How returns and exchanges impact your business
Getting a return request can be painful both financially and emotionally.
Refunding a customer's order can result in a loss of profitability on orders, and knowing that someone disliked your product can be disheartening for business owners that strongly believe in the benefits of what they sell.
For these reasons, it can be tempting to ignore the reality of returns and exchanges and leave the mounting problem unaddressed.
The pitfalls of a poorly implemented return policy
Over time, however, customer complaints about your return policy can start to filter onto social media, showing up as comments under your ads or even in Google searches about your business. This is where a poorly implemented returns system starts to negatively affect your overall reputation as a business. If bad sentiment about the buying experience starts to spread online, it is likely you will see a drop in conversion rate.
Processing every return manually and dealing with customers on a case-by-case basis can also be expensive for your business operations and exhausting for customer service employees. If the time and expense to process a return or exchange isn’t monitored and optimized, it can even prevent you from scaling your business.