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1、1 2022 Returns Survey Report2022+?E-commerce Returns&Exchanges Report:Contents2 5ThePolicyImpact:HowReturnRulesCanMakeorBreaktheSale10EmbracetheExchange:ThePromiseofUpsellOpportunities12TheAftereffect:UsingYourReturnsExperiencetoDriveLoyalty14DeliveraBetterReturnsExperienceby OfferingFlexibility,Cho
2、ice&Simplicity14AbouttheSurvey15AboutShippo16AboutLoop3 2022 Returns Survey ReportGlobal e-commerce spend is expected to surpass$5 trillion by the end of this year(yes,thats Trillion with a“T”),and industry studies show that 54%of consumers now prefer browsing for new products online as opposed to i
3、n-store.Accelerated by the pandemic and friendlier fulfillment experiences,consumers have collectively moved to become more digital over the past several years and the opportunity to profit from this drastic shift from physical retail to e-commerce is huge.But when you consider that 60%of consumers
4、will break up with a brand over a subpar customer experience,its clear that the stakes of delivering on ever-growing expectations across the entire e-commerce journey are equally high.Regardless of merchant size or industry,e-commerce returns can be an uncomfortable but necessary subject.And while p
5、lanning to get ahead of reverse logistics may keep e-commerce business owners and ops professionals up at night,retail returns jumped an average of 16.6%in 2021 versus the previous year making one thing crystal clear.Retailers simply cant afford to stick their heads in the sand when faced with the c
6、omplexities of consumer e-commerce returns.4 2022 Returns Survey ReportTo help merchants get a better handle on this tricky topic,we surveyed 1,000 consumers to find out how they currently manage their e-commerce returns experiences,as well as what they hope to see from the retailers they shop with
7、in the future.We found that of consumers who have returned e-commerce purchases within the past six months,20%returned just one item,while almost three-fourths returned 2-9 items.Moreover,85%of that same group made at least one exchange,illuminating the potential opportunity of creating a great exch
8、ange experience in addition to improving traditional returns.In the past 6 months,how many items purchased online have you returned?1 item 24 items 5-9 items 10+itemsIn the past 6 months,how many items purchased online have you exchanged?0 items 1 item 2-4 items 5-9 items 10+itemsOur 2022 E-commerce
9、 Returns&Exchanges Report covers this years hottest topics pertaining to returns,including building the right consumer-friendly policy for your business,incentivizing exchanges over returns,and turning your returns experience into a driver for customer loyalty and bottom line growth.55%20%18%70%40%6
10、%12%15%27%5 2022 Returns Survey ReportThe Policy Impact:How Return Rules Can Make or Break the SaleYour return experience begins and ends with your policy including how and where you communicate it and while there is no one-size-fits-all,our survey findings do show that a consumer-friendly policy ca
11、n really make a difference.84%of consumers read a return policy before making a purchase online,and 44%of those will look for an alternate brand or retailer if theyre unhappy with what they see.On average,more than half of consumers take less than one week to return an unwanted item,while less than
12、1%take more than one month.When determining your return window,account for both inventory management and customer experience.A good middle ground might land you somewhere between one and four weeks.On average,how long does it take you to return an unwanted item that was purchased online?1-2 days 3-6
13、 days 1-2 weeks 3-4 weeks Over 1 month Other29%41%23%6%1%1%Nearly all consumers we surveyed said they would be more likely to purchase from an online retailer or brand that offers free returns.Free returns have become table stakes or,at the very least,one of the most attractive competitive advantage
14、s and we predict this will only become more true as e-commerce sales grow.1.2.are more likely to purchase if free returns are on the table96%There are several considerations when drafting your return policy,including how to approach cost,processes,and timelines.As with all business decisions,its imp
15、ortant to strike a balance between whats best for your bottom line and what your customers want.The goal is to cut costs and optimize spend while also surpassing expectations and encouraging more sales.These key takeaways might inform how you create a return policy that aligns with both existing con
16、sumer expectations and your business goals:84%read a return policy before making a purchase44%will swap retailers if unhappy with the return policyWhat is your*least*preferred returns experience for an item purchased online:38%Contact a customer support representative to initiate a return 21%Return
17、in-store 17%Initiate the returns process online and print your own return label16%Initiate the returns process online and use a QR code at a drop-off location for a no-label return 7%Use a pre-printed return label included with original shipmentWhat is your preferred returns experience for an item p
18、urchased online:30%Use a pre-printed return label included with original shipment22%Initiate the returns process online and use a QR code at a drop-off location for a no-label return18%Initiate the returns process online and print your own return label 17%Contact a customer support representative to
19、 initiate a return 14%Return in-storeWhat is your*least*preferred exchange experience for an item purchased online:41%Contact a customer support representative to initiate an exchange25%Exchange in-store19%Initiate the exchange process online and print your own return label14%Initiate the exchange p
20、rocess online and use a pre-printed return label included with your original shipmentWhat is your preferred exchange experience for an item purchased online:39%Initiate the exchange process online and use a pre-printed return label included with your original shipment 25%Exchange in-store19%Contact
21、a customer support representative to initiate an exchange 17%Initiate the exchange process online and print your own return label6 2022 Returns Survey ReportIn addition,the most recent State of Shipping Report revealed over one-quarter of merchants dont even offer the option to return an item purcha
22、sed online,a policy that could dissuade customers before they ever have the chance to make a purchase on your site.When initiating a return,30%of consumers prefer using a pre-printed return label included with the original shipment(39%prefer this initiation method when initiating an exchange).When y
23、ou consider that roughly one-third of US-based consumers dont have a printer at home,it makes good business sense to include a label just in case because it delivers an easier end-to-end experience for customers.When you also keep in mind that merchants who go this route are only charged if the retu
24、rn label is actually scanned,it poses virtually no risk for you as a merchant.Including a pre-printed label can also work as a competitive advantage,as Shippos 2021 State of Shipping Report showed over half of merchants currently say a customer needs to contact the team to request a return label and
25、 send an item back,while only 3.5%include a return label in every box.3.2022 Returns Survey Report1.OfferacompetitiveadvantageHelpbuildmoreconfidencetoencourageconversion2.3.Drivedownsupportcostsbyeliminatingconfusionandtheneedforoutreach7 Approached strategically,a consumer-friendly and well-commun
26、icated return policy can:8 2022 Returns Survey ReportUnderstanding the nuances of consumer sentiment when it comes to returns policies is one thing,but using that information to improve your specific process and how you communicate it must be its own focus for your brand.At Loop,we often tell our me
27、rchants to make it easier for customers to find,and understand,your returns policy.The first step is to develop a returns policy that works for your business.Then,youll need the appropriate tech stack to bring your policy to life.Lastly,you must proclaim your return and exchange policy across your e
28、-commerce store;on landing pages,product pages,etc.Oh,and if there are any exceptions to your policysuch as clearance or“final sale”itemsmake sure to note those,too.We like to tell our merchants to let that policy shine!EXPERT TAKE:2022 Need-to-Know:Bracket BuyingAs with other e-commerce purchasing
29、trends accelerated by the Covid-19 pandemic,“bracket buying”the practice of buying multiples of the same item in different sizes,colors,etc.with the intention of returning at least some of them doesnt appear to be going anywhere.In fact,our survey showed that 50%of consumers have purchased multiples
30、 of the same item online with the intention of at least returning some.With the traditional fitting room experience unavailable in the privacy of ones own home,consumers have turned to bracket buying as a way to ensure they find the right fit.The numbers seem to support this hypothesis 80%of those w
31、ho have returned items have typically returned apparel purchased online,while 42%returned items primarily because the purchases didnt fit or suit them,so it would make sense that consumers would intentionally overorder upfront as a way to avoid drawn out shipping and refund timelines.Have purchased
32、multiples of the same item intending to return Typically return apparel purchased online Mostly return items that dont fit or suit them Most return items that didnt resemble the product page online50%80%42%16%SHIPPO CUSTOMER SPOTLIGHT9 2022 Returns Survey ReportThough beneficial to the consumer,brac
33、ket buying creates added challenges for retail forecasting.One way to nip the practice in the bud is by providing detailed and accurate information on your product pages,perhaps even creating FAQ sections to address common complaints,misconceptions,or points of feedback.You might also consider inclu
34、ding photos of what different colors and sizes look like on a variety of models,or source and surface UGC(user-generated content)to complement text-based product reviews,offering more visual examples of products to your customers.“If a customer requests it,we ship multiple pairs of glasses and pre-p
35、rint the return label as a courtesy its good for business and proper customer service.Most times the customer ends up liking the glasses and keeps them.However,we do allow customers to return within 7 days.”Nancey Harris,Co-founder&COO,VontlleAnother solution for online retailers who effectively ope
36、rationalize returns and exchanges lies in the Try Before You Buy method.This strategy essentially encourages bracket buying by shipping out multiple options from the get-go,then allowing customers to return the products that dont fit or suit them.While this may not be the right avenue for every e-co
37、mmerce merchant,it can help retailers seeing more frequent returns pre-empt some of the associated challenges by building them directly into the customers journey.10 2022 Returns Survey Report10 Embrace the Exchange:The Promise of Upsell OpportunitiesIn addition to returning items that didnt fit wel
38、l or resemble what was featured on the product page,our survey found that 18%of consumers returned items they believed were poor quality.While none of these instances are necessarily desirable,they all provide an interesting and lucrative opportunity for those willing to take it by promoting exchang
39、es in lieu of returns,retailers can potentially see three-fold rewards:1)avoid losing out on revenue from the initial sale,2)keeping customers engaged with your brand and products,and 3)enticing upsells or repeat purchases.16%27%42%5%7%3%What is the most common reason youve returned items?Didnt rese
40、mble the product page online Poor quality Didnt fit/suit you Didnt arrive on time Buyers remorse OtherOur survey found that 67%of consumers who returned an item purchased online have also exchanged 1-4 items purchased online,while 18%exchanged anywhere from five to more than ten items.These numbers
41、further highlight the potential for not only keeping customers engaged despite initiating a return,but also using returns as a way to generate more revenue,especially if you have both a digital and physical presence.83%of consumers told us that they end up shopping in a retailers brick-and-mortar st
42、ore most of the time after completing a return there,with over a quarter of those individuals spending more than the original purchase amount and just under half spending about the same.When you return e-commerce purchases in a physical store,how often do you end up shopping in the retailers store a
43、fter completing your return?Most of the time (51%-74%)36%All of the time (75%-100%)14%Hardly any of the time(less than 25%)14%Some of the time (25%-50%)32%None of the time4%10 10 10 10 2022 Returns Survey R11 2022 Returns Survey ReportWhen shopping after returning e-commerce purchases to a physical
44、store,do you more often spend more or less than the original purchase amount?EXPERT TAKEIf you arent proactively encouraging your customers to exchange rather than to refund,youre missing out on significant revenue.Our data shows that customers who exchange for a new product have a 34%higher repeat
45、purchase rate than those who have never returned an item.Embracing the exchange will convert your returns from a cost center to a profit center.As an exchange-first platform,we help growing Shopify brands transform their returns into exchanges automatically.On average,our brands retain revenue on ov
46、er 40%of their returns:Its time to embrace the exchange.27%14%46%13%More Less About the same I dont regularly shop after returning purchases online83%of consumers would be very or somewhat likely to switch their return for an exchange if they were incentivized with an extra$10 to shop with.1012 2022
47、 Returns Survey ReportThe Aftereffect:Using Your Returns Experience to Drive LoyaltyBecause 96%of consumers are more likely to purchase from an online retailer or brand that offers free returns,strategically developing,drafting,and communicating a consumer-friendly policy can open a new door towards
48、 building a stronger customer base,generating more revenue,and accelerating business growth.91%of consumers say that the overall ease of their returns experience impacts their willingness to shop with a retailer again,while 67%have stopped shopping with a retailer after a negative experience.How muc
49、h do you agree with the following statement:The overall ease of the returns experience impacts my willingness to shop with a retailer again.Strongly agree Somewhat agree Somewhat disagree Strongly disagree It doesnt impact my willingness one way or the other 67%say yes33%say noHas a negative returns
50、 experience ever stopped you from shopping with a specific retailer again?4%4%40%1%51%Pro Tip:In addition to 30%of consumers preferring to initiate a return using a pre-printed return label,our study also revealed that 88%are more likely to purchase from an online retailer or brand that includes one
51、 of those labels.Because its not necessary to pay for the return shipping unless the label is actually scanned,this method of managing returns is low-hanging fruit for retailers who want to keep first-time and existing customers coming back for more.13 2022 Returns Survey ReportEXPERT TAKEWhen merch
52、ants improve their post-purchase experience,customers are happier,which leads to a significant increase in brand loyalty.If youre just starting out,here are three strategies to boost brand loyalty via returns:1.Create a customer-focused policy2.Make the returns process easy3.Incentivize exchanges ov
53、er refundsIf you have a rigid,unfriendly return policy,your customers are less likely to make a return,or an exchange,which ends the customer relationship before it even starts.Your returns process must be easy so customers feel empowered to take charge of their returns,rather than wasting time wait
54、ing on support representatives.Lastly,by incentivizing exchanges,you will extend your customers lifetime value all while retaining additional revenue truly a win-win.2022 Need-to-Know:Post-Holiday Returns&ExchangesWhile e-commerce returns and exchanges are often a hot topic during and after the holi
55、day season,they are an e-commerce operation reality that should be considered year-round.Return and exchange rates can vary by industry for example,vacation gear and apparel such as swimwear are returned more frequently during the summer months so policies should vary depending on your business merc
56、handise.Its worth noting here that 63%of consumers surveyed did not return any gifts they received during the 2021 holiday season,and of those who did,49%returned unwanted gifts in-store as opposed to shipping the item back.After receiving an unwanted holiday gift,34%of consumers said they typically
57、 exchange directly with the retailer for other products,opening an even more strategic opportunity to incentivize exchanges over returns,whether via return shipping or in-store.While not exclusive to the holiday season,this is especially good advice for December and January,when Loop data shows 30%o
58、f BFCM(Black Friday Cyber Monday)weekend and holiday purchases are returned.14 2022 Returns Survey ReportAbout the SurveyDeliver a Better Returns Experience by Offering Flexibility,Choice&SimplicityAs weve seen throughout this report,the cost of a subpar returns or exchange experience could result i
59、n a loss of long-term customer advocates,and as a result,potential revenue.However,investing the time into developing a strategic mindset around e-commerce returns and exchanges can also open up excellent opportunities to grow your customer base and your business while also lowering support costs.It
60、s clear that,as with other touchpoints across the full e-commerce journey,consumers are looking for flexibility,choice,and most importantly simplicity when it comes to returns and exchanges.Long story short:By offering an easy and seamless end-to-end experience that meets your customers needs and ex
61、pectations,youll be well-equipped to drive more long-term e-commerce business success and growth.Consumer data is based on responses from 1,000 US-based e-commerce shoppers gathered by a third-party survey platform in January,2022.15 2022 Returns Survey ReportAbout ShippoE-commerce is complex.Shippi
62、ng doesnt have to be.Shippo helps you grow your business by integrating with your workflows,providing experienced support,and connecting you with easy access to the best rates at the most carriers.Easy access to the best rates on the most carriers-Access over 85 carriers worldwide and best rates at
63、each,including regional carriers others cannot provide.The end-to-end shipping platform for every business-Make shipping a seamless part of your business connect your e-commerce platform or build our implementation-ready API directly into your workflow,fulfill orders quickly with smart defaults and
64、configurable automations,and gain insights that help you ship smarter with analytics and reporting.Support every step of the way-Go with confidence thanks to our experienced customer support,implementation and success teams.We have the shipping knowledge to get you started quickly and keep you up an
65、d running consistently.Grow into the future with Shippo-You will only ship more tomorrow.Shippo is there for you with 99.99%uptime,a modern tech stack,and all the features you need to create a greater brand connection to your customers and scale to match your highest ambitions.Just like our 100,000+
66、customers,Shippo can help you grow into the future with confidence.Sign up for Your Free Account16 2022 Returns Survey ReportAbout LoopLoop started redefining the post-purchase experience in 2017 by enabling Shopify brands to transform returns into exchanges.Today,Loop helps over 1,100 brands increa
67、se customer loyalty,retain more revenue,and lower unnecessary costs by automating their returns process.Over the last five years,weve automated over 15 million returns and our merchants have retained more than$400 million in revenue.The company was conceived in Columbus,Ohio,and employs more than 130 people across North America.Learn more at 17 2022 Returns Survey Report+