Question about % of returns

> Why does the RATE of return rise when volume
> rises? I can understand why the NUMBER of
> returns would rise but not why the rate
> would.

If the number of products sold increases, the effect on your rate of return will depend on WHY the number of products sold increases.

There are a number of reasons why it might not increase. Let's say you have a new product, and you try one distribution channel, and you get a 3% return rate. If you try another distribution channel that is just as good, there's no reason your return rate should rise, if all is the same.

I think what previous posts were discussing was how aggressive your marketing was. So for example, in a base case, you might have a fairly mild ad that suggests the benefits of your products, and you get a 3% return rate.

Now in the new scenario, you might target the same group of people but be a lot more aggressive in your marketing. Now, by aggressive I don't mean angry etc, but I mean you might push the product more, promise more, and the like.

In this case, it's likely you'll get the same people buying who bought in the first place... But you might also get more people that wouldn't have been convinced by your first ad but are by your second, more aggressive ad. But because the ad is more aggressive, chances are a greater proportion of people will think the product is not really for them after purchasing, and return it.

And thus your return rates should go up.

Having said that, this is just my take on what's been said so far. I don't have any skill or ability with marketing or direct sales, but I think that's how the numbers work. :)

Best Regards,

Thomas.