Many eCommerce companies are adopting customer-centric practices and return policies such as offering free shipping and returns, exchange benefits or discounts, etc., in order to increase purchase conversions.
AfterShip Returns Center has launched the “Pre-discount credit” feature to help merchants incentivize exchange over refunds and reduce losses from product returns.
Now, let’s first understand what exactly is a pre-discount credit.
What is a pre-discount credit?
When a customer buys a product from your store with a discount and then requests a return for that item, a pre-discount credit allows them to keep the same purchasing power if they opt for an exchange. It gives your customers additional purchasing power above the value of the product they’re returning.
For example, if a shopper purchases a $100 product, using a 20% discount code, spending $80, they can exchange it with any other product worth $100. However, if the shopper wishes to get a refund or store credit, the refund value remains at $80 only.
Now, let’s take a peek into how the feature can be beneficial for your business.
How is it beneficial for your eCommerce business?
- Encourage exchanges with pre-discount credit/additional incentives
- Reward customers opting for exchanges over refunds
- Significantly reduce losses from product returns
- Boost brand loyalty and customer satisfaction
- Drive repeat purchases
- Increase customer lifetime value (CLTV)
How to enable “Pre-discount credit” on your AfterShip Returns Center account?
- Log in to your AfterShip Returns Center admin portal
- Go to Returns Settings
- Select “Exchange for other items” under the “Exchange Resolution” tab
- Click “Settings”
- Hit the “Save” button
Please note that a pre-discount credit can only be applicable to the price of the item and cannot apply to tax.
In case you are facing any issues or have any confusion regarding this feature, feel free to contact our support team via 24/7 live chat.