The Cost of Ecommerce Returns
Online shoppers are in the habit of buying, trying and returning fashion purchases. So much so, that an offer of ‘free returns’ is almost expected. However, there are financial and environmental costs to ecommerce returns, so brands are seeking new solutions.
Purchase in-store and there is the option to try items on in the changing rooms. If they don’t fit, they can be returned to the shop floor. With online shopping, trying on takes place at home and with considerable variation in sizes and styles, items often don’t fit. The retailer has to provide packaging for returns and cover the delivery cost.
In the knowledge that returns are free, many customers order multiple items in different sizes and colours, fully intending to send the majority back. This is severely impacting fashion retailers’ profit margins and there is also a shocking environmental cost.
Environmental Cost of Ecommerce Returns
The DeliveryX 2023 Returns Report 2023* discovered that 50% of online clothing returns end up in landfill.
With in-store returns, the customer explains whether the item is faulty or simply the wrong size. Goods can be checked for damage or marks and if the garment is in good condition, it is easy to put it back out on sale.
In contrast, many e-commerce companies lack a team dedicated to processing returns. Checks are made to determine whether refunds are due, but it is time consuming to sort the items and return them to stock. As a result, the cheapest and easiest option is the bin. This is wasteful and damaging to the environment.
Changes to Reduce the Costs of Returns
To address the issue, Zara and other online fashion brands have introduced a returns fee. Taken from the refund, this aims to help shift buying behaviours. Such a move risks some customers shopping elsewhere, but it encourages others to make more considered purchases.
An alternative option is being embraced by Zalando. They have introduced a virtual fitting room to online stores in Austria, Germany and Switzerland, which will be rolled out across Europe. To use this feature, the customer uploads two full-length photos that are used to provide accurate body measurements and sizing information. As a result, the customer can make one purchase to get the right fit.
The Internet Retailing article about Zalando’s virtual fitting room** also highlights the importance of accurate online product descriptions and images.
Accurate Product Descriptions for E-commerce
In-store, customers see and feel the fabric first-hand. Online, this isn’t possible, so it is harder to make judgements on the colour, pattern, material and weight. As such, detailed images and product descriptions are not an area where you can cut corners.
Close-up shots, as well as images of the clothes being worn help buyers to understand whether it is what they are looking for. Information on the style, fabric and length, along with customer reviews for that specific item are also valuable.
It may cost more to instruct a photographer or content writer to showcase your stock in its best light, but this will be outweighed by savings made by fewer returns and less waste.
What steps has your brand taken to minimise ecommerce returns?
Returns Packaging
As a specialist in cardboard e-commerce packaging, Aylesbury Box Company produces postal boxes. We’ve added tear strips, adhesive strips and printed instructions to many e-commerce customer’s boxes to encourage packaging reuse. Reusable boxes are more convenient for the customer and they reduce the likelihood of damage caused when unsuitable ecommerce returns packaging is used.
For further information, give us a call on 01296 436888 or email enquiries@abcbox.co.uk
* https://internetretailing.net/reports/retailx-sector-reports/deliveryx-returns-report-2023/
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