It’s no news that hundreds of FBA sellers on Amazon are full-time merchants. Literally, indicate they are wholesalers. They don’t manufacture but resell to make money. Interestingly enough, more sales when selling online translate to more returns. This, of course, is no fault of sellers. More complicated, Amazon mandates third-party sellers to accept returns from customers without any form of interaction or explanations. This means FBA sellers inclusive do not have a choice to differ but accept these conditions. And these could be taking a toll on your income due to fees accrue through customer returns.
Importance of Return Policies
According to a recent UPS study, it claims 66 percent of customers online prioritize return policies before buying on any e-commerce platform. If the return policies aren’t clear enough, they look elsewhere. Amazon prioritizes its return policies and buyers confidence by providing different policies for each channel and product category.
In short, no return policies indicates you aren’t ready to sell online anytime soon.
FBA Sellers’ Profit and Returns
Returns no doubt depletes sellers profit through fees by Amazon; majorly for restocking and other miscellaneous for FBAs. When your product goes back and forth without a sales, it’s a loss. Returns on Amazon is a double-edged sword that cuts the seller on both sides. The logic is simple-people buy on Amazon not having in mind someone somewhere sold it.
Minimizing this occurrence is central to your standing is crucial to your reputation on the platform apart from reducing your profit. If it becomes outrageous, definitely, your product isn’t delivering what it promises. People make returns for numerous reasons which could be:
- The perceived value that was not satisfactory
- Quality of materials used for the manufacture
- Personal reasons.
The possibility of Minimizing Loss Through Returns
Fortunately for FBA sellers, there are workaround strategies or steps you can take to reduce the return rate to a bearable minimum and curb hasty decision when customer buy from you and return being disappointed. Though it’s a tricky situation but the buck stops on your table. A genuine buyer could be misled or misinformed by you through indistinct product listing.
You can cut the loss and reduce return by making sure;
Sell What You Can Vouch For: You shouldn’t become an importation freak just because the item is a few cents from China without regard for quality and brand. If you sell products with poor quality, your loss is imminent with returns.
Make Your Product Description Clear Enough: Selling online is far from selling in a regular store where buyers can feel and touch your product and judge. Online, you guide them with your content, visuals, and pointers.
- Product dimensions
- Sizing and color options
- Materials used in the production
- Where the product was manufactured
- What materials were used to make the product
- Warranty information and satisfaction guarantee
- Answers to common FAQs
- Expectations and instruction on the use of the product
These and more listed above are important to minimize returns. If any of the above is poorly written, your next mail will be from Amazon; Informing you of return purchase.
Sizing Guide and Product Dimensions: Many customers pay careful attention to details which makes the difference between great experience and a poor one. Using the exact dimensions or size of your product is essential not to misled buyers with what you like or lift somewhere. Sizes guide could be added for products like clothing with many options to chose from.
Prioritize Customer Service: Being available when buyers need answers before placing orders helps non-FBA and FBA sellers. If it could have a live chat platform to aid interaction, you’ve saved a lot than you know.
Acquire The Right Data: You should show concern on why your products are returned if unusual. Adjust your listing based on why they were returned. Take a look at competitor’s Q&A and base your bullets on the points that can confuse customers.
Be Consistent: Amazon competition is highly intense, even your buyers will one day start shipping and selling like you. So far it’s an open market. You need to be on the lookout for what you’re doing right and wrong. While it’s strongly encouraged to focus on the later to keeping selling and minimizing loss.