Chargebacks are a constant problem that almost every online business faces, and unfortunately, they are unavoidable. About 20% of all products ordered online are returned. Ensuring that this statistic is not reflected in your business is essential to its success and growth. Taking steps to optimize the customer experience can reduce the likelihood that your e-commerce store will experience a high return rate. Once you understand why consumers ask for refunds, you can apply simple solutions to minimize them. In this post, we’ll briefly discuss how common customer chargebacks are and what problems they cause. Then we’ll give you some tips on how to reduce the number of refunds you receive in e-commerce stores and some advice on how to get started. Let’s jump right in! Customer refunds are like pest infiltration your e-commerce business. They mercilessly reduce conversion rates and eat away at otherwise promising profit margins. The need to refund the customer raises three main issues: This whole refund process works relentlessly against your online business, not for it. Although you probably won’t be able to completely eliminate the refund, still can apply some simple solutions to reduce them. The best way to minimize returns is to keep your customers happy and accurate. Building trust and a good relationship will do wonders for your e-commerce business, so it’s important to take care of every detail. Here are the top five ways to keep refunds to an absolute minimum. What your customer reads and sees about your product online should always meet or exceed their expectations. According to a 2021 study nearly half of consumers who returned the online purchase did so because the product did not match the description. Descriptions and pictures they are vital in the e-commerce market because they are your customers’ only point of reference for your products. If what a customer reads and sees online matches what arrives at their door, the likelihood of them requesting a refund for that product is drastically reduced. One great way to ensure that you represent your products in the most effective way possible is to outsource to professionals. Services such as Scripted hire professional writers who know exactly how to make your products shine. There is a cost to this, but it’s worth it if you get fewer refunds. Almost everyone in the e-commerce market reads reviews. What’s more, 84% of online shoppers you trust reviews as much as a friend’s recommendation. That’s a pretty strong effect, and the effects are measurable. According to one source, customers do 31% more likely to buy from a business with excellent reviews. How does this help reduce customer chargebacks? A study conducted by the Boston University School of Management Research concluded that the perceived positive or negative psychological value a person attributes to something. significantly influences the judgment of others. In other words, product ratings are an effective indicator of quality, and products with higher ratings resulted in higher sales and lower rates of return. If you want to generate reviews from customers, you can start a free rewards program to offer incentives. A platform such as Capterra’s review program one way to build a solid online reputation for your e-commerce business. You can also use ours Easy Affiliate to create and manage an extension a customer referral program. A customer-centric return policy allows customers to buy your products with confidence. Simply knowing that you can return the product helps to dispel any doubts about the purchase. So while this may not seem like an effective way to reduce return rates, a customer-centric return policy can actually help boost sales and avoid returns altogether. One way to improve your return policy is to extend the return period to 60 or 90 days. This results in a “donation effect” – the longer a customer clings to a product, the more attached he is to it and the less likely he is to return it. Almost 20% of customers report the return of a product because it arrived damaged due to poor packaging. That’s why it’s important to imagine the product’s journey and pack it accordingly. It is also worth considering the “unpacking” experience. An exciting unboxing experience acts as a bridge between customer expectations and the enjoyment of their new product. Optimized packaging is a way to keep your products safe and help keep customers interested in your brand, which reduces return rates. As an e-commerce business owner, you have to walk a fine line between underpacking and overpacking your products. Companies like Back can provide solutions so you don’t have to do it yourself. Exactly what effective packaging looks like depends entirely on your product, niche and target market. You want to achieve the right balance between the protection required by your product and the expectations of your customers. Each iteration of e-commerce business processes offers an opportunity to learn and adapt to the ever-changing consumer environment. Identifying the weak points of your e-commerce business is one of the best ways to reduce the incidence of future returns. If you haven’t already done so, you can try recording all your returns in a spreadsheet with information such as the product involved and the reason you’re requesting a refund. Once you’ve collected enough data, you can start analyzing it, uncovering patterns, and deciding which areas need improvement. If you don’t want to do this manually, you can incorporate customer relationship management (CRM) software such as WordPress CRM plugin obsession HubSpot to your website. These types of tools can help you track customer experience online store. It’s a great way to connect with customers and nurture ongoing relationships All e-commerce businesses faces challenges, and returns are a common problem. Constant customer refunds hurt your bottom line and damage your credibility. Fortunately, taking a few simple steps to reduce the negative effects can improve the overall success of your business and the image of your brand. Here are our five quick tips for reducing customer chargebacks: Have questions about these tips for reducing and implementing customer chargebacks? Ask us in the comments section below! If you liked the article, follow us Twitter, Facebook, Pinterestand LinkedIn. And don’t forget to subscribe to our newsletter 🐝The Impact of Refunds on Your Online Business
5 quick tips to reduce customer chargebacks
1. Use high-quality images and accurate descriptions
2. Take advantage of customer reviews
3. Application of a customer-oriented return policy
4. Optimize the packaging of your product
5. Analyze and adapt accordingly
Conclusion