Sign up to save your podcasts
Or
Share The Growing Problem of Returns for Retailers
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
The Growing Problem of Returns for Retailers
Retailers are dealing with more returns than ever before. In fact, retailers can lose up to one-third of revenue due to returns. In this first episode of a new series of Herb’s Hot Takes on returns, Herb Billings, Vice President Technology Strategy at Datascan, provides the audience an overview of the current problem.
“Before online shopping, there were strict return policies to prevent or discourage them because they cost money. Online shopping changed all of that, and the quantity and cost increase every year,” Billings explained.
This issue is most prominent in apparel and footwear relating to fit. “70% of U.S. shoppers returned at least one item last holiday season because of fit,” Billings noted.
Along with fit, other common return reasons are feel and color. “What retailers are now realizing is that home is the new fitting room. Descriptions are often incomplete or misleading, and what does ‘soft’ actually mean?”
Looking at the problem from a macro-level, Billings cited the NRF annual study on returns. “U.S. consumers returned $428 billion in merchandise, representing 10% of all retail sales in 2020. For online, the percentage was 18. For apparel and footwear, it can be 30-40%.”
However, retailers must be able to make it easy for customers to return due to fierce competition. Billings explained that Zappos was a pioneer here. “They came out with free returns and including the return label in the box.”
Ultimately, consumers do pay the bill for this with increased costs for products. In future episodes, Billings will share strategies to minimize returns and best practices for retailers.
View all episodes
By Datascan
5
11 ratings
Retailers are dealing with more returns than ever before. In fact, retailers can lose up to one-third of revenue due to returns. In this first episode of a new series of Herb’s Hot Takes on returns, Herb Billings, Vice President Technology Strategy at Datascan, provides the audience an overview of the current problem.
“Before online shopping, there were strict return policies to prevent or discourage them because they cost money. Online shopping changed all of that, and the quantity and cost increase every year,” Billings explained.
This issue is most prominent in apparel and footwear relating to fit. “70% of U.S. shoppers returned at least one item last holiday season because of fit,” Billings noted.
Along with fit, other common return reasons are feel and color. “What retailers are now realizing is that home is the new fitting room. Descriptions are often incomplete or misleading, and what does ‘soft’ actually mean?”
Looking at the problem from a macro-level, Billings cited the NRF annual study on returns. “U.S. consumers returned $428 billion in merchandise, representing 10% of all retail sales in 2020. For online, the percentage was 18. For apparel and footwear, it can be 30-40%.”
However, retailers must be able to make it easy for customers to return due to fierce competition. Billings explained that Zappos was a pioneer here. “They came out with free returns and including the return label in the box.”
Ultimately, consumers do pay the bill for this with increased costs for products. In future episodes, Billings will share strategies to minimize returns and best practices for retailers.