Omnichannel return models help retailers keep customers but at what cost?


December 10, 2020 | By RetailME Bureau

A positive returns experience is critical for retailers to retain customers. A recent survey by Optoro found that 42% of consumers decided to never again shop with a retailer with which they had a negative returns experience. Customers also say they want several return options. Approximately 80% of respondents to a recent National Retail Federation survey (pre-COVID-19) said they prefer to make returns in-store. Yet due to COVID-19, there may be a reduction of in-store returns this year and a commensurate increase in shipped returns.

Many retailers’ returns policy is a competitive differentiator, especially during the holiday season, and has become increasingly important to attract and retain customers. For example, Happy Returns—a software and reverse logistics company—provides a service for customers to return online purchases at an in-store kiosk. Some retailers without physical locations have partnered with brick-and-mortar retailers, allowing customers to return items in the store. Amazon offers free returns for Prime members in more than 1,150 Kohl’s locations.

Optoro reports that 97% of consumers will buy from a retailer again after having a positive returns experience.3 The company also found that by incentivizing customers to exchange rather than return purchases, they can maximize profits and increase order values by as much as 32%.

Higher cost of returns

Although many customers expect a free returns policy, the cost to return items is significant for retailers. Optoro reports that the costs of customer care, transportation, processing, discount loss and liquidation loss can conservatively amount to 59% of the sale price of a $50 item. Providing customers the option to return their online purchases in-store can lower call center, transportation, processing and discount costs. Nevertheless, significant investment in technology is needed for retailers to seamlessly process returns and correctly reposition them for sale.

Comments

comments

Previous Article Next Article

YOU MAY ALSO LIKE /



Union Coop, a consumer cooperative in the UAE, revealed that 78% of 

Continue Reading

August 24, 2021 | By Jibran Chouguley

Union Coop has opened its 23rd branch within the UAE in Jumeirah 

Continue Reading

August 2, 2021 | By Jibran Chouguley

Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and 

Continue Reading

July 8, 2021 | By Jibran Chouguley

UAE-based Al Maya Group announced that it will be boosting import of 

Continue Reading

June 24, 2021 | By RetailME Bureau

UAE-based grocery retail chain, Grandiose has opened its first hypermarket in Abu 

Continue Reading

June 2, 2021 | By RetailME Bureau

UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand 

Continue Reading

March 31, 2021 | By RetailME Bureau

Locally owned supermarket Spinneys celebrates 60 years of doing business in the 

Continue Reading

March 9, 2021 | By RetailME Bureau
Almarai, Carrefour, Emirates have the most loyal customers

UAE-based Carrefour will become the first retailer in the region to offer new levels 

Continue Reading

February 22, 2021 | By RetailME Bureau

The Organic Farmers’ Market is back in Bay Avenue for its 12th 

Continue Reading

February 17, 2021 | By RetailME Bureau

UAE-based  Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah, 

Continue Reading

February 15, 2021 | By RetailME Bureau
Jones the grocer

Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones 

Continue Reading

February 1, 2021 | By RetailME Bureau

UAE-based Al Maya Supermarkets is hosting a two-week food festival at select 

Continue Reading

January 17, 2021 | By Lawrence Pinto




Download Images RetailME Magazine