5th Sep 2023
The retail industry is facing a significant impact from the cost of living crisis, which extends beyond diminished sales to encompass a critical area: customer returns.
Retail logistics company, Advanced Supply Chain Groups (ASCG) recent survey identified that rising living costs have reshaped shoppers’ approach to returns. The survey revealed that 42% of consumers are now more inclined to return items due to financial pressures, leading to an increase in return frequency. An astonishing 72% of shoppers make at least one return per month. This prompts industry retailers to consider whether these shifting habits will persist once the cost of living crisis is behind us.
As the industry looks ahead, retailers are actively exploring a range of potential solutions. Over 25% of retailers are contemplating introducing tailored policies targeting customers frequently returning substantial quantities of products. Additionally, 20% are considering the reduction of flexible payment options to discourage impulsive purchases, thereby mitigating return volumes. Among the prominent strategies is the notion of charging for returns. Currently, 59% of retailers offer free returns for orders of any value, though they are now re-evaluating this approach.
Conversely, 25% of retailers plan to investigate savings within supply chains to continue offering free returns. These businesses recognize that returns are a valuable part of ecommerce and the shopping experience, and they wish to embrace that.
In this pursuit, the concept of reusable mailing bags emerges as a pivotal solution. As a packaging manufacturer, we specialize in creating packaging commonly employed for distributing ecommerce orders and the requisite packaging consumables for the fulfilment process. We’ve been at the forefront of supporting our clients in optimizing their returns processes, achieving cost savings while concurrently reducing their environmental footprint.
For retailers seeking to streamline their supply chains and usher in a new era of sustainability, we’ve developed a comprehensive set of top tips for designing return-friendly packaging.
Top Tips for Return-Friendly Packaging:
Return-friendly packaging not only enhances customer satisfaction but also contributes to cost savings and sustainability. For expert guidance on implementing these strategies, reach out to our team at firstname.lastname@example.org or give us a call on (+44) 0161 203 5767.
*Source: Tackling the ‘Returns Crunch’ – Internet Retailing”