Home > Sell Online > Return Management

Return Management

If you’ve sold merchandise online for any length of time, you know you have to deal with returns.  Customers returning defective or damaged products is understandable, but customers returning products because they just didn’t like them can be a nuisance.  You need to make sure it doesn’t turn into a no-win situation for you.

In my experience the product return rate is pretty low, so refunding customers for products they just don’t like is financially doable.  It also helps to build repeat customers, which is very important for long term stability.

If you’re selling on your own website, you can probably just mark up the price of your products by a percent or so to cover the expense of returns.  If you’re selling on a marketplace, like Amazon or Sears, you can’t really mark up your price.  You’ll just price yourself out of sales.

If you can’t mark up the price and you have to accept returns, what can you do to minimize your returns expense?  I use product selection to control this.  I keep track of which products are being returned and why.  Some types of products just tend to be returned more than others.  If I can’t make a good margin on them after accounting for returns, I stop carrying them.  The same goes for manufacturers, some just have more returns than others.  I stop carrying products from manufacturers that generate a lot of returns.

Yes, you could impose a return fee to discourage frivolous returns, but that will discourage honest customers from buying from you as well.

==========

My list of potential products to sell on Amazon has been updated, check it out, I’m sure you’ll find something good for you to sell there.

 

Advertisements
Categories: Sell Online Tags: ,
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: