E-Commerce Returns Best Practices

ARE YOU READY FOR Holiday RETURNS Season? SA OPPI NG. ÔNICd Projected Projected E-commerce E-commerce Sales Returns $64.7 Billion $19.4 Billion $965 billion will be spent in the holiday shopping season, according to Deloitte. Online orders typically represent 6.7% of total retail sales, but this holiday season, e-commerce return rates are projected to EXCEED 30%. Return rates are significantly lower for bricks-and-mortar retailers - averaging 8.89% in 2014. Bricks-and-Mortar Retail Return Rates Auto Parts 18.26% P Home Improvement 11.17% Apparel 9.96% Footwear 9.13 Sporting Goods 8.96% Children's Apparel 8.62% O Beauty 5.24% "The Returns Process" Is The Number One Reason In-Store-Only Shoppers Refuse To Buy Online of customers will not do repeat business 85% with a company returns are complicated or inconvenient. of customers will do repeat business 95% if the returns process is easy. Retail Sales by Channel While e-commerce has grown rapidly, bricks-and-mortar still account for around 90% of all retail sales. In-Store Sales Ecommerce Sales $868.5 Billion $64.65 Billion Mail Order / Catalog $31.85 Billion 2 out of 3 shoppers would buy more from e-commerce stores if returns were free. PAID FOR When companies introduce free pay for return shipping see sales returns, they typically see a 58-357% increase in sales over the succeeding two years. Companies asking customers to decrease 74-100%. What Customers Want When Processing Online Returns 62% of customers want A Return Label in the Box P 61% want Easy-To-Print Return labels 57% want Automatic Refunds 51% want Free Return Shipping PAID FOR 47% want An Easy-To-Follow Procedure Reduce Return Rates By Addressing The Major Reasons Customers Return Products Problem #1 25% of retuns "The product was not what I expected" -3% The reduction in returns for Ice.com when shoppers view a product video. USER RATING: ***** -20.4% DOG FOOD The difference in returns for PETCO on products that have been reviewed. Problem #2 17% of returns "My product did not fit properly" -50% The decline in return rates ASOS has achieved by introducing a sizing app, which compares items shoppers are viewing to those they already own. Problem #3 16% of returns "I had the wrong item delivered" -74.7% The reduction in returns for Drs. Foster and Smith after they introduced paperless scanners to prevent error during the pick-and-pack process. Problem #4 5% of returns "My product arrived damaged" 58% of Americans say that if they receive a damaged or broken product from an online order, they would either consider purchasing from a competitor or would not purchase from that retailer again. THE BONE HOUSE 52% said they are likely to make repeat purchases from an online retailer that delivers orders in premium packaging. 40% of E-Commerce Customers Have Kept a Purchase They Don't Want Because Returning is Too Inconvenient Most customers make returns 2-3 days before the end of the return window. Having an extended return is a strong trust signal. When clothing retailer 3rd Power Outlet extended their return policy from 14 to 90 days, they both decreased returns and increased purchases. 63% of American consumers check the returns policy before making a purchase and 48% would shop more with online retailers that offer hassle-free returns. Have a clear, concise return policy that can be easily accessed on your website. $20.00 The main points customers care most about in return policies are: S ML XL Read more about our Return Pollicy What is the return window Will they receive a full refund or store credit Who is responsible for shipping costs shorr pacain cop. online-shipping-blog.endicia.com/package-returns-infographic/ www.inc.com/graham-winfrey/why-retail-holiday-sales-will-surpass-2014.html www.wsj.com/articles/with-christmas-over-millions-of-gift-returns-begin-1419627514 www.tampabay.com/news/business/retail/after-christmas-shoppers-to-hit-the-stores-with-gift-returns/2158311 www.referenceforbusiness.com/small/Qu-Sm/Return-Policies.html www.marketwatch.com/story/ecommerce-returns-to-eclipse-30-this-holiday-season----trueships-white-paper-offers-statistics-solution-for- retailers-2015-09-02 www.theretailequation.com/Retailers/IndustryReports econsultancy.com/blog/6834-why-etailers-need-product-videos www.businesswire.com/news/home/20070626005416/en/PETCO-Slashes-Return-Rates-Bazaarvoice-Ratings-Reviews#.VhQ1EfIVhBc www.miva.com/blog/the-power-of-premium-packaging-the-ripple-effect www.entrepreneur.com/article/225495 bright.stellaservice.com/fulfillment-3/stellaservice-study-one-in-ten-ecommerce-packages-arrive-damaged/ blog.bigcommerce.com/create-a-returns-and-exchanges-policy-that-sells/