How to handle the chaotic e-commerce return industry
No-fee returns
Shoppers are motivated as easily as possible is a key selling feature for online sellers looking to attract visitors.
E-commerce returns, however, are a wasteful and disorganized process. Retailers lose hundreds of billions of dollars in income every year, but the environmental impact is shocking as well.
The amount of garbage produced in places like Europe, the Middle East, and Africa has not been quantified by many specialists, but the statistics for the United States are alarming: 2.6 million tonnes of projected returns ended up in landfills in 2020 alone, according to a report from Optoro. In that year, 16 million metric tonnes of carbon dioxide (CO2) were emitted during the shipping of returned goods. That is similar to the emissions produced by two million households being powered for a year.
Identify the difficulties that your customers have with your services.
“Lowering profits is a simple solution that is being ignored. In response to the rising return rates, we are actively attempting to understand why returns occur and assisting our clients in lowering return rates by 18%.
“Reducing returns requires an understanding of the underlying cause of the issue; without this, you cannot implement the appropriate remedy.
“Retailers used to concentrate on returning items after they had been received. Making things simple for the customer came first. Logistics was used to increase speed, and any additional profit was realized based on whether the product could be repaired and resold. These solutions have given rise to entire industries.
“But this only addresses the symptoms of the issue. Although returns cannot be completely eliminated, they can be learned from and, using that knowledge, proactive steps can be taken to limit future returns.
Shops are getting indicators from clients that something is wrong.
“Sellers can identify the underlying problem by gathering data from sources like their transactional systems and the customer’s voice, which may include social media, call center transcripts, or customer reviews.
“In each of these situations, customers are sending retailers warning signs that something is wrong. Pay attention to those signals and look for oddities. Retailers have the potential to lower returns since the data is already there; they just need to view it through the lens of returns.
Companies are seeking ways to make packaging reused or recyclable. The priorities of merchants are also changing. Unboxing was one of the major trends in 2019. In 2020, the supply was the problem. As everyone became more aware of the amount of packaging in their homes in 2021, COP26 began to place an environmental emphasis. Due to this, as well as high inflation and rising energy prices, many major retailers have started to consider sustainability while making returns. The client is also requesting it.
