Running an online store is like piloting a plane. You need a plan to define where you are going, checklists to ensure consistency, and systems to tell you if something is wrong. While some risks are obvious, others can catch you off guard. In this blog, you’ll learn why business owners who use e-commerce transactions should take return policies and refunds into account. We’ll provide you with information to be successful and avoid a bad (financial) surprise. Then, you’ll discover the importance of choosing an efficient payment solution—like AVPS—to handle refunds without too much hassle.
Keep Your Customers Close
While every industry is different, the cost of acquiring new clients tends to be higher than the cost of maintaining your current customer base. Whether you operate your business through brick-and-mortar stores or online, you need to invest in solutions to address your audience’s pain points. If you don’t, you might be forced to increase your budget for advertising to compensate for the fact that you’re losing clients.
So, how do you prevent your customers from ending up in the arms of your competitors? By delivering a phenomenal online shopping experience. Since every aspect counts, make sure to include these in your checklist: accurate product descriptions, updated photos, easy navigation, and a secure payment system. Keep in mind that the e-commerce landscape is a little bit saturated, but you can stand out from the competition if you have something they don’t.
Why Return Rate Matters
Since we’re talking about customer experience, here’s a recurring problem that is often overlooked: return rates. Studies have demonstrated that e-commerce return rates can be much higher than a brick-and-mortar store. The consequences include unhappy customers, legal issues, and financial loss. We advise you to dedicate some time to writing a return policy that is easy to understand, effective, and jargon-free.
When it comes to e-commerce, marketers usually take Zappos as a reference for best practices. Not surprisingly, Zappos has a very interesting return policy and, according to their VP of services and operations, Craig Adkins, their most profitable customers have the highest returns rates. This example shows that it’s possible to benefit from an apparent issue if you know how to handle it.
Try Our Payment Solutions
It’s definitely not easy to manage e-commerce financial operations. However, it might become easier or harder depending on which payment solutions you choose. We’re always trying to make your life less complicated, so we partnered with payment gateways like USAePay, NMI, and Authorize.net. In addition to providing reliable and secure processing, they can be integrated with CRM software to leverage your marketing strategy. You’ll easily manage refunds as well as access other helpful features, like recurring billing and reports to analyze your strengths and weaknesses.
At American Verification Processing Solutions, we offer customized payment solutions for your business. You can benefit from lower rates and higher security while your customers make card payments over the phone or online. Contact us through our website or call 1 (800) 719-9198 to get started.