Fewer miles, less waste: Trends in return management 2023

TR
28th Feb 2023
3 minutes, 27 seconds
Last year, the fact that customers are buying more products online than ever before due to the pandemic was already old news. Artjom Bruch, CEO of Trusted Returns, takes a look into the future and highlights how technology can meet consumer expectations in 2023.

Even before the pandemic, the numbers of online purchases were increasing, practically since the dawn of the Internet. However, the pandemic explosively fueled this trend, as in 2022, Germany was the European champion in terms of returns. This trend continues in 2023, but is further amplified by the increased demands of many customers. Often, these demands are less about the products themselves and more about the company with which the customer interacts. With more and more customers having the agony of choice more at the shop than at the product, it is more important than ever for retailers to stand out as a brand and retain existing customers. The trends in e-commerce for 2023 are putting many companies under pressure. But suitable return platforms and the insights that data on customer behavior provide are particularly effective tools for gaining a competitive edge in the German market.

Just no rigid processes

Free returns no longer have the good reputation of customer orientation. More and more customers now understand that this often only appears as an advantage. The costs of all returns are shared by everyone and ultimately burden customers in other ways. Moreover, free returns are no longer immovable and are also viewed critically from a sustainability perspective. The 2022 Returns Report by Trusted Returns shows that almost half (44%) of all online shoppers would be willing to at least partially bear the costs of a return.

Moreover, selectively chosen, free returns are an interesting tool. One can work with a kind of reward here – for example, for customers who order frequently but rarely return. It also gives customer service staff another way to solve difficult customer problems. Having leeway for goodwill and individual solutions promotes customer loyalty – especially with the plethora of competitors, this will become a unique selling point in the future. Additionally, a positive experience in solving a problem remains in the customer's memory longer than the standard procedure of a return.

Demands on one's own consumer behavior

Today, customers are reluctant to spend their hard-earned money on companies that do not meet their value expectations. Sustainability is a key word here. The own consumption behavior is often one of the first points tackled when a consumer wants to be more sustainable.

In addition to packaging waste, the return slip is often nothing more than that: trash. Consumers notice this, but from a company perspective, the insert is more of a burden. Even with moderate return rates, a large part of the sent inserts are unnecessary. The costs of the small piece of paper are not to be underestimated: Babymarkt.de reports, for example, of more than 2.5 million sheets of paper and 50 printers at the packing tables, which are eliminated after implementing a return management platform, along with their fine dust emissions.

Satisfied with the company – not just with the product

Another point retailers need to consider is the external perception of their return processes. The focus is increasingly shifting to recycling: alternatives to pure returns, to the destruction of goods – no matter how economically sensible – are welcomed by consumers. Not everyone is equally willing to dig deeper into their pockets for sustainability, but negative headlines such as the mass destruction of goods sour all customers equally.

Equipping the after-sales cycle with more individual alternatives and using data collection to lower the return rate can either make such measures entirely unnecessary or drastically reduce them. Thus, even product fields that cannot easily be marketed under the sustainability aspect can incorporate sustainability into their processes, thus meeting the demands of today's customers.

Focusing solely on profit in the shopping cart is misguided if customers are not addressed in the after-sales cycle. Retaining demanding customers in 2023 is more difficult than in the past, given the plethora of choices available to them. However, innovative technology and a closer look at one's own data can enable companies to relieve their own staff and ensure a more individual customer approach. Retailers' hands are by no means tied – but the subjective perception of customers is becoming increasingly important. And lost esteem is only regained with difficulty.