The Impact of Amazon Products Labeled with High Return Tags and Analysis of Return Tag Standards

What happens when Amazon products are labeled with a high return tag? What are the standards for labeling high-return products?

Recently, some products on the Amazon website have been marked due to their high return rates, which has caused many merchants to strongly oppose such labels. An undeniable phenomenon is that the rise of online shopping has greatly reduced transaction costs and promoted cross-regional commodity circulation, becoming the profit support point for e-commerce enterprises. In this new blue ocean of virtual markets, for those merchants who have passed third-party strict reviews and joined the network, it is actually easier to attach a high or low return rate label to their goods or services. Who can truly feel secure? In fact, there is a digital standard that has become a focus of attention and warning the single return rate equals the ratio of total transactions to the number of transactions where returns have been requested. Some companies set this standard at 5%-10%, while others set it at 15%-20%. A high single return rate may lead to credibility crises among consumers and face restrictions from the platform, as well as a drop in product search rankings. Therefore, merchants should pay attention to the problems behind high return rates.

Currently, the first response of various e-commerce companies is to require good collaboration between their logistics and after-sales services. When consumers encounter problems after online shopping and need to request returns or exchanges, the priority should be to resolve conflicts rather than simply replace the products. Timely repairs and upgrades should be provided, along with other compensatory measures such as offering better products or services to minimize the impact. Through these effective methods, they aim to improve trust between the platform and consumers. Because the goal of merchants should be to achieve 7 parts profit and 3 parts service; without good after-sales service and sales support, it's easy to encounter situations where sales are good but normal delivery cannot be ensured. Selling products merely as brands can control channels but focusing all efforts on squeezing money out of secondand third-tier distributors will eventually lead to a decline in one’s own volume, creating inventory pressure and risks; building strong channels requires not only skills and ideas for developing and managing products but also the soft skills of maintaining corporate image and sales!

Currently, products defined by the Amazon platform as having high return rates are mostly new electronic products and those related to cultural consumption, consulting services, offline experiences, and standardized delivery services. The return rate of new electronic products is indeed relatively high, which is related to the technical content of the products themselves and consumer usage habits. Other offline services like cultural consumption and consulting also carry the possibility of returns. For these high-return-rate products, merchants should actively take measures to solve consumer issues, such as providing better after-sales services and strengthening cooperation with logistics companies. At the same time, merchants should also strengthen quality control and management of the products, improving product quality and after-sales service levels to reduce return rates.

In summary, for products with high return rates, merchants should attach importance to the underlying problems, actively take measures to solve consumer issues, and enhance their own sales and management capabilities, improving product quality and after-sales service levels. Only then can merchants seize more business opportunities and profits in the fiercely competitive market.