Minimize the Impact of Returns on Your Shopify Business

Thanks to customer-friendly return policies, shoppers enjoy the benefits of brick-and-mortar stores even when ordering online. It’s easy to try products and decide whether to keep them when you know there’s always an option to send them back.

In the past, customers had to visit physical stores to try on items before purchasing. For the lowest prices, they often turned to online shopping. Now they can enjoy the best of both worlds: they order online and return items if necessary.

Naturally, online stores comply with this demand by offering shipping and returns, typically for free. They understand that although customers might return items from one order, they are likely to shop again. The problem is that some customers have made it a habit to order the same item in multiple sizes, intending to return all but the one that fits best.

While convenient for customers, returns come at a cost for retailers, who incur additional expenses for shipping and restocking while also facing the environmental impacts. In some cases, the financial loss is even greater, as returned products may not be eligible to be resold at their original retail price (or at all).

In this article, we explore ways to minimize the financial and environmental impacts of returns on your business.

When to expect the most returns

The first tip is to know when orders are statistically likely to be returned and prepare for these periods. Expect the highest volume of returns on the first few workdays after major shopping holidays, such as Black Friday. For more details, take a look at our calendar of important commerce dates, which we update and republish every year.

For example, UPS has designated the first Monday after New Year’s Day as National Returns Day because customers are most likely to return unwanted Christmas gifts to retailers.

Introduce reusable packaging

Consider introducing packaging that simplifies the returns process, such as boxes that can be re-glued or bags that can be turned inside out and reused for returns.

While attaching a prepaid return shipping label on adhesive paper might seem to encourage more returns, this step ensures that more goods arrive back to you in good condition.

Offer incentives for exchanges instead of returns

Instead of offering full refunds on returns, consider providing incentives for exchanges. For example, offer a discount on the replacement item or free shipping for the exchange. This approach can encourage customers to exchange items instead of returning them, benefiting both parties.

Implement a restocking fee

Another strategy to minimize the impact of returns is to implement a restocking fee. This fee helps offset the cost of processing and restocking returned items. However, it's crucial to communicate this fee clearly to customers before purchase to avoid dissatisfaction and additional returns.

If you use Sufio, you can clearly display the restocking fee on credit notes for returned items.

Choose a greener shipping company

Finding a shipping company that prioritizes sustainability can reduce the environmental impact of your delivery and returns process. Look for companies that offer carbon-neutral shipping options, use eco-friendly packaging materials, and are committed to reducing their environmental footprint.

Automate Shopify credit notes with Sufio

If you're sending invoices for purchases made in your Shopify store, you should also be sending credit notes for returns and refunds.

The same way it creates fully compliant invoices from orders in your store, Sufio also allows you to automatically generate Shopify credit notes when a return or refund is processed and send them directly to customers.

This way, when you process a return in your Shopify admin, Sufio creates an accurate credit note that contains the list of returned items and their prices, thereby saving time and reducing errors.

Maximize efficiency through returns

Returns have become the norm in ecommerce, but they don't always have to be a burden. By implementing the tips and strategies outlined in this article, you can begin to minimize the impact of returns and keep your business running smoothly.