Newmine | Reducing Returns for Brands and Retailers

The last time you returned something, what reason did you note for the return? Did you hastily check “other,” or did you search for the real answer among three or four other options? In our work with retailers, we’ve noticed that return reason codes are one of the most under-utilized data collection sources when it comes to identifying the root cause of returns.

If you’re thinking about re-strategizing your return reason codes, consider these top reasons customers are returning your product:

1. Wrong Item Shipped

Ongoing studies show that more than 20% of product returns are due to “wrong item shipped.” This is likely due to pick and pack errors during fulfillment, and it has a big impact on customer experience and customer churn.

2. Item Arrived Damaged

Another 20% of product returns happen because the item arrived damaged. Having the knowledge of which items are being damaged in transit helps to identify opportunities for improvement in quality, packaging, and carriers.

3. Product Did Not Match Description

“Product did not match the website description” is one of the top reasons customers return. Why such a disconnect between customer expectations and description/photography?

4. Size and Fit

“Size and fit” is such a catch-all for many potential garment issues. And while shopping for the correct “Size and Fit” is particularly difficult when shopping online, lack of standard sizing across brands exacerbates the issue.

5. Bracketing

“Bracketing” is the practice of buying a number of different sizes or colors of an article of clothing with the intention to return most, if not all of the item. It’s a brilliant strategy for a customer looking to find their perfect fit, but it’s a significant expense for retailers.

6. Quality Issues

Quality is one of the most difficult return reasons to decipher: when every customer’s expectations for quality is different, how do you distinguish subjective from constructive feedback? Luckily, Natural Language Processing (NLP) technology has made it possible to isolate actionable feedback from noise.

7. Return Fraud

A recent report revealed that losses from return fraud increased by 35% from 2018 to 2019, totaling about $27 billion. Unfortunately, not all shoppers are honest, and many take advantage of today’s lax return policies.

I’ll end with this: “Other” is never the reason for a return and it won’t get you any closer to understanding the root cause of your returns. At Newmine we help our customers identify which return reason codes will fit their business best.