Returns in WooCommerce

Returns can be a major expense for all retail businesses—especially eCommerce businesses. In this episode of eCommerce Unscripted, we address all things returns. Host Sam Greenspan is joined by two WooCommerce experts: Tabitha Turton, a GoDaddy Product Manager, and Marcus Burnette, a WooCommerce care team member for GoDaddy, to discuss product returns. 

The panel shares statistics and anecdotes on just how much returns can eat into eCommerce margins, what motivates customers to make returns, and how many customers are making returns. 

From there, they cover several strategies to help with returns, including setting up a return policy, how to keep returns easy on both customers and merchants, the Returns and Warranty Requests WooCommerce extension, using pick lists and address validation, the WooCommerce Product Reviews Pro extension, better images, and return window and cost optimization. 

Finally, in the Q&A, the panel addresses whether using too many hooks can slow down a WooCommerce site and what to look for in choosing a marketing agency. 

Check out GoDaddy’s Managed WordPress Ecommerce hosting which includes many of the premium extensions discussed in this episode for free! https://www.godaddy.com/hosting/ecommerce-hosting  

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Extensions and services referenced (* - included in the GoDaddy Managed WordPress Ecommerce bundle) 

Returns and Warranty Requests* - https://woocommerce.com/products/warranty-requests/  

WooCommerce Print Invoices & Packing Lists* - https://woocommerce.com/products/print-invoices-packing-lists/  

WooCommerce Product Reviews Pro* - https://woocommerce.com/products/woocommerce-product-reviews-pro/  

Postcode/Address Validation* - https://woocommerce.com/products/postcodeaddress-validation/  

WooCommerce 360º Image* - https://woocommerce.com/products/woocommerce-360-image/  

Strategy of only charging for refunds - https://www.loopreturns.com/blog/should-online-brands-offer-free-return-shipping/  

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Sources for statistics: 

https://www.invespcro.com/blog/ecommerce-product-return-rate-statistics/ 

Industry benchmark: 15-40% of products ordered online returned (versus ~9% of things bought in-store) 

67% will check returns policy before making purchase 

92% will buy from a store again if return process is easy 

https://www.salecycle.com/blog/featured/ecommerce-returns-2018-stats-trends/ 

57% of retailers say returns have a negative effect on their day-to-day business 

https://www.easyship.com/resources/ecommerce-returns 

Cost of processing a return can be up to 65% of the total selling price 

https://savemycent.com/ecommerce-return-rate-statistics/ 

48% of online shoppers returned an online order in the last 12 months 

https://magnetoitsolutions.com/infographic/e-commerce-product-return-rate 

Reasons for returning something 

• Defective/poor quality 
• Bought wrong item 
• Buyer's remorse 
• Found better price elsewhere 
• Gift returns 
• Wrong size 
• Return fraud 
• Item didn't match description 
• Item delivered late 

https://www.ups.com/us/en/services/knowledge-center/article.page?kid=art16e12c5bc15 

Elements that create a positive return policy include free returns, free shipping, easy to print labels, timely refunds, label on the box. 

https://loopreturns.com/blog/the-fallacy-of-the-30-day-return-window/ 

80% of returns happen within first 14 days 

https://www.washingtonpost.com/news/business/wp/2016/01/22/the-surprising-psychology-of-shoppers-and-return-policies/ 

Longer return policy reduces returns 

Theory: "Endowment effect.” The longer someone has a product in their hands, more attached they feel. Plus, less urgency to return so they live with it and get used to it.