Contributions to Profit Profit From Your Returns

4. Don't accept returns when you can accept exchanges. Customers return many items needlessly. Having spent much time in the fashion industry where more than 30 percent return rates are the norm, I know fit and color are among the top return reasons.

Ensure your customer service reps (CSRs) are trained in the art of turning returns into exchanges. Often this can be accomplished by simply having the CSR offer an exchange. The communication can be as simple as, "Ms. Jones, would you like us to ship you the item in a different size, color, etc.?" A CSR also can use his cross-selling skills by saying, "By the way, Ms. Jones, many of our customers who ordered item X also ordered item Y. Would you like us to send you that one instead?"