ConsumerX research found 51% see easy returns as very important. The ease of this process has the potential to shape their opinion of a retailer, 67% of shoppers admitted that a retailer’s returns policy influences how much trust they place in them.

Defining what is ‘easy’ for consumers could be a challenge for retailers. Some consumers may see going back to the store or a third-party location as tiresome. A substantial 77.9% of consumers want their ecommerce packaging to be easy to re-seal.

What consumers make of return fees
Making returns ‘easy’ comes at a price, and since 2022 some retailers have taken this from refunds. There has been mixed reactions from shoppers. ConsumerX research found 24% were willing to pay for returns.

While, 35% admitted to never considering the financial impact on retailers of returning items purchased online. It remains to be seen whether consumers will turn their back on retailers charging for returns, or if more shoppers will think about the cost of sending unwanted items back.

Peak returns
With increased numbers of deals, discounts and offers at certain times of the year, there is often an increased number of returns.

Furthermore, consumers are looking for more than a bargain during these events, they have also come to expect additional services such as free delivery (56%) and a flexible returns policy (44%).

Around a third of retailers offer a seven-day return window, 27% offer 14 days, 28% offer 30 days and 7% offer up to 90 days, according to goTRG’s survey.

While offering a lengthy returns policy during these events, alongside ‘bargain’ prices, may encourage consumers to shop in the first place, it can also result in them returning items after the buzz of peak has worn off.

Ecommerce returns were up 15% YoY for peak season 2023, with the earliest return reported on Cyber Monday itself. And with many retailers now charging for the reverse logistics, it is unsurprising that 48% of all returns over the Christmas period were paid returns. 

As charging for returns does not seem to be much of a deterrent in the peak season, 40% of retailers are now considering shortening their return windows during such busy periods.

This is an excerpt from the newly published DeliveryX Returns 2024 report, which will be presented as part of Ecommerce World Review on Tuesday 09 July 2024. Katie Searles and John-David Klausner of Loop will provide an overview of the key findings, charts and themes from the report. Registration remains open.

The full report, which also includes an exclusive interview with tech retailer Currys, is available to download here.

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Following the news that the fashion etailer would charge for returns earlier this month, the BBC has seen an email that informs shoppers that their accounts had been reviewed and shut down due to return rates.

A screenshot of the email shows that customers are informed: “In accordance with our terms and conditions, following a review of your account activity and the unusual high returns activity, we have reached a decision to deactivate your account.

“This means you cannot place any further orders. We’re sorry if this causes you any inconvenience.

“If you still need to make a valid return, please do so through our returns portal.”

The news outlet said it was not immediately clear what criteria the retailer used for its decisions. There was also no indication on when customers can shop again.

PLT is not the first UK-based fashion site to target serial returners. Oh Polly announced earlier this year that as well as calculating returns rates based on the percentage of items coming back, it would increase fees for those customers deemed to have high return rates. Oh Polly clarified that these increased rates would only decrease once a customer’s return rate falls, and a review into their activity is carried out.

Pre-register now for the DeliveryX Returns 2024 report, which will be introduced during Ecommerce World Review this July.

The report, and webinar, will look at how returns may be inevitable but are manageable. It will harness ConsumerX research to see how charging for returns has impacted customer loyalty. Advancing technology will be put under a spotlight, both for minimising returns and limiting the environmental impact of reverse logistics.

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The Boohoo-owned site plans to increase the reverse logistics charge for US customers to $4, €5 across Europe and in New Zealand returns will cost 14.99 NZD.

Boohoo first introduced a reverse logistics fee in July 2022, not long after Zara set the precedent of taking a charge from the customer’s refund. The fashion group had previously cited return numbers for a drop in revenue, and the move to charge is part of its wider sustainability efforts.

A company profile in the soon-to-be-published RetailX UK Fashion 2024 report tracks how Boohoo has, in the past, been criticised for its environmental impact. The company was one of only two (alongside H&M) of 15 of the UK’s largest fashion retailers invited and which actually shared evidence in person at a UK Environmental Audit Committee meeting in May 2024. 

The evidence hearing asked retailers in the fashion industry to share the steps they have taken to reduce their environmental impact since a 2019 report.  

In March, Boohoo also agreed to stricter controls around its eco claims, setting out clearly what products qualify for its eco ranges and giving precise information as to why certain fabrics count as sustainable. Boohoo will provide regular updates to the UK’s Competition and Markets Authority (CMA) on what it is doing in this regard.

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It is easy to make generalisations about the problem of returns, both the cost and the difficulties of reducing them, but the truth is shoppers in individual markets behave differently and have different expectations when it comes to making a return. Therefore, applying a standardised returns strategy in every territory is certain to lead to more returns, higher costs and lost sales, not to mention the inability to build long-term loyalty.

To better understand current consumer sentiment about shipping and returns, ESW surveyed 18,000 consumers in 18 countries, published in a report called Shipping and Returns: Leveraging Logistics to Unlock Global Loyalty.

The report showed there are many tools and tactics that brands can apply to the returns process that will boost customer satisfaction and loyalty, including clearly communicating all applicable costs, including taxes and duties, in each market.

In addition, the survey results showed that returns transparency is key to building trust with shoppers. In fact, customers should have a similar experience during the returns process as they do when receiving an order. Costs should be clearly displayed and tracking information should be provided in order to put customers at ease.

The research supports this view. 22% of respondents said they were more likely to buy cross-border if the brand’s website clearly sets out its returns policy. Furthermore, 27% of respondents said they buy locally (instead of cross-border) because they are concerned about returns and refund policies, while a quarter of respondents (25%) said that they buy locally because they are worried about the cost of returning an item internationally.

More and more brands recognise that building trust from day one is critical and are choosing to work with partners that have in-market experience and technical capabilities to provide localisation which builds that trust. This includes implementing a flexible, transparent return process including the ability for customers to easily initiate a return online and options for returning items via post or at a physical location.

The cost of processing returns continues to rise for global brands. This has led to a debate over whether brands should charge shoppers for returns and, if so, how much? Again, the research shows the way ahead and demonstrates the importance of localisation.

The survey analysis looked at age groups overall as well as country by country. 58% of Gen Z said they would make a purchase even if they knew there was a nominal cost to return it, but this fell to 34% of Boomers. Country by country, the survey found that 76% of respondents in India said they would make a purchase even if they knew there was a nominal cost to return it, a figure that fell to 55% in Switzerland. And yet, the Swiss demonstrated the highest propensity to pay a return shipping fee, 41% against 28% in the UK.

These findings demonstrate how important it is that brands know their customers and their preferences, as it enables brands to implement the best policies in each country. For instance, offering a membership fee that includes free returns was a popular option in India with 44% of respondents saying it was an appealing option, but only 14% of respondents in Germany agreed.

It is fair to say that these findings also support the need for brands to offer a range of returns options, including courier pick up, return to store, or return to a drop off location. Brands should implement the returns options that best suit the shoppers in each market and ensure that customers receive their refunds or replacement items in a timely manner. 

Working with a partner will help brands build the infrastructure and strategy that works for them and is best positioned to meet consumer expectations. In addition, partners can provide performance data and analytics to support constant improvement.

This approach shifts the focus from returns being regarded simply as a burden to an opportunity to improve customer satisfaction and build loyalty. By localising returns to each market, brands build a structure that protects margins and delights customers in each country.

By shifting the thinking on returns from a burden to an essential part of the customer experience, brands can strategically leverage returns to encourage repeat purchases and increase loyalty.

Access the full report, Shipping and Returns: Leveraging Logistics to Unlock Global Loyalty, here.

Jonathan Sheard, vice president, sales at ESW

The post GUEST COMMENT The returns opportunity appeared first on InternetRetailing.

Creating made-to-order, luxury casual suits for men and women, sustainability-focused Batch LDN was founded in 2022. The brand aims to provide affordable casual suits, tackle fast fashion and promote sustainable garment production.

Sam Matanle, co-founder of Batch LDN, said: “Sustainability is the core concept at Batch LDN. When Julian and I looked at just how bad the sustainability credentials in the fashion industry are, we were motivated to create Batch to help ignite change within the fashion industry – an industry which by 2025 will account for 25% of the world’s carbon budget, which is second only to oil.

“At Batch we exclusively make-to-order. This allows us to only manufacture exactly what we need, cutting out the over-production and waste prevalent in the industry. When you consider that over 60% of the 32 billion garments made every single year end up in landfill, that’s some 650 items a second, it’s clear that the current model doesn’t work.” 

Batch LDN becomes Tokyo-based Makip’s first UK customer, with Batch LDN shoppers asked basic questions such as age, weight and height to understand the measurements of their body. The technology then accurately maps the individual’s body size to the clothing item and displays how the garments will fit the shopper’s unique physique.

Read an exclusive Guest Comment from Makip’s president Shingo Tsukamoto on why AI is the future of online sizing technology

“Over the coming year, and beyond, we are looking to increase our online sales. Ensuring people have the confidence to check out online, knowing they have the right fit, is the key. Features like Unisize will play a valuable role in achieving this,” explained Matanle.

“Additionally, we have a 0.3% return rate, and as we expand the business and increase our online customer base, Uniszie will be a key tool in ensuring we keep returns and waste to an absolute minimum.”

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The post Batch LDN selects Makip sizing technology to support sustainable fashion growth appeared first on InternetRetailing.

Shipping and Returns: Leveraging Logistics to Unlock Global Loyalty, published by Asendia and ESW, found a quarter of consumers are more likely to shop cross-border if all import charges, taxes and duties are disclosed. With 40% of shoppers willing to wait up to a week for international purchases to be delivered.

The research from more than 18,000 shoppers in 18 countries also found nearly half of shoppers are willing to purchase products even if there is a nominal returns charge.

However, Gen Z (58%) was more than 1.7 times more likely to accept a fee than Baby Boomers (34%). Of the countries surveyed, India (76%), UAE (67%), and South Korea (61%) were most willing to accept return charges.

Joining the club
Over a quarter (27%) of respondents would pay for a membership or subscription if it means they can return their purchases for free, while another 27% would pay return shipping charges.

More than four in 10 shoppers in India, China and Mexico would pay a membership fee that includes free returns yet only 15% of UK, German, and Swiss shoppers would pay a membership fee. They would, however, pay for return shipping.

Helen Scurfield, CEO global returns at Asendia, commented: “In today’s global marketplace, a robust cross-border returns strategy isn’t just another box to tick, it’s a strategic imperative. Prioritising a seamless, customer-centric return process enhances satisfaction, builds trust and ultimately fuels long-term success. Each market is a unique ecosystem, with distinct customer behaviours and preferences.”

Read an exclusive Guest Comment from Scurfield on the potential of International Click and Collect

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Picture this: in the UK alone, customers return £7bn of internet purchases every year, and more than a fifth of all clothes bought online end up getting returned. For the retailer, it translates to an average cost of £20 per returned parcel, thanks to a range of shipping, warehousing, and repackaging costs. Handling returns and reselling has become so prohibitively expensive that some retailers, including Amazon, are even advising their customers not to bother returning the item, but to keep it instead and still receive a refund.

The rules of the game are changing
Return charges introduced by retail giants like H&M and Zara have led to a rethinking of the retail landscape’s approach to handling returns. The high economic costs of returns are slowly but surely driving the adoption of paid returns as the new norm.

At the same time, many in the industry are concerned whether return charges would dissuade potential customers. It poses an interesting question; if customers are willing to pay for delivery, why not for returns as well? Customers were quick to embrace free shipping as an initial incentive to start shopping online. Now, they will have to get used to the reality of paid returns.  

A return fee can be part of the solution as long as the ease of return is preserved
Return fees can be a smart decision, even though they are primarily motivated by financial concerns rather than environmental ones, as long as the ease of returns is maintained. It’s fairly simple— retailers should transparently communicate what customers can expect when they return a product, clearly outlining the conditions, timelines, and processes. Such straightforwardness is not merely a nice-to-have, but an essential priority, as it is a sure shot deal breaker for many customers. Numbers show that 67% of online shoppers do not even consider ordering from an online store if there is no clear information available on the return policy, while 81% regularly check the policy before placing an order.

Besides, the return process should be easy-peasy-lemon-squeezy. Currently, 60% of online shoppers claim that returns are a big hassle. That’s far from ideal. Retailers must pay special attention to the specific pain points of their customers when it comes to returns, and effectively set solutions in motion. For instance, customers should be allowed to opt for a return method that is convenient to them, with the ease of a few clicks— irrespective of whether it’s a pickup, a parcel locker, or drop-off.

Retailers should embrace conscious return practices themselves too: technology to the rescue
While encouraging conscious return behaviour in customers, retailers themselves should ensure that they practise what they preach. This means evaluating and reevaluating their own return practices to become more aware of any shortcomings or areas of improvement. For instance, taking the effort to understand why a certain product is always returned. The good news is that retailers could seek the help of technology in facilitating conscious returns. They could leverage predictive analytics to anticipate return behaviour and improve decision-making. If data reveals a recurring pattern of returned items being attributed to sizing concerns, it may prove useful to update the product information in this case.

Going beyond simply returning items, Return Merchandise Authorization (RMA) is a streamlined system designed to conveniently deal with the nitty-gritties of repairs, refunds, and replacements. Depending on the terms of the warranty or set return policies, returns can be approved or denied. Ultimately, the goal is to streamline the return process, making it easy for everyone involved while also maintaining customer satisfaction and minimising the workload.

On the customers’ side of the equation, Virtual Try-On technologies especially, could offer a respite to the whole game of returns. This way, customers can enjoy a more personalised shopping experience that allows them to visualise how the product will look and fit without having to engage in guesswork. By enabling more informed decision-making, it reduces the likelihood of customers purchasing items that may not meet their expectations and subsequently needing to exchange or return them.    

The future of returns is paid
Return charges are here to stay, whether customers like it or not. One thing is for sure. This new era of returns will encourage both retailers and consumers to rethink their return practices more consciously. While inducing customers to think twice about buying and returning an item, return fees simultaneously work in favour of retailers by allowing them to implement more economical, smoother and, overall better processes. As long as they make returning as easy as possible, retailers can make paid returns work.

Rob van den Heuvel, CEO and co-founder Sendcloud

The post GUEST COMMENT Goodbye unwanted returns, hello conscious returns  appeared first on InternetRetailing.

There are a range of issues contributing to this trend. Key among them is the massive growth in online shopping and the increasing popularity of ‘buy, try, return’ purchasing, with one study revealing that over 75% of UK shoppers check the returns policy before making a purchase. This puts retailers in the difficult position of working to maximise the opportunities for customers to spend in full knowledge that many purchases will also be sent back.

If addressed correctly, however, returns can be transformed from a major business headache into a strategic advantage, writes Tim Robinson, corporate vice president, Blue Yonder.

Central to a successful approach is the adoption of the right mindset whereby returns are not just seen as a logistical challenge but a crucial aspect of the customer journey that, in many cases, could benefit significantly from reevaluation and renewal.

Crucial to this process is that retailers ask the right questions about their returns data to gather insights into customer preferences, product performance and operational efficiencies. In doing so, retailers should consider a range of key issues, including:

• The reasons behind product returns and their frequency.
• The cost implications of returns on a per-customer basis.
• Opportunities to resell returned items locally or incentivise exchanges over returns.
• The effectiveness of current logistics in handling returns quickly and efficiently.
• The impact of returns on customer satisfaction and loyalty.

Bagging up the benefits
The list goes on, but the key point here is to identify patterns of customer behaviour that inform product development, marketing strategies and customer service improvements. Harnessing the full potential of returns also requires retailers to capture the relevant datasets digitally and integrate them with other customer data sources. This comprehensive view enables retailers to tailor their offerings and services to individual customer profiles, improving satisfaction and loyalty. Advanced analytics can further refine this approach, predicting trends in returns and informing stock management and marketing strategies.

Operations can then track metrics such as time-to-return for different methods and pinpoint process bottlenecks. By connecting returns data to order histories, customer profiles and product databases, informed decisions can be made, such as offering high-value customer discounts to return in-store.

Not only does this approach reduce shipping and handling costs, but it also increases foot traffic in physical stores. Retailers can also seize this opportunity to enhance the customer experience, offering personalised shopping advice or immediate exchanges that better meet the customer’s needs and, in doing so, increasing the chances of additional sales during the return visit.

Shifting perceptions
In addition, the integration of digital returns platforms into the retailer’s website allows for a smoother, more user-friendly process. By offering options for exchanges or in-store returns upfront, retailers can cater to the most common reasons for returns, such as issues with fit, size or colour. This proactive approach not only addresses customer requirements more effectively but also shifts the perception of returns from a hassle to a valued service.

Ultimately, a seamless returns process leaves customers feeling valued and cared for, fostering brand affinity and trust. This positive sentiment then spills over into future purchasing decisions, with customers more likely to shop with a retailer again after a smooth returns experience. Approaching returns with an analytical, customer-focused mindset allows retailers to transform this problem area into a source of insight and improved performance. As returns volumes seem certain to keep increasing, getting this key process right will be crucial to remaining competitive in the long term.

Tim Robinson, CVP, Doddle – part of Blue Yonder

The post GUEST COMMENT Turning returns into customer loyalty with a data-driven approach appeared first on InternetRetailing.

Or is it? Yes, there’s a real art to successfully converting a customer. But just as crucially, there’s also a real art to creating the optimal post-purchase customer experience, writes Dan Greenall, VP of product at Sorted.

Post-purchase customer experience is an area that not all give enough attention to. 63% of consumers said a poor delivery service would stop them from purchasing from a company again. While the latest findings into the retail landscape show that only 44% of retailers have made efforts to enhance their post-purchase experience. In short, this has to change.

The post-purchase experience comprises a range of elements, including customer support, product delivery, returns and exchanges, and follow-up communication. Effective post-purchase communications can play an integral role in boosting customer retention rates. And retailers are taking note of just how crucial it could be.

They ensure that conversations continue with customers even after the purchase, strengthening the connection between the brand and the consumer. If customers don’t know what’s happening with their delivery, or why promises aren’t being kept, that’s when bigger problems are going to spring up. Brand loyalty will be put to the test – and no one likes to be left in the lurch, right?

Our data found that three-quarters (75%) of businesses are now planning to invest in the post-purchase experience. They’re seeing it as a key competition ground that can make or break customer loyalty. So, as more businesses look towards this area as an opportunity to develop a competitive advantage, retailers must act quickly to keep up.

The barriers to adoption
Optimising the post-purchase experience isn’t without its challenges. Currently, only 40% of retailers believe their post-purchase process is up to the mark. With retail leaders citing a lack of technology adoption as the main reason for this.

There’s a palpable lack of awareness about the technological solutions available. Many retailers are still in the dark about software that can optimise shipment allocation, provide better delivery choices, automate rules, and more. In addition, budget constraints often restrict the implementation of such technologies, leaving retailers with outdated systems that fail to meet modern demands. Compounding this, the transition to new, more efficient systems can sometimes be challenging when the technology partner isn’t set up for smooth, personal customer support.

Despite these barriers, overcoming them is a necessity. Whether it is to reduce the costs of ‘Where Is My Order’ queries, or to boost customer loyalty and retention rates – the future of retail will be significantly impacted by retailers’ ability to provide a seamless post-purchase experience, and embracing technology is the path to achieving it.

And retail leaders are recognising this, as mentioned, our recent survey found that 75% of retail leaders are investing into the post purchase experience. This is emphasising its importance and highlights how getting ahead of the crowd will be just as important as getting it right.

The growing importance and benefits of the post-purchase experience
The post-purchase experience is no longer a mere afterthought; it’s a pivotal phase in the customer journey. In a challenging retail environment where sales are plummeting at alarming rates and high street shops are closing, the delivery experience is emerging as a great opportunity for improvement. A mismanaged delivery or problematic return can sever the relationship with a customer almost instantly. With 79% of consumers affirming that a subpar post-purchase experience would deter them from repurchasing, the gravity of this part of the customer journey is evident.

And in case you need more evidence, among retail leaders who have embraced the change, 60% already report increased sales and revenue from efforts to enhance this experience. This isn’t mere coincidence; it’s a testimony to the role of post-purchase processes in quickly fostering customer loyalty.

The connection between brand and consumer extends beyond the purchase, and smart retailers recognise that nurturing this connection will keep customers returning. A solid delivery experience, smooth returns, and efficient follow-up communication aren’t just courteous—they’re strategic and vital.

Why retailers should act now
The call to action for retailers is urgent. Modern consumers demand real-time updates, clear communication, and reliable delivery. Meeting these demands requires an infusion of technology into existing operations.

By incorporating these tools, retailers can provide customers with real-time updates to ensure they are always kept in the loop. More than mere conveniences, these capabilities are the backbone of customer satisfaction.

But it’s not just about the customer. Streamlined operations translate to improved efficiency and cost-effectiveness – important for the bottom line. In uncertain economic times, investments in technology can provide a competitive edge, enhancing customer satisfaction, fostering loyalty, and ultimately boosting retention rates.

The time to act is now. Delaying could result in losing customers to competitors who have already embraced the change.

The bottom line
Retail success in the modern era is intricately tied to the post-purchase experience. Satisfaction with a product is only part of the equation; a seamless post-purchase process can turn a one-time buyer into a loyal customer.

The statistics and trends are crystal clear. Investing in this vital area leads to growth, customer retention, and enhanced revenue. Although the path forward has its challenges, the end result is worth it.

For retail leaders, the choice should be evident: embrace technology, enhance the post-purchase experience, and stay ahead of the curve. The time for action is now, and the rewards are there for those who are able to seize them.

Dan Greenall, VP of product at Sorted

The post GUEST COMMENT Why brands need to prioritise post-purchase performance appeared first on InternetRetailing.

The returns management solution, from Blue Yonder, can go live for a DPD retail customer within a few hours. This will allow consumers to book a return in seconds and drop off their items at one of over 10,000 DPD pickup locations across the UK.

According to the collaboration, consumers will experience a fully digital, branded journey to choose which item to return, select a return reason, and either print a label or generate a QR code to use in the drop-off location. They will also receive tracking updates once the parcel is handed over.  

“We continue to look at ways to innovate and support our retail customers. Blue Yonder’s digital returns portal, combined with our extensive pickup shop network means that 95% of the urban population are under one mile from one of our drop-off locations. As a result, returns for consumers will be quicker, easier and more convenient, giving them added confidence and peace of mind when they shop with our retailer customers,” said Elaine Kerr, CEO, DPD UK. 

The portal introduction comes as Blue Yonder – which recently acquired returns management solution provider Doddle – found  68% of merchants across European ecommerce markets have seen return rates increased in the past 12 months. Some 63% confirmed that returns are a ‘significant’ or ‘very significant’ problem for their business.

Discover more about ecommerce returns in this in-depth report. Covering consumer habits, retailer responses and the role of technology, the DeliveryX Returns 2023 report blends RetailX data and surveys, as well as third-party sources, to delve into the challenges of returns.

It also includes exclusive company profiles on Amazon, Schuh and Zara

The post DPD UK rolls out returns portal for retailers appeared first on InternetRetailing.