Returns and their cost

Returns are goods sent back by a customer, typically on withdrawal from a distance contract within the statutory period. E-shops often view them merely as a refund of the purchase price, although the actual cost is higher: shipping in both directions, time to receive and inspect the item, repackaging, the reduced value of unpacked goods, tied-up capital, and the administration of refunding the payment. In some categories, the return rate can wipe out the entire margin. It is reduced above all by the quality of information provided before purchase – accurate dimensions and size charts, photographs from multiple angles, video, an honest description of the material, and reviews with real experiences. Track the return rate by product and category; a repeatedly high share for a single item is usually a signal of an inaccurate description. Check the statutory conditions for withdrawal against the current wording of the regulations.

See also: Abandoned cart, Product reviews, Complaints process as marketing.