Shrink Your Return Rates

Shrink Your Return Rates. Brands are losing a record average of $29 for every customer they acquire—a 222% increase in the last eight years. Aside from steep customer acquisition costs, returns take a lot of the blame.

Customers return 20–30% of online purchases, compared to only 8–10% of in-store purchases. Whether the returned item ends up being resold in a brick-and-mortar store, repackaged in a distribution center, or sitting in a landfill, it matters as much to the modern consumer as it does to a business’ bottom line. Fewer returns mean happier buyers, less pollution from transportation and packaging, and less strain on a key aspect of supply chains: inventory management.

To minimize returns, customers need to be confident what they see online is what shows up at their door. Detailed product descriptions, customer reviews, and 360-degree views of each product help set customer expectations and reduce return rates. Bringing products to life for customers through augmented reality is becoming a viable option as more consumers around the world adopt the technology.

The immersive and interactive nature of livestream shopping also makes customers more confident in what they’re buying and how to use it, significantly lowering return rates. AR & VR can also be a novel way to approach reducing return rates..