Merchants can reduce these returns by examining and learning from a tactic used in direct sales called Sales Qualification, which helps ensure that the product is the right fit for the potential customer.

This post will explain what sales qualification is and how ecommerce merchants can apply the concept to their online store to reduce ecommerce returns and increase profits.

What is Sales Qualification?

There is a part in the sales process called “Sales Qualification”, which is where the salesperson determines whether or not the potential customer is a good fit for the product that they are selling.   This process is different when selling products to customers through an online store, but the concept can benefit ecommerce merchants when it comes to reducing online returns.

Zoominfo defines Sales Qualification this way:

Sales qualification is the act of evaluating potential prospects to determine whether they possess the characteristics that make them a good fit for your product or service. In simpler terms – qualifying a lead or prospect means determining whether or not they are worth your time.

In the person to person sales process, Sales Qualification typically comes in the form proactively asking the potential customer a number of questions in order to determine if they’re a good fit for the product.   If they’re not a good fit, they won’t try to sell that potential customer because there is a good chance it’s not going to satisfy either them or the company selling the product.

How Sales Qualification Applies to Ecommerce Merchants

In the ecommerce space, the part in the definition of “determining whether or not they are worth your time” comes in the form of determining whether the product that they’re ordering is worth you packing and shipping the item…and the likeliness of that item being returned to you because the customer was not a good fit.

Up to 30% of products sold by ecommerce merchants are returned, showing a significant percentage of products being delivered that weren’t a fit for the customer.   That’s a very expensive problem.

Ecommerce merchants certainly won’t want to make each customer go through a questionnaire before they check out, that would be off-putting and you’d lose more sales than you’d save in returns.   What you do want to do is explore passive ways you can qualify your customers to ensure that the product is a good fit for their needs.  As a result, and you sell to  customers who are not likely to return the product afterwards and guide customers who aren’t a good fit to products that will effectively fulfill their needs.

How to Use the Concept to Reduce Returns

Let’s cover a few ways that you can passively confirm that the product is a great fit for the customer, so that the representation that they have in their minds and expectations are aligned with what will be delivered to their doorstep.

1) Confirm the Product’s Visual Representation

You want to ensure that the customer has a clear and accurate view of what the product is going to look like visually.   This typically comes in the form of quality product images, 360 views of the product, as well as product videos.   Letting them see the product at different angles allows them to inspect it and ensure that the picture they have in their head will be consistent with what they receive after shipping.

Product videos are great because you can have a person review the product, and the customer gets perspective of what a product will look like when in the hands of another person which may give perspective on size, dimensions,  and other aspects of the product that may not be 100% clear through just looking at an image.   There are negative reviews of products that say something like “This was much smaller/bigger than I expected”, you can help solve those misunderstandings by showing the product in context as another person holds the product in their hands in a video.

2) Confirm the Products Details and Specifications

Sometimes customers are using the product to fit a specific need with a very specific purpose, and product details are very important for these cases.  For example, if they’re looking for a house item which will fit within a specific place within their house or if they are looking for a replacement that needs to be compatible with another part, it’s important that they’re able to find out all the specifications they need in order to determine whether the product is a match for their needs.

Engaging product details are important to provide this information, as well as specification tables and diagrams which can help clarify exact length, height, width, and other details about the product that are important for the purchaser.

Make sure you provide these details in a way that let’s the customer find exactly what they may be interested within the description or specifications, and qualify themselves that the product is a fit for their needs.   This will save them a lot of headache and save you money, ensuring they get the right product that they’ll keep and not return.

3) Confirm Any Other Specifics They Want to Know About

There are bound to other specifics about a product that you don’t have covered in your images, descriptions, and specifications….or sometimes customers find it less painful to just order a product and return it for free than considering reading through all of the product specifications to ensure it’s exactly what they’re looking for.   Some product descriptions are very, very long…and not everybody wants to read through paragraphs to find the information that they’re interested in seeing.   You should make it easy for them to fill in these information gaps or find the specific piece of information they’re looking for, which will either seal the deal for that customer or save you from a return.

On the product page, this comes in the form of product questions and answers.  Give your users an easy way to specifically ask the question they have about the product and find a well-crafted answer.   This process not only helps you reduce returns, but you can also increase conversions.

We see that up to 75% of product questions answered through Answerbase convert to a sale, but for questions that reveal that the product may not be a good match for the customer…responses on Q&A can lead those customers to other products within your inventory that are a great match.   This not only increases conversions for the product that customers are looking at, but also turns potential returns into more conversions of other products where the purchase will stick.

In closing…

Everybody recognizes that online returns are a big problem, and costly.  Taking a tip from the sales process and sales qualification, you can passively qualify the visitors on your site to ensure they purchase products that are a great fit for their needs, which will be more profitable for your business.

The post How to Minimize Ecommerce Returns Through Passive Sales Qualification appeared first on Answerbase.

Let’s have a look at the most popular ecommerce return reasons for a deeper understanding of how to deal with them.

• The wrong size, fit or color
• Damaged item
• Dissimilar online photo and real view (expectation VS reality)
• Personal dislike
• Changed mind
• Late delivery
• Bracketing (saving the preferred item and sending back the rest of them).

Although some of the reasons depend entirely on the buyer, more than a half could be avoided at the retailer’s side. As we see in the graphics above, 58% of returns occurred due to sizing and product photos issues. So now we will focus on how to prevent them.

5 WAYS TO REDUCE RETURNS IN ECOMMERCE

1) Help to choose the right size & share as many product details as you can.

Sizing and fitting data is a big issue here. It’s important not to stick to universal sizing tables, but provide the one needed for a particular brand. Moreover, if you get additional sizing data from the manufacturer or the product reviews, add this info to the product description. It will help your buyers to make the right choice.

Augmented reality trends could also help to provide a better experience, and not only in fashion. As an example, IKEA has already launched the AR app to help people test how their desired furniture will look inside their houses.

The decision-making process differs. You never know which little detail could become crucial for a buyer in choosing the product. It should be your top priority to ensure that all the available product data is accurate and published. Extensive product content with all the specifics needed is key to customer satisfaction.

To make your product content even stronger and identify gaps in your existing product information, integrate the Ecommerce Product Q&A into the product pages of your store. Product page Q&A ensures that each customer’s specific need is met, and reduces the likeliness of products being returned.

2) Find a balance between making attractive photos and the real image of a product

Retailers often make their own studio photos to make the products stand out from the crowd, get better SEO rankings, and impress the buyers. It’s also a great practice to make both studio and lifestyle photos. But be aware, that applying too many enhancements to a product photo makes it look far from reality. So yes, you sell the product, but later it’s resulted in returns and angry customers. Be careful here.

3) Encourage your users to share product reviews and answer product-related questions

Social proof today is fundamental for any Ecommerce business. The more reviews the product has, the more popular it becomes, helping other buyers to make the right decision. To get more reviews you can offer exclusive discounts, achievements badges, giveaways among the most active users, and so on. Along with helping your customers with their choice, unique and useful reviews content improves SEO ranking.

But reviews are still not enough, because a customer could need a specific detail, which is not mentioned there. It could also happen that a product has tons of reviews so that it’s extremely hard to search through all of them for the demanded product detail. That’s where the Q&A section takes the stage, providing customers with the exact data they want to get. Another benefit here is building trust within the desired item since the other customers are answering instead of the store who has a financial incentive.

4) Set up automated product content delivery & optimization

Retailers usually work with a variety of data sources, taking product content from a wide range of manufacturers. Each brand uses its own way to share product information, which is often incomplete within the retailer’s needs. To save time on manual work and minimize the risks of mistakes, product content syndication software could be implemented. It will automatically deliver the standardized product information from suppliers directly to your store.

5) Audit your shipments and packaging to prevent damages

If the delivery company breaks your parcel, it doesn’t matter how perfect your product and its description are. Keep track of it and if the damage happens, do your best to make the customer happy. If not, an angry buyer could leave dissatisfied reviews not only at your own store but all across the social media channels.

HIDDEN OPPORTUNITY OF A RETURNED PRODUCT

According to Digital Commerce 360, the Ecommerce return rate lays between 15%-30%, depending on the industry specifics. But after a buyer decides to give a product back, the fight for the purchase is still not over. Are you already offering an alternative product in a process or the return? Customers tend to exchange the items they bought, but only if a product returns process is easy. According to ecommerce returns statistics, customers are willing to change the purchased product into a new one. But they choose exchange rather than taking a refund only if the following options are available:

• Free shipping for an exchange
• Similar product alternatives at the store
• Another size
• Direct exchange delivery requested online
• Different color

BENEFIT OF IN-STORE RETURNS

One more successful tactic is to encourage your customers to return goods in-store. You could do it by offering more attractive conditions. Product returns statistics show that buyers who get satisfied with their returning experience at the offline store, tend to:

• Buy more goods, that were not planned
• Purchase planned items
• Take a replacement product
• Exchange due to color or size

It’s also quite a useful tip for retailers to replicate some physical store elements at their online stores. Suggested items are where to get started on this road.

KEY TAKEAWAYS FOR RETAILERS

Product returns analysis helps to optimize sales, logistics, and Ecommerce business in general. So successful retailers constantly keep track of their ecommerce return rate statistics and react with corresponding activities. You could find more surprising statistics and tips in a detailed e-book on how to minimize product returns.

Be transparent about your product returns policy. Be flexible. Be the retailer customers love to come back, again and again. And let your sales rise.

Author: Margo Sakova, Marketing Manager at Gepard

The post 5 Ways To Reduce Ecommerce Returns appeared first on Answerbase.