Page 36 - CBM11

~ ZigZag Global ~

You may be reluctant to expand the scope of your returns 5) Are you offering enough options to shoppers returning
policy to make it more flexible or generous in fear that it goods?
will open the floodgates, but it can make sense and often Different customers have different needs and one size
will have no effect on returns rates. On average, 85% of doesn’t always fit all. This is especially true in international
returns are made within 14 days anyway. It is widely ac- markets. Therefore, it makes sense to provide a variety
cepted in the online retail industry that a more generous of returns options and ensure they are suitable for local
returns policy, which goes above legal minimum require- consumer preferences. This could encompass numerous
ments, encourages shoppers to make a purchase and cru- different drop-off options, locker options or even in-store
cially, it is also reported that this doesn’t necessarily lead to returns if you have brick-and-mortar locations. It’s worth
more returns. remembering that 37% of shoppers say that they are
willing to pay more for increased returns options or greater
If you are unsure of the best approach when it comes to re- convenience in sending the goods back.
fining your returns policy, you have several research options
available to inform you. The best place to start is to examine 6) Can you streamline your returns operation with greater
what your key competitors are offering in your core markets, automation?
or consider other retailers that you admire, even if they are Returns Nirvana is a system in which your shopper initi-
not in the same vertical, to see what you might emulate. ates the return has everything they need (returns labels and
ASOS, for example, extended their policy to 45 days but packaging, etc.) to send back the purchases. The returns
now offer credit rather than cash on returns over 30 days. then arrive back safely and directly to you, where you
Another option is to survey your shoppers in each market or have all the systems in place to assess, restock and refund
talk to your best customers directly and see what improve- seamlessly with minimum intervention from staff and no
ments they think you should make. prompting from the customer. Sadly, it’s not that simple.

3) What are the main causes of your returns? A significant cost in the processing of returns as a retailer
Not all returns are equal. It makes a sense to distinguish lies in human resources. Every intervention from a member
between acceptable returns and avoidable returns. of your team represents an expense, so exploring innovations
and services that minimise input from staff are vital in cut-
For instance, if you encourage a ‘multi-buy and try’ ap- ting the cost of returns to your business.
proach, you will get an increased number of ‘acceptable
returns’. And, needless to say, shoppers have different legal 7) Does your international returns experience match your
rights in each market, under which they are entitled to send domestic experience?
the goods back. Marketplaces too have rules by which mer- Greater international expansion is one of the key goals for
chants must abide. Returns are part of the online retailing online retailers who want to grow market share and make
landscape. their business more profitable. But it can be quite a difficult
proposition on a practical level, especially as the United
One major reason for returns is due to the goods arriving Kingdom and the European Union redefine their relation-
late or damaged. If your investigations show that this is hap- ship which each passing Brexit talk. Language barriers, local
pening a lot, then it makes sense to review the carrier and regulations, VAT and tax, as well as delivery and returns, all
packaging you use and whether it’s fit for purpose. Damage represent challenges.
can also occur in your warehouse whilst items are in storage,
or during the picking and packing process. Once you have defined your go-to-market strategy, be it via
marketplaces, direct online sales, local partners or conces-
4) Would improvements to your product information re- sions, it is important to stress test the returns policies and
duce your returns rate? customer experience for each lane. Will you be able to offer
An ounce of prevention is worth a pound of cure, as the delivery times, refund times, customer support, returns
saying goes. One of the most frequent reasons for returns experience, tracking and exchanges on a par either with your
cited by customers is that the product they have bought isn’t domestic proposition or at the very least on a par with your
quite what they expected. Key causes for quibbles include local competitors in each market?
poor fitting items, incorrect sizing for that local market,
poor translations of product descriptions and differences in 8) Is a physical return the best option?
colour between the digital images and reality. This question requires online retailers to take a strategic
look at their returns as part of their wider business. The
Don’t forget to be honest about your goods, spend addi- natural first response when dealing with a return is to have
tional time on optimising the images you provide and ensure the goods sent back to your warehouse so that they can be
that they are accurate and illuminating. sold again.

36