Kevin Lee’s Post

💵 No More Free Rides: Returns Are a $8 Billion Problem Instead of retailers fighting for market share by offering free shipping and no-hassle returns, retailers are trying to squeeze more money out of every transaction. Retail margins are tighter. The Federal Reserve’s interest-rate hikes mean borrowing money is no longer free for e-commerce companies. And investors want to see actual profits instead of lofty promises. As a result, many retailers — including H&M, ZARA SA, J.Crew, and even Amazon — have started to adjust their return policies. Retailers want to dissuade consumers from making returns at all — or at least force them to do it in a more profitable manner. #returns #retail #ecommerce #omnichannel #UPSCapital #Insureshield

Key partnerships based on an aligned strategic vision produce long lasting relationships and tangible results. We’re proud of the work we do with the team at Adyen. #fraudprevention #digitaltransformation

Free shipping may be coming to an end (for the unloyal). Shein, H&M, and Zara all added return fees last year. Because lately, returns are creating too much of an operational burden for online retailers. Not only because some loyal customers are innocently trying on different styles or sizes, which does cut into margins, but because of rising "retail theft," as more people adopt online shopping. To deal with the fraudulent claims some retailers are stacking their loyalty programs with shipping and return benefits so that customers get lower or free shipping if they're part of your loyalty program. I like Yotpo for my DTC Shopify loyalty program.

👚 Analysis shows that in 2023 UK shoppers posted back more than £4.1bn of online clothing purchases, with this figure estimated to rise by 16.7% before 2027. This is damaging not just from a cost perspective but also from an environmental one given the amount of goods that go back into a supply chain or end up in landfill.    With the volume of returns showing no sign of slowing down, it is more important than ever for retailers to offer the best returns experience possible to turn a potential negative shopping experience into a good one. Read more: https://lnkd.in/etttD-Q2 #fluentcommerce #retailer #retailbusiness #returns #orderfulfillment #ordermanagement #cx Rob Shaw Business Reporter

The e-commerce market is projected to reach $6 trillion in global sales this year, driving significant growth. However, retailers are grappling with shipping and fulfillment challenges, as a recent survey found that 42% of retailers take two or more days to process orders, while nearly half of consumers expect their purchases within three days. #ecommerce #retail #onlineshopping #consumers #retailstore #fulfillment Tracy Edwards Steingold, Dean Ernst, Richard Vorisek, Dan Jablons, Edi Arjang

A new wave of e-commerce disruption could close 45,000 retail stores over the next five years, analysts say. UBS analysts suggest that e-commerce isn’t done upending brick-and-mortar retail just yet https://lnkd.in/eNcuSqzE #tradeguard #receivableputoptions #arputs #receivableputs #tradereceivables #accountsreceivables

Physical #retail is significantly more profitable than e-commerce!   In an article published by Noor Nanji at BBC News it has been reported that H&M isn't alone... "Rival retailers such as ZARA SA , Boohoo Group PLC, UNIQLO and Next already charge for online returns." As more #retailers charge for online returns, it's possible that #shoppers will be pushed back towards brick-and-mortar #stores.   This shift in #behavior begs the question: Are physical #retailers ready for this growth? Do they have the necessary tools to measure in-store loss potential? If you're unsure, contact us #retailanalytics #retailinsights #instoreanalytics #retailmarketing #shoppermarketing https://lnkd.in/df79B29D

More and more retailers are starting to charge customers for return shipping costs – Zara, Boohoo, Uniqlo, and most recently, H&M – just to name a few. It’s no surprise that businesses are struggling to figure out ways to accommodate customers, while enduring the ever-growing costs of return shipping. We get it – that’s why we built Retrace return shipping protection. Retrace allows online merchants to offer return shipping protection seamlessly at the point of sale. Merchants don’t have to cover the cost of return shipping and customers can add protection at checkout to avoid hidden fees. No surprises for buyers, no huge shipping costs for merchants – two things that can make the upcoming holidays brighter for us all. https://bbc.in/3PpPAZq #insuranceinnovation #digitalinsurance #embeddedinsurance #insurance #retrace #retail #returnshipping

With the INFORM Act in effect, retailers must be prepared for the changes that are already taking place. Read more in this article! #INOFRMAct #retailindustry #onlinemarketplaces

I always believed that a charge for returns applied to e-commerce. But retailers should be very careful that they don't get overzealous with this. In a world of BNPL it may be driving increased sales and returns. The dark secret in apparel isn't just try and return, it's wear it to work, school, functions and return. So there is justification, because some items can't be returned and restocked. Yet, this could end up becoming an environmental fee to dispose as well. Adding detterents can impact sales, but improve profits. #retailing #strategy #ceo #technology #marketing