Reduce return rates with insights from return data

Reducing the number of returns offers many benefits. The return process is not only time-consuming but also costly. Furthermore, a high volume of returns can negatively impact customer satisfaction and your webshop's reputation. 

What is return data?

Return data is information collected from products that customers return. This data can range from the reason for the return and the product type to the carrier that delivered the product.

Analyzing return data can provide valuable insights for your business. It can help identify patterns, increase customer satisfaction, and ultimately improve profitability.

Different types of return data

Analyzing return data is essential if you want to optimize your return process. Read on to learn which data points you should monitor and what they entail. 

1. Return rate

The return rate is the percentage of sold products that are returned by customers, providing an indication of how much total revenue is lost after a purchase has been made. You can further distinguish between the return rate per product and per carrier. 

If you notice that a specific product is returned more often than average, you can investigate the cause. Perhaps the sizing is different than expected, the product photos on the website do not accurately represent the item, or the product quality is not what customers anticipated. 

By investigating these questions, you can make improvements that increase overall customer satisfaction.

Carriers play a crucial role in the customer experience. A reliable carrier can make the difference between a satisfied customer and an unhappy one. By analyzing the return rate per carrier, you gain insight into which carrier contributes to the best customer experience.

These insights help in making strategic decisions about which carriers to use for future shipments. It may turn out that the cheapest carrier is not the one that provides the most value to your business.

2. Return impact index

The Return Impact Index is a list of products that have the greatest influence on your return rate. This index helps identify which products are strategically important to focus on to lower your return rate.

Some products may have a greater impact on the return rate than others. This can be due to quality, price, or even customer expectations.

It is important to identify these products and take appropriate measures, such as updating images, product descriptions, or sizing information.

3. Exchange rate

The exchange rate is the ratio of the number of returns that are exchanged. This can be an indicator of customer satisfaction and the quality of your products. A high exchange rate can point to satisfied customers who enjoy shopping at your webshop, even if the initial product does not meet their expectations.

Actively offering exchanges during the return process can significantly increase the exchange rate. By converting more returns into exchanges, you retain revenue that would otherwise be lost.

4. Net revenue per country 

Net revenue per country is the returned value/order value per country. Different countries may have different return rates and their own net revenue. By analyzing this data, you can develop effective marketing strategies for each market, allowing you to invest more in the markets that yield the highest profit.

Gain more insights from your return data

Managing returns and analyzing return data is an essential part of running a successful webshop. By paying attention to return rates, the Return Impact Index, exchange rate, and net revenue per country, you can optimize processes within your business and thereby increase profitability.

Did you know that with Returnista you can monitor more than 50 data points in real-time? By taking strategic action based on return data, you can drastically increase your webshop's revenue. For example, read our case study on Filling Pieces on how they reduced their return rate by 21% in 2 months and increased revenue by 20% by actively offering exchanges.

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