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Welcome to the world of retail returns, an expensive, cumbersome yet essential part of the industry. The number of returns is growing and managing them is critically important to maintaining margins and customer satisfaction. of all purchased goods were returned to retailers. of all purchased goods were returned to retailers.
Christmas and end-of-year sales are big business for retailers but they also drive enormous returns. The rise in post-Christmas returns can be attributed to several trends, with the growth of eCommerce being a leading factor. This helps lower material use and reduce space in delivery trucks, ultimately lowering emissions.”
Bed Threads, The Iconic, and Oroton ranked ahead of other retailers in November for overall returns experience in the Online CX Index, Australias first and only online retailer performance platform powered by real data. A seamless return experience can turn a frustrating situation into an opportunity to build trust and loyalty.
Retailers in Australia are scaling back on free delivery and returns amid the continued increase in delivery costs, according to a report from delivery platform Shippit. The State of Shipping 2025 report finds that retailers are grappling with rising delivery costs, with standard delivery up from $10.26 last year to $10.39 to $14.69.
During the pandemic, ecommerce returns majorly impacted retailers profit margins. As customers return to in-store shopping, retailers are continuing to face an increase in returns from online and in-store sales. This holiday season, consumers who frequently make returns may be in for a surprise.
Retailers are reportedly losing billions as shoppers increasingly abuse product return policies. In 2023, shoppers returned $743 billion of merchandise, per the National Retail Federation. The exploitation of return policies is seemingly getting worse. Of the total, $101 billion was fraudulent.
According to PwC, businesses that reduce friction for consumers and empower all employees to make things right whether through returns, price adjustments or other policies bring higher customer satisfaction and more forgiveness. Delivering a smooth and frictionless post-purchase experience should be a top priority for every retailer.
Building a future-proof tech stack To survive and thrive during Black Friday, retailers must invest in tech solutions that integrate seamlessly with their current systems – inventory management, CRMs, and shipping tools. Optimising shipping with automation Shipping logistics are a make-or-break factor during Black Friday.
Seeking to compete with ultra-low-price sites such as Shein and Temu , Amazon has introduced Amazon Haul , featuring maximum prices of $20 and one- to two-week shipping times. There have been rumors of the move for months, and now the new shop is officially rolling out in beta. It will be available to U.S.
It was found that these companies are instead based overseas, not closing, and are drop-shipping low-quality goods. The ACCC describes the scammers as so-called ‘ghost stores’, where operators falsely represent themselves as local Australian businesses that sell high-quality clothing and footwear and are imminently closing down.
While this longer shopping season may benefit the consumer, it also poses sales tax complications for retailers that can last well into the new year when return season strikes. Complex Returns The holiday shopping season starts earlier than ever but it also ends later than ever for retailers that must handle a high volume of returns.
In such times, shipments get delayed and even lost, shipping costs and storage costs spiral and customer frustration increases when goods fail to arrive. Using AI for returns optimisation Another growing supply-chain issue for retailers is returns. Businesses are getting increased returns every year.
To that end, 35% of survey respondents said selling on marketplaces allows them to offer faster and more cost-effective shipping. Partnering with a marketplace also means brands dont have to manage the returns process, which is another growing challenge.
The ease of online shopping is partly driven by flexible return policies. Gen Z often buys multiple items, tries them on at home and returns what doesnt fit. Across generations, 24% of online clothing purchases are returned. With Gen Zs preference for mobile shopping, optimizing websites and apps for mobile users is critical.
Hubbed is setting a new standard for e-commerce returns with the upcoming launch of its box-free and label-free solution across its entire Parcelpoint network. With over 2500 locations nationwide, this innovation is designed to enhance convenience and customer experience for e-commerce returns.
Through the connection with Omni, the Maven chatbot is able to handle a broad range of customer inquiries directly, including complex requests such as shipping status, order changes, cancellations, returns and exchanges.
Key Takeaways High Return Categories: Apparel, electronics, home goods, and beauty products are among the most returned items due to sizing issues, defects, and customer dissatisfaction. Quality Control: Ensuring product quality through rigorous checks can significantly reduce return rates and enhance customer trust.
North American retail and ecommerce businesses now lose a total of $3 for every dollar of fraud they experience, and as mentioned earlier, most customers wont return to a site after a fraud experience. Shipping and Beyond Unfortunately, the security and fraud risks continue after orders are approved.
Additionally, if we promise to ship something by a specific date, they expect it to arrive on time. We discovered that most of our customers already have their shipping address and payment information saved in their profiles. Customers also expect us to have what they need when they need it.
Shipping errors are reduced and checkout is easier, protecting the customers overall experience with your brand. Every country has its own unique address formats, and inconsistencies can lead to costly errors in cross-border shipping.
According to a report by VPNMentor, researcher Jeremiah Fowler discovered that the database, which was unencrypted with no password protection, contained sensitive information, including names, physical and email addresses, phone numbers, invoices, shipping information, return details, and other potentially sensitive data.
billion in gross merchandise volume (total spend before fees, discounts and returns) up from $4.5 With respect to pricing specifically, also take into consideration Amazons free shipping minimums. Non-prime members pay for shipping on all orders below $59, which can cost around $10 to $15, depending on the order.
For example, the dockworker strike ended quickly, but still caused shipping backlogs. Meanwhile, it looks like Great Lakes shipping could be affected by higher-than-average precipitation. And don’t forget: after the holidays comes the deluge of returns. More snow could slow down trucking both in the Midwest and Mountain West.
The Online CX Index, a partnership between Inside Retail and Humii, covers the entire website experience through checkout, delivery and even returns, evaluating eight key criteria based on up to 200 data points. Over 50 per cent of retailers Online CX Index tracks still do not provide the option. “Consumers hate unpleasant surprises.
In a competitive e-commerce environment, customers are most likely to return to shop where they have had the best experience. The standout returns experience Osthus stresses the importance of having a smooth returns process, especially around prompt authorisation. “If Experience should always be a focus point,” says Osthus.
Prepping click-and-collect orders, picking and packing ship-from-store orders, managing store-to-store transfers, etc. — And process returns of stuff people don’t want! Associates have to be omnichannel fulfillment specialists. the fulfillment scenarios really are endless. And don’t forget that they need to sell stuff!
When it comes to shipping, Sephora delivers more quickly; in 1.5 However, Mecca excels in the post-purchase experience, which encompasses dispatch and delivery, product and packaging, returns and refunds, post-purchase support, and loyalty and retention. The Aussie company falls way behind Sephora in several key performance standards.
Asda and Amazon have launched a new parcel pick-up and label-free, box-free return service at over 700 of the supermarket’s stores. The tie-up is designed to make shopping at the grocery giant more convenient for customers, who will be able to do their weekly shopping alongside collecting and returning their parcels in one trip.
Not only do these technologies improve throughput in most cases; they also enable greater flexibility in meeting expectations related to fast shipping and free returns. Additionally, shoppers increasingly demand ultra-fast deliveries, highly flexible return policies and more personalized online experiences.
Funderburk and Zamansky shared how the company is doubling down on its human-centered AI approach to create a more customer-centric shopping experience and return the company to growth. The customers Fix is shipped and they have three days to test out the items and select which ones they want to buy and which ones theyll return.
The retailer’s digital transformation also include the implementation of Shopify’s next-generation POS system in the new tech-driven “Diamonds & Pearls by David’s” store format that was introduced in May 2025 , with Deloitte Digital providing implementation, consulting and strategic advice for the initiative.
Features like booking an in-store pickup online or returning online purchases in person are now viewed less as perks and more as baseline expectations. Cross-Channel Returns and Exchanges Returns and exchanges can be a significant sticking point, particularly when orders are made through one channel and returned through another.
Whether shipping directly to customers’ homes, enabling curbside pickup or restocking store shelves, consistently improving speed, accuracy and adaptability is crucial for meeting shopper expectations and maintaining market share. Orgill , the worlds largest independently owned hardlines distributor, achieves 99.6%
While free and fast delivery is a high bar, retailers can use free shipping to their advantage, helping them grow their customer base and increase customer loyalty. A customer-centric approach to deliveries and returns is one of the best competitive advantages retailers can gain to meet the demands of all generations.
Benefits: Increased customer satisfaction and trust Greater likelihood of customers returning for future purchases Stronger word-of-mouth marketing 4. Offering expedited delivery options, such as next-day or same-day shipping, can significantly improve the customer experience, especially for those who need their purchases urgently.
Our research found that 79 per cent of consumers appreciated fast shipping and home delivery, with flexible return policies and free returnshipping also contributing to higher confidence in online shopping. Loyalty and personalisation are critical.
Published June 24, 2025 By Michael Brady post share post print email license A return of a Shein item leveraging UPS' Happy Returns occurs at a Forever 21 location. The fashion industry experiences more returns than any other, with over two-thirds of consumers returning clothing or footwear in the past year.
This includes details like shipping, availability, and returns policies. In other words, you have a better chance of being featured in Google’s AI overviews if you have detailed and up-to-date PDPs across your site. Some tips to keep in mind What else should small e-commerce businesses know about the new feature?
They want seamless experiencesfrom clear product information and localised payment options to transparent shipping costs and easy returns. Currency conversion, language barriers, shipping logistics, customs regulations, and local taxes can be overwhelming if not managed properly. However, these challenges are not insurmountable.
Smaller carriers, in particular, will face working capital pressures, making it essential for retailers to build flexible, multi-carrier shipping strategies to mitigate risk and maintain delivery consistency. With delivery reliability significantly impacting customer retention and lifetime value, this must be a key focus for retailers.
Research shows that a lousy customer experience will deter 76 per cent of customers from returning to shop on your platform. They trust your business to fulfil their purchases on time and in full – and for returns to be convenient. So, it is critical to optimise service and customer experience online.
Redirecting efforts into express checkout lanes and self-service kiosks led to a 40 per cent reduction in wait times and a 15 per cent lift in customer return rates. Example: A beauty brand upgraded its online chat support to improve response times, but customer complaints about the returns process persisted.
With air freight rates predicted to return to normal this year, retailers and their suppliers are looking to rationalise traditional supply chain routes from factories to localised warehouses. Where ocean shipping used to be 15 to 20 less expensive than airfreight typically, but that ratio is now closer to around six.
Quality Customer Service: Prioritize exceptional customer service and streamlined shipping practices to build trust, enhance brand reputation, and foster long-term customer relationships. Offer exceptional customer service, detailed product descriptions, and prompt shipping to enhance your small business’s reputation.
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