How to Handle and Prevent eCommerce Returns in Electronics

1) Introduction

In the world of screens, electronic devices define lifestyles and social status for the modern generation. Consumer electronics have always been an essential part of the retail sector. Most consumers like to experience the products firsthand before purchasing. As online purchases become the new normal, ecommerce businesses have managed to attract customers to their platforms for these purchases.

Ecommerce has changed the purchase process for buying consumer electronics. Earlier, consumers had to rely on the information provided by the salespersons at the shop to give them an accurate and honest review of the product.

But, since the consumer does not experience the product firsthand, the consumer does in-depth research before purchasing a product. The electronic sector has a product return rate of 12%. While this may be lower than sectors like fashion, it is still significant enough to impact your bottom line.

Most of the electronic items sold online have a higher value. Therefore, when a product is returned, the company can suffer a significant loss of revenue. On the positive side, a consumer does thorough research before placing an order, so there is less and less chance that they bought it intending to return it.

Similarly, the product issues and defects in the electronics section can be more complex. The high value of the item and the need for quality checks amplifies the need for returns management in the ecommerce returns for electronic goods.

2) Common Issues with Ecommerce Products Returns in Electronics

Returns play an essential role in the success of the ecommerce marketplace platforms. You will compete with the direct manufacturer/brand you are trying to sell on your platform. The only way to direct customers to your platforms is to provide an enhanced shopping and returns experience.

To reduce the ecommerce return rate for electronic goods, we must understand the most common reasons customers return these products. Some of the most common reasons for returning electronic goods are:

2.1) Incorrect Representation

Product images and technical specifications have a significant influence on the purchase decision.  Suppose you misrepresent the products on your website, or the description or visuals give a different idea about the product. In that case, the customer is more likely to return the product when they receive it.

2.2) Gifting

Consumer electronics are a popular choice for gifts. But, since the product is being bought for somebody else, it is not always necessary that the receiver may find it to their liking. In such cases, the products are returned, resulting in an inevitably higher return rate.

2.3) Defective Products

There are a lot of things that can go with an electronic item. There's less likelihood of the customers returning the product. The customers cannot accept damaged and defective products. Defective products increase your return rate and negatively impact your brand perception.

2.4) Returns Fraud Case

Due to the higher value of items, the electronics ecommerce industry is a favorable target for those looking to commit ecommerce returns fraud. If you have vulnerabilities in your return policy, attempts at returns fraud can be a reason for a higher return rate on your platform.

3) Importance of Ecommerce Product Returns in Electronics

The success of an ecommerce business is defined by the quality of customer experience. In a retail-dominated field like electronics, ecommerce businesses had to put in a lot of effort to pull the consumers towards the online platforms. Even today, many consumers prefer the physical shopping experience when it comes to purchasing consumer electronic goods.

If you want to convert your electronics business into a successful ecommerce platform, ecommerce product returns will play an important role in this success.

The returns experience on a platform essentially defines the customer experience. In a sector like electronics, where products are not usually returned unless there is an issue, a seamless experience becomes more crucial to retain the customer.

The average ticket size on an ecommerce platform that sells electronic goods is typically higher than in any other sector. When a consumer puts their trust and effort into buying from your venue, you must take adequate measures to enhance their shopping experience.

The ecommerce returns process is already complex, and the addition of technical issues and complex product defects can hamper the customer experience. In such cases, returns can be especially useful in building customer trust.

The impact of a hassle-free returns experience for electronics goods is higher than in any other sector. The customer feels safe in purchasing these expensive products from your platform.

They may prefer your platform for their next purchase. This helps improve your brand perception and allows you to establish your ecommerce website as a platform for electronic goods. Once your website is the common name in the ecommerce sector for electronic goods, it is easier for you to scale your business.

4) Best Practices to reduce Ecommerce Product Returns in Electronics

Although having a hassle-free returns process is beneficial for your platform, it does not mean that returns are good for business. It is essential to keep the ecommerce return rate on the platform below the average rate of return in the sector. You may have to take extraordinary measures to keep your return rate low.

In order to avoid a high return rate, you can follow the following tips:

4.1) Clear Policies

Returns policies can be an effective tool to optimize your ecommerce returns. When you formulate your returns policy, you can take the help of the free returns policy template or generator available on the internet. But, when you use it from these sources, ensure that the policy document has covered all the required terms and conditions.

You can even set stricter terms for returns if you deduce that customers are buying products with the intention of returning them. Returns policy can also be an effective tool in dealing with ecommerce returns fraud, a severe issue in ecommerce product returns for electronics.

4.2) Monitor Customer Reviews

The virtual nature of the ecommerce business allows you to have an efficient system of collecting customer feedback. You can monitor the customer reviews on specific products with a higher return rate to figure out the problem. You can then use this feedback to improve your products and shopping experience according to the needs of the customers on your platform.

Customer reviews can also be an excellent guide to product development. You can use the customer feedback and critical statements to make your product more consumer-friendly and reduce your ecommerce returns rate.

4.3) Analyze Returns Trend

The online presence of the ecommerce business makes it a gold mine of data. You can use the data collected from various touchpoints to analyze and figure out the returns trend of your product. If a product has a higher rate of return than you can bear, you can temporarily stop the sale of the product to avoid further losses. You can also find out the common reasons for returns on your platform from these trends to improve the shopping experience on your platform.

4.4) Invest in Content

In the case of electronic products, the customer tends to research the product they plan to buy. You can include helpful content like unboxing videos, product demo videos, and other improved virtual product display technology like 360 views.

Consumers who find the required information on your website are more inclined to purchase your platform. You can even collaborate with content creators to post unboxing and review your products and platform videos.

4.5) Communicate with Customers

Establish a customer support team that deals explicitly with product-related issues of the consumers. When a customer requests a return, you can have a customer support executive contact them to acknowledge and process the return. You can collect feedback from the customer during this communication.

At the same time, you can ensure that the return request is genuine. You can also answer some FAQs on the product page for the customers to check out. Alternatively, you can use NDR management software like ClickPost to manage the ecommerce product returns in electronics.

5) Conclusion

The field of ecommerce has metamorphized the shopping experience of buying consumer electronic goods for the modern-day customer. The ecommerce sector was able to incentivize consumers to purchase even high-value electronic items online by providing hassle-free ecommerce returns. 

The key to determining ecommerce product returns for consumer electronics is analyzing and listening to customer feedback.

The ecommerce returns process can be pretty complex, and the complex product issues and exceptions can make it more difficult for you to provide your customers with a seamless customer experience.

You must follow the best practices to optimize your ecommerce product returns in electronics without compromising your customer experience.

6) FAQs

6.1) How can I avoid ecommerce returns fraud for electronics?

Ecommerce platforms that deal in high-value electronic items are more prone to ecommerce returns fraud. To avoid being the target of these fraudsters, ensure that your returns policy is foolproof. Fraud detection software can analyze customer behavioral patterns to avoid shady purchases.

6.2) How do I reduce the ecommerce return rate on my platform?

Electronic goods are the second most returned items in the ecommerce sector. While the returns feature is vital to customer experience, you can use AI/ML models to analyze trends to reduce your return rate. Ensure you follow best return practices for ecommerce to keep your return rate in check.