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Coming out of the peak period, retailers are looking at how they can manage the increasing cost of returns. eCommerce returns continue to cost apparel and footwear retailers, particularly in sale periods, where shoppers return more than at any other period.

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Returns rates continue to grow

Meanwhile, consumers still demand a seamless returns process...

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    In 2024, retailers will need to evaluate their strategy on returns. 63% of European online retailers say returns is a significant issue for their business, up from 57% the previous year. Two thirds said that return rates are increasing too, despite a year of wide-ranging policy changes as retailers aimed to cut costs. Find out how retailers are tackling the challenge.

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Here are some of the challenges an integrated portal can help solve:

• I want to give customers an amazing experience 
  

  How a retailer handles returns directly affects how often and how much a customer spends with them. 94% of customers will buy again if the returns process is easy. An easy-to-use returns portal that links to their order, clear communications and tracking information and speedy refunds all create the seamless brand experience that will keep your customers coming back.

• I want to process returns as efficiently as possible
  

  Know the status of every return so you best know how to handle it. An integrated portal tells you when stock is coming back to you and can intelligently direct it to the right location based on custom-configured rules, whether that’s to a warehouse to be restocked or directly to liquidation. You can automatically block out of policy returns so they don’t come back at all, and nudge consumers to return any items they don’t want quickly, minimising time spent out-of-stock.  

• I want to maximize the profitability of every return 
  

  The return journey offers key customer touchpoints where customers are highly engaged – make the most of these moments with promotional messaging and offers, encouraging customers to spend their refund with you. Other revenue recovery tools like in-journey exchanges can rescue the sale, allowing customers to swap sizes or colours and meaning there’s no need to issue a refund at all. 

• I want to reduce returns rates 
  

  Implement your return policy digitally at the point where a return begins, instead of finding out-of-policy items coming back to your warehouse. Prevent returns fraud by making items ineligible to be returned, and control costs by choosing when to charge and when to offer free returns shipping. Analyse specific returns reasons, including sizing, quality and defects, and make changes to imagery, product descriptions and sizing guides. 

• I want my business to be more sustainable 
  

  Estimated waste from returns sent to landfills has nearly doubled from £5 billion in 2019 to £9.5 billion in 2022. An optimised return logistics process can not only help reduce carbon emissions by transporting fewer goods, but it can also reduce the volume of items sent to landfill by increasing the resale potential of returned goods. That’s good for the bottom line and for the overall sustainability of your business.

• I want to create a great in store experience
  

  Processing returns in-store can take up to 3 hours a day. Ensure in-store returns aren't a burden on your store staff and give customers more time to spend shopping with an automated self-service solution, allowing customers to drop off returns in under 60 seconds. Leaving your store staff to delight customers purchasing in-store.  

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• “After three weeks of implementation, about 90% of our returns were via the digital returns and dispatch service. I realised that customers had been waiting for it. We have also been able to reduce the cost of returns, and the introduction of the service has led to an increase in the purchase rate of our official online store.”
  
  Kazutoshi Mochizuki, Logistics Director, Gap Japan K.K.

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• Large eCommerce Retailer
  
  

  • Over 20m returns processed through Kiosks in 7 countries
  • Increased consolidation of returns to upsell locations from 8% to 12% of total returns
  • Saved 80% of reverse logistics cost per return through consolidation in a drop-off location.