Wednesday 27th December saw returns hit their post-Christmas peak. How can retailers minimize the returns revenue hit?
For the second year in a row, analysis of nShift returns data finds that the Wednesday after Christmas was the most popular day for consumers to request returns of unwanted gifts.
Our analysis finds returns requests increased by 17% on Wednesday 27 December, compared with 2022. Most notably:
- Returns in Norway increased almost 50% compared with 2022
- Denmark saw an increase of nearly 20% on 27 December, and 30% on 28th
- Finland saw 2.5% more returns requests overall
Minimizing the returns revenue hit
These days, consumers see returns as a key element of the shopping experience. Indeed, in a poll of shoppers carried out by Retail Week on behalf of nShift late last year, almost half of consumers agreed they’d be more likely to shop again from retailers with easy returns policies.
But returns can be costly for retailers. Gartner analyst Tom Enright has described them as a “trillion-dollar problem” for retailers. Retailers can lose up to 50% of their margin on returns.
A new year’s resolution to rethink returns
Many retailers will have made new year’s resolutions to rethink their approach to returns, so they become a business gain, rather than a financial drain.
With the right strategies and processes in place, returns can be a real point of difference for retailers. A means for improving the customer experience, standing out, and encouraging repeat purchase, which can build customer loyalty and increase revenue.
From returns to (customer) retention
nShift helps ease the administrative burden while ensuring a smooth, friction-free journey for customers looking to return their orders. In digitizing the entire returns experience retailers can:
- Make returns simple - a consumer-friendly returns interface makes it easier for the customer to exchange the item they are sending back for something else
- Creating remarketing opportunities – emails about returns have significantly higher open rates than other retail communications. Retailers can create additional sales opportunities by weaving marketing messages into these emails
- Drive footfall in-store – a digital returns process makes it easier to give customers the opportunity to take their items back into the store, making it easier to re-shelve returned items and increasing the likelihood of exchanges
For more information on how nShift can help you realize your return resolution for 2024, get in touch with us today.