This article will look into the growing return trend affecting many brick and mortar and online retail businesses. After checking some figures, we will display how Self Service Lockers are the most convenient option for retailers to adopt in their returning policies.
Returns are one of the most challenging aspects for retailers, especially online ones. Returns account for 8% of total purchases for brick and mortar stores. Still, when it comes to online stores, this number increases exponentially. It accounts for up 25% of the total.
Research has been made around this concern to spot the main reasons why returns have exponentially increased over the years. Returns can happen for many reasons and at different stages of the delivery process, let’s explore some of the main causes.
Main Causes of Returns
Within the most common reasons we have: Damaged or broken items (damage can happen at different stages of the delivery process), the product not matching the customer’s expectations, delayed delivery, or simply not liking/needing the item.
However, there is another reason gaining terrain in this digital and consumerist era: The new over-shopping habit.
30% of shoppers deliberately over-purchase, and another 19% order multiple versions of the same item. These “Serial Returners,” as, SaleCycle refers to them, can be mainly found in two industries: Clothing and Electronics.
Why are returns a challenge for Retailers?
Managing returns come with operational challenges that imply high costs of staff and resources costs, as well as the risk of items not being easily resold.
Data from UPS shows that the cost of processing returns can often be between 20%–65% (or more) of the cost of the goods sold. That’s where returnless refunds come in.
Hence, the need for retailers to optimize return procedures without compromising their policies and clientele satisfaction. Instead, upscaling their processes while still offering user-friendly experiences can be a great conversion strategy and buying incentive for shoppers to choose you over competitors while keeping margin profits.
Nearly 74% of consumers feel retailers’ returns experiences need to improve. Focusing on your returns process can help you stand out from competitors.
Self Service Lockers: Smart Return Option
How can companies offer convenient return options to their clients?. The key here is for businesses to provide different options, so clients’ can choose on their own the option that better fits them. Nowadays, people are looking for a personalized experience when shopping, which also involves the post-purchase stage.
Among the most traditional return methods that most online retailers provide, we find retail stores and post offices. But let’s take a minute to analyze this; why someone that did not want to relocate to the physical store at first would now commute for the return?
Luckily, new returning methods are gaining popularity with technological advancements, making the return process as effortless as possible, simplifying shoppers’ lives, and benefiting the e-commerce industry by making the return process inexpensive, quicker, and even contactless.
Among all the existing options, smart lockers are claimed to be the fastest package drop-off (under 10 seconds retrieval) and the only 100% contactless method.
How do Self Service Lockers work?
Self Service Lockers allow a hustle-free and frictionless, and automated return flow thanks to its technology.
These lockers are a more sophisticated and safe way for package pick-up and drop-off. This equipment works with API technology letting all parties involved to have live tracking and notifications of all stages of the transportation.
These tech characteristics make self service lockers the most convenient alternative for retailers to manage reverse logistics and for shoppers to carry out returns without commuting to crowded shopping areas, paying extra fees, or getting in physical touch with customers experience teams freeing them up to work on other tasks.
How can Bloq.it help your business optimize returns for your retail customers?
At Bloq.it we supply self service lockers with tech-savvy system integration and development for several uses including retail operations. Many brick-and-mortar and online retailers in more than 10 countries have already improved their delivery and return practices incorporating our technology and solutions.