Although the dropshipping business is profitable in the hotsale season, the high refund exchange rates are the big headache for eCommerce sellers as it not only requires refunds to users, but also occurs high cost such as logistics costs, tariffs, and labor costs. According to statistics, the normal return rate of major e-commerce platforms is around 5% to 10%, and the return rate of fashion clothing is close to 20%. According to Guangzhou Customs, the value of SHEIN’s products returned to Guangzhou Nansha Bonded Warehouse in 2020 will reach 5 billion yuan, and in 2021 is expected to reach 7 billion yuan. (According to reports, SHEIN’s revenue in 2020 is close to 10 billion U.S. dollars, or about 65.3 billion RMB.) According to SHEIN’s return and exchange policy, according to its rules, buyers need to determine whether to return the goods within 30 days. The return cost afforded by the buyer, and tights, underwear, swimwear, jewelry, underwear, event and party supplies, DIY supplies, pet supplies, beauty and accessories, etc. do not support returns. As a Shopify dropshipper, to reduce refund exchange rates is to increase profits and user experience. How to reduce aftersale refund rates for Shopify dropshipping? We will list the main reasons for refund exchange and necessary measures to reduce refund exchange rates.
3 reasons caused high refund return rates for Shopify dropshipping
Before we find solutions to reduce refund exchange rates for Shopify dropshipping, we should list all the main reasons caused the aftersale.
Quality issue
The quality issue is one of the most reason clients ask for refund in the dropshipping business. The quality issue can be summerized into 3 aspects.
Firstly, the issue of the shelf life of commodities. In the entire online transaction process, there will be a time error between the shelf life of the product and the update of the detail page, which causes the shelf life information to not be updated and indicated in the detail page in time. The result is often the shelf life and description page of the product received by the customer There are discrepancies.
Secondly, the product material does not match the description or there is a color difference. Due to the reasons for the early picture processing, the characteristics of the description copy, and the buyer’s display, the goods received by the buyer do not match the expected value, and the value perception is misaligned, which will also lead to refunds, returns and exchanges.
Thirdly, the received product has stains or other flaws. In real work, even if the field inspection is rigorous, there will be some unexpected factors, and a certain probability of contamination problems may occur. Because of this situation, the rate of refunds and exchanges is extremely high. Refunds, returns and exchanges based on product quality issues, you need to maintain a good attitude, actively and enthusiastically negotiate with customers to solve the problem, but also pay attention to allowing customers to provide photos or other forms of proof. These are the key details to solve the after-sales problem.
Shipping delivery issue
That’s the mostly compliant by both clients and Shopify sellers for goods dropship from Aliexpress. Due to Aliexpress offers free shipping service which cannot guarantee the delivery time, sometime the orders delivered in 1 to 2 months.
In addition to slow delivery time, product broken, package lost, tracking havent update for long time also caused high refund rates.
Subjective reasons
In addition to dissatisfaction with the logistics and the product itself, there are also some customer’s subjective judgments that can also cause refunds and return problems, such as dissatisfaction with the service attitude of the customer service staff during the transaction, dislike of the goods received, and the wrong items bought. When encountering these problems, what we can do is to guide consumers to clarify the facts, and to guide customers to exchange or transfer products from the perspective of refunds and returns, thereby reducing the rate of refunds and returns.
In addition to the above 3 reasons, the payment way you used for transaction also caused high refund rates， let’s take paypal for example, the commonly refund reasons are:
1> Billing address is the same with shipping address;
2>Unauthorized payment;
3>Products received doesnt match with description;
4> Havent received products.
Before we start Shopify dropshipping, we will need to make an aftersale policy.
Return refund procedure for Shopify dropshipping
As Shopify sellers the goods return mainly connected with supplier warehouse or agent warehouse as seldomly dropshippers accept returns themselves. Usually there are 3 kinds of return packages:
1> Client return package: mainly because of the quality, flaws or damage of the product;
2>Delivery failed package: courier company deliver failed several times due to the address problem;
3> Refused package: client refuse to sign package due to tax or other issues.
Return procedure can be listed as follow:
How to make aftersale refund policy for Shopify dropshipping
Seldomly clients check the aftersale policy when placing order on Shopify. However, you need to list the refund policy on the store to educate the clients based on the products you sell. Different stores might have different aftersale policy, all made to provide better user experience and focus on the solutions for the refund.
1> Quality issue. The clients could take photos on the flaws for customer service confirm, then customer service decide refund or reship, the timeframe should be around 1 week after the package signed;
2>Product doesnt match. Shipped wrong products, wrong size, color etc. The clients take a photo to confirm with customer serivce for reshipment;
3>Delivery issue. Shipping delay, tracking update, package broken, package lost, package delivered wrong person, havent received package, after customer service confirmed reship with new one or refund or provide some coupons based on different situations to satisfy clients;
4>Subjective reasons. Clients received the goods and dislike it, how to return and refund time all need to clearly listed in the aftersale policy.
5>Shipping cost. It is easy to judge, if seller problem they will afford shipping cost, if client subjective reason, the clients afford shipping cost, you can provide some coupons for 2nd purchase.
Of course, there are also other reasons cause aftersale refund, the aftersale policy can be up to date based on different situations, but the ultimate goal is to make the clients satisfied with refund, coupons, free shipping as well as other methods.
In addition to personalized aftersale policy, apply 3rd party dropshipping service is also a very good way to reduce aftersale refund and help you provide better user experience for dropshipping.
How to reduce aftersale refund rates by dropshipping agent service
The professional dropshipping agent service could help you reduce the aftersale refund rates and improve user experience in the following services:
Sourcing. ShipAnt could help you source dropshipping suppliers with high quality goods at reasonable price, it is the foundation to reduce aftersale rates caused by product quality.
Quality check. ShipAnt warehouse will check the product quality, workmanship, color, size to match the orders, flaw products, broken products will be pick out for return and exchange directly from China, all the product will be repacked to meet the quality standard;
Unlify packaging. ShipAnt will help you remove the chinese label, supplier promotional coupon card, flyer and repack with plain plastic bags, if you have customize label, logo or packaging, we can help you repack with private label packaging to ship from China, it will help you improve the user experience and bring up user loyalty;
Consolidate packing. ShipAnt warehouse will help you consolidate multiple items from multiple vendors into one package, and strengthen packaging in case products being damaged during international shipping.
Stable and fast delivery. Unlike Aliexpress standard shipping takes 1 to 2 months delivery. ShipAnt applied more stable and fast delivery service for packages shipping from China to US EU countries, it usally takes 5 to 15 days which also could help you reduce refund rates caused by the long delivery time.
Fast respond. ShipAnt communicate with Shopifys seller in skype group or wechat group to process orders, tracking package fastly, it could help to improve better user experience.
Furthermore, ShipAnt provides personalized dropshipping service based on different product categories, for example, if you are dropship men women clothing from China, you can take a look
ShipAnt Men Women clothing dropshipping service
ShipAnt all in one dropshipping service could help you greatly imporve user experience and reduce aftersale refund rates for Shopify dropshipping.
Product was shipped but customer never received. Please advice.
It does happen these days due to few reasons, the first one is the shipping address wrong, the second one might be delivery guy left in front of the yard or other place, the third one might be lost during shipping. There are a few tips for you, when clients place order on your store, ask them put the phone number; choose register mail service which has tracking number to track the delivery route, if the clients havent received package they can track the package, when the courier deliver they will need clients to sign the package, once client report package not receive you can confirm with courier to ask them provide the package signature or proof.