Harnessing Digital Returns: The Silent Guardian of Retail Profitability

August 5, 2023
by
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Key Takeaways:

  • nShift warns that undirected refunds can become “the silent killer of profits” for online retailers.
  • The utilization of a digital returns process can convert up to 30% of returns into exchanges.
  • Going digital offers multiple opportunities for data analysis, remarketing, customer engagement, and potential sales.
  • nShift’s newly launched “Essential tier” of its Returns solution helps growing retailers manage returns efficiently.

About nShift:

nShift is the global leader in delivery management software solutions, enabling almost one billion frictionless shipments and returns across 190 countries annually. The company, headquartered in London and Oslo, employs over 500 staff spread across offices in nine different countries. Serving a wide range of sectors, including e-commerce, retail, manufacturing, and 3PL shippers, nShift is redefining the landscape of digital returns and delivery management.

Taming the Silent Killer: Digital Returns

Online retail businesses, beware! Refunds could be the silent assassin nibbling away at your profits. nShift advises that returns can potentially cost an e-commerce business up to 66% of the original item’s price, even when returned in good condition. However, when businesses deploy an easy-to-use, digital returns process, they can foster consumer trust and cultivate revenue growth.

Digital Returns: A Strategy for Growth

nShift outlines four potent strategies that online retailers can leverage to use returns as a catalyst for business growth:

  1. Transforming Returns into Exchanges: An intuitive returns interface simplifies the exchange process for consumers. They can conveniently swap returned items for other products from the brand or retailer. By implementing the right returns software, e-commerce companies can automate the process of proposing an exchange. “nShift Returns customers typically convert 30% of returns to exchanges, aiding retailers in retaining revenue,” says Philipp Goldberg, Returns Product Director at nShift.
  2. Leveraging Returns Data: A manual returns process often poses challenges for data collection. Transitioning to a digital process generates a treasure trove of data for businesses to analyse. This allows for the identification of patterns, trends, and problem areas that can be addressed to reduce return volumes in the long run.
  3. Creating Remarketing Opportunities: Return-related emails reportedly have significantly higher open rates than other retail communications. By incorporating marketing messages into these emails, e-commerce companies can create additional sales opportunities.
  4. Guiding Customers In-Store: A digital returns process allows businesses to offer customers the option to return items in-store. This encourages face-to-face interaction with staff, who can persuade them to make an exchange. Moreover, customers are exposed to more products and marketing messages in-store, creating potential sales opportunities.

Harnessing the Power of Returns

Goldberg asserts, “In today’s e-commerce environment, providing a clear returns policy is essential. If shoppers can’t see how they can send back a product, many simply won’t complete the purchase.” He adds that returns serve as an opportunity to build the business, emphasizing that a cutting-edge consumer experience and the capture of useful data on returned items are crucial for this.

nShift’s Essential Tier Returns Solution

nShift has recently introduced an Essential tier of its Returns solution. It enables emerging retailers to centrally track each return, ensuring that resalable items are quickly back on the shelves, and identifying root causes such as inadequate product descriptions. Customers, on the other hand, enjoy a simple online experience and a choice of return shipping options, all within the retailer’s website or app.

The full nShift Returns solution offers a highly automated platform which enables easy exchanges at the point of return and automatic refunds. nShift Returns bolsters retailer revenues by converting up to 30% of returns into exchanges, cementing its place as a silent guardian of profitability in the world of online retail.

For more information, visit https://nshift.com/solutions/returns.

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