Thomas from Ariyh - 🎓 Why you should offer free returns
🎓 Why you should offer free returnsFree returns aren’t profitable in the short-term, but they are the cost of doing business if you want customers to buy from you again.New to Ariyh? Join 10,552 evidence-based marketers for 3min practical insights 💡 from scientific research 🎓 to get better marketing results 📈 Today’s insight is brought to you by… Vidico Before Vidico: Videos that don’t perform. Conventional ideas. Your time, and your effort. After Vidico: Work with a world-class team. Everything is calm, in a neat video production process. Why? Vidico works with winning companies like Vimeo, Square and Airtable. The results?
Sounds enticing? Get an estimate in seconds with the VidiFit quiz. Want to sponsor Ariyh? Here’s all you need to know. 📝 IntroMost ecommerce sellers offer free product returns by now. Why? In large part, this is “The Amazon Effect”: customers benchmark you against Amazon’s hassle-free service. And easy, problem-free returns and product exchanges are the number one area in which non-Amazon ecommerce sellers are found lacking. Free product returns are the obvious answer to that problem. They have become the cost of doing business. But what actually happens when you offer them, compared to paid returns? P.S.: Speaking of Amazon. An effective strategy for new online sellers to grow fast is to sell products on Amazon, then gradually ‘peel away’ customers to their own website. Customer acquisition costs are lower on Amazon, especially for new brands, and 1 out of 71 sales on Amazon generate a new sale on your own channel. Previous insight: Ask “How many?” not “Want one”? (100+ more insights here) Free returns are costly in the short-term but necessary for the long-termChannels: Ecommerce | Shipping | Returns 📈 RecommendationLet customers return your products for free if they want (no questions asked, shipping included). Allow a reasonable timeframe, accounting for possible shipping delays (e.g. 30 days). In the long-term, customers who return a product will be more likely to buy from you again. They are much less likely to do so if they have to pay. In the short term, don’t expect an increase in immediate profits. They may even slightly fall due to the higher costs of more returns (e.g. shipping, processing). 🎓 Findings
🧠 Why it works
Last week, I announced Classified Listings in Ariyh. But the feedback I received is that it would be better to have a single secondary sponsorship slot. Right here. Availability starts from 19th July. Grab yours before they sell out. Primary sponsorships are sold out until 15th November. ✋ Limitations
🏢 Companies using this
⚡ Steps to implement
🔍 Study typeMarket observations (analysis of 1,035,374 orders of an anonymous Swedish, europe-focused, fashion retailer between January 1, 2017 and December 31, 2018) 📖 ResearchThe impact of free returns on online purchase behavior: Evidence from an intervention at an online retailer. Journal of Operations Management (March 2021). 🏫 Researchers
Remember: This is a scientific discovery. In the future it will probably be better understood and could even be proven wrong (that’s how science works). It may also not be generalizable to your situation. If it’s a risky change, always test it on a small scale before rolling it out widely. Rate today’s insight to help me make Ariyh's next insights 🎓 even more useful 📈 How was today’s insight?
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Key phrases
Older messages
🎓 Ask “How many?” not “Want one”?
Tuesday, June 21, 2022
Conversions increased 14% and total sales 28% when call-to-action (CTA) buttons directly made people decide about quantity (eg “Buy 1” vs “Buy 2” vs “Buy 3”).
🎓 How email coupons drive sales
Tuesday, June 14, 2022
In a series of 70 experiments, 90% of the sales increase was because email coupons worked as effective ads and people bought other products, not because they used the special discount.
🎓 When to use slow vs fast ads
Tuesday, June 7, 2022
Ad speed influences which type of message works best. Slow ads work best to communicate benefits and quality. Fast ads are best for features and prices.
🎓 Use cold colors in B2B, warm colors in B2C
Tuesday, May 31, 2022
B2B social media images attract more positive engagement when they use cold, dark colors because they signal competence. Warm colors trigger emotions so they work better in B2C.
🎓 Clever humor boosts your brand
Tuesday, May 24, 2022
Clever and witty humor increases feelings of brand warmth and competence, and makes people more likely to engage with you. Generic humor doesn't work.
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