Nobody in ecommerce like returns. Rather than focusing solely on minimizing returns though, many merchants are developing strategies to encourage customers to choose alternatives to returning items. These alternatives not only reduce the burden of returns on the business but also help retain customers, build brand loyalty, and improve overall customer satisfaction.

Here we will explore several strategies that e-commerce merchants can use to offer alternatives to returns, keeping customers happy while minimizing the costs and logistics associated with product returns.

Encourage Exchanges Instead of Returns

One of the most straightforward alternatives to a return is offering customers the option to exchange the product for a different size, color, or model. This keeps the sale within your business while satisfying the customer’s needs.

How to Encourage Exchanges:

• Easy and Free Exchanges: Make it simple and hassle-free for customers to exchange items. Offering free shipping on exchanges can encourage them to swap the item instead of sending it back for a refund.
• Automated Exchange Process: Use an automated system to streamline the exchange process. Tools like Corso allow customers to select a new product for exchange quickly, reducing friction in the process.
• Instant Exchanges: Some return platforms offer “instant exchanges,” where customers can immediately receive their replacement item without having to wait for their original item to be returned and processed. This speeds up the process and increases the likelihood of an exchange.

Offer Store Credit Instead of Refunds

Providing store credit as an alternative to a cash refund can be an effective way to keep customers engaged with your brand and encourage future purchases. Store credit reduces the chance of lost revenue while offering flexibility to customers.

How to Make Store Credit Attractive:

• Offer Bonus Credit: Give customers extra value by offering a small percentage more in store credit compared to the refund amount (e.g., offering $110 in credit for a $100 refund). This incentivizes customers to choose credit over cash.
• Highlight the Benefits: Make sure customers are aware that store credit doesn’t expire or can be used during upcoming sales. Highlight any rewards programs that allow them to stack credits with discounts.
• Quick Turnaround: Ensure that store credit is issued immediately upon initiating the return, allowing customers to shop for a replacement product right away.

Provide Partial Refunds for Defective or Unwanted Items

Instead of requiring customers to return an item due to minor defects or dissatisfaction, offer a partial refund or discount. This is especially useful for items with cosmetic flaws or products that a customer may not want to fully return but also isn’t entirely happy with.

Benefits of Partial Refunds:

• Keeps Customers Happy: A partial refund acknowledges the customer’s concern while allowing them to keep the item and avoid the hassle of returns.
• Reduces Return Costs: Partial refunds save on return shipping costs and restocking fees, especially for bulky or fragile items that are expensive to process.
• Environmentally Friendly: Customers may be more willing to accept a partial refund if they are made aware of the environmental impact of returns, such as carbon emissions from shipping and the potential waste created by returned products.

Offer Personalized Solutions Through Customer Service

Sometimes customers initiate a return because they’re unsure how to use a product or feel dissatisfied with their purchase. Offering personalized customer service can help resolve these issues and encourage customers to keep the product.

How to Provide Helpful Alternatives:

• Post-Purchase Support: Implement a follow-up process where you reach out to customers after they receive their order to offer assistance, tips, or tutorials for using the product. This reduces returns due to confusion or dissatisfaction.
• Live Chat or AI Chatbots: Provide a live chat option or use AI chatbots to help customers solve common problems in real time. If a customer is trying to return an item due to a misunderstanding, quick support can address their concerns and offer alternatives.
• Offer Discounts or Store Credit: If a customer expresses dissatisfaction with an item but doesn’t want to go through the hassle of returning it, offer them a discount on a future purchase or provide store credit as a gesture of goodwill.

Incentivize Customers to Keep the Product

Rather than going through the return process, offer customers a discount or coupon as an incentive to keep the item. This works particularly well for non-defective items that don’t need to be resold.

How to Offer Keep-The-Item Incentives:

• Offer a Discount: Provide a discount on the current item if the customer is willing to keep it. For example, if a customer is unsatisfied with a product but it isn’t defective, offering a 20% discount on the item might convince them to keep it instead of returning it.
• Reward Points or Store Credit: Offer reward points that can be used toward a future purchase. This not only keeps the customer from returning the item but also increases their likelihood of shopping with you again.
• Highlight Sustainability: Emphasize the environmental impact of keeping the product rather than returning it. This can appeal to eco-conscious customers who might be on the fence about returning an item.

Offer “Try Before You Buy” Programs

A “try before you buy” program allows customers to try products at home before committing to a purchase. This method can reduce returns because customers are more confident about their purchase decisions after physically experiencing the product.

How Try Before You Buy Works:

• Home Trials for Select Products: Allow customers to try certain products, such as clothing, shoes, or electronics, for a limited period before deciding to keep or return them. By offering a trial period, customers are more likely to only keep items they truly want.
• Charge After the Trial Period: Instead of charging customers upfront, hold the payment until after the trial period expires. This gives them confidence in their purchase and reduces the chances of a return.
• Personalized Styling or Product Recommendations: For apparel or home decor, consider offering personalized shopping experiences where customers can select multiple items to try at home. This builds trust and reduces impulse returns.

Highlight Your Exchange and Return Policies at Checkout

Making customers aware of their options before completing a purchase can help guide them toward alternatives to returns. By clearly displaying exchange options or offering store credit incentives upfront, you can reduce the likelihood of immediate returns.

Checkout Reminders:

• Display Exchange Offers: Highlight the ease of exchanging products during the checkout process, so customers know they have options if they’re unsure about their purchase.
• Show Store Credit Incentives: Provide a prompt that informs customers about store credit bonuses if they choose credit over a refund. Offering this information before purchase can reduce return rates by setting expectations.
• Highlight Restocking Fees: If applicable, gently remind customers of any restocking fees for returns to encourage them to consider other alternatives like exchanges or store credit.

Conclusion

Encouraging alternatives to returns benefits both e-commerce merchants and customers. By offering solutions such as exchanges, store credit, partial refunds, and personalized customer support, merchants can reduce the financial and logistical burden of returns while maintaining customer satisfaction. Additionally, using strategies like “try before you buy” programs, highlighting return policies at checkout, and incentivizing customers to keep products are effective ways to reduce return rates. Ultimately, providing multiple options and clear communication is key to disincentivizing returns and building long-term customer loyalty.

• Post-purchase strategies for customer retention
• How to Design and Implement a Loyalty Program
• Increasing Retention Through Customer Feedback
• Gamification for Customer Retention

• Tracking Page Strategies
• Optimizing Your Returns Landing Page

• Balancing Costs and Customer Experience With Return Fees
• Improving Customer LTV Post-Purchase
• Marketing to Existing Customers