Package-Free – Is that even possible?

If there's an online retailer known for being customer-oriented, it's Amazon. Millions of items on a platform, some even delivered on the same day. Since October 10, 2022, Amazon has made another promise to its customers: if you want to return a product, you can simply take it to the nearest DHL branch. You don't even need a shipping box – the DHL staff will take care of that now.

Although this approach is supposedly customer-friendly, it primarily puts a strain on the postal employees. Unlike pre-packaged returns, the return shipping is not immediately processed, leading to significant delays. DHL is required to collect the products in the branches, but many smaller branches lack sufficient storage space. Especially with the upcoming Christmas season, this new concept means a tremendous additional burden for the postal service.

What is also overlooked is the sustainability aspect. The goods are not delivered to the customer package-free. Instead, it's foreseeable that the amount of packaging waste from Amazon customers will significantly increase. Considering that 80 percent of Germans see packaging waste as the biggest problem for sustainability deficits in online retail, this tactic is difficult to understand – especially as it's implemented by a company that once again made headlines for destroying returns.

Nevertheless, it increases the pressure on e-commerce in general. With the package-free return, Amazon takes another step towards customer convenience. If online retailers also want to follow this path without sacrificing sustainability, they must consider a sensible strategy. In doing so, they should pay close attention to what end consumers really want.

What do customers want?

The 2022 Returns Report conducted by Trusted Returns fundamentally shows that Germans long for a more sustainable online trade. To this end, they are also adjusting their return behavior: nearly half of Germans (44%) are willing to pay for their returns themselves. In return, however, expectations of mail order also rise. The vast majority (93%) desire more sustainable alternatives to shipping-only returns, such as the option to return goods to brick-and-mortar stores or keep them in exchange for a discount.

But a change of mindset is already evident in the ordering and delivery process: Doubly ordered goods are at a low seven percent on the list of return reasons. Nevertheless, nearly three-quarters of Germans (72%) would appreciate a notification if a product is duplicated in the shopping cart during ordering. This could further reduce the number of returns.

The opinion is similar regarding communication about the resulting CO2 emissions. While 54 percent say they would review their own order if the emissions are presented to them, 43 percent are willing to pay a surcharge for CO2 compensation. Additionally, nearly two-thirds (63%) would prefer to wait longer for their order if the delivery is more sustainable in return.

Comprehensive Return Management nips problems in the bud

It's evident that online customers place great value on transparent communication. Then they are also willing to adjust their behavior accordingly and possibly accept limitations – without customer satisfaction suffering. For this reason, every possible customer contact point should be seen as an opportunity. The after-sales cycle still offers frequently untapped potential. Many retailers only re-engage with the customer when their return lands in the mailbox. Automatically generated follow-up emails about satisfaction with the order rarely achieve the desired effect.

Comprehensive return management sees the ordering process as the first step in the return process and as the first opportunity to build contact with the customer. An integrated self-service platform captures the most important data during the order that an online retailer needs for further customer communication. If the customer wants to initiate a return, the retailer can respond accordingly and check whether a return is really necessary. Often, the problem is more complex than assumed. In the classic case, however, the customer often only has the option of returning the item.

This is where the retailer can pick up the communication again: For example, if a customer service employee can help the customer by explaining the functionality of the device again over a video call, or if the customer would keep the not-so-olive-colored T-shirt if they got a discount for it? The desire for a return does not automatically have to end in a physical movement of goods. Often, a problem can be solved by slightly tweaking the appropriate screws.

Especially the customer return experience decides whether a customer will shop with the same online retailer again in the medium to long term. If e-commerce manages to appropriately engage its customers in the after-sales cycle, they feel well advised and thus build sustainable trust with a retailer. A comprehensive self-service platform makes the return process for both sides not only much more transparent and communicative but also simultaneously increases customer convenience. Thus, online retailers can work from the beginning to retain their customers – and don't have to rely on package-free returns that exponentially multiply the amount of waste on both sides.