How to Lower Your Amazon Return Rate

Every sale you make is a win—or so it seems at first. But sometimes the sale you celebrate today will turn into tomorrow’s headache: a return. You can’t avoid returns completely, but you can take steps to lower your Amazon return rate and reduce some of the stress that goes with selling items online.

7 Strategies to Reduce Your Amazon Return Rate

Lowering your Amazon return rate means saving money, reducing your workload, and having fewer account health issues. Here are a few strategies to help you out.

1) Write Detailed Product Descriptions

Every time customers place an online order, they’re taking a risk. Without a way to see the item in person first, they have to trust what the listing says about it. Do your best to include as much detailed information as you can in your product description. Include anything likely to impact a customer’s satisfaction with your product: sizing information, dimensions, what materials the item is made of, ingredients it includes, other products it’s compatible with, etc.

You want your content to come as close as possible to replicating what a customer would be able to learn about the product in person. When they know what they’re getting before they order, they’re less likely to be disappointed with what arrives.

According to a survey by the National Retail Federation and Appriss Retail, a record $761 billion of merchandise was returned to online retailers in 2021.

2) Include Multiple High-Quality Images

The product description can cover a lot of valuable territory, but the visual component of your product listing is arguably even more important. Humans are very visual creatures, and the product photos you include are often the only way a customer can see the product before they purchase, so make the most of them.

Invest in high-quality photography, including 360-degree images that give customers a complete view of the product. Provide photos that show your product at different angles, and include images of how different versions of it look (such as different colors or sizes). If relevant, consider adding a photo or two of your product in action. If your dog bed is pictured with a Yorkie sleeping peacefully on it and your clothing items are shown being worn by models, it helps people envision the products in their own lives.

3) Create Product Videos

Product videos go one step further in helping customers see what your product looks like in action. Making high-quality videos is more affordable than it used to be, and they’re a great feature to make your case to buyers about the product’s value. Make sure any videos you create follow all of the Amazon video guidelines and provide customers with an accurate portrayal of your products.

Amazon has said that 73% of US adults are more likely to make a purchase after watching a product video.

4) Monitor Your Reviews

If you want to know how to reduce returns on Amazon, this is an obvious place to look. While some returns happen because customers simply changed their minds, most returns take place because a customer is unhappy with the product that was received. To avoid this, you need to understand what your customers do and don’t like about your product. The best way to learn what customers are thinking is by paying close attention to your product reviews.

Monitoring your reviews with software like FeedbackFive helps you to catch any issues customers have with your products quickly so you can fix them or update your listing to account for any misinformation.

When you understand the reasons people have for not being 100% satisfied with your product, you can be more proactive in addressing those issues to avoid future dissatisfaction (and returns!).

5) Use Proper Packaging

You can send a product off in top-notch condition and still end up with a return due to defective packaging. A product that isn’t packaged properly—especially if the product itself is particularly fragile—can get damaged in transit. To reduce how often you get returns due to packaging issues, invest in packaging materials that work well for the products you’re sending.

6) Be Easy to Reach

Some returns can be avoided if the customer simply knows who to reach out to with questions. If they can find out whether or not a product will meet their needs before they buy, they’re less likely to end up sending it back. Or, if they can reach someone with troubleshooting questions when a product doesn’t work quite right out of the box, they’re more likely to get it working and keep it.

Customers usually view returns as a hassle, too. They’d almost always prefer to keep and enjoy the item if they can get it to do what they bought it for. If you’re ready with an answer right when they need it, you can help them through any issues that would otherwise turn into returns.

You can accomplish this by answering customer questions on your product listing and being responsive whenever a customer contacts you on any of Amazon's other communication channels.

7) Learn from Every Return

Every return is a learning opportunity. Pay attention to the reasons customers give for their returns. Sometimes the cause will be something outside of your control. There will always be customers that just won’t know whether or not they like an item until they receive it in person. But oftentimes, the reason for the return will be something that you can improve upon.

For example, if you’re receiving a lot of returns on clothing items that don’t fit right, it may be time to revisit your sizing guide. If a lot of items are getting damaged in transit, you know it's time to invest in better packaging. Make a note of all the feedback you get and act on it! If you don't, you may end up with Amazon's "frequently returned item" tag that now acts as a warning label.

Related reading: Amazon Seller Reputation KPIs: What to Watch

How to Check Your Amazon Return Rate

As you embark on the goal of reducing your Amazon return rate, you’ll need a way to periodically check on your performance.

Here are a couple of ways to check your Amazon return rate:

1. To find your overall refund rate, log into Seller Central and click on the Reports tab. Select Business reports > Seller Performance to see the refund rate for your Amazon seller account. You can filter the data by day, week, or month and zoom in for a 7-day, 1-month, 3-month, 6-month, 1-year, and 2-year view.
2. To find your FBA return rate, start in the Reports tab, then click Fulfillment in the dropdown menu. Look for the Customer Concessions section on the left-hand side and click on the FBA customer returns report. These are all the returns that have been received at one of Amazon's fulfillment centers. Add in your product data to narrow in on a certain product or simply select a date range or event date for a broader view.
   
3. Use Amazon's Returns Performance dashboard. Launched in 2021, this tool helps sellers who manually manage their Amazon returns. The dashboard provides valuable info on three key performance metrics: return requests approved in more than 24 hours, return requests declined, and return-related buyer contact rate. You'll be able to compare your current performance with Amazon's target threshold. You can see a summary of your returns performance metrics on the Manage Returns page.

Do What You Can to Make Your Sales Stick

Reducing your Amazon return rate is not only great for your business, but it also creates a better experience for customers.

When the item they receive is just what they wanted, everyone wins. By setting accurate expectations and ensuring customers receive products in good condition, you can make more sales that stay sales.