If you sell anything online, eventually there will be some customers who want to make a return. Selling through Amazon is a marvelous opportunity for many small businesses, but it doesn’t prevent the hassle of dealing with Amazon returns.
Returns definitely cut into your bottom line, and they aren’t any fun. They are, however, a part of the business reality. You can mitigate the cost and the problems through a few simple steps. The biggest part of the process is to focus on excellent communication being aware and staying responsive.
Excellent Communication Prevents Returns
Avoid the "Quick Buck" Sale
Communication begins with being completely honest in the way you represent your products. While hyperbole might create an initial sale, disappointment creates expensive returns.
You can avoid the "quick buck" sale and eventual return by being honest in your product representation. Not only is it an honest approach, but it also makes good business sense.
Return Process: What You Should Know
Even under the best of circumstances, returns will happen. But you can be prepared. This begins with being aware of the process that will occur when you have returns as an Amazon seller.
When you sell a product, fees are added to the purchase price, such as fees for shipping weight, order handling, Pick & Pack, and weight handling. When an item is returned, you are charged the equivalent of those outgoing fees when the item comes back (on top of refunding money to the customer, and the loss of reputation).
But there are steps you can take to turn those re-turns (heh! heh!) to your favor. While no one wants a return, there’s no reason not to make the best of it.
Reducing Amazon Seller Returns
1. Keep track of return policies for all products
Different kinds of products may have different upfront costs and different return policies. Sometimes it’s advantageous to simply send your customer a replacement rather than request the broken product be returned. Which brings us to the next point.
2. Be aware of fees, postage and other costs associated with returns
You can charge the customer for postage for returning a defective item, but you won’t be winning friends. It’s realistic for some things, and it can deter frivolous returns. A postal voucher is often fairly inexpensive for goodwill.
3. Amazon’s repackaging fees – opt-in or out.
Amazon charges repackaging fees for returned items. You can opt out of those. They can be convenient, but not necessarily essential. This is one of those areas where you do have a choice.
4. Amazon’s disposal fees.
This is where it’s sometimes easier just to send a replacement item and not request the item back.
5. Products damaged by Amazon handling
Keep track and get the money back from Amazon. If the breakage is Amazon’s fault they will pay you a portion of the cost of the returns.
6. Proactively prevent returns through good communication
Email campaigns often work wonders and can even help improve your seller feedback. Just follow these simple steps:
Invite customer feedback.
- Be sure to acknowledge it, even if it’s just through an automated response.
- Read the responses.
- If you have them set up with checkboxes and a single text box, the results can be automated to some degree.
- Read through the unique responses – not everyone will fill in the text box.
Use your customer responses to inform your business model.
- Find out what people like and the things with which they have problems.
- Use the customer contact information to send relevant information about the product or creative ways to use it. Just be sure not to send emails too often, and make sure that the information is something your customers can use.
- If you receive a response to your email, be sure to thank your customer for the response.
Be completely honest in your listings.
- As mentioned, you can prevent disappointment through honest representation.
- Bundle relevant items, such as batteries, with the purchase.
Pro Tip: Respond to returns requests quick
You can use an autoresponder with checkboxes and a text box for more extensive responses. Offer replacement parts or help with assembly or a replacement without a return.
Best of all is a personalized response whenever possible. People appreciate being recognized and remembered. It might be a little time consuming, but it’s time well spent.
Dealing with Returns
Are you currently dealing with Amazon returns where the customer is actually at fault? Maybe they damaged your product or returned the incorrect item "by accident." We put together a great tutorial on how to deal with FBA returns when the buyer is at fault. Check it out!