If you've ever been in retail, you know returns are the double-edged sword of the business world. Sure, they're part of offering excellent customer service, but also a drain on resources. And the numbers are staggering. Last year, U.S. retailers processed $743 billion in returns and lost $101 billion to fraud, according to the National Retail Federation (NRF). For 2024, returns are projected to climb even higher, reaching $890 billion. That's a massive headache for both retailers and suppliers.
But here's the thing: we don't have to accept returns as a cost of doing business. Suppliers can reduce return rates, protect their bottom line, and enhance shopper satisfaction with some strategic adjustments. Let's break it down.
Returns Start With Expectations: Nailing Ecommerce Listings
One of the simplest ways to prevent returns is by making sure customers know exactly what they're buying. It might sound basic, but you'd be surprised how many returns stem from confusion or unmet expectations. And when it comes to online shopping, the stakes are even higher.
Great ecommerce listings—complete with accurate photos and detailed copy—are your first line of defense against returns.
Photos That Tell the Full Story: Shoppers rely on images to make purchase decisions. High-quality photos that show the product from multiple angles include close-ups of key features and offer context (like showing size relative to common objects) to help shoppers visualize what they're getting. For example, a shopper looking for a backpack needs to see its exterior and compartments, zippers, and straps. Investing in lifestyle photos can also pay dividends, showing the product in real-world scenarios.
Copy That Leaves No Questions: The product description should be a clear, concise sales pitch that answers common questions before they're asked. Include dimensions, materials, care instructions, and compatibility details. A great example comes from tech suppliers who specify whether their accessories work with particular devices—minimizing returns due to incompatibility.
Woodridge Retail Group helps brands optimize their ecommerce presence with stunning product photography and expertly crafted copy. Our clients have seen firsthand how these investments reduce returns while boosting conversion rates.
Tighten Up Your Product Quality and Packaging
Let's talk about product quality. Returns often result from faulty or damaged goods—problems that can be avoided with better manufacturing processes and sturdier packaging.
Here's a quick checklist:
Rigorous Quality Control: Ensure every product meets your standards before it ships. Defective items are one of the top drivers of returns.
Protective Packaging: Think about how the product will travel. Packaging should not only look great but also withstand the rigors of shipping. If your items arrive damaged, you're essentially guaranteeing a return.
Clear Assembly Instructions: If your product requires assembly, include simple, clear instructions—preferably with visuals. Missteps here can frustrate customers and lead to returns.
Understand Your Return Data—and Act on It
Every return tells a story. Are customers frequently returning the same item? Are certain SKUs generating more complaints than others? Dive into your return data and look for patterns. For example:
If a particular item's return rate is high, evaluate its listing, quality, and packaging. You might be missing something.
If customers cite fit or sizing as a reason for returns, consider offering a more detailed sizing guide or even free consultations to ensure they get the right fit.
One supplier we worked with reduced their return rate by 15% simply by revising their product descriptions to clarify sizing.
Be Proactive: Prevent Returns Before They Happen
Returns don't start at the post-purchase phase—they start at the point of sale. Offering proactive support can go a long way in reducing returns:
Live Chat Assistance: Allow shoppers to ask questions before they buy.
AI-Powered Recommendations: Tools that suggest complementary or alternative products can help customers make better purchasing decisions.
Flexible Return Policies: Yes, it might sound counterintuitive, but a customer-friendly return policy builds trust and encourages thoughtful purchases.
Retail's New Reality: Adapting to the Trends
The NRF notes that return policies are no longer just a post-purchase concern—they influence buying decisions from the start. With 82% of shoppers saying return policies sway their purchase decisions, it's clear that suppliers need to get ahead of the curve.
Retailers like Amazon are rethinking reverse logistics, allowing refunds without requiring returns for low-value items. Meanwhile, companies like REI are taking a stand against return abuse. Suppliers must adapt to these shifts, partnering with retailers to align policies that protect both parties' interests.
Minimize Returns
Reducing returns is a win-win. It saves money, protects margins, and—most importantly—keeps customers happy. Whether it's improving your ecommerce listings, tightening up quality control, or proactively supporting shoppers, there are actionable steps suppliers can take today.