Reduce Ecommerce Returns with Content
Reduce Ecommerce Returns with Content
RETURNS
INTOEARNS
REDUCE RETURNS IN ECOMMERCE
WITH PROPER PRODUCT CONTENT.
STATS AND STRATEGY
TABLE OF CONTENTS
TABLE OF CONTENTS
Reverse logistics 2 Should Retailers Ban Serial Returners?
Ecommerce Product Returns 3
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PRODUCT RETURNS. REVERSE LOGISTICS ARE THE NEW NORMAL
Reverse logistics includes any return flows of purchased goods back to the manufacturer
or retailer. Ability to handle the process of reverse logistics is a crucial component to the
ecommerce business’ strategy 2020.
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ECOMMERCE PRODUCT RETURNS
Why product returns could be more than just a negative experience for brands
and retailers operating online?
Reputation is at stake. Churn rates are shaken. Resources are wasted. Not
only shipping costs are added, but also for the restocking of returned
products, as well as the possible product value loss over time.
In the US, Statista predicts return deliveries to cost $550 billion by the The fact that once the returned goods made it back to the retailer and less
end of 2020, which is 75.2% more than 4 years prior than half are resold at full-price (according to Gartner Research) makes the
return process alarming.
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ECOMMERCE RETURNS TENDENCIES
Bracketing (buying variations of products, Precize sizing info for fashion products and A Need for Better Product Return Management
trying them at home, and returning the ones extremely detailed specs for tech goods are is evident: retailers are losing billions of $$$ on
that doesn’t satisfy a customer) is here to stay. only a few examples of how product content the way of dealing with returns outcomes.
could improve the returns rate.
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COST OF PRODUCT RETURNS
Source: Narvar
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HIGHLIGHTS BY THE MARKET
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HOW NEGATIVE RETURNING EXPERIENCE IMPACTS BUYERS’ BEHAVIOUR
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WHICH PRODUCTS BUYERS WILL BE HESITATING TO BUY
BECAUSE OF RETURN PROCESS?
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FASHION (CLOTHING & ACCESSORIES) RETURNS
In clothing and accessories, size, fit and style are the main considerations. And it makes one of TOP REASONS FOR APPAREL RETURNS:
the biggest product categories consumers hesitant to buy (November 2018 survey from
Radial). Nearly 42% of online shoppers claimed so.
Consumer return reasons based on size, fit, style, fabric, etc. lead to 72% of all returns in fashion
product categories. Such reasons as defectiveness and getting a product that looks different in
reality than it was described in product information makes 10% of returns (source: Return Magic)
Other
19.6%
Defective
Polishing product information is the most cost-effective way to prevent product returns. 5.4%
Though, when it comes to sharing the data between a number of retailers, brands and
manufacturers have to keep in mind few things.
Not as described
5.4%
Retailers demand different pieces of product
information (let's say, one would seek 3D product
images while another wants to keep a buyer
informed on a washing conditions, and precise
description of design details, like "Crew neck" or Changed my mind
"Tape embroidery" and sizing charts in all posssible
13%
measurement systems).
Size (too large)
Product data has to comply with the formats,
23.9%
supported by retailer's product management
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systems, like PIM. (CSV, XML, JSON, etc.)
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FASHION (CLOTHING & ACCESSORIES) RETURNS
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JEWELRY AND LUXURY RETURNS
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GROCERIES & HOUSEHOLD ITEMS RETURNS
26% of respondents said they doubt buying groceries & household items
E-GROCERY MARKET SHARE AS % AGE OF
TOTAL GROCERY SALES
10%
Online grocery sales in the US are estimated to grow as high
as $59.5 billion by 2023 (from $23.9 billion in 2018). This
growth tendency shows the importance to pay closer
attention to a digital experience.
7.5%
2.5%
SOLUTION: enhance product data delivery with an
automated Product Content Syndication Software.
0%
2017 2018 2019 2020
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GROCERIES & HOUSEHOLD ITEMS RETURNS
Example of minimizing product returns at Walmart: a marketplace gives detailed How Walmart successfuly upgrades and gets produt data from brands?
product pages and efficiently organizes its intuitive product pages, keeping product
information up-to-date. In 2018 Walmart launched the Connected Content Partner program as an extension
of its Content Service Provider program to help suppliers scale content for Walmart
and other retailers. As a part of this program, marketplace manages to get regular
updates on product data with automated product content syndication (distribution),
where supplier's themselves would also be allowed to create content and publish
rich media for the retailer’s e-commerce platform.
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ELECTRONICS RETURNS
This statistic shows the results of a survey conducted in the United States in
2018 on online shopping. Some 49 percent of the respondents stated that
they don't return any online orders of electronic devices.
As low as 2-4% of electronics shoppers might return half of goods. And only 1%
are giving back all purchased items.
How many in percent of your online orders of electronic devices do you return?
We are referring to the number of deliveries, no matter how many items they
contain. If you're not sure, please estimate.
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Source: Statista
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ELECTRONICS RETURNS
From an Optoro Survey on Returns, we can see that 33% of shoppers are returning
electronics.
What is crucial for retailers is to have the efficient and environmentally-friendly solutions
to outsource returned goods to leave minimal harmful chemicals and toxins. This is also
an additional cost retailers face when dealing with returns.
It's always easier to invest in prevention methods. By enhancing product information, and
implementing smooth data delivery to various sales partners brands can eliminate the risks of
financial loss from product returns.
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Example: Asus Laptop at Central Point (follow the link to get a full picture of the highly detailed product page).
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HEALTH & BEAUTY RETURNS
Health and Beauty products usually leave customers quite certain about a purchase. 18% of
shoppers are apprehensive of buying those kinds of items because of the return process.
Still, this percantage is high in terms of modern ecommerce. And a need to constantly
enhance and update product information has never been more relevant for the industry.
Example: L'oreal Micellar Water from Boots UK. Online shop provides a full product description, breaks down
the ingredients and "how to use" guide, incorporates customer review and suggests similar items. Boots also
makes sure to clear out that the product returns are on house, putting a visible sign "Free returns in store or 16
to any post office" on top.
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A ROLE MODEL RETAILER FOR PRODUCT RETURNS... AMAZON
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BREAKING A MYTH:
STRICT RETURN POLICIES LOWER RETURNS
First, 65% of survey participants wanted to return a product, despite being charged
for return shipping or other kind of service fees.
Second, an inflexible return policy can actually block the incentive to buy, driving
consumers to shop elsewhere.
Brands and retailers should not rely on strict return policies. Simply, they aren’t
effective at preventing returns. Indeed, 71% of consumers say a flexible return policy
actually reassures and encourages them to continue shopping at the same retailer
again.
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REASONS FOR PRODUCT RETURN
Returns biggest reason hides in product content:
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ROLE OF PRODUCT CONTENT IN ELIMINATION OF PRODUCT RETURNS
Return Policy Document: It’s critical to place the returns policy on the product
page (consider attaching it at the home page to make sure it’s all clear and
visible through the whole customer journey). See the chart.
Customer Reviews.
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GUIDELINES TO PRODUCT CONTENT UPGRADE
Rich product content with seamless product imagery, videos, and other information adapted to each sales platform separately becomes a must.
Here is what brands and retailers can do:
Integrate only with trusted CSPs (Content Service Providers) to download correct and
#1 #2 relevant product data. See the Content Catalog Providers comparison table to see
which is the best fit for your business. Read more here.
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GUIDELINES TO PRODUCT CONTENT UPGRADE
#3 #4
Use product catalogs and PIM systems to safely store and manage product feed. Set product content syndication (distribution) across multiple sales channels. Often
PIM ensures your product data feed flows in the right direction and performs its sellers fail to conform with content validation rules, which results in providing
main functions — draws new sales targets, optimizes product data, meets data feed inaccurate and not timely product information. When products are published with
requirements, catches customers’ attention and solves his queries to avoid any delays and incomplete descriptions, and buyers cannot find the precise and correct
misinformation and product returns. PIM lets you collect all product info, starting data, product returns are making inevitable damage. Product content syndication
from the description to configuration, taxation, composition, technical information, (distribution) solves these challenges and helps brands and retailers provide product
hardware version and other types of accompanying information. descriptions within the unique requirements of every marketplace worldwide quickly
and automatically.
Automation is another important factor. Your PIM should be able to automate the
process of data management across different sales channels/maketplaces. Ask Note for brands: failing to provide full product information retailers require on time
Gepard how we do this. (as well as not conforming to the data format) results in being dismissed from the
selling list or retailers filling in missing information themselves without a proper
Bare in mind it's very easy to underestimate the complexity of a process of setting knowledge. This is issue is easily solved with automated product content distribution.
up a PIM. Follow the Roadmap for PIM Implementation advice of Sergey Shvets, a
CEO and Founder at Gepard.
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WHICH PRODUCT ATTRIBUTES COULD MISINFORM OR PUZZLE A BUYER
AND INEVITABLY LEAD TO PRODUCT RETURNS?
Shipping time range, product features, prolonged expiration date, etc. Does the customer know your upgraded product does not support, say,
Showcasing information in the best light could help sales, yes. But it does Payoneer or other American payment systems integrations anymore? You’ll
contribute to the major parts of product returns as well. be lucky if a buyer doesn’t need a feature. But ecommerce is a specific
strategic area and every detail would frame the success of a purchase deal.
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WHICH PRODUCT ATTRIBUTES COULD MISINFORM OR PUZZLE A BUYER
AND INEVITABLY LEAD TO PRODUCT RETURNS?
While it happens rarely in electronics or home appliances, It’s tempting to make attractive photoshopped
for the fashion industry it’s a major weak point. As well as for product images, downloaded from free stock sites. In
Aliexpress. We’ve all suffered from an interesting Chinese the era of videos, cool pics, and other creative ways to
perspective on what size M should be like. Just make sure to represent a product — it works. Though failing to
display sizing charts on your product information. provide close-to-reality high-resolution product images
is a big reason for returns. For example, if a pair of
shoes seemed glossy on a picture, and a customer got
regular black shoes with no hint for shiness — the
business gets:
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CHECKLIST TO ENHANCE PRODUCT CONTENT AND DRAW RETURNS TO MINIMUM
Titles include a brand name, model, series, etc. Primary and alternative images Related products
Full descriptions Different angles images Alt tags for product images
Physical attributes Lifestyle product images Warm tone of voice
Tech specs Zoom and rotate Descriptions are easy to read
Communicates competitive advantage Product Videos Words evoking emotions
Call to action 3D images Supported by tables, graphs
Clear product benefits Images are in one style with a brand Ratings and reviews
Any product upgrades information Similar product suggestions
Specifications After all, don’t forget to stick to your own style
Product categories
Pricing details
Availability Make sure to provide the exact product data retailer demands. Otherwise, due to the lack of
knowledge on a product, retailers could fill in the gaps with unrelevant, outdated or incorrect
Country of manufacture, manufacturer information themselves. To make sure your sales partners get relevant product data and its
regular update, we suggest using automated product content distribution.
Unique product identifiers (ASIN, MPN, UPC,
EAN, ISBN for books)
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FRAUD DETECTED
There are fraudulent returns retailers have to deal with, which account for up to
8% (info source: National Retail Federation).
Sellers have lost $6.5 billion during last year’s holiday season due to return fraud
(Research conducted by Appriss).
WAY OUT:
EXAMPLE:
Amazon has recently put a ban on serial returners to resolve this issue.
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DEALING WITH SERIAL RETURNERS
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SHOULD RETAILERS BAN SERIAL RETURNERS?
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AI AND SELF-SERVICE
AS ONLINE RETURNS PREVENTION
METHOD
CHATBOTS
Solves:
SELF-SERVICE
Solves: frees retail workers. Customer logs in to store’s
website, answers a few questions and gets a return
merchandise authorization (RMA).
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USE AR FOR BETTER FITTING: FURNITURE
According to an April 2019 eMarketer survey by Bizrate Insights, 42% of US online shoppers are interested
in using AR/VR. And it is even higher percentage for the 18- to 34-year-olds (which makes 52%).
EXAMPLE 1:
IKEA Virtual Reality
Could you imagine your customers are able to walk around a real size 3D kitchen and interact with objects? Place
the sofa, chest of drawers, or any other product. Change color, materials, open cupboards, measure the items, etc.
And could you imagine how this would help get the closest vision to reality and therefore customers would be more
likely to keep products? Well, IKEA, the leading ready-to-use home appliances retailer, already benefits from the
virtual reality and is now able to provide a perfect fit for your house. This technology would be on a rise in no time,
helping fast-forward brands and retailers meet customer's expectation on a product more precisely and, in turn,
minimize product returns.
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USE AR FOR BETTER FITTING: CLOTHING
EXAMPLE 1: EXAMPLE 2:
Nike Fit.A Digital Feet Measurement Tool.
3D Look App for better apparel fitting. Having such features, as Human
Body Measurement being an “online tailor”, Size and Fit
Recommendations, and Generating a 3D model reduces time and
eliminates returns.
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DO NOT NEGLECT A CUSTOMER FEEDBACK ON RETURNS
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SPECIAL CASE: LOADS OF COMPANIES ARE NOW CHANGING THEIR RETURN
POLICIES (DUE TO COVID19 VIRUS SPREAD)
A TREND LOOKS THIS WAY:
Clothing and Apparel Companies are extending return time ranges, as customers tend to save money during the economic hardships.
Though Grocery retailers are applying extra safety precautions and stop receiving returns at all (see the exceptions below).
Kroger
Fred Meyer
New Look
Target to stop accepting in-store returns, exchanges for 3 weeks amid
COVID-19 pandemic.Apple COVID-19 return policy
We have extended our normal returns policy to 90 days to help. This
policy applies to all items purchased, whether full-priced, promotion
Apple
or sale.
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KEY TAKEAWAYS FOR BRANDS
AND RETAILERS
Avoid product returns by improving accuracy of product Use AR apps to help customers correctly measure product
information. sizes, choose the right fit and lessen returns.
Ensure product descriptions and sizing information are up-to- Wrong product information, misleading visuals, inability to
date. provide extensive product information, not specific or unclear
product descriptions place a threat on a customer satisfaction.
Track packaging shipments safety, so customer don’t get a
damaged product they would have to return. Product returns are a way to win more customers, get them
coming back and build trust with existing ones. It is also a way
Place return policy often: homepage, product page, receipts, to analyze customer feedback to make necessary
email confirmations, etc. improvements in product pages online and in a product itself.
A perfect return is free return. Modern customers are not Though it's always easier to invest in prevention methods. By
willing to compromise. enhancing product information, and implementing smooth
data delivery to various sales partners brands can eliminate the
Brands failing to provide full product information retailers risks of financial loss from product returns.
require on time (as well as not conforming to the data format) .
results in retailers filling in missing information themselves
without a substantial knowledge on product details, which
could easily disorient a buyer and result in a product return.
This issue is easily solved by automated product content
distribution. 34
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Online sales will grow even faster after Covid-19 and more prompt corporations &
companies would invest in automation. Every part of the business thread should be
transformed. And such essential as product content as well. Enhance your product
information in all its aspects, starting from product images, product descriptions,
product SEO, and product content distribution to a number of sales channels.
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