Online business is just as complex as any other, and there are costs involved. However, you can reduce eCommerce costs by paying attention to the things that cost the most in business. Often, this means finding ways to reduce unnecessary cash removal from your company funds.
Provide a Clear Statement Descriptor
When a customer uses a credit card to buy something from you, it will show up on their bill. Customers often ask for a refund from their bank if an item comes up that they don’t recognize. A chargeback will happen because of this. But you can protect your business from chargebacks by giving it a name that is easy for the customer to remember. If your goods are of a private nature, you should tell your customers what name will show up via email or a phone text.
Provide Honest Product Descriptions
To avoid getting fined, you must adequately represent everything about the products and services your company sells. A customer should always know exactly what he or she is paying for. If you don’t, you’ll end up costing your business more by giving back payments based on sales that were wrong. This can also make it harder to use a payment processor you know you can trust. There are strict rules about being honest about what you sell through eCommerce.
Reduce eCommerce Costs with Multiple Contacts
About 30% of the things people buy online are sent back. And most customers will contact you first if they need to return something. Customers can be reached through email, phone numbers, and social media profiles, which will make it easier for them. If you don’t give them a way to reach you, they may ask their bank for a refund. And your eCommerce business has to pay for this cost. So, you should try to find a solution that doesn’t cost you or them anything.
Be Vigilant About Fraud
Personal information and sensitive bank details are needed to handle transactions when shopping online. Because of this, online shopping is a perfect candidate for fraudsters. Any items that were bought through fraud will be returned. And if your site is not safe, the percentage is likely to be high. So, you should do everything you can to keep your customers safe. Geolocation, multi-factor authentication, and encrypted payment systems will help.
Stand Firm with Returns
You must also be clear, honest, and firm about your returns policy to prevent fraud. This leads to bank-issued refunds that cost you money. At the very minimum, your returns policy should stipulate a rational time frame for returns and the conditions of a return. For instance, a product may be broken because it wasn’t used correctly. You can’t prove this. But genuine customers will often accept a replacement or store credit rather than insisting on a full cash refund.
There are many costs involved in online business. You can reduce eCommerce costs by providing clear bank descriptions, multiple communication channels, and a solid returns policy.