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What is Amazon Return Rate and How to reduce it
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    How to Lower and Optimize Your Amazon Return Rate

    Every sale on Amazon makes you feel like a winner. But who knows this achievement may become a headache tomorrow, product return. Product returns are the bitter truth of Amazon's business. This situation is particularly heart-wrenching for an Amazon seller who must follow Amazon's forgiving return policy for customers.

    According to Statista, 15-40% of E-commerce purchases have been returned in the past few years. However, being an Amazon seller, it's crucial to concentrate equally on Amazon growth and reducing return rates.

    Even though you can't stop products from returning, many time-tested strategies will help you reduce return rates. So, in this article, we will discuss those strategies that will help you optimize Amazon return rates, improve customer satisfaction, and promote long-term profitability. Let's jump into the details without any delay!

    What are Return Rates on Amazon?

    how to lower amazon return rate

    Before moving towards the strategies, understand the basic concept of return rates. It's the percentage of things buyers return after buying from an E-commerce store. A standardized metric offered by Amazon, RDR, calculates the proportion of return orders to the total ones. The RDR must be kept low to maintain your seller rating and promote Amazon growth. Although standard return rates differ from product to product, they typically range from 5-15%. However, the return rate might approach 40% for other items like electronics, clothing, and jewelry.

    8 Strategies to Lower Your Amazon Return Rate

    A reduced Amazon return rate leads to financial savings, less stress, and reduced account issues. Here we've mentioned the eight helpful tips that will assist you in maintaining a higher seller rating:

    1)  Give Detailed Information About Products

    Customers take a chance each time they make an online purchase. They must believe what the description claims regarding the product because they cannot inspect it firsthand. Make every effort to provide every detail in your product description. You must include those details that may impress your customers with the products, such as size, material description, particular substances it contains, etc. Moreover, if you’re unaware of how to list your product, read our Amazon SEO guide.

    2) Include Fascinating and High-Quality Visuals

    The visual aspect of products is more significant than the product description. Human eyes are graphic lovers, so make the most of your product images. Invest in professional photography, such as 360-degree photos showing the client the entire product. Click your product picture from different viewpoints and also add its variants. Visuals make your customers feel confident clicking "buy now" and will better understand what makes your product unique.

    3)  Add Product Videos

    Making your products' high-quality videos lets them believe what they're buying.  They are an excellent and affordable element for convincing customers of the worth of your offering. Ensure your videos accurately represent your products to viewers and comply with Amazon's advertising requirements. According to Statista, 73% of US people are more motivated to buy something after viewing a product ad.

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    4) Check the Reviews

    You must understand your customers' minds to optimize your Amazon return rate. You must understand your targeted customer's likes and dislikes about your products. You should watch your product reviews to find out what's going on in your customers' minds.

    For this purpose, you can use software like FeedbackFive to help you identify any problems customers face with your products or services.

    5) Use Safe Packing

    Even if you ship a product in excellent condition, it may still be returned owing to faulty packaging. Due to poor packaging material, the product may be destroyed in shipment, mainly if the product is fragile. Purchase wrapping supplies that are effective for the products you're shipping to reduce Amazon's return rate caused by packaging problems.

    6) Examine FBA Products

    Send only brand-new products to FBA if you deliver orders using this service. Never send scratched or defective items, even if the defect is minor.  If you discover damaged products, replace them with your supplier or look for a different supplier.

    7) Evaluate Discounts and Prices

    Another reason for the increased return rate is the cost of your product.  It might be possible that the product price and its quality don't justify each other. So, reduce your products' pricing and offer promotions to determine if that helps increase sales.

    Another option to boost your product's value without changing its original price is to provide kits and packages. You may point out the savings your consumers receive when they purchase large quantities of your products by listing them as different ASINs.

    8) Learn from Your Product Return

    Returned products are an excellent opportunity to learn. Focus on the justifications clients provide for returns. There are times when the root problem is beyond your reach. However, sometimes you can improve the reasons for the return.

    For instance, if you frequently receive returns for clothes due to wrong sizing, it's time to review your size chart. Take note of every piece of advice you receive and use it for your Amazon brand growth.

    Final Verdict

    Amazon marketplace is an ocean of competitors, and only sellers who constantly monitor their Amazon Growth will survive. Reducing your Amazon return rate is crucial for your brand’s image, credibility, and sales rate. While you can’t back off with return products, focusing on your customers’ reviews and product listings may reduce your return rates.

    By following the strategies mentioned above, you can easily succeed in your Amazon business. Avoiding issues and taking shortcuts doesn't pay off much. The e-commerce industry is highly competitive, and client demands are rising. With so many options, it's crucial to differentiate your product and provide quality, reliability, and outstanding service.

    Moreover, if you want to reduce Amazon's return rate and enjoy high revenues, the SwiftStart content library will help you. Must read our guide to managing Amazon's return that will help you to increase revenue and brand recognition while lightening your workload.

    JOIN OUR COMMUNITY

    If you find this article helpful then join our social footprint for more Amazon insights and growth hacks. Become a part of our Amazon Facebook community group to stay updated with the latest Amazon news, tips, and tricks. Follow us on LinkedIn for expert guides and Amazon growth strategies. Our Amazon account management experts are always available to answer any questions and provide personalized support. Check out our SwiftStartUP Amazon podcast for exclusive insights from experts and success stories from top Amazon sellers. Don't forget to claim your free Amazon account audit right now!

    Frequently Asked Questions

    How to check return rates on Amazon?

    To check your Amazon return rate, sign in to your Amazon Seller account and go to the “Reports” tab. Now scroll down and click on the “Fulfillment” option. Next, click “Customer Concessions”  and choose “FBA Customer Returns”. Here you can generate the report by entering the timeframe. 

    What will happen if Amazon return rate reaches its limit?

    Amazon will notify you if the item's return rate exceeds the allowed 20%. Still, if you ignore it, they'll then delete the item page, and you'll have to submit a request to have your listing restored.

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