Rethinking Returns!
2020 saw a fundamental shift in ecommerce. Despite a challenging year for retailers, ecommerce surpassed levels not expected until 2025. Years of transformation happened in a matter of months as consumers were forced to embrace shopping differently.
But as ecommerce grew, so did returns. In the first week of 2021, UPS accepted 1.75 million returns into its system every day. Every. Single. Day. ASOS UK has a 25% return rate, which increases to a staggering 70% in Germany.
Returns not only impact a retailer's bottom line, but also the overall customer experience.
No longer an afterthought, returns are increasingly becoming a more important part of the shopping journey. Consumers are demanding more, and won’t hesitate to switch to a competitor if you don’t meet their needs.
Can retailers remain profitable while still embracing returns? Or can they no longer afford not to?
The Secret to Reducing Your Average Return Rate
It’s quite simple, really. Better. Product. Data. That’s it. 46% of returns are due to the size, fit or colour being wrong; a further 12% are because the product wasn’t what the consumer was expecting based on the photos and description. These stats can easily be reduced with quality, robust and accurate product content.
What makes quality product content?
7 requirements for a product page (according to BigCommerce)
The Iconic report their return rate dropped by 6.5% in 2020. Why? The pureplay retailer credits new browsing features, like more product images, detailed descriptions of material and measurement, augmented reality and video displays that helped customers narrow down their choice.
PRO TIPS FOR EXCEPTIONAL PRODUCT CONTENT
1. Invest in imagery
Your product imagery is one of the most important features of your product page. 90% of information transmitted to our brain is visual - make sure you get it right!
Your imagery should consist of both product-only and in-context shots. If you’re in the fashion game, ensure your models are diverse ... your customers need to imagine themselves wearing the product. Bring attention to any product detail and special features - these will help your conversions!
2. Tell it like it is
Ensure your product description is thorough; every tiny detail counts. It should be emotive yet descriptive and express the core features and function of the product. What does it feel like? How does it work? What’s the fit like? What’s the texture? The more relevant content, the better.
3. Learn from your mistakes
Why are your products being returned? 89% of retailers collate and review the reasons behind returns - but are they actioning them? If there’s a disconnect between expectation and reality, there’s a problem. Optimising your product content using this vital feedback will help bridge the gap - and reduce the rate of return. A PIM solution allows you to update this content once and once only - as it’s the one source of product truth, the updated content will be pushed out to all your sales and marketing channels.
Rich product content is the magic behind ecommerce success. A robust and powerful PIM (product information manager) will manage and automate your product data, ensuring accuracy and completeness. A top solution will also assist tailor product information specifically for external applications, marketplaces and additional sales channels. Selling internationally? A PIM holds product data specific to countries, regions, languages and currencies - all in the one place.
3 #Tips to Reduce the Cost of Returns
#1. Optimise Returns Shipping
Are you shipping returns across the country? Internationally? Not only is it costly, but not very efficient. The product returned should be turned around and put back into stock ready to be sold asap. And if the customer is waiting for the return to be processed to receive their refund? That’s problematic.
An OMS can help you optimise your returns shipping, ensuring the product is returned in the most efficient way.
#2. Encourage Instore Returns
Don’t lose the sale entirely - encourage an instore exchange or return. When a customer comes instore, retail staff are empowered to offer a different size / style / colour etc rather than a straight refund.
If a customer does want an immediate refund, staff can process this on the spot and turn a negative brand experience into a positive one.
84% of shoppers say they want to be able to choose whether to return items in store or online.
#3. Let Them Keep It!
In some cases, it’s often cheaper to give the customer a refund and let them keep or donate the product. In the US, Amazon, Target, Walmart and others are using AI technology to determine if it makes economic sense to pay for return shipping. For large or inexpensive items, it doesn’t.
[What do you think? Are you taking returns seriously or is there room for improvement? Reach out if you’d like to chat!]