As the holidays come to an end, a new tradition is quickly emerging. The returning of gifts during the month of January. According to the recent data from Evri, it is anticipated that over four million gifts will be returned in the UK only. This emerging trend is evidence of shifting patterns in how society consumes, and poses major challenges for retailers in handling this increase in operational complexity and logistics.
Analyzing The Returns Of January
Mixed matches of sizing, impulsive buying, and gift purchasing has led to January being dubbed as “Returns Season”. Given the eCommerce boom during the holiday season, customers increasingly purchase multiple items with the anticipation of returning the ones that do not fit. Return windows and online shopping convenience is what makes it easier for this practice to continue.
Some of the main contributors are as follows:
- E-commerce Boom: The shift to online shopping has already become standard practice and very frequent, especially for clothing and accessories, where return of items rates is significantly high.
- Generous Return Policies: The unwinding of restrictions on returns of purchases by sellers is making it effortless to consume.
- Gift Gaps: Many good intentioned gifts that themed for holidays tend to miss the mark more often than not.
What These Changes Mean for Consumers And Retailers
For some stakeholders, the returns season is a golden egg selling and receiving new opportunities, while others would very simply describe it as a difficult season filled to the brim with ‘trouble’: Components of Stores / Vendors:
- For Consumers: Now, shoppers can change their minds without worrying about the consequences of returning an item. Although the hassle of like oversized or uniquely fitted returns still exist, returns will always be much easier.
- For Retailers: Trust and loyalty are built by accommodating returns, but there is a significant cost involved in doing so. The item has a higher probability of being unsold and best restocked and re-sold at mark downs. Claims and counter claims of processing millions of returns rely on fundamental changes in infrastructure and technology surrounding and supporting the business which can be rather sinister in nature from a spending stand point.
This new hassle free way of returning items is the new normal that many businesses have adopted, that other companies use through Evri for advanced returns processing customer satisfaction.
Returns Made Easy: Tips and Tricks
These steps can make your returns process much easier:
- Know The Policy: Always know the retailer’s policy regarding returns. Policies often include deadlines and conditions for free returns.
- Save Packaging and Proof of Purchase: Saving proof of purchase and packaging often help in making smoother returns.
- Choose Reliable Services: Use trusted courier services like Evri’s drop-off points or lockers for smoother returns.
- Consider Exchanges: If you need to change an item for the correct size, consider exchanges as a time saving method as it is easier than a full return.
Shifts To Look Out For: The Future of Returns
The rise of online shopping has lead to an increase in returned items, and this has put a burden on retailers as they strive to find innovative solutions. Some of these solutions are:
- Sustainability Focus: Retailers are trying to solve the problem of sustainability by repairing returned items or donating them.
- AI Power Predictions: Newer, more advanced algorithms help predict the rate of returns, manage inventory, and make processes more efficient.
- Returnless Refunds: Some companies no longer require physical returns and will refund the money directly when customers ask for it. This is especially true for low cost items.
All these shifts help businesses in becoming more environmentally friendly, while extending convenience to the consumer.
Conclusion
The way in which ecommerce consumers operate is interesting to look at. As mentioned earlier, the transport of 4 million gifts returned in January may cause logistic issues for most, but will help businesses ease their operations and instill deep loyalty.
However, for consumers, returning an item does not always have to be a tedious process if they know what actions to take. Businesses need to ensure that with every return, their brand becomes more powerful in the highly competitive market. Retailers need to focus on doing intelligent work to adaptable so that life can be less difficult and create more care with every single return packed.
FAQs
1. Why is January returns the month where there are many returns?
The surge within January doesn’t come as a surprise, given that there are a huge amount of gifts or clothes that don’t fit them properly, especially when there is more online shopping taking place.
2. What is the most effective method of dealing with returning an item?
Understand the most effective means such as the retailer’s return policy, keeping the original packaging and making sure it is sent with reliable couriers.
3. What measures can retailers take for return cost manipulation?
With focused strategy guides, video examples, stricter automated description systems, better size fittings, and fast return options, they can reduce returns and their consequences.
4. Is the environmental impact of the returns positive or negative?
The returns process is very impactful on the environment, although a lot of companies are starting to modify this with refurbishment and donation schemes.
