Tackle Your Returns Problem
Ecommerce returns are growing at a faster rate than online sales
Returns have previously been accepted as a cost of doing business, with few retailers prioritising tackling their true impact. However, ecommerce returns are now growing at a faster rate than online sales. In 2012, returned products cost global ecommerce retailers $200 billion, not including the opportunity cost of lost business due to poor customer experiences. In the UK, IMRG reported £20 billion of refunds from online in 2013. Fashion retailers see an average return rate approaching 30%, with other categories close behind.
As online and multichannel sales continue to grow, returns will also increase.
Returns inflate revenue, undermine profitability, are a drain on your cash, increase stock wastage and damage customer lifetime value. Up to 80% of first time customers who experience a return never shop with you again, even if the returns process is seamless. Whereas a tiny minority of fraudulent customers consistently wear and return - sitting on stock, eroding margin and leaving product unavailable for your valuable customers to buy.
There are many and varied causes of returns, and they are different for every retailer. There is no single silver bullet. Although what is true for many is that problems often go unnoticed until it’s too late to take any corrective action to prevent or offset losses. This doesn’t have to be the case.
How, then, do you begin tackling this escalating, expensive and poorly understood problem? The answer lies in systematic and predictive use of your business wide data, and more specifically, in returns intelligence technology created by Clear Returns.
This award-winning software helps retailers optimise for profits. Our returns intelligence platform unites key data from ecommerce, stores and warehouse systems, giving you a consolidated view of the impact of returns on overall performance and prioritised, actionable insight. Pinpointing the causes of your returns and the customers most impacted allows you, the retailer, to take appropriate action to minimise the negative effects of returns on the business and your customers. And, of course, we help you automate those responses, to minimise impact on staff and systems.
There’s a clear financial return. Grow what your customer keeps and you will keep more revenue. Handle that in a cost efficient way and you’ll grow profits too.