Brain Dump

Returns are not a customer-service problem.

TikTok Shop is making returns easier. That matters because returns are not just an after-sales problem. They are product, merchandising, fulfilment, acquisition and margin data.

A return tells you something.

The useful question is: what?

If the customer sends something back because it wasn’t what they thought they were buying, that’s probably a merchandising problem.

If it arrives damaged, that points toward dispatch or packaging.

If it keeps coming back because the quality is poor, that’s a purchasing problem.

Same outcome. Completely different cause.

Before pointing fingers at the return rate, find out why the customer returned it.

Easy buying changes the return equation

This is why easier returns are especially interesting on TikTok Shop.

TikTok is already very good at making buying impulsive.

You see something. It looks good. The creator makes it look useful. A couple of taps later, you’ve bought it.

Sometimes you never really stopped to ask whether buying it was a good idea.

If you combine extremely low-friction purchasing with extremely low-friction returns, you can encourage a very different customer behaviour from a traditional ecommerce store.

That doesn’t make easy returns bad.

They reduce risk for the buyer, increase confidence and can remove one of the biggest objections to buying online.

But the commercial cost still has to be measured.

Not every high-value customer behaves neatly

I would tag customers who return orders frequently.

I wouldn’t automatically block them.

I’d watch them.

What is their lifetime value?

How much do they keep?

What does it cost to serve them?

Do they repeatedly return low-margin items but keep profitable ones?

Are they actually a good customer who happens to return a lot, or are they destroying margin every time they order?

A high return rate is only useful information once you connect it to customer value.

Returns belong in acquisition reporting too

This is the part I think gets missed most often.

If one channel generates £100,000 of revenue but those customers return substantially more than customers from another channel, the £100,000 is not directly comparable.

The acquisition channel helped create the return behaviour too.

That should feed back into CAC, contribution and lifetime value.

I’ve seen this first-hand with TikTok Shop.

When I last tested it, the orders looked attractive at first, but the return behaviour was too high and it damaged the LTV-to-CAC economics enough that I stopped selling there.

That doesn’t mean TikTok Shop is a bad channel.

It means it wasn’t a good channel for that offer, customer mix and economics at that point in time.

Returns are diagnostic data

The easiest thing to do is send the refund, record the return and move on.

The better thing is to feed the reason back into the business.

Merchandising.

Buying.

Packaging.

Delivery.

Acquisition.

Customer value.

If the return data never leaves customer service, you’re throwing away one of the clearest pieces of post-purchase feedback you have.

What triggered this:
UPS and TikTok Shop announced a U.S. partnership for no-box, no-label returns through Happy Returns at around 10,000 locations. Reuters reported that reverse logistics can average about 27% of purchase price and that online returns account for nearly 20% of sales.

Sources: Reuters · TikTok Shop U.S. return policy

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