Definition: Customer Reviews

What are customer reviews?

Customer returns are products that customers send back to a company after purchasing them. This can happen for various reasons, e.g. because the item does not match the online product information, the goods are damaged or they have simply changed their mind.

The average return rate in eCommerce is between 20% and 30%. Whilst product returns are a normal part of doing business, they can be very costly for companies. Not only do they lose out on sales, but they also have to deal with processing returns, restocking items and potentially selling returned products at a discount if they are not in perfect condition — assuming the product is in a condition suitable for resale. If a return is made due to a company error, it can lead to unhappy customers, negative reviews and a bad reputation, which in turn can affect sales.

However, there are steps that companies can take to reduce the number of returns:

• Clear, transparent return policies: By clearly communicating return deadlines, fees and terms on the website, you can set the right expectations with customers before they return anything.

• Accurate, detailed product information: It's important that product descriptions, images and sizing information are consistent and up-to-date across all sales channels. Customers should know exactly what they are buying.

• Monitor the reasons for returns: Paying attention to why customers return items can help you identify issues with product information, sizing or order fulfilment that need to be addressed.

• Quality control: Robust quality assurance processes can identify issues such as manufacturing defects before products are shipped to customers.

By implementing the right strategies and using appropriate tools, companies can effectively minimise product returns and the associated costs.

One such tool that companies can utilise is a product information management (PIM) system. A PIM solution with digital asset management capabilities enables companies to centrally manage and distribute accurate product details and images to all sales channels. This reduces the risk of customers seeing conflicting or incorrect information that could cause them to return the products.