Topic of the Week - The Rise of Paid Returns
The debate between return fees and free returns has been ongoing, but it's time to shift the focus to the bigger picture. As the number of retailers charging for returns continues to rise, it's essential to address the root causes of return headaches: slow processing, high restocking costs, and frustrated customers.
In 2023, the number of retailers charging for returns increased by 31% to 40% in the US, with 53% of merchants now charging for returns. However, this approach doesn't address the root causes of returns and may even turn away potential customers.
Paid returns may recover some costs, but it's not a one-size-fits-all solution. Different products and customers require different outcomes, and a blanket policy on returns fees will be right for some, but wrong for many.
Returns are a significant problem for 63% of merchants, with 67% reporting an increase in return rates. It's time for retailers to implement smart return solutions that boost customer satisfaction, improve cost savings, and speed up inventory turnaround.
To achieve this, retailers need returns solutions that connect customer and order data to the returns process, allowing them to create customised rules that control unprofitable edge cases and reduce returns costs. By addressing the root causes of returns, retailers can recover costs for inefficient cases without negatively impacting the majority of shoppers.
As the ecommerce market continues to evolve, it's clear that returns will play an increasingly important role in the customer experience. To stay ahead of the competition, retailers need to implement smart returns solutions that address the root causes of returns and provide a seamless and efficient returns process.
The debate between return fees and free returns is just the tip of the iceberg. To truly address the challenges of returns, retailers need to implement smart returns solutions that connect customer and order data to the returns process. By doing so, retailers can improve customer satisfaction, reduce returns costs, and increase inventory turnover. The future of returns is bright, and retailers who adapt to this changing landscape will be well-positioned for success.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Returns eCommerce stats
79% of fashion retailers are now charging for returns.
In the UK, nearly an even split of free vs paid returns, with 48% of retailers charging for returns.
54% of consumers actively avoid retailers that charge to return items.
The average return rate for eCommerce retailers is around 20%.
*Statistics sourced from Statista
That’s all for this week…
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