By Maarten Tops, Product Director
The rising importance of returns in the delivery experience
A new study by nShift and DeliveryX examines the importance of returns in ecommerce after £4.2bn worth of goods were sent back in 2023.
The report explores how and why returns provide retailers with a golden opportunity to differentiate and improve customer loyalty. It also offers useful insights for retailers to improve their returns offer.
Over a third of consumers returns products
The DeliveryX Returns 2024 report found that over one third (35%) of consumers now send products back. In the UK alone, the value of returns reached £4.2bn in 2023. The report also found that 54% of consumers see ‘easy’ returns as very important and over three quarters (76%) of consumers expect their ecommerce returns to be free of charge.
Returns management plays a key role in the delivery experience because what the customer sees and feels in post-purchase, often determines whether they will shop again.
How to win at returns
Returns play a key role in the delivery experience.
Surveys tell us that simple returns policies encourage customers to buy with confidence. However, what the customer sees and feels in post-purchase often determines whether they will shop again.
Winning on returns can only happen if the whole experience is seamless and intuitive, from selecting delivery options at checkout, to tracking deliveries to the doorstep or collection point, and requesting a return if necessary. It should be totally digital, with the retailer, rather than carriers, acting as the focal point.
Revamp your returns strategies
There are five ways retailers can revamp their returns strategies. These are:
- Make returns easy – operating a simple digital returns process gives shoppers confidence in the brand. It also makes it easier for the retailer to track patterns and work out why items are being sent back
- Convert returns to exchanges – a consumer-friendly returns interface makes it easier for the customer to exchange the item they are sending back for something else from the brand or retailer. With the right returns software, ecom companies can automate the process of offering an exchange. nShift Returns customers typically convert 30% of returns to exchanges, helping retailers retain revenue
- Maximize returns data - manual returns processes make it difficult to gather information about items being sent back. But when the process operates digitally, it creates a wealth of data for businesses to analyze. This makes it easier to spot trends and patterns. Teams can identify and rectify common problems that are causing items to be sent back. This can reduce returns volumes over the long term
- Respond with remarketing – emails about returns have significantly higher engagement rates than other retail communications. By weaving marketing messages into these emails, ecom companies can create additional post-purchase upsells
- Drive customers in-store – a digital returns process makes it easier to give customers the opportunity to take their items back into store. Here they will speak with a member of staff who can encourage them to exchange the item. The customer will also encounter additional products and marketing messages in-store
Download your report
Delivery & experience management (DMXM) enables retailers to build brand loyalty, reduce costs, and increase revenues, with deliveries. With DMXM, shipping and deliveries become customer experiences which surprise and delight shoppers, while reducing costs and unlocking efficiencies across warehouses and delivery teams.
Download your copy of the DeliveryX Returns 2024 report to find out more.
Author
Maarten Tops
Product Director
Maarten Tops is experienced within delivery & experience management, product development, and digital transformation. With a strong track record in SaaS, Ecommerce and Tech, he is passionate about leveraging technology to drive innovation and efficiency. At nShift, Maarten is the Product Director for nShift Ship, Transsmart and Post Purchase Product Suite.
