Reducing eCommerce returns with AI, artificial intelligence, is now possible. The return of a product by a buyer is indeed a problem for every merchant: incorrect handling of returns destroys value and becomes a cost for the company.
To put numbers on it, it is estimated that each package returned from home costs up to EUR 30 for retrieval and rework, plus, of course, the loss of the sale. Not to mention the fact that an unsatisfied customer is likely not to complete new purchases.
From a sustainability point of view, the returns also cost the environment about 15 million tonnes of CO₂ emissions.
That is why reducing the number of returns, and optimising their management when indispensable, is crucial for every eCommerce. Yes, but how? Artificial Intelligence can be of great help. In this article we find out how to reduce eCommerce returns with AI.
How to reduce eCommerce returns with AI
When it comes to eCommerce, it has to be said straight away, it is difficult to imagine being able to completely eliminate returns. Online shopping, in fact, by its very nature is much more prone to returns than traditional shopping. Trivially, because the buyer has no way of seeing, touching, trying on and evaluating a product until it has been delivered to him.
However, it is also possible to minimise the risk of returns thanks to new technologies, which allow customers to be more informed and aware of the products they purchase, even without having had the opportunity to see and try them first, and merchants to monitor and optimise their shipping processes.
So let’s find out how to reduce eCommerce returns with AI. Here are 4 practical and useful tips.
1. Use AI to analyse the causes of your returns
The causes that can generate in a buyer the choice to make a return can be many, and all very different, even depending on the product sector. For example, in the fashion sector (the one with the highest rate of returns), the purchase of a product in the wrong size is one of the most frequent causes of returns. But also an inadequate delivery service can generate dissatisfaction in the customer, and thus the choice to return what was previously purchased.
In short, the general rule also applies to the eCommerce world that the first step to solving a problem is to understand the problem. In other words, it is crucial to understand what causes your customers to return most frequently. AI can be of great help in this.
The implementation of artificial intelligence and data analysis tools can indeed help you identify the main causes of returns, classify them and, consequently, take preventive measures. For example, if an analysis of the reasons for returns in your eCommerce shows that most customers have to return a product because they got the wrong size, it is obvious that you need to improve the general information you provide about the product. In this way, you will reduce the risk of error on the part of the customer and thus also of returns.
On this, too, AI can help you. In the next section we explain how.
2. Optimise the product page with AI
As we have seen, a product page that contains clear, precise, detailed and comprehensive information about the characteristics of a product helps to reduce the risk of error on the part of a customer, and thus of return. What makes the difference, therefore, are the descriptive texts and images of your product.
But how to optimise texts? Thanks to NLP (Natural Language Processing) technology and machine learning algorithms, AI can help you generate or revise your texts in a matter of seconds, speeding up the conception and writing processes and producing more effective results.
AI copywriting platforms are now widespread and there are many of them, even some specifically for eCommerce texts, such as Describely.ai or Contents.com.
3. Offer assistance to your customers at the purchase stage thanks to AI chatbots
Another way to reduce eCommerce returns is certainly to offer your customers all the assistance they need during the purchase phase, i.e. to answer their doubts and questions about both the product and the purchase process itself. In short, a good customer care service that is always active and available to buyers makes all the difference.
Of course, imagining being available to your customers at all times to answer their questions can be complex and very expensive, which is why you can get help from AI. Indeed, chatbots can guide your customers in their purchasing choices, recommending the most suitable products and answering a potential buyer’s questions or doubts (yes, even during late-night shopping sessions).
Again, there are many companies offering this type of service, such as Responsa.ai, Crafter.ai or Gleen.ai, to name but a few.
Also not to be underestimated is the ability of AI to personalise communications based on the person with whom it interacts.
4. Monitor and optimise your shipping processes with predictive AI
The causes of returns, however, often do not only have to do with the products. The shipping service can also have a big impact on the number of your returns, for instance because the parcel is not handled properly and therefore the product arrives in the hands of the customer damaged, or more simply because the logistics service proved to be disappointing, inefficient, and therefore the dissatisfied customer decided to return the goods.
But how can AI help you monitor and optimise logistics processes?
First of all, AI can easily and quickly analyse historical data of your sales, market trends and customer behaviour to predict future demand and help you optimise your inventory. This way, you won’t find yourself in the situation of having to delay the delivery of an order because you ran out of a product (imagine if a customer orders a product because he has to give a gift, and the parcel is delivered too late. Yes, that is most likely a return).
But that’s not all, AI can also help you optimise delivery routes to ensure a more efficient logistics service that meets your customers’ expectations. Using advanced algorithms, AI can, in real time, optimise delivery routes by reducing transit – and therefore delivery – times and minimising the risk of damage to parcels.
What if AI is not enough?
As we have said, to completely zero the number of returns in an eCommerce is very complex, because the motivations and cases that can lead a customer to the decision to return a product are different, sometimes unpredictable. You may have done your best, even with the implementation of AI, but your customer may still decide to proceed with a return, simply because they no longer want that product. What to do in such cases?
Well, all that remains is to optimise the return process so that your customer can still have a positive experience and thus return to buy from your online store in the future.
In this case, you will be interested to know that we have the solution to this problem.
Optimising returns management with GEL Proximity
In fact, the Reverse solution designed by GEL Proximity allows you to manage returns quickly and easily via a customisable technology accessible to anyone from any device, thus offering the best return experience in Proximity, i.e. at Lockers and Pick-up Points.
You only need to activate your portal in the platform to start using the service without the need for integrations, or you can use the Reverse API to integrate GEL Proximity’s open source technology to your liking.
What are you waiting for, find out more about our Reverse solution now.
