How covering return shipping costs can scale you to 9 figures:

We're honored to work with some of the biggest category-leading brands in eCommerce.

These behemoths reached the 9 and 8-figure stage by becoming the #1 sought-after brands in the market for their respective niches.

And today I sat down and looked for a common denominator.

I wanted to know what the "IT" factor is they have.

The "thing" that allows them to become market leaders, to the point where their audience doesn't even consider buying from cheaper competitors.

And although there are many reasons...

I think I've nailed down a commonality among all of them.

I call this approach Customer-Centric Profit.

In short: putting your customers' satisfaction first, whatever that might imply.

In long: building your business, products, services, and policies around what's best for the customer, not yourself. Because you know that in the long run, this will pay off in droves.

Let me show you some actual examples.

1) Return Policies

Customer-Centric Profit means offering free returns and exchanges with no questions asked, and even covering return shipping costs.

This might seem counterintuitive and look like a cost center.

But in reality, this reduces customer hesitation to buy, increases conversion rates and overall sales, and builds long-term loyalty.

Plus:

Happy customers are more likely to make repeat purchases and recommend your brand to others, ultimately increasing lifetime customer value.

2) Free Trials and Samples

Customer-Centric Profit means giving free samples of products and allowing customers to try them before they buy.

Again, this looks counterintuitive but this reduces the barrier to entry and attracts potential customers who might not have otherwise purchased.

After you "wow" them with the trials they'll most likely continue buying (provided your products meet their standards and you did some soft selling on the side with emails and other mediums).

3) A1 Customer Service

Customer-Centric Profit means investing heavily in high-quality, personalized customer service, including extensive training for customer service representatives.

This might also seem counterintuitive and a cost center.

But this improves customer satisfaction and loyalty, leading to positive word-of-mouth marketing and repeat business.

I.e., each new customer will be worth more.

4) Lifetime Guarantees and Warranties

Customer-Centric Profit means offering lifetime guarantees on products. Even ensuring they can be repaired or replaced at any time.

First, this differentiates your brand from competitors.

But it also builds trust and encourages higher initial sales (which you might not have had otherwise).

This works because, like you and me, customers are more likely to choose a product with a strong guarantee, and (this is critical) the actual redemption rates for these guarantees are often lower than expected.

In other words, the extra sales you get will far outweigh the money you spend on warranties (tons of examples of this).

5) Low or Free Shipping

Customer-Centric Profit means offering free shipping whenever possible.

You can move the cost over to your products (which improves their perception) and reduce cart abandons because of shipping fees.

Win-win.

These are just some commonalities I've found.

Not ALL of our clients follow those policies, but most of them do whenever it makes sense.

A multi-brand retailer shouldn't increase their prices to offset free shipping or they'd lose customers to competitors carrying the same products. But they can win by offering A1 customer service, for example.

Anyway, that's something to keep in mind. And something I actively look for in all brands looking to partner with us.

When they have one or more of these policies I know they're here for the long term.

And that's a green flag for me.