Tag Archives: returns

News

Economic conditions impacting Christmas spending for over 60% of consumers

Nearly half of UK respondents plan to spend less than they did in 2021, while 15% say they won’t shop at all this Christmas season

Fluent Commerce, a leading provider of a cloud-native distributed Order Management System, today released the findings of its annual ‘Top Holiday Shopper Trends’ consumer spending research, revealing that current economic conditions are impacting the spending plans of over 60% of shoppers.

The research, carried out among 1,000 adult consumers in the UK, tracks spending behaviours and intentions ahead of the holiday season. Among the headline findings, 15% of respondents say they are not going to plan seasonal shopping at all, up from 8% in 2021. In addition, 36% will spend about the same as last year but nearly half will spend less – that is a larger decrease in spend than in 2021.

 

Nearly half (44%) of consumers say they plan a mix of online and in-store shopping, while 12% will shop purely in store, same as the previous year. When choosing to spend with one retailer over another, free delivery is important to over three quarters (79%) of online shoppers, with next day delivery ‘very important’ to two thirds (65%) of all respondents.

 

Looking at product availability, most consumers (68%) said it would damage their view of a brand or store if an item they went to purchase wasn’t in stock having been informed online that it was. Unsurprisingly, three quarters said if a product was sold out, they would go to a competitor site.

 

Additional research findings include:

  • If an online order is delayed 43% say it is likely they won’t shop with that retailer in future.

  • If an item is out of stock when shopping in a store, 70% said they would purchase the item if a member of staff could find it in another location and get it to them.

  • Returns to a physical store were important even if something was ordered online. 68% confirmed that point.

 

“Because of the understandable degree of spending caution among the majority of holiday season shoppers, retailers need to raise their game and adapt quickly if they are to maximise margins on every sale at this time of year,” commented Nicola Kinsella, SVP of global marketing at Fluent Commerce. “Keeping up to date with consumer preferences and shopping trends is vital, but we know many retailers struggle to give shoppers the kind of experience that determines both engagement and loyalty. As the data reveals, failing to take control of their inventory accuracy will simply mean today’s savvy shoppers will go elsewhere. And changes are they won’t come back”

 

To download a copy of the Fluent Commerce ‘Top Holiday Shopper Trends 2022’ report, click here.

E-Commerce, News

New research: Fashion shoppers’ post-purchase selfies are key to cutting the rising volume of online returns

61% of US and UK consumers say seeing visual user-generated content (UGC) from other customers can reduce the growing number of fashion ecommerce returns which is hitting retailers’ profitability and sustainability goals. And around half of consumers now accept that returning online fashion purchases is bad for the environment

NEW YORK and LONDON (July 14, 2022) – 61%[1] of consumers questioned in a new poll think fashion retailers can cut rapidly rising ecommerce product return rates by including more post-purchase photos and videos from other customers—to help shoppers see how clothes look on ‘real’ people, not just models. 59% say virtual try-on tech that allows shoppers to picture themselves in outfits they find online will also help to rein back returns.

The findings come from a survey of just over 2,000 US and UK consumers commissioned by Nosto, the Commerce Experience Platform, which is used by fashion brands such as Patagonia, Paul Smith, Pangaia, and Todd Snyder.

The new research coincides with rising returns volumes reportedly hurting the profitability of online fashion brands such as ASOS and Boohoo. In the US, average ecommerce return rates jumped to 20.8% in 2021 with an estimated $671 billion worth of goods being returned.

Escalating ecommerce returns reduce profits by hiking up retailers’ delivery and warehousing spend (increasing costs by as much as 21% of a product’s order value). And there’s also the problem that returned inventory negatively impacts the environment, with annual carbon dioxide emissions from transporting returned goods in the US estimated to equate to having 3 million more cars on the road.

Fashion retail brands are also increasingly conscious that performing poorly on sustainability and protecting the environment can damage their credibility. Recently, several brands including H&M stopped using a tool that tries to measure the sustainability of garments over concerns about greenwashing.

Importantly, respondents to Nosto’s survey were more than twice as likely to agree that returns are bad for the environment than disagree (49% v 17%[2]) on the basis that returns waste fuel, packaging and other resources.

“Polished, studio imagery has been the default way to show clothes off on ecommerce stores. But supplementing this with customers’ own imagery gives shoppers a more accurate reflection of how products are worn in everyday situations, and by ‘everyday people’ who also own the items,” says Damien Mahoney, Chief Strategy Officer of Nosto.

“That’s why fashion retailers are leveraging customers’ visual UGC on their websites, such as the post-purchase selfies they encourage customers to share on Instagram. The savviest retailers are also encouraging their customers to comment on the likes of products’ fit or share their measurements within captions, so others can make comparisons that better inform purchase decisions and therefore lessen returns.”

Separate research conducted last year by Stackla, the visual UGC platform (now a part of Nosto) indicates that consumers are very happy to let fashion retailers use their post purchase selfies – 58% would give permission to a brand to use images of their fashion purchases as part of their marketing.

Alongside using more UGC, nearly half (49%) of consumers questioned in Nosto’s survey agreed that charging customers for returns—or stopping free returns, as Zara has started doing recently—can stem the flow of products fashion shoppers send back by making them think more carefully about whether they’re going to keep a product before they place an order.

And the research suggests that retailers must continue to pay close attention to some of the more basic tactics to help keep returns down. This includes taking steps to ensure online information is clear, accurate and detailed (66%), orders are not damaged before being sent and that correct items are packed (also 66%).

Read more insights from Nosto’s research on the company blog article. These are the initial findings from a broader survey on consumer attitudes to sustainability in fashion retail which will be released by Nosto later in 2022.

[1] Respondents were asked if they Strongly agree, Somewhat agree, Neither agree nor disagree, Somewhat disagree, Strongly disagree with a list of statements. Almost throughout the press release ‘Strongly agree’ and ‘Somewhat agree’ answers have been added together when referring to results.

[2] Combining 17% of respondents who answered ‘Somewhat disagree’ or ‘Strongly disagree’ to the following: I believe that returning fashion products purchased online is bad for the environment because it uses up fuel, packaging and other resources

Logistics, News

Latest Doddle Research Highlights The Increasing Returns Crisis

Carriers need do more to address the increasing crisis around returns and provide a viable solution to retail customers as growing ecommerce has driven an alarming shift in its significance. This is according to the latest research, commissioned by global e-commerce technology provider Doddle, to highlight the retailers’ experience of returns, and to identify the areas in which carriers can help meet the needs of their customers.

“As we see it, the postal and carrier market is divided,” comments Tim Robinson, CEO of Doddle. “For many, returns are simply not their problem – the pain is not theirs, and returns are just a source of additional volume. There are others, though, who see that they can lead on this issue by solving the problem for their customers, and these are the businesses gaining in market share and relevance.”

The research found that 57% of merchants believe that returns are a “significant” problem.  “While they believe their processes are good, they acknowledge that improving those processes is currently a high priority. They appreciate this is a key point of competition between retailers, and a key point upon which customers base their purchasing decisions,” explains Tim.

Cost was the primary concern for retailers. It is estimated that returns can cost between 20% and 65% of the product’s original value to process, and online returns cost twice as much as returns of goods purchased in store. ECommerce returns also happen two-to-three times more often, take far longer to become available for resale, and in general have a more detrimental impact on retail margins.

As a result almost two thirds of retailers consider improving returns to be a high priority for their business. “At Doddle we are already working with carriers around the world to make e-commerce delivery and returns more efficient, customer-friendly and useful,” concludes Tim.  “The majority of merchants are finding returns challenging. They’re an obstacle to growth, and getting them right drives success for merchants of all sizes. Improving their returns is a priority, and most would be willing to work with a carrier to make that happen.”

“For carriers, they have a clear choice – to provide for their customers, or to allow another business to fill the gap, whether they are a direct competitor in the parcel market or a technology player. Allowing either to take control of a growing source of volume and a key determinant of e-commerce success would be a strategic mistake.”

News, Retail

UK shoppers sitting on £2.4bn of unreturned goods bought online

UK shoppers are sitting on a potential £2.4 billion of unreturned goods they have purchased online, as lockdowns restrictions have made returning unwanted items significantly harder for them.

This is according to new research released today from InPost, the UK’s leading locker network, which finds that well over half (57%) of online shoppers say returning items bought online is time-consuming and a hassle given lockdown restrictions, and (45%) say retailers need to make returning goods easier in the current circumstances.

As a result, over half of those with items to return (51%) say they have accumulated more items to return over the course of the January lockdown than they would typically have.

The new data – based on a survey of over 2,000 UK adults conducted at the end of January by Opinium – finds that those who have unwanted purchases have an average of three items waiting to be returned, with a total approximate value of £165 per person.

Online shoppers also indicate that social distancing when undertaking returns remains a concern. Over half (54%) say they are concerned about coming into contact with other people at a Post Office, parcel drop-off shop or when in a store to return goods, and nearly two-thirds (62%) say retailers need to have a contact-free returns option.

In addition, almost two-thirds (65%) say they don’t want to spend time queuing at Post Offices or parcel drop-off shops to return items; in contrast 42% say that having a parcel drop-off point near their home would encourage them to make a return sooner than they would normally.

With just under half (46%) of people saying they are more cautious about spending whilst they are waiting for a refund on goods they’ve returned to a retailer, it’s clear that the quicker and easier retailers can make the returns process, the better for people’s pockets and for the economy.

Jason Tavaria, UK CEO at InPost, commented: “The current restrictions on daily life are vital as part of the effort to tackle Covid. But it’s clear that one of the side effects of these is making it harder for people returning items bought online. With budgets stretched for many, it’s crucial that retailers go the extra mile for their customers and make it easier and faster for them to return goods. Giving people access to more ways of returning online shopping, including self-service drop-off points such as lockers, will help them to avoid queues and get items and their money back more quickly.”

He continued: “The issue of difficult returns appears to be even more acute for the nation’s key workers, including healthcare and emergency service staff. This group told us that they have more items waiting to be returned, find it harder to return them given the current restrictions, and are more likely to end up keeping purchases bought online because returning them was too difficult. With most returns options remaining impractical for them, we’re continuing to roll out lockers in locations such as hospitals and supermarkets that offer key workers easy access to a safe and secure way to make parcel deliveries and returns, outside of traditional working hours.”

In light of the problems returning goods, shoppers in the survey call for retailers to be clearer about their returns policies and offer longer returns windows after the point of purchase. Over a quarter (29%) said retailers should issue refunds for returned goods more quickly during the current restrictions.

Respondents also say they are now more likely to check how long they have to return items and how many options retailers offer for returning items when making purchases. All of which underlines that returns can be a valuable, if often overlooked, opportunity for retailers to build goodwill with customers, if they can make these easier while restrictions remain.

When it comes to their finances, just over half of people (53%) say they are spending the same as usual during the lockdown – excluding online food, take-away or grocery orders – while 41% have reined things in and indicate that they are being more cautious. Around a fifth (19%) of people plan to increase their spending once lockdown restrictions lift, suggesting that retailers could see a potential uplift in sales again as lockdown comes to an end.