Myntra Returns Policy Tweaks Ahead of Festivals to Boost Sales: What You Need to Know

The festive season in India is always an exciting time for shoppers. Major online retailers like Myntra see a huge surge in sales during this period. Myntra is one of India's leading fashion e-commerce platforms, allowing customers to shop from various brands all in one place. Ahead of the upcoming festive season, Myntra is testing changes to its return policy.

Currently, Myntra charges a "convenience fee" for customers who frequently return items. However, it realizes this may discourage some shoppers. Myntra is now experimenting with lowering this fee and charging a small, fixed fee per return instead. This is aimed at softening its stance on returns and boosting sales volumes.

With the festive season being a major sales driver, Myntra wants to refine its return policy to attract more buyers during this peak period. By making returns more affordable, Myntra hopes customers will feel comfortable ordering more items. This could help Myntra capture the heightened demand and achieve better sales over the festive season. In short, Myntra is adjusting its return policy to encourage shopping and maximize sales potential during one of its busiest periods.

Myntra's Current Return Policy

Myntra currently allows customers to return or exchange products within 30 days of delivery for a full refund. They provide free returns on the first few returns made by a customer. However, some customers return a very high number of items, sometimes twice as many as average.

Fashion products like clothes and shoes are often difficult to choose sizes for online. Colors and fabrics may also look different on the screen than in real life. Because of this, return rates for fashion ecommerce are usually higher than other categories like electronics. Around 25-30% of clothing bought online gets returned.

High return rates increase logistics and shipping costs for companies. They have to pay to send the item to the customer and then again to receive it when it is returned. Managing returns is a big expense. Some customers returning many things also means more work and costs for the company.

In this context, Myntra has been testing ways to reduce high returns while keeping most customers happy with their purchases. The new policies aim to control costs and make the business more profitable during their busy festive season sale periods.

Targeting High Returning Customers

• Myntra defines "high returning customers" as those who return twice as many products as average customers. These customers usually make a lot of returns with each order.

• Previously, Myntra charged all such high-returning customers a flat fee of Rs. 199 to Rs. 299 for every order, which was called a "convenience fee."

• Now, Myntra is experimenting with a more flexible policy. It will initially allow high-returning customers some free returns. After the free returns, Myntra will charge a lower fee of Rs. 15-30 for each additional return instead of the Rs. 199-299 flat fee per order.

• This new experiment aims to be less harsh on customers and not negatively impact their ordering behavior. The goal is to reduce returns overall and make the returns process more sustainable for customers and Myntra.

Rationale Behind the Adjustments

Myntra feels charging a flat fee of Rs. 199 to Rs. 299 for all returns may negatively impact some customers. A high fee can encourage customers to order clothes online, which is risky due to size issues. It can also impact word-of-mouth referrals from unhappy customers.

Reducing returns has been a focus area for Myntra. High return rates increase logistics costs for processing returns. Myntra wants to lower these costs and boost profits.

The changes are also timed to boost sales during upcoming festive seasons like Diwali. This period contributes greatly to annual sales. Myntra hopes fewer returns will help serve more customers and improve sales during this crucial time for the business.

Impact on Customer Experience

The changes Myntra is experimenting with in its return policy could impact customer experience in the following ways:

• Streamline returns process: Charging a small fee for returns after a certain number of free returns may encourage customers to think carefully before opting for returns. This could reduce return volumes and make the process smoother for customers.

• Nudge customers towards exchange: A lower fee for exchange compared to return may prompt more customers to choose exchange over return. This saves customers the effort of packaging and shipping back items while still getting a suitable replacement.

• Potential downsides: While aimed at a small segment with high return rates, some customers may feel charging for returns is unfair. It could also lead to customer frustration if they have to pay despite genuine reasons for return, like incorrect size. Too many rules around returns may worsen customer experience versus a simple, flexible policy.

Overall, if implemented carefully without inconveniencing general customers, the tweaks could balance Myntra's needs with maintaining good customer service during the busy festive period. However, the downsides to customer experience need monitoring.

Significance for Myntra's Business

It is very important for Myntra to manage product returns effectively effectively. Returns are a big financial burden as they increase logistics costs. Myntra needs to deliver and pick up returned products, which is expensive. Too many returns mean Myntra's costs will rise significantly, which will affect its profits.

The festive season is extremely crucial for Myntra's yearly sales. Most of their annual business happens during festivals like Diwali and Dussehra. If Myntra can reduce returns during this time, it can save a lot of money on logistics. This will help boost their profits tremendously.

By testing flexible return policies, Myntra hopes to lower return rates, especially from frequent return customers. Even small drops in returns can translate into large savings, which will help Myntra achieve its goal of profitability. The new changes aim to discourage unnecessary returns while still providing good service. If successful, the changes will lighten Myntra's logistics burden and enhance its financial performance. Managing returns well is vital for Myntra's business sustainability and growth.

Conclusion

 Myntra is tweaking its return policy ahead of the festive season to curb excessive returns by some customers. The online fashion retailer plans to charge a nominal fee of Rs. 15-30 for returns after a certain number of free returns.

Myntra aims to reduce logistics costs incurred from high return rates. Some customers reportedly return 2-5% of orders despite not having any issues with the products. The new fee structure will discourage unwarranted returns while allowing genuine returns.

The changes could help Myntra boost sales during the crucial festive quarter without burning cash on unnecessary returns processing. However, the fees may face backlash from some customers with a casual return attitude. Using Kuttl, customers can make informed decisions while shopping on Myntra. They can track orders, manage returns easily, and ensure they return products in time to avoid fees. In this way, customers can stay #smartgrahak.

FAQs

How will the new charges affect customers who return occasionally?

The changes are mainly targeted at high returning customers. Occasional returns by other customers are unlikely to be impacted.

Will the charges apply to genuinely defective items?

Myntra has clarified the charges only apply to returns made by choice, not for genuine defects. Exchanges or replacements will continue without fees in such cases.

Can the charges be avoided by opting for exchange instead of return?

Yes, Myntra is also encouraging exchanges over returns through additional discounts. Opting for exchanges can help customers avoid fees.

How will customers track their free return limit under the new system?

Myntra is expected to communicate each customer's free return limits. Transparency in tracking usage will be important for a positive experience.

Will the changes impact Myntra's customer loyalty in the long run?

If implemented carefully while respecting customers, the changes aim to improve the shopping and returns process in the long run. However, their impact on loyalty will depend on successful execution.