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Reducing returns with AI: What retailers need to know


As the holiday shopping season approaches, retailers are preparing for the influx of returns that come with it. With Americans returning $260 billion worth of goods last year, it's important for retailers to find ways to reduce the number of returns and keep their profits high. One way to do that is by using artificial intelligence (AI) to better understand customer behavior. Interested in reducing returns? Read more to learn everything you need to know about using AI for returns reduction.


In e-commerce, returns are a necessary evil. They cost businesses time and money, and can be frustrating for customers. But why are returns so important to reduce? Here are a few reasons:


  1. Returns can eat into profits. Whenever a customer returns an item, the business has to process the return and give the customer a refund. This eats into the business's profits, and can even put them in the red if returns are high enough.
  2. Returns can damage items. If an item is returned too many times, it can become damaged and may even have to be discarded. This means that businesses have to replace returned items, which again costs them money.
  3. Returns can discourage customers from shopping with a business again. If a customer has a bad experience with returning an item, they may be less likely to shop with that business again in the future. This could lead to lost sales and revenue for the business.
  4. Returns can impact a business's reputation. Since customers often share their experiences with others, word can spread about a business's policy on returns. If customers feel that a business is too strict or unfair when it comes to returns, this could negatively impact the business's reputation.


Clearly, there are many good reasons to try to reduce the number of returns a business has to deal with. By taking some simple steps to streamline the return process and make it more customer-friendly, businesses can encourage shoppers to keep shopping with them, while also saving time and money on processing returns.


The increase in new technologies and artificial intelligence offers a solution to reduce returns. AI can help to identify trends in return behavior, which can then be used to adjust policies and procedures accordingly. For example, if AI detects that a certain type of product is being returned more frequently than others, e-commerce retailers can take steps to improve the quality of that product or offer discounts on it to encourage customers to keep it. 


If you’re an e-commerce business, the cost of returns is likely one of your biggest expenses. Not only do you lose the value of the returned product, but you also have to spend time and money processing the return and restocking the item. Luckily, there are ways to reduce returns using AI. In this blog, we’ve shown how machine learning can be used to identify factors that lead to returns and then predict which items are most likely to be returned. Want to learn more? Book a demo with our team today- help@smater.ai 


Predicting returns can help e-commerce businesses gain actionable insights to reduce returns and improve their bottom line. Returns are a major cost for e-commerce businesses, and they can eat into profits quickly. By predicting returns, businesses can take steps to reduce them. For example, they can improve their product descriptions and photos to better show what the product looks like, or they can offer free return shipping. They can also use data from past returns to predict which products are more likely to be returned and take steps to prevent those returns from happening. Predictive analytics is a powerful tool that e-commerce businesses can use to stay one step ahead of the competition and keep their bottom line healthy.


Returns are a necessary evil of e-commerce. On the one hand, you want customers to be happy with their purchases and feel confident about buying from your store. On the other hand, too many returns can eat into your profits and take up a lot of time and resources. So how can you strike the right balance? First, it's important to have a clear return policy that is prominently displayed on your website. This will set customer expectations and help to avoid any misunderstandings. Second, make sure that your products are well-described and photographed, so that customers know exactly what they're getting. Finally, try to offer incentives for customers to keep their purchases, such as free shipping or a discount on their next order. By taking these steps, you can minimize the impact of returns on your e-commerce business.


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