Did you know that 81% of online shoppers from Europe and the US regularly return a product when they’re not satisfied?
Returns come with big hassles for e-retailers. When it comes to international shipping, returns can be a real nightmare. However, they’re still an essential part of e-commerce. So, international returns shouldn’t stop you from putting your online store on the map.
Luckily, there are plenty of opportunities and several ways to process international returns trouble-free. In this article, we’ll cover:
- Biggest sore point: online store returns
- Why are products returned?
- How to reduce the number of online store returns and increase conversions
- What’s the deal with international returns?
- 5 international returns tips
- The ultimate return policy for international returns
- Make international returns hassle-free with Sendcloud
Read on to learn how to streamline the process and ensure hassle-free returns, no matter where your customers are located.
Biggest sore point: online store returns
Did you know that online retailers are facing a return rate of over 20%, which is almost two times more than brick and mortar stores?
One of the biggest drawbacks of an online store is the higher volume of returns, which often exceeds those of physical stores. While return rates vary based on the products you sell, they are typically much higher for online businesses.
This is because customers cannot use their senses (such as touching a product) when they shop online. Another reason could be that online shoppers continuously search and compare products, focusing on prices and shipping costs.
So, it’s definitely hard to keep them satisfied.
Finally, the biggest downside of returns is that they cause extra costs and work, and sometimes the items can no longer be resold.
BONUS TIP: Have you ever considered charging your customers for return costs? Paid returns are a rising trend, especially in the fashion industry. This way, you can avoid cutting into your profit margins on each sale. Discover more tips to reduce return costs.
Why are products returned?
A lower return percentage means more profit and more satisfied customers. That’s why it’s important to find out why products are being returned. Here are some of the common reasons:
- The customer received the wrong product or size
- The product does not match the description
- The customer received the order in a damaged condition
The reasons can definitely vary depending on the products you’re selling, the industry you’re in, and many other factors.
But how are you going to figure out such unique information on your business to prevent future returns?
Don’t worry — we’re here to help you get a clear overview of your returns statistics. Sendcloud platform provides actionable insights on your return data with the Analytics dashboard.
You can easily spot the main reasons why people return and your most returned product with numbers on shipments per carrier and country. This way you can easily understand your consumers’ pain points, analyse your online store and optimise further to prevent returns in the future.
How to reduce the number of international returns and increase conversions
You can take proactive measures to minimise returns as much as possible. It mainly comes down to making fewer mistakes and helping your customers as much as possible. You can do that by:
- Including clear product photos and videos in your online store
- Adding customer reviews to your product pages
- Packaging orders well so customers are less likely to receive damaged products
- Optimising your shipping process with the right international carriers so orders arrive on time
- Offering longer return periods
- Providing multiple returns options and flexibility
- Redesigning your returns policy
- Providing a fast return process with ready-to-use shipping labels
- Offering flexible refund options
- Providing low return shipment costs or free returns if possible
Want more tips to reduce returns? Then read our detailed article about it.
What’s the deal with international returns?
As we mentioned before, international returns are extra challenging for online stores. This is because countries don’t just have different regulations, but also varying customer preferences.
As you know, a 14-day return period after the purchase date applies throughout the EU. So you have to accept packages that come back within this period (except for custom-made and perishable goods).
However, this right of cancellation is not mandatory outside the EU. In Australia, for example, there is no cooling-off period at all. That’s why it’s important that you are aware of the return rules for each country as well as the preferences of international customers.
💡 Top tip: UPS offers a handy online tool for checking the return rules in other countries and responding to them in the best possible way.
Even if returns aren’t standard practice in a particular country, offering this option can set you apart. While major market leaders have the resources to make returns easy, it’s also about embracing the risk. By making returns a unique selling point, you can gain a significant edge over your competitors — just be sure to assess whether it’s feasible for your business.
Don’t worry — we have some tips to help you figure it out! Read on to discover how to manage international returns effortlessly and implement a straightforward return policy that works for your business, no matter where you sell.
5 international returns tips
The actual return process is the most important part of your return policy, and the fact is 56% of European and US consumers always check the return policy before the checkout.
If this is difficult internally, you can never have an easy return policy and meet customer requirements. In order to handle your returns around the globe, we listed 5 international returns tips for you:
1. Let your customer choose how to return the item
The first and easiest option for you is to leave the return method to your customer. The only thing that’s fixed is the address your customer has to send to (i.e. your address).
Your customer chooses which carrier to ship with and which delivery point to deliver the parcel to. However, this is the least customer-friendly solution, so it can cost you conversion in your international online store.
The advantage is that as soon as you receive the product back, you can assess it yourself and add it back to your stock more quickly.
As an online retailer, you are not required to reimburse return costs. However, you will have to reimburse the shipping costs of the outward journey if the customer returns their entire order (within the EU). Beyond that, it is your choice to have your customer pay for the costs of the return.
But how do you make the return more customer-friendly?
Extend the return period. Your customer will then become attached to the product or be less concerned with it, which will also reduce the chance of a return.
💡 Good to know:
The fashion and accessories industry has the highest return rate (58%) compared to other product categories like Books and games. So it’s not surprising that free returns are almost a standard part of customer expectations for luxury products. If you sell high-value products such as jewelry, one of the tips below is a better choice.
2. Make arrangements with an international carrier
If you have a large shipping volume that also includes returns, you can make a substantial volume deal with an international carrier.
A good example of this is fashion chain Zalando, which has a partnership with DHL for both shipments and returns. By making custom arrangements with the carrier, you can often not only discuss lower rates but also get more service from the carrier, such as pick-ups of your shipments and returns.
Also, with Sendcloud you can offer multiple shipping methods with the best local and international carrier integrations. This way, you can provide a more efficient and budget-friendly return process.
3. Cleverly offset return costs for your customer
Our study shows that 45% of EU and US consumers wouldn’t reorder from an online store if they had to arrange the return themselves. And 69% agree that free returns are convincing to order from an online store more frequently.
If you don’t want to bear the return costs yourself but still want to offer some form of service, you have another alternative. You can add the pre-printed return label in the box and have the return costs deducted from the refund of the order. Because you are not required to reimburse return costs, this method is allowed.
This is nice for the customer because they do not have to pay immediately when returning the parcel. That mitigates the pain of returning and, especially, the costs of that return.
What’s more, it makes returns a little easier. 71% of European consumers state they would reorder from an online store if they’ve been offered a fast and easy return process.
This also works to your advantage — your customers come back to you more quickly because of your effortless return policy.
4. Outsource international returns to a local party
Have you considered handling returns through a local partner? This approach lets customers return products to a local facility in the country where you’re selling, simplifying the process for them.
This party specialises in handling consignment/returns and can therefore ensure that the process, including the administration, runs as efficiently as possible.
When there are many parcels, the party can return them to your warehouse in a large, cost-efficient batch. This method also allows you to reimburse your customers sooner because the local party receives and assesses the products more quickly.
This option is relatively expensive because you are entering into an external collaboration. However, if you receive a lot of returns (like in fashion), it can help you be as cost-efficient as possible.
Make clear agreements and ensure a good link between your online store, inventory, and the external party. When you receive a return notification for a product, you can refund your customer immediately or ship a new product, even before you receive the order back at your warehouse.
5. Handle returns in an effortless way for both you and your customer
Would you rather keep the return process for your online store in your own hands?
Then use a smart solution to handle returns more efficiently. With the Sendcloud return portal, you can provide an easy and smooth return process to your customers.
With your flexible return methods, you can provide alternative refund options and let your customers decide how to return their items.
This approach is highly effective, given that 86% of European consumers have specific return preferences: 41% prefer dropping off their packages at locations like post offices or parcel shops, while others prefer home or office pickups. But with Sendcloud, you can easily meet these diverse expectations.
Additionally, return updates can be sent automatically, keeping your customers informed about their package status. Sendcloud also offers multi-language tracking emails for a more tailored experience.
Automising your return process reduces the risk of manual errors, reduces the likelihood of customer questions, and allows you to quickly add the product back to your inventory.
💡 Insider tip: If you think you’re not capable of offering full free return shipping yet, you might want to consider offering it only to your loyal customers who repeatedly order from your online store.
The ultimate return policy for international returns
For consumers, getting informed about the return policy is a must-have to keep purchasing from you. If your communication is unclear, consumers can always decide to switch to competitors.
In this case, no matter how you handle international returns to your online store, it’s important to communicate that well. An well-crafted return policy leads to a substantial conversion increase. A simple, customer-friendly return policy can bring up the order value and encourage repeat customers.
See how to create your ultimate return policy in just 5 steps.
💡 Insider tip: Test your return policy! For example, add return labels to your orders one month and not the next month. Then assess the results. More returns or more conversion and profit? That’s good to know!
Make international returns hassle-free with Sendcloud
Sendcloud can help you overcome the challenges of international returns through the return portal. Here’s a quick snapshot of what you can do:
- Offer customers 1000+ return methods, wherever they are in the world.
- Use only one API for all your return needs.
- Personalise your return and refund options based on your business’ returns management strategy in different countries.
- Put your return criteria into a set of return rules to automate the process.
- Let customers cover their own return costs with Paid Returns.
- Save your customer service team hours of work with pre-printed Return Labels in the Box.
- Offer eco-friendly returns with Paperless Returns via QR code, electric vehicles, and bike pick-ups.
- Send automated tracking messages in your customer’s language.
- Automatically generate customs docs for each return.
- Use Analytics to find out why items get returned to reduce your return rate.
Sounds too good to be true? Find out more about international returns with Sendcloud or book a demo — we will be happy to answer any questions you have!
