Ecommerce returns are surging, especially during peak shopping seasons, making effective return management crucial for businesses. According to Loop Returns, returns spiked by 30% on December 26 (Boxing Day) compared to the previous year. Overall return volume rose by 15.2% YoY, with return value increasing by 17.5%. This trend spans nearly all sectors, with Apparel and Cosmetics seeing the highest return rates. Notably, Apparel accounted for 50% of total returns, and Cosmetics experienced a staggering 36% increase in return volume and a 38% rise in return value.
These numbers present both challenges and opportunities for brands. By implementing strategies such as exchange offers and gift card incentives, businesses retained 18.73% more revenue YoY. With an average return volume (ARV) of $134, every retained transaction counts.
To provide a superior customer experience amidst the rising returns, businesses can leverage instant refunds. This approach minimizes customer frustration, builds loyalty, and ensures shoppers are more likely to return in the future. Additionally, innovations like “Keep Items” returns, which saw a 61% increase YoY, show promise in reducing logistical costs, though their long-term impact remains to be seen.
Incorporating a thoughtful returns strategy can transform a challenge into an opportunity to deepen customer relationships and optimize revenue retention.
Yours truly,
The Instant Refund Expert®
The Refunds Blog 