Managing returns has become a real challenge for companies. With operating costs on the rise, e-tailers need to find solutions to optimize their profitability.
The growth of e-commerce in France: key figures and challenges for returns management in 2023
The e-commerce sector is still growing, whether in France, Europe or the rest of the world. In France, the Fevad(Fédération du e-commerce et de la vente à distance) published in February 2023 its annual report ononline salesHere are the key figures:
- 146.9 billion EURfrom e-commerce from e-commerce (products and services combined) in 2022, an increase of 13.8% on last year.last year.
- -7 % from online product sales compared to 2021, which represents a significant decline, but is of little concern, as compared to 2019 the sector is showing an increase of +33%.
- 6,5 %from increase in transactions posted by online sales sites compared to 2021, i.e. 2.3 billion transactions in 2022.
- 65 EUR is the average basket spent onlinean increase of 6.9% compared to 2021.
In summary, Fevad underlines that e-commerce in France continues to grow, driven by changes in consumer purchasing behavior. This growth in online sales is accompanied by an increase in returnsE-tailers receive twice as many returns as physical stores.
These days, parcel returns are a major concern for companies. With rising gas and energy prices and consequently delivery costse-tailers are faced with a significant increase in operating costs. operating costs and increased last-mile costs.
According to a study published by Statista, 39% of French online shoppers returned an item in 2021. The sales sector most affected by returns was the clothing trade, and the products most frequently returned by French consumers were clothing and footwear.
How to improve returns management: tips and recommendations
Knowing that returns can significantly reduce a company's margin, managing e-commerce returns is a real challenge , and will help you make valuable savings on your logistics budget.
It is therefore essential to reduce the number of returns and optimize their management.
1) Preventive returns management
There are many reasons why consumers make returns. The most common are :
- Products are not suitable
- The product is damaged and cannot be used
- The product does not correspond to the description
Reducing the number of returns starts long before the product is sold:
- Optimize your product descriptions
- Improve the quality of product images or videos
- Use virtual fitting technologies and size guides available especially in the apparel sector.
- Encourage customer product evaluations and install order-picking verification checks before shipping packages.
2) Put the customer back at the heart of your Return strategy
Customer feedback is a source of information provided by the customer following a purchasing experience. By asking them questions, you can identify areas for improvement, expectations in terms of responsiveness, quality of service, traceability, transparency of cost information and impact, while guaranteeing that the customer promise is kept.
3) Clear e-commerce returns policy
The customer experience doesn't end with the simplicity and immediacy of a 2-click purchase, it continues once the parcel has been received. Facilitate product exchanges and rely on a simple returns policy that satisfies customers and encourages their loyalty, for example by making your e-commerce returns policy page easily accessible, with information such as withdrawal period, parcel return conditions, return costs...
4) Make it easy for consumers to access the return label
Set up processes that will enable your customers to organize a return independently from your returns portal, with ready-to-use shipping labels , or even return without a label.
5) Several return options available
By offering your customers several options for returning their parcels, you'll be able to satisfy as many of them as possible: return to a physical store, relay depot, post office or home collection, among others, are the solutions available to you.
6) Optimize restocking processes
E-commerce order returns generate numerous handling operations for warehouse operators, such as: identifying and checking the product as it arrives in the warehouse, repackaging, restocking or recycling returned products, and finally replacing or refunding returned orders. Today's big challenge is to do all this in the shortest possible time, in a way that's clear and fluid for your customer.
Thinking about returns management may also lead you to ask yourself the following question: is it worth outsourcing returns flows in order to gain operational efficiency?
7) Automate your returns process with returns management software
When starters decide to manage their returns manually, they can easily get out of hand and become very costly. Returns management software is an alternative that enables you to create more efficient returns management processes.
8) Raising awareness
One point not to be overlooked is the growing ecological awareness of consumers, who are increasingly sensitive to this issue. Returns are costly, and they also increase your company's carbon footprint. It's therefore essential to raise awareness among your customers , so that they understand the impact of a return on the environment.
Should you charge for e-commerce returns?
To cope with rising operating costs, many retailers are now charging their customers for returns. One example is Zara, which has decided to go back to free returns by indicating in its the rules of its returns policy that "returns concerning orders placed from 28/04/2022 will have a cost of 1.95 euro deducted from the amount refunded". Zara claims to have taken this decision for ecological reasons. The company believes that free returns encouraged an increase in the number of returns and many customers systematically return some or all of their orders.
Even if, on the one hand, setting up these fees can help you help you reduce costs and improve your sustainabilityon the other, you run the risk of reduce the number of potential and therefore your sales. It's up to you to weigh up the pros and cons.
In summary, e-commerce returns have 3 main types of impact:
- Economic impact because their cost can considerably reduce your company's margin
- Environmental impact because they increase your carbon footprint
- Impact on customer experience as poor returns management can have a negative impact on end-customer satisfaction
To reduce your return rate, you need to implement a continuous improvement approach. continuous improvement with the customer at the center of decision-making. This approach will enable you to focus on the following aspects: taking into account customer needs and feedback, refund management, and the traceability and revaluation of your returns. Keep in mind that returns management is the last point of contact with your customers.
Let's face it, returns will never go away, so let's make returns a lever to increase your revenues and customer loyalty by implementing an optimized returns policy.
If you want to optimize the management of your returns, or if you just want to talk about it: contact us. At Univers Retail we have the capacity to support you in an improvement process with a diagnosis of your situation and the methodology adapted to your needs.
Sources :
Ecommerce Nation : Returns management
LSA Conso: Returns management
Sendcloud : Making the most of returns