Nowadays, many eCommerce businesses adopt omnichannel marketing strategies to increase their brand’s visibility across several customer touchpoints.
With such a wide variety of shopping channels and online promotions on different e-platforms, i.e., free shipping, free returns, guaranteed full refund, online exclusive offers, or new member discounts etc., it potentially increases customers’ desires in making impulse buying and unplanned purchases.
Indeed, such an approach has led to a surge in omnichannel fulfillment, but at some point, it has encouraged online customers to over-purchase, and only shop on certain platforms that offer free order returns and exchanges.
Making good returning policies has therefore become a must-do task for eCommerce businesses to adopt, in order to continuously optimize their omnichannel fulfillment and gain competitive advantages in the market.
For example, eCommerce return policies are now expected to be highly transparent and hassle-free, while the product returning process has to be simple, convenient and wallet-friendly with a variation of returning or refunding options provided.
But as these new shopping habits emerge, can you imagine how many product returns do your eCommerce have to handle every day?
The Hidden Cost of Free Product Return Services
Over the past years, at least 30% of online products were being returned, whereas brick-and-mortar stores only had around 9% of product returns (Source: Invesp). Surprisingly, the average eCommerce product return rate is actually 3 times more than the traditional in-store shopping, and this is mainly caused by:
- Faulty or damaged (30%)
- The Product is not as described (27%)
- Poor quality (27%)
- Ordered more than one of an item (20%)
- ssues with delivery (18%)
- Customers no longer wanted the purchased item (17%)
To be more exact, the U.S. eCommerce return delivery costs increased from USD 350 billion to USD 550 billion during 2017 to 2020 (Source: Statista), which has approximately surged 60% in just 4 years (excluding the restocking expenditure, merchandise losses and inventory damages).
We can see that offering free product returns could be very costly, cutting off a big portion of your profit. And this could be a disaster for SMEs - not only adversely affecting your entire efficiency performance and profit-making, but also creating more operational challenges in your supply chain.
bonuship can help you to handle the massive eCommerce return requests in a smarter way!
bonuship has recently integrated new reverse logistics solutions into its services, aiming to strive for a more efficient and simple product return process to satisfy customers' impulsive buying habits, gain higher profits margins, as well as to optimize the entire supply chain in the most cost-effective way.
You can be benefited from bonuship’s all-rounded logistic solutions in making the most out of product returns and exchanges by mitigating the risk and minimizing the cost involved in your reverse logistics progress!
Check out how 3PL providers could help eCommerce in fulfilling the gaps within their supply chains during a holiday peak season: https://bonuship.com/en/blog/crowdfunding-fulfillment/upcoming-ecommerce-challenge-2021-holiday-shopping-season
Here is to show you how bonuship helps you in alleviating the pain points when dealing with tons of product returns and exchange requests:
To overcome the challenges of unprecedented change, you must start addressing the weaknesses in your eCommerce fulfillment and leverage reverse logistics as part of your supply chain management!
Trust us - bonuship has the capabilities and experience to help you cope with any unavoidable disruption, handling your order returns seamlessly with high efficiency, high quality and high reliability guaranteed!