Shelving is a crucial step in the sales process, whatever the field. It can be a determining factor in the success or failure of an item. We'll look at how proper shelving can help reduce returns and improve sales performance. We'll also look at practical tips on how companies and sales managers can make the most of strategic merchandise positioning.
What is shelving?
Shelving is a key element of a company's operations. This commercial practice involves presenting products to customers and managing their placement on store shelves. This function has a direct effect on customer return, as it influences confidence at the moment of purchase and encourages your buyer to choose a product that suits him perfectly.
Shelving involves the organization and presentation of products at different points of sale. Decision-making options include :
- product selection and placement
- linear layout
- the use of signage
- other product-specific techniques
The aim is always to attract consumers' attention. When done correctly, shelving can help improve overall sales performance and reduce merchandise return rates.
Setting up your strategy
A good shelving plan needs to be well thought-out to present products to consumers in the best possible light. Sellers must take into account their business objectives and specific needs to determine the best way to organize their products. Companies can use various tools to facilitate product positioning on shelves. Here are a few of them:
| Shelving tools | Objectives |
|---|---|
| Labels | Increase product visibility |
| Signage | Provide consumers with the information they need to make informed purchasing decisions |
| Brochures and other promotional materials | Inform customers about special offers, promotions and other benefits |
| In-depth analysis of the layout | Identify weak points and improve the customer's shopping experience |
These key indicators, or others such as stocking rate or turnover ratio, can be used to measure the performance of a shelf plan, and to assess whether or not sales targets are being met. Good presentation enables consumers to buy a product whose features and benefits they fully understand. It is this aspect that consequently reduces the likelihood of them seeking a refund or exchange. Consider the duration of your strategy, as continuous improvement of the sales process is fundamental to getting consumers to buy more frequently from your point of sale, and to significantly reducing the number of returns.
Why does shelving help avoid returns?
Shelf layout is a key element in preventing product returns. Presented in an optimal way, consumers will access a product with the information they need about what they want to buy and the corresponding features before purchasing. A good shelving system is a powerful tool for ensuring customer satisfaction. Consumers can quickly find what they're looking for, so they hesitate less and get clear, precise information on each product.
Consumers will be more aware of their purchasing act, and will find it harder to go back after the sale. Whether online or in a physical store, it's the informed purchasing decision that ensures a sale with minimal customer feedback.
Case studies
Let's take the example of an online fashion company that wants to avoid product returns thanks to a well-thought-out shelf layout.
This company offers women's clothing online. To minimize product returns, it implements the following shelf strategies:
- Detailed product descriptions: the site ensures that product descriptions are complete and accurate, including information on size, fabric, fit, colors, and other important details. This enables customers to make informed purchasing decisions and choose items that match their expectations.
- Size charts and measurement guides: The company provides size charts and measurement guides for each item, to help customers choose the right size. This reduces the risk of buying the wrong size, leading to product returns.
- High-quality product photos: with high-quality product photos from multiple viewing angles to show items from different angles. Customers will be able to better visualize items and get a clearer idea of their actual appearance, thus reducing returns due to discrepancies in appearance between photos and actual products.
- Authentic customer reviews: The company posts authentic customer reviews on its website, enabling customers to read the comments of other buyers and get an idea of how the products really perform. This helps avoid returns due to unmet expectations or disappointment after purchase.
By implementing these well-thought-out shelving strategies, this company succeeds in minimizing product returns and providing a satisfying online shopping experience for its customers.Some companies manage to maintain very low return rates thanks to well-designed shelving and other strategies focused on preventing product returns. Here are three examples:
Zappos
The well-known online shoe retailer, Zappos, is known for its excellent customer service, particularly its advice service to help customers choose the right shoe size. Thanks to a specific system of detailed measuring guides, comprehensive product descriptions, customer reviews and responsive customer service, Zappos manages to maintain a low product return rate.
Patagonia
Outdoor clothing brand Patagonia focuses on the durability and quality of its products, and this is reflected in its shelving. Product descriptions are detailed, product photos are realistic and size guides are available to help customers choose the right size. Patagonia also encourages the repair and reuse of products, which helps to reduce returns.
Apple
Electronics brand Apple offers a polished online shopping experience with detailed product descriptions, demonstration videos, and premium customer service available to answer customers' pre-purchase questions. Apple offers a Used Product Take-Back and Recycling Program, another technique that encourages customers to recycle or exchange their old products rather than return them.
Managing product returns can vary according to the nature of the industry, the type of products sold and the commercial policies of each company. Keep in mind that preventing returns requires a continuous effort and constant attention to customer experience, shelving and customer service. Product descriptions are always very important, as are other company-specific strategies.
Shelving is an essential tool that is often overlooked in a strategy to reduce product returns. Ensuring that products meet your customer's expectations must be a priority for you if you want to have the lowest possible returns rate. Retailers who invest in shelving can expect lower returns and higher satisfaction rates. Effective shelving can also help improve sales and stimulate business growth.
