My thoughts on how to get return customers for your handmade products:
I find that the quality and the uniqueness of my products is what makes buyers return to my shop.
That is the essence of getting return customers: products they want to buy again and again, no matter what.
No matter what? Yep! Research has shown prices are not (!) a crucial factor and most buyers don't care about fancy packaging or free gifts.
Don't think you need to give discounts or coupon codes! Don't pay yourself short to make your buyers come back.
If your products are what they want, they will return to buy even if you increase your prices. Seriously.
Think about all the gadgets people buy nowadays. Think about designer clothing, shoes and bags. Thinks about whatever it is that consumers want to own. Prices go up constantly, yet people keep buying.
All you need in order to get return customers is products that are unique, pretty and functional. Products that people fall in love with, that they 'must have'.
And that they cannot buy anywhere else (at least not in the same quality).
Don't try to compete in a saturated market. Be unique, be creative, be innovative, have great quality, have excellent customer service!