13 Oct Typical Return Rates for E-Commerce Companies
E-commerce stores have no option but to use payment processors in order to get the money that they are owed from their customers. Considering the fact that the stores are online, there is no other way to get money from one party to the other. Merchant accounts are set up in order to allow for the transfer of money from the accounts of customers to the accounts that are controlled by the businesses. This is something that has to be created ahead of time in order to get the results that you are trying to accomplish from having electronic payment acceptance.
The fact of the matter for most is that having a payment processor is the way that they make money. However, they are also worried about other things that have to do with their e-Commerce store. For example, they probably wonder what kind of return rates they are going to get from customers. Are those customers constantly going to send their items back for a refund? Believe it or not, this is considered to be very unlikely. The return rates at even some of the most return friendly online stores is very low.
Zappos was one online store that was looked at to see what the return rates were sitting at. The percentage was around 25%, and they are among some of the most encouraging in terms of trying to allow their customers to return the items that they buy. They make it incredibly easy for customers to do exactly that, and yet they are still only seeing a 25% return rate from those same customers. It is great to see that even when they make it simple, the amount of people who are returning their items remains low. They are happy with what they have received, and they are not sending back their items too frequently.
Those who are starting their own business online need to consider things like their payment processors and the merchant account that they have worked to set up. However, stressing out about return rates and the like is probably not as good of a use of one’s time. These rates are just very low.