The effect of online product reviews on product returns

Product returns considerably have an effect on the lowest line of makers and retailers, cost accounting the maximum amount as $100 billion annually or three.8% of revenue. Some practitioners recommend that the presence of consumer-generated product reviews will reduce come rates which product return rates decline with a lot of reviews, though these business claims haven’t been confirmed.


Although several researchers have studied the effect of product reviews on sales, few have checked out their impact on product returns.


Online shopper reviews, product and services recommendations, and peer opinions play a progressively growing role within the customer’s decision-making method. The varied online product review and recommendation platforms dissent in their objectives, function, and characteristics. The literature has up to now paid very little attention to the practical characteristics of those platforms as part of client adoption and preference. Given the importance of this kind of client-generated content on business sales and gain the observance and infrequently responding to customer reviews by business organizations has become a serious social control challenge and a very important name management issue.


In order to reply with efficiency to client reviews, corporations have to be compelled to determine client reviews platforms, perceive their characteristics and incessantly assess their impact on client getting selections. This study identifies four main styles of online review platforms: retail websites, freelance reviewing platforms, video-sharing platforms, and private blogs. These platforms gift product reviews in numerous formats with the accent on varied review operate characteristics.


Management effects


These findings underscore the importance of providing online product reviews to customers. Retailers ought to leverage acceptable incentives and rewards to actively encourage customers to share their experiences with the product via online client reviews. At constant time, retailers ought to take care once endorsing client written reviews and, once doubtful, trust helpfulness indicators provided by alternative customers.


The finding that a lot of online operation by customers is helpful in terms of each boosting purchases and lowering returns recommend that retailers ought to give intensive online product info in conjunction with reviews. Proactive product info provision ways by retailers may enhance their strategic fight and represent a win-win outcome on boosting purchases and lowering come back prices.

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