"Wash me but don't get me wet" - Sustainability in E-Commerce

TR
2nd Mar 2021
2 minutes, 5 seconds
Online retail neglects the return process in the discussion about sustainability.

Recent surveys by the E-Commerce Association bevh clearly show the dilemma in which the entire industry finds itself. Germany not only has the highest return rate internationally with over 6% of returns, but also a quarter of Germans specifically look for online retailers that value sustainability. How does this fit together?

Well, it's no surprise. Compared to other nations, German customers are particularly demanding regarding the service and conditions they expect from online retailers. An expectation that doesn't come out of nowhere:

  • Purchase on account? This is a specialty that is predominantly found only in Germany. Payment only after receipt of goods has fundamental effects on the cash flow of companies and reduces the psychological barrier to reversing the order. In France, for example, goods are often only shipped once payment has been received.
  • Free shipping? Amazon has created an expectation here that many retailers yield to in order to keep customers happy. What costs nothing is worth nothing – similar is the view here with the logistics process, which is experienced by the customer as a commodity and over time becomes self-evident to expect at no cost.
  • Selection at home? Just think of the advertising campaigns from the early days of Zalando – order a lot and choose at home, the return was practically planned. That this ate into margins cost-wise had to be recognized not only by Zalando but also Amazon already fought back in 2013 against so-called buying bulimia and blocked customers.

But all these puzzle pieces led to conditioning the customers accordingly and establishing free returns as a matter of course – with significant impact on the company's revenue. It is probably unrealistic that customer behavior will change quickly. However, online retailers, for example, should use the increased environmental awareness in relation to online retail to appeal to customers' responsibility in the overall process and encourage them to think. In addition, the return is a very tangible area where one can start with improved return management and transparency on the part of the retailer.

Currently, the discussion around sustainability primarily encompasses production, packaging, and shipping of goods. The return is often left out, even though it has a considerable impact on customer satisfaction, costs, revenue, and the eco-balance of online retail. An optimized, holistically viewed return process, seamlessly integrated into the Customer Journey, not only contributes significantly to customer satisfaction. It ultimately also leads to the avoidance of future returns and thus to lower costs and increased sustainability of the overall e-commerce process.