Costs of Shopify Returns

Shopify Returns

At ReverseLogix, we’re proud to provide your business with the most comprehensive returns management software and solutions. Our RMA application has saved numerous businesses huge sums in both customer retention and back-end areas, and we’re happy to do the same for you.

One of our largest single areas when it comes to returns is the e-commerce world, and a big player here is Shopify within the world of retailers. Shopify returns and exchanges often feel like they can’t be controlled by you as a retailer, but in reality, you have a lot of power over the magnitude and impact of returns and exchanges. With that in mind, we’ll start this multi-part blog off with a quick investigation into some of the basic costs that come with Shopify returns – here are some of the most immediate potential harm areas these returns present to your business if you don’t have good returns management programs in place.

Simple Refund Costs

First and foremost, the simplest loss you see in a Shopify return is the cost of the refund you have to give to your customer. But know that this isn’t only about the exact dollar figure – if you have subpar returns processes that make the experience a negative one for your customer, there’s a higher chance they’ll be unhappy, which can cost you in other ways.

Product Disposition Costs

When a given product is returned to a business, it goes through a basic inspection process before being placed into a category. These categories might include resale, liquidation or various options in between. But each of these comes with some kind of loss; when products are liquidated, for example, they are generally re-sold for far less than their original price, which costs you.

Shipping Costs

Especially if you offer free shipping, the potential for losses through mass returns is large. You’re investing in the customer ahead of time by offering this kind of thing, but if your product isn’t good enough to keep them interested, this is a wasted investment to some degree.

In part two of this blog, we’ll look at the issues that stem from these costs, and how a smart returns management system like ours can help you avoid these issues. For more on this or any of our services, speak to the pros at ReverseLogix today.