Should I or Shouldn’t I Pay for Return Shipping?
Dealing with shipping fees can be frustrating, especially when they are for a product return. You’ve just lost a sale and now you have to ship a product back to your inventory. No business wants to have a product returned, and it doesn’t seem fair for your business to have to pay to send the product back. If the customer doesn’t want your product, shouldn’t they have to ship it back? While this logic seems fair, your business could really be better off if you do pay for return shipping.
If a customer returns a product, it is clear you won’t be making a profit on this order. However, there are a number of beneficial things that can come from paying for the return shipping. First off, it makes your business look a lot better. The customer could write a great review about your customer service and returns policy, and even tell friends about your business. Just because you are losing a sale now doesn’t mean the same customer can’t provide sales in the future. A great review and recommendations are valuable sources of business. Also, even though the customer may not want to keep the product he is returning, if he is impressed with your returns policy and customer service he could very well come back to you in the future for other products. These benefits can be worth the small return shipping costs if it works financially for your business.
If your business is new or still growing, and not yet turning a large profit, you may not be able to afford to pay return shipping just yet. This isn’t the worst thing. If you can focus your time, effort, and money on making the best business you can, eventually you will get to the point where you can pay for return shipping. While customers may not love this policy, it will save a few bucks that you can use to improve your business.
It really all comes down to what expenses your business can afford. If you can’t just yet afford to pay return shipping, don’t worry about it too much. However, in time you should really move towards paying for return shipping. Customers love the word free. They will have the same love for a free return policy as they do for any other free things in life. Providing free return shipping can give your business a reputable and reliable name, and establish customer relations that are great for the profitability of your business.
For a solution to managing refunds and dealing with returns, check out the Bizelo eRetail Returns Management App and make returns management easy!