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June 26, 2024
If you are a furniture business owner who has recently set up shop on an e-commerce website, then you must understand that product returns are part and parcel of the business, but their burden can only be borne up to a certain limit. When these returns start cutting into your profits, you know it is time to investigate the matter.
On the surface, extra shipping costs for the returned item might be the only cost, but in reality, a furniture business also bears the loss of sales, customer churn, and a damaged product (sometimes).
As a business owner, you should not wait to address this problem, as these returns can potentially cause massive losses.
Before we discuss the details of the cost of returns, let's understand why returns occur so frequently.
A recent study found that furniture was the most frequently returned item in eCommerce, with an average return rate of 23%. Customers return furniture for multiple reasons; while some are within your control, you cannot control others.
For example, not much can be done in cases where the wrong product was delivered or ordered, a damaged product was received, or the product was no longer needed.
However, there are some issues that can be checked or resolved from your end before shipping the product:
Consumers have always equated the money spent on purchases with the value they derive from the product. This is especially true in the case of expensive items like furniture. If the item received by your customer does not match expectations in terms of quality, it is bound to be returned.
This is where the brand comes in place. You need to take accountability for your product and ensure that you show and ship a high-quality product to your customers.
Sellers often exaggerate product descriptions, highlighting the issues that their product can solve; however, in reality, the product is not as functional as showcased. This is a classic case of overpromising and under-delivering.
Wrong descriptions ruin customer experience and are bound to generate multiple returns over the long run. So, make sure that the descriptions are true to the appeal and functionality of the product.
Color mismatch is one of the top reasons for e-commerce returns caused by the presence of poorly shot furniture photographs on e-commerce sites. Similarly, these images cannot grasp the true essence of the material textures on display, leading to disappointment when the product is delivered.
It is important that you either hire a professional photographer for the shoot or if you are low on budget, learn to take good photographs yourself. Or better, use 3D Renders for better color and texture accuracy. You can even customize and bump up the textures according to your needs, that the professional camera would not be able to capture.
A clear idea about the product size and scale is imperative in the case of large items like furniture. While making the end customers realize or conceptualize the true size of the asset through images can be a bit tricky, 3D AR Viewer is a great solution that helps you view your product in real-time, relative to your space and size. It facilitates viewing from different angles and size adjustments, accompanied by percentage prompts, to give a truer idea of the product.
E-commerce returns have always plagued business owners, but they are at a whole new level when it comes to furniture businesses. In 2024, out of all online purchases in the USA, furniture goods were returned 10% of the time.
Due to the size considerations in this field, immense logistical costs are involved, along with the negative consequences of poor customer experience.
When it comes to logistical costs of returning goods in the furniture industry, the size of the product is the main issue. These returns need to be handled with care as the costs for the retailers can be more than the cost of shipping to the buyers.
When your customer returns your product, you also have to deal with the refunds, leading to a loss of revenue for businesses. Adding to the woes is that returned merchandise cannot be resold at its original price.
Product returns occur because consumers are not satisfied with the purchase. A poor customer experience is likely to make customers skip your brand the next time they wish to purchase furniture.
Furniture articles are often expensive purchases, and if your customers are not satisfied with your products or face issues with the after-sales, they will express their disappointment by leaving negative reviews. These reviews massively impact your business, as any prospective customer will go through the reviews before finalizing the purchase.
As per Forbes, the rate of online returns is growing faster than the rate of e-commerce sales. So, what are some strategies that businesses can implement to minimize the number of returns?
As a business owner, you can design your returns policy the way you feel best suits your interests. If returns costs are a huge burden for you, making the consumers liable for these costs can be a great idea. However, while this strategy might be convenient for you, what matters most is how your consumers perceive it.
While the business owners might gain some financial respite by implementing such a return policy, they might end up suffering the consequences of reduced traffic and sales. Thus, it is a poor strategy and often does more harm than good for your furniture business.
In a survey of 1,300 online shoppers, 69% stated they would not purchase if they were expected to pay the return costs.
Now that you know what not to do, we are listing some of the commonly used mutually beneficial strategies to reduce product returns.
Furniture businesses need to understand that the first possible thing they can do to minimize returns is to ensure that they offer quality products. If the customers do not find the product up to mark, you will have a high return rate even if you implement the following strategies.
Ensuring that the product description is updated and consistent with the visuals depicted on the site to give the customers clarity about the product displayed.
Information on product measurements is necessary for customers to analyze how well the product will fit in their space. Using an AR viewer on the website can help customers make better decisions based on these numbers and eventually reduce returns.
Multiple e-commerce websites offer discounts, promotions, and other benefits as a part of their return policies to reduce product returns. Availing of these benefits at the time of checkout ends the possibility of returning products at a later stage.
Your product images should clearly showcase the product being offered to avoid color and texture mismatch. For this, you can either invest in catalog and creative photography or utilize 3D Renders. 3D lifestyle renders let you showcase the product in a real-life setting to give an idea about how it fits in a particular aesthetic and the space it occupies.
Customers are often dissatisfied with the limited visual aids provided for the product. Our services, like AR Viewer, give the ‘try before you buy’ experience by viewing the product in real-time and having the freedom to resize it. Percentage prompts depict the size of the product and increase interactivity.
Make your product pages interactive by integrating 3D Product Configurators to allow viewers to customize and personalize the product. Such immersive and interactive functionality on e-commerce sites grabs viewers' attention for longer durations and helps them make final purchase decisions.
We at Ikarus Delta offer innovative solutions to help you stay ahead of your competition while minimizing your product returns. Experience the future of your furniture e-commerce business with solutions like 3D Lifestyle Renders, which provide photorealistic visualization, as well as AR Viewer and 3D Product Configurator, which enhance interactivity and provide an immersive experience to users.
While making customers liable for return costs might offer short-term financial relief, it can lead to long-term issues like decreased customer satisfaction and loyalty. Instead, focusing on quality products, accurate descriptions, and detailed measurements can help reduce returns. Additionally, leveraging 3D renders and AR viewer technology can significantly enhance the shopping experience by providing accurate visuals and allowing customers to place furniture in their spaces virtually. These advanced solutions minimize returns and improve customer confidence and satisfaction, positioning your business ahead of the competition.