FOCUS ON E-COMMERCE
Preparing for peak 10 top tips
Many happy returns Returns are a major part of everyday e-commerce life. It’s how they’re managed that makes all the difference for consumer and retailer alike. Here’s a snapshot of the current landscape, plus suggestions for putting in place the right returns strategy.
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2021 16.6 %
2020 10.6 %
Returns are on the rise 1 Average retail returns
But get it right… Get returns right, and you’ll reap the rewards.
E-commerce peak is fast approaching, with Black Friday and Cyber Monday leading into Christmas and the January sales.
92 %
90 %
92 %
Fashion retail is particularly affected by the new British habit: Buy, try, return 2
of consumers will shop with you again after a good returns experience 7
are more likely to order from a retailer that makes returns easy 8
say the range of return options is important when deciding where to shop 9
Black Friday 25 November
Reasons for returning 3 The top three
Cyber Monday 28 November
70 %
65 %
49 %
Size: Item does not fit
Arrived damaged/ defective
Didn’t match description
Putting a strategy in place
WHILST PEAK DOES REPRESENT A STRESS-TEST FOR SOME ONLINE RETAILERS, IT ALSO PROVIDES A FANTASTIC OPPORTUNITY. Don’t just cope with it, capitalise on it! We’ve prepared ten top tips to help e-commerce clients make the most of seasonal demand, and you can see them in full at www.whistl.co.uk/peak
Retailers feel the pain Returns can have a big impact on sales and profitability for online retailers.
With expertise across fulfilment, delivery management and contact centres, Whistl is uniquely placed to help you implement a successful returns strategy. Here’s a simple outline of how that strategy might shape up. 1. Understand the reasons for your returns e.g. add better size guides on your website 2. Identify the weak links in your supply chain 3. Implement a returns management process Something along these lines, perhaps: Record, Refund, Repair/Refurb, Re-pack, Re-sell 4. Don’t write off, re-sell! 5. Revisit your returns instructions
Online returns alone cost UK retailers £5.2 billion a year 4 Nearly 50% of online 5 clothes spend ends up being refunded Costs for returning can be twice as much 6 as delivering in the first place At least 30% of e-commerce orders are returned, compared to 8.9% of bricks & mortar 7 purchases
RETURN REFUND RETURN REFUND RETURN REFUND RETURN REFUND RETURN REFUND RETURN REFUND RETURN REFUND RETURN REFUND RETURN
Understand your audience Review your supply chain and monitor industry trends Avoid understocking with effective inventory management Optimise your technical infrastructure Prepare your marketing campaigns for peak season offers
Accelerate your order processing Deploy a multi-carrier shipping strategy to minimise risk Outsource e-commerce fulfilment for extra capacity Get your contact centre ready for peaks and troughs in demand Leverage proactive and reactive technology to minimise delivery failures
Here’s a taster with the headline hints.
Visit www.whistl.co.uk/research/ecommerce-returns for the full report Sources
1. https://www.cnbc.com/2022/01/25/retailers-average-return-rate-jumps-to-16point6percent-as-online-sales-grow-.html 2. https://www.bbc.co.uk/news/explainers-56103106#:~:text=Mintel’s%20study%20also%20found%20that,for%20those%20aged%2016%2D34 3. https://www.powerreviews.com/insights/consumer-survey-retail-returns-2021/
4. https://www.klarna.com/uk/blog/the-state-of-returns-in-2021/# 5. https://home.barclaycard/press-releases/2018/06/return-to-sender/ 6. https://www.retail-week.com/supply-chain/how-can-retailers-mitigate-the-5bn-returns-headache/7036396.article?authent=1#:~:text=For%20a%20retailer%2C%20the%20process,a%20study%20published%20in%20May. 7. https://www.invespcro.com/blog/ecommerce-product-return-rate-statistics/ 8. https://www.yotpo.com/reducing-ecommerce-returns-report/ 9. https://www.reboundreturns.com/why-rebound/logistics#:~:text=92%25%20of%20shoppers%20say%20the,when%20deciding%20where%20to%20shop.&text=60%25%20of%20shoppers%20find%20returns,3%2B%20 return%20options%20are%20available.&text=89%25%20of%20consumers%20have%20returned,in%20the%20last%203%20years.
CHECK OUT OUR WEBSITE FOR THE FULL VERSION – AND REMEMBER, WE’RE HERE TO HELP YOU PROFIT FROM PEAK.
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Whistl Magazine • Summer 2022
Whistl Magazine • Summer 2022
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