E-Commerce Boom Necessitates Investment In Return Strategy

69 percent of buyers won't buy online if they have to pay for return shipping, and 67 percent won't buy if they have to pay restocking fees on returns.

FREMONT, CA: Returns have always been a pain for businesses in the digital age, but the returns mammoth is only getting worse, with the epidemic propelling the global e-commerce market to USD 4.9 trillion1 in 2021. Many organizations, to their disadvantage, fail to take this issue seriously: eight out of ten executives say that return strategy is not a top priority for their C-suite. Retailers must invest in reverse logistics technology, consider returns as part of their business strategy in today's fast-paced industry, or risk losing consumers, money, and time.

To thrive in today's e-commerce market, businesses must digitalize their logistical processes and use data to make more effective decisions. However, with internet purchasing rising at an unfathomable rate, merchants find reverse logistics a significant financial burden: Returns will cost sellers USD 428 billion globally in 2020. Returns are no longer an option, and the digital, data-driven processes that so many retailers have included in their logistics strategies must also be applied to reverse logistics. Companies will be able to comprehend the financial impact of returns and use the data to enhance efficiency and their bottom lines if they better understand their reverse supply chains.

Customer expectations are rising in tandem with e-commerce sales. 69 percent of buyers won't shop online if they have to pay for return shipping, and 67 percent won't shop if they have to pay restocking fees on returns. Furthermore, the pandemic has brought some consumer behaviors to the foreground, such as the growth of bracketing, which is when people buy many sizes or colors of clothing, only to return the majority of them. Retailers must adapt their business strategies to meet shifting consumer needs as consumer expectations change. With features like return tracking and prompt reimbursements quickly becoming industry standard, having a simple, no-fee return policy is essential for keeping consumers satisfied. It can even be an opportunity to engage them further.  52 percent of consumers say they have made a second purchase from a company following a pleasant customer service experience. They are keen to pay 17 percent more to do business with companies with a good reputation for customer service. If reverse logistics are simplified, consumers will be more satisfied with their retail experience.