Posts filed under 'Secrets to Success'
Written by Pat
It’s a cost of doing business and a headache for a lot of online sellers: accepting merchandise returns.
There are valid reasons that we get returned merchandise from our online customers, but there are some times that costly returns can be avoided or prevented.
According to a recent Distribution Center Operations Report from The Supply Chain Consortium and Reverse Logistics: Returns, Refunds and Recalls Hot Topic Report, the top six reasons for customer returns were:
1. The customer ordered incorrect product or size
2. The customer decided the product was not needed or wanted
3. No reason for return given
4. The product did not match the description on the Website or in the catalog
5. The product did not fit the customer’s expectations
6. The company shipped the incorrect product or size
So, as an e-commerce company, how can you stem the tide of product returns?
At first glance, it would seem that the merchant might be responsible for only #6:
The company shipped the incorrect product or size
This, of course, is generally a clerical error that might be avoided with improved systems and procedures and employee training.
However, there are quite a few steps an e-commerce seller can take to prevent returns based on some of the other reasons that were cited.
How about these reasons?
1. The customer ordered incorrect product or size
4. The product did not match the description on the Website or in the catalog
The number one reason is incorrect product or size and the fourth most popular reason is that the description was not accurate. How can you as an online seller prevent this?
Ask yourself:
How clear and accurate is my description?
How many pictures do I have for each product?
Do the pictures show the product from various angles?
Do the pictures show relative size with a ruler or other measurement of scale?
For clothing items, are there sizing charts available?
Do I link to the sizing charts from the respective product page?
Do I provide measurements?
Another way to avoid having customer returns is to allow customers to leave product reviews.
Besides providing descriptive language that will help the search engines better index your products, reviews left by past customers can help shoppers make the best decision based on their experience. Who better to know that a pair of shoes runs small and to order a half-size up? Or that the orange shown in the picture is just a little bit brighter than the actual color of the purse?
As an e-commerce website, we will always be susceptible to returns, but it is possible to greatly improve your company’s return rate by improvements to your site and product descriptions. These changes will not only lower your merchandise return rate, but provide a boost to your customer satisfaction rate as well.
January 25th, 2010
Brenda Collins owns The Gentle Bath & Company, and is a textbook case study in branding and marketing an e-commerce business. We sat down and talked with her.
How and why did you start selling online?
Before launching my business, I was an RN. I suffered an injury which forced me to “retire” from nursing, so to amuse myself, I sold items from around my house on eBay. That, coupled with the computer and marketing skills I’d learned in Hospital Education, and the design skills I developed through scrap booking when my son was born, set the stage for my launching an e-business.
Initially I opened an eBay store in the Bath/Spa category in March 2007 – and began to sell items within an hour! I chose that segment because I had a very hard time finding quality items when redecorating my own master bath. I ordered a set of Bamboo Blend bath towels on a whim; I ended up loving them so much they became the foundation of my store. I started out with less than 20 items, gradually adding to them (now I carry around 250 items). After the first year, which was full of growing pains, I launched my own website, and sales soon surpassed those of my eBay store. I closed the eBay store in 2009 at the end of last year and am concentrating on my own website now.
Tell us about your company.
The Gentle Bath & Company offers luxury bath items at affordable prices. Our tagline, “Transform your bath into an oasis”, says it all. We carry a variety of bath-related items from luxury towels to bath caddies to Lady Primrose Bath and Body. We aim to provide our customer with an exceptional internet buying experience.
What were some of your biggest mistakes? How did you overcome them?
I’ve had some white elephant products in my inventory; it’s been hard to pinpoint exactly why they don’t sell. I’ve found that sticking with more “known” brands helps with search and sales. I have a clearance category and put some of the items in that, which I’ve been able to return other items to the manufacturere even though I had to pay a restocking fee.
What do you know now that you wish you’d known when first starting your business?
Where do I begin?! Probably the biggest thing would be building a website sooner than I did. Starting a store on eBay is a great way to begin with a limited investment, but now there are so many quick and easy website options that I think I could have opened a website sooner than I did.
Another would be how much time a good shipping program can save you. When I implemented my shipping system (Shipworks) with a dedicated thermal label printer, I cut my package processing time by 200% or MORE!
“It is vital when choosing your shopping cart that you investigate the shipping processes available for the cart.”
What three things would you tell aspiring entrepreneurs?
a. Research research research – your products, your choice of carts and your choice of payments, everything about your business should be researched and then chosen based on what is the best fit.
b. Always try to exceed your customers’ expectations; they will remember you for it and refer their friends and family to you if they trust you will treat them right.
c. Join groups such as IMA and the Internet Retailer Association. You can learn so much from others who’ve been there longer than you, and get feedback and information about many cutting-edge practices in the field of Internet sales.
What has been your greatest business success?
I think the “branding” and “packaging” that I’ve built is what I am known for. In addition to my products it is my packaging that stands out from many other Internet companies. I have often talked to customers about their orders, and apart from my products it’s the packaging that they remember and is what stands out when they think about their order. It is this attention to detail that often leads a customer to refer their friends and family to my store.
What are your goals for your company?
My goals are always changing as my business evolves. My long-term goal for my company is to maintain profitability as I focus on my website for my sole source of income. My short-term goals for 2010 are to:
- change my merchant account from PayPal to one that is more economical,
- choose and implement an email marketing program, and
- take advantage of my new WordPress blog theme and implement all the Google advertising opportunities that are built into the themes framework.
What are some of your favorite business resources?
1. IMA – they have so much to offer on their website in addition to one of the most helpful member forums available for the Internet retailer.
2. Facebook Fan Pages – one of the best free advertising you can get for your business. I also think their paid ads have some of the best returns for the money. You can build your fan base and then have a captive audience to communicate with directly regarding all facets of your business. In fact, I find the Facebook interface to be one of the most powerful and easiest to use of all the social networks out there.
3. SCORE – Service Corps of Retired Executives will provide a small business counselor free of charge. I have met with mine a few times and that’s been very helpful for me. Their website is also loaded with resources for the small business owner.
Finally: why did you join IMA and has it been worth it?
YES YES YES!! I was looking for a group that both understood eBay but also focused on business outside of eBay. I found all of that and more in the IMA. In fact, the member forum is the most helpful forum that I belong to. They’ve also started offering more education and that has been very helpful as well. For the small internet business owner there is no better group to belong to than the IMA!
Brenda, thanks so much for taking the time to chat with us. Best wishes in 2010 and beyond for The Gentle Bath & Company!
Edited by Shonali
January 12th, 2010
The Internet Merchants Association has announced their conference agenda for 2009 in Las Vegas, NV in conjunction with the ASD/AMD Trade Show. There is still plenty of time to register, so be sure to go to www.imalasvegas.com right now and get signed up. You do not want to miss this conference packed full of information for increasing your online sales!
AGENDA: Updated 3/11/09
NOTE – The IMA is still adding more speakers, so times and speakers are subject to change. In addition to the agenda below, there will be a Networking Suite open at Bally’s on Monday, Tuesday and Wednesday nights where you can meet the speakers and ask more questions!
March 16-18 Internet Merchants Assn. Las Vegas register @ , www.imamerchant.org & www.imalasvegas.com Don’t miss out – Register TODAY!
Continue Reading March 5th, 2009
Like individuals who make New Year’s resolutions, most business owners take time to set new goals and/or revise old goals at the beginning of each year. As more and more consumers and sellers become comfortable with ecommerce, merchants are branching out and adopting a multichannel selling approach, whether branching out to sell on Amazon (or another site or sites) in addition to eBay or whether opening a brick and mortar or starting up their own website.
One of IMA’s most recent polls asked sellers what their business goals were for 2008. The poll choices were:
Expand into other online selling venues
Expand current product line/number of listings
Add new products to business
Open up or expand brick and mortar retail store
Continue Reading June 4th, 2008
Wouldn’t it be nice to be automatically notified when your website has a new page indexed in Google, or when someone links to your site? Well this is very easy to do using the Google Alerts Beta! Here are the instructions for setting up a site wide Google index update Alert and a site wide link alert.
Create an alert for when a page on your site gets indexed:
- Go to www.google.com/alerts.
- For search terms enter (without quotes) “site:yourdomain.com”.
- Make sure you do not use a www or other subdomain.
- Select Web as the type.
- For “How often” we will select “as-it-happens”. I like this because this tells you exactly when Google is crawling your site!
- Enter the email you want the alert sent to.
- Click “Create Alert”.
- Confirm the alert from the email Google send you and you are set!
Create an alert that notifies you when another website links to your website:
- Go to www.google.com/alerts.
- For search terms enter (without quotes) “link:yourdomain.com”.
- Make sure you do not use a www or other subdomain.
- Select Comprehensive as the type. This will allow you to be notified with links in Blogs and groups as well as other websites in general.
- For “How often” we will select “once a week”. If you start noticing a lot of entries you can go to the once a day and then as-it-happens settings.
- Enter the email you want the alert sent to.
- Click “Create Alert”.
- Confirm the alert from the email Google send you and you are set!
Now you will know WHO is linking to you and WHEN!
Chuck
March 17th, 2008
Like a lot of sellers, I believe eBay did a questionable job in creating the Detailed Seller Rating (DSR) system. The Shipping Time score is open to a lot of buyer interpretation. Are they supposed to rate us on how quickly we get the package to the carrier after receiving payment, did we ship on-time based on our promises in the listing, or are they supposed to rate us purely on how quickly the package arrives?That said, I take minor exception to so many sellers saying they have absolutely no control over how fast a package is delivered by the carrier.
I firmly believe there are things sellers can do to influence transit time. Here are two lists of packaging traits, guess which group’s packages will arrive faster?
Group A Packaging Traits:
- Handwritten addresses
- Addresses using improper abbreviations
- Addresses poorly formatted
- Non-validated addresses
- Frankenstein school of box building (i.e. irregularly shaped parcels, 2 or more pieces taped together, frequently created from re-used boxes, many with other labeling on them)
- No indication of carrier service class
- Packaged in other carrier’s free supplies
- Poorly sealed
- Fluid stains or excessive rattling
- Wrong class of postage used (i.e. Media Mail rate for non-qualified items)
- For International, wrong Customs Forms or improper information on forms
Group B Packaging Traits:
- Computer printed shipping labels
- Fully validated and properly formatted addresses
- Clean, new boxes in standard shapes
- Labels on multiple sides of the package indicating class of service (if appropriate)
- Concatenated Delivery Confirmation Barcode (USPS trick, adds the destination ZIP Code to the barcode information)
- Well sealed with appropriately sturdy tape
- Proper void fill and cushioning
- For International, appropriate Customs Forms accurately filled out
I agree that once we hand off the package it is an act of faith. But if you give the carriers good raw materials, they have a better chance of delivering great service.
Yes I have had my share of wacky delivery delays. Fortunately those are the rare exception because of how I package and label my shipments.
Submitted by Chris of sun-bits
February 28th, 2008
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