The 2021 Returns Report by Trusted Returns revealed that more than half of Germans consider brick-and-mortar retail to be more sustainable than online retail. The most frequently mentioned reasons for this are the higher traffic volume due to delivery traffic, a higher number of returns, and a larger amount of waste.

Trend 1: Rising costs in E-Commerce

Due to higher CO2 taxes and resulting rising fuel prices, carriers are forced to increase the costs of their logistics. This affects not only the delivery of packages but especially returns. Therefore, avoiding returns and optimizing processes without compromising customer service must be the top priority for online retailers in 2022. By using return management portals, they can automate much of the communication process and save significant costs. In return, the Customer Journey is positively influenced. Customers benefit from greater flexibility in handling their returns. Almost three-quarters (71%) of Germans would welcome this. Another clear wish of consumers is the possibility to return online ordered goods in physical stores.

Through better communication with their customers, retailers also have the opportunity to optimize their logistics with intelligent route planning and avoid unnecessary trips. Products that can be integrated into a re-buy cycle because they have no defects can be delivered to a warehouse, whereas defective products do not need to take this route.

Trend 2: The end of the era of insert returns

Everyone knows it, but hardly anyone really likes it: the insert. Printed millions of times, only to often end up unused in the trash. Nevertheless, Germans still most frequently use insert returns to send back goods. This is mainly because retailers continue to stick unconditionally to this method. However, digital return portals are now on the verge of outrunning this paper trail. 61 percent of Germans stated that they have initiated a return online. Therefore, there is only a two-percentage point difference between the return portal and the insert return.

With a digital return management platform, retailers can contact their customers before they have finally decided on a return. In contrast, the insert causes high production costs for retailers in the production process, indirectly leading to revenue losses without generating more touchpoints between retailer and end consumer. Nearly half of all Germans (43%) wish for this better communication. By offering a discount, a customer could be convinced to forgo a return. However, this requires better communication. If it turns out that a misleading or too brief description in the online shop is the reason for the return, future returns can be avoided by heeding the criticism.

Lack of communication, such as with the insert, means customers learn less about the multitude of alternative options for returns. At the same time, retailers rarely learn the true reason for the return and thus have little opportunity to react in time. This leads to more returns. Especially in terms of sustainability, e-commerce needs to positively influence the Customer Journey with more touchpoints.

Trend 3: Germans want to contribute to more sustainable E-Commerce

Even though nearly every German (97%) ordered more online last year, consumers are aware of their contribution to climate protection and sustainable consumption. Two-thirds (69%) stated that they have adapted or are adapting their online purchasing behavior accordingly. Under this aspect, there will be a fundamental rethink in dealing with returns. The question will be whether returns are not avoidable. For example, warnings about duplicates in the shopping cart can lead customers to question their product list more critically and avoid ordering the same product twice – 79 percent of Germans welcome such advice.

In terms of sustainability, the vast majority of Germans (83%) are also willing to provide more data to retailers to help make return management as efficient as possible.

All in all, it can be said that e-commerce will face significant challenges in 2022 that have been foreseeable for some time. However, if retailers manage to improve their processes and customer communication, they can take a big step towards sustainability. Customers would be happy to follow this example. But German online retailers must not continue to sleep on this but must adapt in time to the future of digital shopping.