30 times fewer returns

Denis owns a regular online store where you could pay for goods after delivery to the nearest post office.

The problem was that 30-50% of returns are goods. The most popular reasons for that was “I changed my mind”, “I’ve already bought this elsewhere”, “I forgot”, “I don’t have time now to go to the post office”, …

Denis managed to reduce this figure to 1% – this is 30-50 times less.

How?

1. He divided clients into 2 groups: returning and new.

2. For his returning clients, he delivered goods as usual without any upfront payment.

3. New clients were asked to make a minimum payment (~$4). This minimum amount increased their level of responsibility, and as a result, the number of returns were reduced from 30-50% to 1%.