The advantage of operating a drop shipping business over a traditional e-commerce business is lower cost and risk. Nearly 33% of e-commerce retailers use the drop shipping fulfillment model. While dropshipping can be a great way to do business, you must consider the huge impact of not handling inventory on the returns process.

The complexity of drop ship returns can make them difficult to manage because you have no control over the fulfillment process. Understanding why returns occur and how to handle them can help reduce your store’s dropshipping return rate.

A return policy is a retailer’s rule governing how customers can return or exchange unwanted items they have purchased. A return policy tells customers which items can be returned, for what reasons, and when returns will be accepted.

A transparent, customer-focused return policy makes it easy for you to build trust and loyalty with your customers. In fact, it can actually help drive your sales. When your customers know they can return products at any time without any hassle, they will naturally be inclined to buy more from your store. When they know you’ll handle their refund requests promptly and professionally, they’ll be happy to recommend your store to their friends. That’s free PR!

Most importantly, having a return and refund policy will ensure that your dropshipping business runs smoothly without problems. If you want to build a good reputation for your dropshipping business and earn the trust of your customers, you must take your return policy seriously.

Product Images

Check if each product has high-quality photos and detailed descriptions.

Product Descriptions

You need to emphasize the size, weight, and material of the product in the description so that customers get as much information as possible before they buy. Keep your descriptions up to date to prevent returns due to product confusion or accidental mis-spelling.

Product Videos

For more complex products, an explanatory video on how to use the product can enhance your customer’s buying experience and make it easier for them to use the product once they receive it.

You should encourage customers to leave reviews of your products or services, and where possible give customers who review products a reward, such as a discount on their next purchase. You can use free rewards programs to help generate reviews and reward customers. According to research, over 93% of customers will buy a product based on a customer’s review. This means that increasing quality reviews of your products will not only increase your sales but also reduce the return rate of your products.

In addition to traditional phone and email methods, consider introducing live chat or instant messaging. This provides an instant connection between your customers and your business, prevents those unwanted returns, and ensures that inquiries or problems are resolved as quickly as possible.

Sending the wrong item to a customer is a small probability problem that every business faces. With 23% of people citing the wrong item as the reason for their return, improving your order fulfillment is a good starting point for reducing e-commerce returns. Relying on spreadsheets and sticky notes to process orders and fulfillment can be a disaster for a business. A simple solution is to implement a system to process your orders, pick, pack, ship and ship. You can find a solution for as little as £12 per month and will therefore provide a high level of customer service, prevent returns of incorrect goods and avoid errors through the supply chain process.

Depending on the product you are selling, you need to consider different packaging for your product. The general rule of thumb is to envision the shipping method your merchandise will use and then make a packaging decision. According to research, about 20% of customers will return a product because it is broken or the packaging is damaged.

If a customer has a habit of serially returning items, issue a prompt warning or even temporarily block their account to prevent them from buying from you. Before you do this, send a mass email to your customers telling them that you are concerned about a large number of returns from the same person or business so that your customers can stay informed.

Give your customers a timely order tracking number, notify them via email that their return has been received and processed, and process their return for a refund in a timely manner. Keeping your customers informed every step of the way will prevent them from having a negative perception of your company. Instead, it will increase the chances of retaining your customers and help them come back for more of your products.

Choosing reliable and high-quality suppliers can also reduce the return rate of products, Honest FulPhilment can provide you with high-quality suppliers, our company has more than 8000 reliable suppliers, just submit a purchase request on the Honest FulPhilment App, and our company’s purchasing department can help you find the products you need.

As clearly shown, reducing returns is a great way to help streamline your logistics, reduce costs and reduce inventory. While this can be a complex process, the vast array of options available to avoid this problem makes it a manageable task.

Our main advice from the tips above and the focus of your business is to put your customers’ expectations and feelings at the heart of everything you do. If you want to know more information, please contact us!

How do I manage my dropshipping returns?

How to Handle Refunds and Returns as a Dropshipper?