While the BFCM and holiday season is the peak time for Shopify stores to make sales, they’re also the one time they struggle with maximum returns on purchases. But what if we said if you have a mobile app for your brand, you can manage and even reduce Shopify returns during this period?
In this post, we share different ways in which you can manage and reduce Shopify returns during the peak sales period.
Status quo of returns and refunds during BFCM and holiday sales
Shopify stores put forward the best of deals and discounts during the peak sales period. But the rushed shopping during the time has led to several industries experiencing higher return rates.
Here are the key takeaways from the eCommerce returns report:
- eCommerce returns increased by 15% year-over-year during the 2023 peak season.
- December experiences the largest monthly volume of product returns.
- Retailers offering flexible return policies saw a 30% boost in revenue retention.
- Merchants utilizing automation cut their returns processing time by 31% to 100%.
But increased returns isn’t the only problem. Here’s how it impacts Shopify store growth during BFCM and the holiday season:
- Lost revenue: Product returns reverse sales, reducing previously recognized revenue.
- Increased costs: Returns incur costs for inspection, restocking, discounting, shipping, and handling.
- Environmental impact: Returns contribute to resource waste, increased emissions, and inefficient reverse logistics.
- Skewed metrics: High return rates distort key metrics like net sales, customer lifetime value, and acquisition costs.
While most Shopify stores have a return and refund policy created, and an automation set up, they’re actually missing out on leveraging their mobile app to address the problem.
How can you manage returns on Shopify during BFCM and holiday season with an app
Here’s how brands with an Appbrew app manage returns on Shopify during the peak season, leveraging the best of AppCommerce:
1. Keep customers engaged with push notifications
You can automate app push notifications during BFCM and holiday season for the following to manage returns on Shopify:
- Order confirmation and delivery updates - Send real-time updates on orders to keep customers informed. This includes order status, delivery timelines and shipping details. This reduces the post-purchase anxiety on delayed orders, preventing returns due to missed expectations.
- Product information/ usage time - Use app push notifications to send helpful tips on how to use the purchased product effectively. This can help reduce returns due to confusion or dissatisfaction with the product received.
- Return and exchange reminders - Send gentle reminders about your easy exchange policy or suggest alternatives to requesting returns and refunds. This can help manage returns on Shopify by simply securing the sale.
- Targeted promotions - Send app-specific promotions that encourage keeping the products. This includes offering additional discounts on related purchases.
2. Run app-specific promotions and rewards
Another way to manage returns on Shopify is to run custom promotions on your mobile app to hook consumer interest.
- Exclusive app-only deals - Run app-exclusive promotions to boost customer engagement. You can also offer wards to loyal app users and include deals on products with historically low return rates. This can help reduce returns during the BFCM and the holiday season.
- Incentivize reviews and ratings - Offer rewards or loyalty points to customers for rating and reviewing the delivered products within the app. Clearly communicate how once rated, the product cannot be returned - this promotes making informed purchase decisions.
- Post-purchase rewards - Offer additional rewards to customers who do not return products within a certain period of time from the purchase. These can be discounts on future purchases or free shipping on the next purchase.
- App-exclusive bundles - Create custom product bundles or kits for the sale season. Customers are less likely to return bundled products.
3. Share how-to guides and tutorials post-purchase
Another way to manage returns on Shopify is to ensure customers are making the most of the purchases they make during the sale. Here are some ways to do so:
- In-app content - Include blogs, video tutorials, step-by-step instructions, lookbooks and FAQs to offer post-purchase assistance. This can also include influencer collaborations or user generated content.
- How-to push notifications - Personalize push notifications linking to in-app guides or videos on using the product properly.
4. Collaborate with influencers for in-app content
About 49% of all consumers make daily, weekly or monthly purchases because of influencer posts. You can use the strategy within the app as well during the BFCM and holiday season sale.
- Influencer product content - Partner with influencers to create video guides or reviews for popular products. These videos could demonstrate how to use, style or care for products, addressing common questions. But ensure that you feature influencers that your target audience relates to.
- In-app influencer livestreams - Host in-app livestream events to showcase popular holiday products, provide styling tips or even host an AMA. This can help shoppers make more confident purchases, leading to lower Shopify returns.
5. Engage customers with personalized promotions
To manage returns on Shopify, it’s also important to keep customers engaged before, during and after the purchase. Here are some ways to personalize the same:
- AI-driven product recommendations - Suggest complementary products based on purchase history. This can help reduce the returns by promoting what they’re more likely to love.
- Bundle incentives - Offer post-purchase bundle promotions by including products that complement the purchase made. Bundling items can increase the perceived value of the purchase and reduce Shopify returns.
- Next purchase discounts - Share exclusive discounts or credits for future purchases to customers who don’t return products. This also helps increase repeat purchases once the sale season is over.
6. Set up a flexible return and exchange policies
Don’t let customers feel stuck with the purchases they have made during the peak sale season. This can help with a better customer experience and also reduce returns.
- Easy in-app exchanges - Enable an easy in-app exchange process for customers. Suggest choosing alternative product variants or credits to order another product instead of seeking a full return.
- Easy returns - Help customers request returns easily for products purchased. But ensure you don’t let the purchase hamper their experience with the brand. Nudge them with product recommendations or credits to avoid negative reviews as they can slow down your sales.
- Extended return policies - Offer extended return periods during the BFCM and holiday season. Ensure customers are incentivised to keep the products with exclusive rewards and deals.
7. Use data to understand and reduce returns
Make the most of shopper data to identify patterns on return and refund requests.
- Track and analyze recurring behavior - Use in-app analytics to identify which products are returned frequently and why. Optimize product descriptions, images, sizing, recommendations, FAQs and other additional insights.
- Targeted push notifications for risky products - Offer additional information or shopping assistance on items with high return rates before a consumer makes the purchase.
Manage returns on Shopify effectively with Appbrew
While everyone is focusing on running promotions during the sale season, we recommend securing your revenue too.
Through features like app-specific promotions, automated push notifications, video commerce and integration with return management solutions like ClickPost, Appbrew has proven to help brands manage and reduce returns on Shopify more effectively.
Set up your BFCM and holiday season strategy on Appbrew today.