In this world of technological revolution the e-commerce business is on its brightest star, According to the information given on retail e-commerce sales in worldwide, in 2017 e-commerce sales worldwide amounted to 2.3 trillion US dollars and e-retail revenues are projected to grow to 4.88 trillion US dollars in 2021 but this is not the position of every e-commerce industry. Some small even big e-commerce industry also faces so many problems and they also not consistently making money. Developing an e-commerce business is not an easy task, they face so many challenges. There are so many competitors and you alone have to take part in website maintenance and customer satisfaction. Return policies in e-commerce business also a part of customer satisfaction due to which the e-commerce merchant account services lead to a loss.
Only the 8% return by the customers is equal to the $260 billion worth for the merchandise. Everyone isn’t able to see the money ( and time) loss from accepting return and get it back in the inventory and that $260 billion worth is excluded from that loss. To reduce this burden, a merchant start taking strict returns policies and the customer only wants their money back so they use some either way to get their money back but they don’t even have any idea about the loss faced by the merchant. So to avoid these losses the merchants have to be clear about their return policies in advance. In the Clothing Industry most of the time we find that there is some difference in the size of different brands and by that the customer chooses their size and then return the clothes. This return practices especially happen with cloth retailer and women also plays a very important role in it. For example, a woman chooses a dress and then after some time she also looks for another dress and then she decided to order both the dresses and after trying both she kept the best one and return the next one but what about the loss faced by the merchant. This is not only the loss of money for them there is also so many other things which creates a problem for the merchant.
Now if you made your return policies strict then due to some reason it will turn into the chargeback frauds. The strict return back policies are not praised by the customers. Nobody wants to deal with the chargeback frauds so, that’s really very important to clear with the return policies. Clear return policies are the key to fewer conflicts and also save you from the future chargeback fraud.
A strict return policy not only leads to loss of e-commerce merchant services but also damage your brand image and reputation.
Today fraudulent chargebacks represent the customer disputes with merchants, but just because the reason chargeback is coded with a fraud or no authorization reason code does not mean true fraud has actually taken place. There are some ways by which you can protect yourself from these types of frauds:
There is something about 71% of loses come from chargeback fraud and the remaining 29% from true fraud accounts. Fortunately, by submitting a response to chargebacks coded as fraud, you will get the transaction value back.
If you are looking for a reliable merchant account provider, you are in the right place, as IPAYTOTAL provides the best solutions for e-commerce businesses. We guaranty quick real-time credit card processing, top-notch services and at reasonable rates. Give us a call at +44 800 776 5988 or get in touch with us through our website.