In the highly competitive world of online marketplaces, platforms use customer-friendly policies like free shipping, easy returns, and guaranteed refunds to attract shoppers. While these policies improve the shopping experience, they present challenges for sellers, such as financial strain and complex operations.
A 2022 study by Appriss Retail and the National Retail Federation revealed that U.S. retailers faced $816 billion in losses due to product returns. For every $100 in returned items, about 10% is lost to return fraud. These returns, whether justified or not, significantly cut into profit margins, especially for small businesses with limited resources. The expenses related to inspecting, refurbishing, and restocking returned products can quickly erode profits.
Beyond revenue loss, sellers also risk losing inventory. Over 40% of Amazon returns are unsellable, leading to substantial losses and harmful to the environment. Many returns happen because products don’t meet buyers’ expectations, often due to unclear descriptions. According to a 2022 Narvar survey, 45% of consumers cited poor fit and size as their reason for returning purchases.
To help your buyers make informed decisions and minimize the likelihood of returns, it is essential to include accurate and comprehensive details in your product descriptions. This should encompass dimensions, weight, size charts, materials, warranty information, and usage instructions. Additionally, providing high-quality images that showcase the product from multiple angles and highlight its features can significantly enhance the buyer’s understanding of the product.
Often, discrepancies between the manufacturer’s description and the actual product can mislead sellers into posting incorrect information on their websites. This can result in customer dissatisfaction and increased return rates. Therefore, implementing a pre-shipment inspection is crucial. This process ensures that the product matches the provided descriptions and specifications, thereby preventing such issues and ensuring that the information presented to buyers is accurate and reliable.
Benefits of Quality Control in your eCommerce Business
Conducting total quality check of product at the factory is one of the most effective and cost-saving measures to prevent product returns. By inspecting products thoroughly before they are shipped to Amazon warehouses, businesses can identify and rectify any defects or misinformation early in the process. This proactive approach ensures that only high-quality products reach the customers, thereby reducing the likelihood of returns and enhancing customer satisfaction.
Preventing Product Defects and Misinformation
A comprehensive quality check at the factory allows businesses to catch all product defects and misinformation before they even leave the production site. This includes checking for any manufacturing flaws, incorrect labeling, or packaging issues. By addressing these problems at the source, businesses can avoid the costs and complications associated with handling returns and refunds once the products are in the market.
Immediate Fixes and Convenience
One of the significant advantages of conducting quality checks at the factory is the ability to fix issues immediately without compensating your marketing time or the best selling time in festivals. If any defects or discrepancies are found, they can be corrected on the spot. This not only saves time but also provides convenience, as it eliminates the cost of handling return, replacement and refund.
Enhancing Customer Satisfaction
Quality assurance for exports is vital for maintaining customer satisfaction. When customers receive products that meet their expectations and are free from defects, they are more likely to trust the brand and make repeat purchases. This positive experience can lead to higher customer loyalty and better reviews, which are essential for the success of any eCommerce business.
Closed loop pre-shipment Inspections
Pre-shipment inspection is not a one-time action. It should be an integral part of your continuous quality process. Feedback, reasons for returns, data from Amazon’s Returns Analysis tool, replacements, and refunds should all serve as checkpoints for your next pre-shipment inspection. This ongoing process is the foundation for positive product reviews and a successful online business.
How do you do a successful product inspection?
To conduct a successful product quality check, here are the detailed steps to achieve this:
1. Establish Clear Communication and Understanding with the Factory
The first step in conducting a successful product inspection is to establish a common understanding and good communication with the factory. Both parties need to clearly understand the acceptance criteria for the production batch. This involves defining how to sample products, what tools and measurements to use, and what constitutes a good quality product.
Define Acceptance Criteria: Clearly outline the acceptance criteria or acceptable defect rate. This includes specifying the types of defects that are acceptable and those that are not. For example, minor cosmetic defects might be acceptable, but functional defects are not.
Open Communication: Maintain open communication with the factory to ensure they understand what you consider a good product for your market. This helps in aligning their production processes with your quality expectations. Regular meetings and updates can help in keeping both parties on the same page.
2. Utilize Statistical Methods for Sampling
Using statistical methods like ISO 2859-1 or MIL-STD-105 is essential for selecting representative cartons and samples randomly. These methods provide a standardized approach to sampling, ensuring that the inspection findings are statistically valid and reliable.
Random Sampling: Select samples randomly from the production batch to avoid any bias. This ensures that the samples are representative of the entire batch and that the inspection findings are accurate.
Sample Size: Determine the appropriate sample size based on the batch size and the acceptable quality level (AQL). The AQL defines the maximum number of defective items that can be considered acceptable during the random sampling of an inspection.
3. Review Design and Product Specifications
Reviewing the design and product specifications is a critical step in the inspection process. This involves comparing the products against the approved sample for mass production or the digital information/documents provided to the factory.
Check Packaging Dimensions and Weight: For eCommerce businesses, especially those using Amazon warehouses, it is crucial to check the packaging dimensions and weight. Amazon has specific requirements for packaging, and non-compliance can lead to additional fees or rejection of the shipment.
Packaging Test: Conduct a proper packaging test to ensure that your product package design can withstand sea shipping and road delivery. This includes checking for durability, protection, and compliance with shipping standards.
4. Conduct Visual and Functional Inspections
The final step in the inspection process is to check the product quality based on visual and functional criteria. This involves identifying any defects that could affect customer satisfaction or influence the reviews received.
Visual Inspection: Perform a thorough visual inspection to identify any visible defects, such as scratches, dents, or incorrect labeling. These defects can impact the product’s appearance and customer perception.
Functional Test: Conduct functional tests to ensure that the product works as intended. This includes checking all features and functions to verify that they meet the specified requirements.
Stress Test: Perform stress tests to assess the product’s durability and performance under various conditions. This helps in identifying any potential weaknesses or failure points.
Safety Check: Ensure that the product meets all safety standards and regulations. This includes checking for any potential hazards and verifying that the product is safe for use.
By following these steps, you can conduct a successful product inspection that ensures high-quality products, reduces the risk of returns, and enhances customer satisfaction. Establishing clear communication with the factory, utilizing statistical methods for sampling, reviewing design and product specifications, and conducting thorough visual and functional inspections are all critical components of an effective inspection process.