nShift Warns Retailers to Brace for Surge in Returns This Christmas Season

As retailers head into the final stretch of the pre-Christmas shopping season, the need to prepare for a significant uptick in returns is more crucial than ever. nShift, a leader in parcel delivery management software, stresses that retailers must ensure they have the capacity to handle an expected surge in returns, especially after major shopping events like Black Friday and Cyber Monday. According to reports, one in three shoppers return items from their holiday purchases during these events.

“Returns are now a key component of the retail experience, but they come at a cost,” said Maarten Tops, Product Director Enterprise at nShift. “By implementing the right strategies, retailers can minimize the financial impact by getting returned items back into stock and back on shelves as quickly as possible, reducing lost sales.”

The DeliveryX Returns 2024 report, developed in collaboration with nShift, highlights the importance of a streamlined returns process for consumers. It reveals that 54% of shoppers prioritize an easy returns experience, with a substantial 84% stating that a poor returns process would deter them from shopping with that retailer again.

To help retailers manage returns more effectively, nShift has outlined several strategies that can transform returns from a potential loss into an opportunity for business recovery:

1. Simplify the Returns Process

A hassle-free, digital returns process builds customer trust and enhances brand loyalty. By making returns easy, retailers can also gather valuable insights into return patterns, which can help identify reasons behind returns and refine inventory management.

2. Encourage Exchanges Over Returns

Instead of just processing a return, retailers should focus on converting returns into exchanges. A user-friendly returns platform can encourage consumers to swap unwanted items for something else, rather than sending them back. According to nShift data, retailers who use these strategies can turn up to 30% of returns into exchanges, significantly reducing revenue losses.

3. Identify Loyal Customers

Digital return processes provide retailers with the ability to quickly identify returning customers. This data can reveal whether a customer is returning items regularly or only under specific circumstances. Retailers can then focus their efforts on retaining loyal customers, ensuring they continue to shop with the brand in the future.

4. Offer Multiple Return Options

Different shoppers have different preferences. Offering various return methods—such as allowing exchanges, suggesting alternative products, or directing them to a local store—can provide a more personalized and flexible experience. This increases the likelihood of retaining customers and driving additional sales.

5. Use Returns as a Way to Attract In-Store Traffic

A digital returns process can also serve as an invitation to customers to visit physical stores. When shoppers return items in person, they may be encouraged to browse new products, ask for staff recommendations, or make another purchase, especially with personalized marketing messages that can be delivered at the store.

Tops added, “A solid returns strategy doesn’t need to be overly complex. What matters most is that it is convenient for the customer. If the first touchpoint with a customer is when they click the ‘buy’ button, then the real test of that relationship is how the retailer handles a return request.”

nShift believes that a thoughtful and efficient returns strategy is essential to maintaining customer satisfaction and fostering long-term loyalty, especially during the busy holiday season. By streamlining the returns process and offering alternative solutions, retailers can not only recover potential lost revenue but also enhance their customers’ shopping experience.

About nShift

nShift is the global leader in delivery and experience management, helping e-commerce businesses thrive through innovative technology and a vast carrier network. By providing end-to-end solutions to manage deliveries, optimize returns, and enhance customer loyalty, nShift enables retailers to build strong, lasting relationships with their customers.

With nShift, businesses can stay ahead of the competition by making smarter shipping decisions, ensuring that returns are handled seamlessly, and maximizing every opportunity to drive sales.

For more information, visit www.nshift.com.

Sources

  1. ChannelX – “Return Tuesday for Black Friday and Cyber Monday Regrets”
  2. Internet Retailing – “84% of Shoppers Will Reject Retailers That Deliver a Poor Returns Experience”

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