Digital Trends Spotlight: In-Person Return Centres

Lower Costs via In-Person Return Centres

Online product returns tend to increase in correlation with revenue growth, costing an average of $14 per mail-in return. And online returns happen more frequently because consumers can’t see products in person or try them before buying.

The logistics of product returns have always been challenging, and it’s an alarming concern for online retailers. Many are experiencing 20 to 40 percent of goods sold sent back as returns (compared to 16.6% for all purchases), with estimated costs to US retailers of $761 billion in 2021. And consumers are taking note of the environmental costs as many returns end up in landfills.

There are win-win solutions for retailers and consumers where return vendors manage logistics, cut costs, and handle sorting and quality control, allowing retailers to restock items quickly. And consumers experience the speed and convenience of returning products in person without shipping labels or repackaging. For example:

• Cadillac Fairview is backing ex-Shopify veteran Sylvia Ng’s Canadian start-up ReturnBear; ReturnBear hopes to be close enough so most consumers can walk to a return station.
• US start-up Loop Returns allows consumers to drop off items at FedEx and Walgreens.
• And PayPal recently acquired Happy Returns, which pledges to offer more than 5,000 in-person “Return Bars.”

If you’re experiencing higher than average returns from your eCommerce website, there are options to lower them. Every feature added to help consumers buy the right product reduces the chances of returning purchases. For example, accurate sizing charts, consumer-generated product reviews, product compare features, videos illustrating proper use, and LiveChat. Book a meeting with our Director of Commerce Solutions to learn how to reduce your product returns or integrate third-party solutions.