Every product returned is a lost profit opportunity. With the ever-growing popularity of ecommerce, now returns have also become an inevitable part of the business. Why do customers return products? Depending on the product category, returns can go up to 30% of items sold online. The largest percentage of returns occurs in the fashion and accessories category while electronics places a close second.  Since e-commerce returns account for such a large percentage, it is important to know why customersreturn itemsin the first place. The most common reason for returns stated by customers is that the product received by them looks different(in terms of color, size, and fit) from what they thought they are buying. The next major reason is they received the wrong item or the product was damaged. How can ecommerce sellers reduce returns? In light of the fact thatecommerce returnsare an unavoidable circumstance, there are a few steps ecommerce retailers can take to prevent them. Here let’s take some cues from Indian ecommerce giants like Flipkart and Myntra. At Myntra, the apparel section was facing a whopping 50% return rate, the main reason being the confusion that was faced by customers in selecting the right size of the clothing while purchasing. To end this struggle, Myntra, in 2016 launched a standardized size chart in the hope to reduce their returns rate by at least 30%. In Europe and the US, all retailers and ecommerce sellers use a universal standardized size chart which helps to curb their return rate to a great extent. Myntra feels that adopting the same approach will help to limit returns as well as the cost of incremental logistics which eat up a large chunk from the overall profits. Myntra also uses advanced technology like artificial intelligence and data crunching to analyses customer data to minimize returns. Looking at customer’s purchase and returns history, they send notifications to customers informing them if they are buying the wrong size from a different brand. Flipkart, along with Myntra and Jabong utilizes machine learning to predict user intent while placing the order and to identify fraudulent or invalid shipping addresses. In another initiative named Flipkart Utkarsh, Flipkart aims to reduce its returns rate by additional 10-15% by engaging with their sellers to improve product quality and operations. Voonik, an ethnic-wear ecommerce marketplace, the biggest problem is non-delivery of products. The company’s uses technology helps it identify the appropriate courier service for a specific location and customers who are likely to reject a product ordered online, so it's customer care team can work to ensure delivery. How do Marketplaces ensure a guarantee of product correctness of returns for sellers? Amazon has formulated something called A-Z Guarantee which proves helpful to consumers buying from sellers on the marketplace. When buyers purchase from the Amazon marketplace, the condition of the items, timely delivery, and other certain refund conditions are guaranteed. Buyers can file a claim if they have contacted the seller, have not received a response within 2 days or your request falls under the specific conditions mentioned on their website. Summing up… Since more and more commerce is shifting online, retailers must be geared to face the ever-rising challenge of returns. A clear return policy, precise product information and a concrete approach to tackle reverse logistics are some of the basic but effective methods to bring down high return rates. ...read more