
As retailers approach the peak of the holiday shopping season, preparing for an influx of returns is crucial to managing the volume that typically follows events like Black Friday and Cyber Monday. nShift, a global leader in parcel delivery management software, has highlighted the importance of having a robust returns strategy in place, especially as studies suggest that up to one in three shoppers could return their holiday purchases.
“Returns have become an inevitable part of the modern retail landscape, but they come at a significant cost to retailers,” said Maarten Tops, Product Director at nShift. “However, with the right returns strategies, retailers can mitigate these costs and ensure that returned items are quickly processed, put back on shelves, and ready to be sold again.”
The DeliveryX Returns 2024 report, conducted in partnership with nShift, underscores how essential a seamless returns process is to consumer satisfaction. According to the report, 54% of consumers consider ‘easy returns’ a critical factor when shopping, and a poor returns experience could drive away as many as 84% of shoppers, who may stop buying from a retailer altogether if the process isn’t up to par.
For retailers, the ability to manage returns efficiently not only helps recover revenue but also offers a chance to turn returns into a business advantage. nShift advocates for several strategies to help retailers manage returns effectively while maintaining customer loyalty:
- Simplify the Returns Process: A streamlined digital returns process builds customer confidence. It also gives retailers the ability to track return patterns and understand why certain items are being sent back. This data can inform future inventory and product decisions.
- Encourage Exchanges: By making it easy for customers to exchange items, retailers can convert a large percentage of returns into revenue. With the right returns software, e-commerce companies can automate exchange offers. In fact, nShift’s clients typically see up to 30% of returns converted into exchanges, which helps retain revenue and deepen customer relationships.
- Enhance Customer Loyalty: A well-structured digital returns system allows retailers to differentiate between habitual returners and customers who only return items under specific circumstances. This makes it easier to prioritize loyal customers and offer them incentives or personalized experiences to encourage repeat business.
- Offer a Personalized Approach: Tailoring returns offers based on customer segments can boost satisfaction. For example, retailers can suggest alternative products for exchange or invite customers to visit physical stores to explore options in person.
- Drive In-Store Returns: A digital returns process can encourage customers to return items in-store, where they may be more likely to make exchanges or purchase additional products. This approach also allows store associates to engage with customers directly, strengthening the brand connection and providing opportunities for upselling.
Tops concluded, “A great returns policy doesn’t need to be complicated. What matters most is that it’s user-friendly and efficient for customers. The relationship with a customer begins the moment they make a purchase, but it’s truly tested when they need to return an item. How retailers handle returns can make or break their brand reputation.”
As the holiday season kicks into high gear, retailers that invest in easy, transparent, and effective returns processes are more likely to foster loyalty, boost revenue through exchanges, and reduce the impact of returned goods on their bottom line.
About nShift
nShift offers an advanced delivery and experience management platform that helps e-commerce businesses grow by optimizing their shipping and returns processes. By providing innovative solutions and leveraging the world’s largest carrier network, nShift enables businesses to deliver superior customer experiences while driving operational efficiency. Their platform allows retailers to unify data, gain valuable insights, and connect their entire delivery ecosystem.
For more information, visit www.nshift.com.