After the peak season, the return rate of online shopping in the United States increased to 25%, and sellers' costs will increase again!

After the shopping boom, sellers are about to face another wave of "returns". According to a report from the National Retail Federation, after the 2020 U.S. shopping season, the total number of online shopping returns accounted for about 18.6% of total sales, and they predict that this year it may increase to 25%.

According to foreign media reports, a shopping behavior called " Bracketing " has emerged among foreign consumers , that is, buying multiple sizes or colors of the same product at one time, keeping the most suitable one after receiving it, and returning the rest to the merchant. Especially for merchants that provide free delivery and return services, this shopping behavior will be more common.

The latest data from customer experience platform Narvar shows that 58% of the 1,004 American consumers surveyed said they had tried " Bracketing ."

The clothing category is the hardest hit by this kind of return behavior . Especially as the epidemic has driven the development of the e-commerce market, people's online shopping behavior has skyrocketed. At the same time, some consumers said that the epidemic has prevented them from going to physical stores to try on clothes, and " Bracketing " has allowed them to turn their homes into fitting rooms.

So this is also one of the reasons why the return rate increases during the peak season in the United States.

In addition, clothes that do not fit, wrong size, inappropriate color, etc. are all reasons for returns, accounting for 42% of the reasons for returns .

Narvar 's report also mentioned that consumers are more willing to shop at online stores that provide return services. And 77% of respondents said that if the store's return experience is good, they will choose to buy products from the store again.

For merchants, although providing return services can increase store praise and repurchase rates, the ongoing supply chain crisis this year has caused transportation and labor costs to continue to rise. Higher transportation costs also mean higher return costs.

In October, the Reverse Logistics Association (RLA) of the United States conducted a survey of 100 merchants from industries such as electronics, clothing, and furniture. 45% of the respondents saw an increase in returns in the third quarter, and 65% of the respondents expected the return rate to rise in the fourth quarter.

According to the Wall Street Journal, sellers may need to spend $10-20 per returned item , not including shipping costs. Therefore, under the influence of continued inflation and supply chain crisis in the United States, the cost of returns during the peak season will also rise to varying degrees.

The behavior of returning goods is not just because of the peak shopping season, but has always existed. It’s just that during the peak shopping season, consumers’ purchases are more concentrated, so the return rate will also increase significantly.

Although the return issue is a headache for sellers, many sellers hold a positive attitude and believe that this is an opportunity to further engage with consumers and enhance consumers' shopping experience.

Narvar also provides suggestions to sellers on how to reduce returns. On the product details page, provide detailed measurements, accurate product photos and descriptions, and models of different body shapes to help consumers understand the product, thereby reducing the chance of returns.

USA

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