If you are an eCommerce manager and are looking for some useful strategies to reduce the economic and environmental impacts of eCommerce returns, you will find the answers you are looking for here.
As you know, in the age of eCommerce, eCommerce returns are unavoidable – although several methods can be implemented to reduce them – but they represent a cost for businesses and can have significant impacts on the environment if not managed in a sustainable manner.
In this article, we will therefore explore some effective strategies to reduce the economic and environmental impacts of eCommerce returns by promoting an eco-friendly approach to both eCommerce and shipping.
The economic impact of returns for eCommerce companies
Negli ultimi anni, con lo sviluppo del commercio elettronico, anche il numero dei resi è aumentato.
The sectors generating the most returns in Europe are clothing (38.37%), followed by shoes (29.58%) and accessories (24.66%). The fashion sector is therefore the one with the highest number of returns: according to a recent analysis by Yocabè, in Italy 16% of fashion purchases made online are returned.
Returns, however, represent a cost for e-commerce companies. In fact, it is estimated that each returned parcel costs an average of 12 euros for retrieval and rework.
For this reason, the choice of many eCommerce companies to end free returns has been widely discussed in recent months. Indeed, more and more online stores are asking their customers to contribute to the shipping costs of products that are returned for various reasons.
Optimising the handling of returns, so as to reduce the costs companies have to bear, is therefore crucial.
The economic sustainability of returns, however, is not the only reason why it is important to promote a more sustainable approach to returns management.
The environmental impact of eCommerce returns
Returns related to online shopping also represent a cost to society and the environment, with around 15 million tonnes of CO2 emissions.
Environmental sustainability is now a priority for both consumers and companies, including those operating in eCommerce. For this reason, it is essential to adopt certain strategies that allow you to optimise the management of your eCommerce returns, both economically and environmentally.
Here, then, are three strategies that will enable you to optimise your eCommerce returns.
Strategy 1: use advanced technology to reduce returns and simplify procedures for unavoidable returns
As mentioned above, it is unthinkable to completely eliminate the number of returns and the right of withdrawal must always be granted to consumers within the limits recognised by law.
However, where returns are necessary, it is important that the process is as optimised as possible to ensure its economic and environmental sustainability.
Optimising returns therefore means making the return process simple and fast for the customer, but also implementing measures to reduce the overall number of returns and maximise the recovery of returned products.
Here are some useful tips:
- Simplify return procedures: simplifying return procedures is a crucial step to make the process less resource-intensive. Companies should invest in user-friendly online platforms that guide customers through the return process in a clear and intuitive way, provide clear return policies and make them easily available on their website. To simplify the return process for the end customer, it is good, for instance, to already provide the return label to the customer upon receipt of the order, or to offer the possibility to easily generate and print the return label when needed.
- Use advanced technological solutions: the use of advanced technological solutions can help improve the overall customer experience during the return process and reduce errors at the purchase stage. For example, the implementation of artificial intelligence and data analysis tools can help identify the root causes of returns and take preventive measures. Furthermore, the use of technologies such as augmented reality to offer a more accurate visualisation of products online can reduce the risk of returns due to discrepancies between customer expectations and the products received.
Strategy 2: offer the possibility of returns at Lockers and Pick-up Points
This strategy goes hand in hand with the need to simplify the return procedures mentioned earlier. In order to optimise eCommerce return processes, it is essential to offer your customers the possibility to choose alternative options to traditional home delivery for returning goods.
Many customers may find it inconvenient to have to wait for the courier at home again in order to make a return. Giving them the possibility to deliver their parcel to a Locker or Pick-up Point of their choice, at a time of day of their choice, is therefore not only an eco-friendly option to reduce the environmental impact of Returns, but also a great way to make life easier for your customers while optimising the whole process.
Lockers, automated lockers available 24 hours a day, 7 days a week, allow customers to pick up and return their orders at a time and place most convenient for them, while also reducing multiple deliveries and related carbon emissions.
Pick-up Points, on the other hand, offer shoppers the possibility to collect and return orders at physical shops or designated collection points, thus also encouraging cross-selling. In other words, a customer who goes to the shop to make a return could choose to make another purchase directly in the shop, thus avoiding losing a sale.
Strategy 3: actively promote Eco-Consciousness among your customers
Educating and sensitising your customers on the importance of sustainability is another key strategy.
Companies can encourage conscious purchasing practices, e.g. by providing detailed information on products and their environmental impact, promoting repair and reuse, and offering incentives for customers to choose eco-friendly shipping, e.g. at Locker or Pick-up Points, or to forego unnecessary returns.
In other words, you can promote a more sustainable eCommerce culture, helping to spread values that are increasingly important to consumers.
Remember, however, that the promotion of these values must be accompanied by the implementation of concrete solutions and best practices that demonstrate your concrete, not just ideal, commitment.
If you want to move from ideas to action now, adopting effective strategies to reduce the environmental impact of your eCommerce returns, GEL Proximity could be the solution for you.
GEL Proximity, a simple and sustainable return service
GEL Proximity allows you to manage returns quickly and easily through customisable and easily accessible technology.
Thanks to the Reverse solution designed by GEL Proximity, you can optimise your overall recovery costs, reduce technology and maintenance costs through a single integration, support your environment with 100% guaranteed returns, simplify the return process and experience for your customers, create automation for the Reservation Point operations, set up customised logics for label issuing and printing, and finally monitor customer behaviour through Reverse Analytics.
All you need to do is activate your portal in the platform to start using the service without the need for integrations, or you can use the Reverse API to integrate the open source GEL Proximity technology to your liking.
What are you waiting for? Offer your customers the best Proximity return experience! Request a Demo now.
