTC brand, addressing and reducing product returns head on right now is crucial for maintaining profitability, customer satisfaction and LTV. These are 5 actionable strategies that can help you reduce return rates.

  1. Focus on Transparent and Detailed Product Descriptions

    Misleading product descriptions are a major cause of returns, with 39% of consumers often returning products that don't match their online portrayal. Ensure your product descriptions are accurate, detailed, and reflective of the actual product to bridge the gap between expectation and reality. A size chart is a must for apparel.


  2. Have Clear UX on Product Pages and Cart
    Optimizing your Product Page not only leads to higher conversion rate, but also to higher post-purchase satisfaction. Make sure CTA and buttons are visible and functioning, that color previews match the actual item’s color on both images and color filters, etc. Incorrect purchase is one of the leading reasons for returns (14.3%).


  3. Use the power of Customer Reviews
    Over 50% of consumers read at least four reviews before making a purchase. Displaying customer reviews prominently on product pages can significantly boost buyer confidence and reduce return rates. Reviews provide real-life insights into the use of a product, aiding in informed decision-making. 


  4. Leverage Product Videos
    If an image is worth 1,000 words, a video is worth 100 images — or something like that. Product videos can greatly enhance product features, textures, sizes and offer a more comprehensive view of your products. Leverage videos in your ads, add them to your product pages or as GIF in your emails. 


  5. Integrate Live Chat (and text) Customer Support
    With 73% of consumers finding live chat convenient, offering this service can be a game-changer. Live chat provides immediate, personalized assistance, enabling customers to clarify doubts and make confident purchase decisions, ultimately reducing the likelihood of returns. Gorgias and Zendesk offer great built-in integrations with Postscript for example, making it easier for your customer service to manage customer replies easily.


  6. Make your Packaging Secure
    With nearly 20% of all eCommerce packages arriving damaged, it's vital to invest in robust and secure packaging. This not only ensures product safety during transit, but also enhances the unboxing experience, reducing the likelihood of returns due to damage. Need to make it up with your customer? Offer a free gift and prompt customer support experience when something does happen. Your LTV and reviews will benefit.

 

Something’s not clicking in your strategy? Let’s get on a call, no strings attached.