But if everyone within the company isn't aware that the profitability of an entire product line dissipates when it's returned, it becomes nearly impossible to meet customer expectations in terms of sustainability or service. Artjom Bruch, CEO of Trusted Returns, on the importance of integrity in the balance between sustainability and profitability.

Returns as a pawn of profitability and intransparency

Repeatedly, there are reports of the destruction of returned goods. The most recent example is Zalando. The discrepancy between the marketing statements and actual implementation of the online fashion retailer even brought it to the attention of the main news program Tagesschau. Promises of sustainability in returns were contradicted by returns that traveled thousands of kilometers across Europe – only to be ultimately destroyed. Customers felt deceived, and the company's public image was significantly damaged - with corresponding expected impacts on business success.

Enabling customers to make informed decisions is not only a requirement of the hour but the foundation for a business relationship on equal footing. Furthermore, one must not lose sight of the fact that the impacts of climate change and thus the urgency behind more sustainable practices have now reached mainstream society - with corresponding demands on companies.

Broken Promises: When not thinking beyond the purchase

It's important to raise awareness that sustainability cannot be guaranteed if the profitability of a product is jeopardized by just one additional action, like a return. This is particularly important within the company itself. If sales or marketing work with promises that cannot be kept once the respective return process is activated, they can only be broken. Since this inevitably happens after the customer's purchase decision, they feel deceived.

Often, this happens without intent. The after-sales cycle is frequently neglected; it does not lead directly to a new purchase and thus has no direct impact on balance sheets or other metrics. But it's evident that brand loyalty and customer satisfaction are directly related to the customer experience when there's a problem with a product. At the same time, retailers should be aware that returning the goods along with an insert is not the best answer to every problem a customer might have with a product.

No One-Size-Fits-All in problem solving

When returned with an insert, the retailer only learns why a return happened after it's completed. However, with other processes, many returns could be prevented: A missing spare part is quickly sent, and a burst seam is easily mended by the local tailor. Information that a particular product is mostly returned due to the wrong size or discrepancies between online and offline impressions empowers retailers to adjust the size chart or images. All these approaches enable reducing the return rate itself, which in turn saves delivery costs and miles. These approaches are all implementable with return platforms and promote sustainability.

In the period between purchasing a product and buying the next or new one, there's often room for improvement in terms of sustainability. But most customers are unaware of what actually happens to goods after they are returned. To avoid turning customer satisfaction into a gamble, it's worth offering more than just returns with an insert. In addition, data generated by a return platform provide valuable insights for business areas outside of return management. Only further processing, like manual data entry, turns the information content of the return insert into a reliable data source, which digital platforms make unnecessary.

Recognizing alternatives and gaining trust

As in interpersonal relationships, loyalty, faithfulness, and sympathy in the retailer-customer relationship are destroyed more quickly than they are built. Deceiving one's own customers is akin to poisoning one's own well. However, hopefully, only a few think this happens with dishonest intent, but rather that retailers sometimes argue themselves into a predicament.

Regaining trust is often a difficult matter. In most cases, ensuring that the mistake does not recur is the only way. However, if you already have a good customer relationship, it can be further deepened by offering additional alternatives for problem-solving. Moreover, a lower return rate positively impacts business figures, and alternatives to parcel shipping with an insert give customers the feeling of individual problem-solving instead of mass processing. Those who have the courage to tackle the problem of more sustainable processes might even be pleasantly surprised by positive side effects.