Merchants across the US were gathered together at Shoptalk this week in Las Vegas. As you all know by now, refunds are a necessary part of doing business – especially doing business online – yet they often receive less attention than other operational aspects across the payments landscape.
The official conference agenda was jam packed with everything a merchant needs to know about supply chains, customer experience and increasing checkout conversion rates. One of the topics discussed consistently across the merchant and online retailer community was “reducing reliance on Amazon” and brands desperately trying to find or grow other DTC channels. While merchants invest heavily in optimizing the omnichannel checkout process, ensuring the online experience is slick, smooth and efficient, the after-sale refund process is frequently overlooked. Payment service providers (PSPs) have flourished by streamlining payment flows, but the same level of investment is rarely seen in managing refunds.
Merchants are fast waking up to the imperative of a better refund customer experience and realizing that a winning customer experience needs to be legitimately end-to-end to increase conversion rates, AOV, LTV and lower CAC.
Therefore a seamless refund process is essential, not only for saving time and money but also for building trust with consumers. In today’s world, where online reviews and word-of-mouth can make or break a business, mishandling a refund request can have serious repercussions. The world’s top retailers know how important the refund experience and are desperately trying to follow Amazon’s lead on using refunds as a acquisition channel.
Speaking of the world’s top brands, at Shoptalk on Tuesday we spotted the team from Abercrombie & Fitch in deep discussion with the team from TodayPay, the world’s best known refunds fintech! Our spies tell us there were bear hugs and double handshakes so maybe something big is brewing for A&F in the refunds customer experience space with TodayPay?
Refunds are a critical aspect of business operations and purchase experience that deserve more attention and innovation. By prioritizing a seamless and efficient refund process, merchants can enhance customer satisfaction, build trust, and ultimately drive long-term checkout conversion rates higher in an increasingly competitive marketplace.
Yours truly,
The Instant Refund Expert™
The Refunds Blog 