nShift urges retailers to respond as UK returns rate hits 35%

New research from nShift and DeliveryX examines the importance of e-commerce returns after goods worth £4.2bn were returned in 2023.

LONDON, June 27, 2024 /PRNewswire/ — Returns are a great opportunity for retailers to differentiate themselves and increase customer loyalty, according to nShift, a global leader in delivery and experience management (DMXM), which has released a new report examining how this element of e-commerce is increasingly impacting both stores and shoppers.

The DeliveryX Returns 2024 report found that over a third (35%) of consumers now return products. In the UK alone, returns were expected to reach £4.2 billion in 2023. The report also found that 54% of consumers consider ‘easy’ returns to be very important, and over three quarters (76%) of consumers expect e-commerce returns to be free.

Commenting on the report, Sean Sherwin-SmithProduct Director, Buying, nShift, said: “Returns play a key role in delivery. Surveys show us that simple returns policies encourage customers to make confident purchases. However, what a customer sees and feels when they click ‘buy now’ often determines whether they will buy again.

“The ability to make digital returns can also enable revenue retention and cross-selling – for example, by encouraging customers to opt for an exchange rather than a refund, or inviting them to return in-store rather than by post.”

Returns as a business driver

nShift believes that returns can drive business and offers the following advice to retailers looking to modernize their returns strategies.

1. Make returns easy – Supporting a simple, digital returns process gives shoppers confidence in the brand. It also makes it easier for the seller to track patterns and determine why products are being returned
2. Convert profits into exchanges – A consumer-friendly returns interface makes it easy for a customer to exchange a returned item for another product from the same brand or retailer. With the right returns software, e-commerce businesses can automate the process of offering exchanges. nShift Returns customers typically convert 30% of their returns to exchanges, helping retailers maintain revenue
3. Maximize return data – Manual returns processes make it difficult to gather information about returned goods. However, when the process is done digitally, it creates a wealth of data for companies to analyze. This makes it easier to spot trends and patterns. Teams can identify and fix common issues that cause returned products. This can reduce the volume of returns in the long run
4. Reply with remarketing – Returns emails have a significantly higher engagement rate than other retail communications. By weaving marketing messages into these emails, e-commerce businesses can create additional sales opportunities
5. Attract customers to your store – the digital returns process makes it easier for customers to return items to the store. Here they will speak to a member of staff who can encourage them to exchange the item. The customer will also encounter additional products and marketing messages in the store

Delivery & experience management (DMXM) enables retailers to build brand loyalty, reduce costs and increase revenues through delivery. With DMXM, shipping and delivery become customer experiences that surprise and delight shoppers while reducing costs and unlocking efficiency in warehouses and delivery teams.

Sherwin-Smith concluded: “Winning returns can only happen when the entire experience is seamless and intuitive, from selecting delivery options at checkout, to tracking deliveries to your door or collection point and requesting a return if necessary. It should be completely digital and the retailer, not the carriers, should be the focal point.”

Download your copy of the file DeliveryX Returns 2024 report to find out more.

About nShift

nShift’s delivery and experience management platform powers e-commerce success. Expand beyond boundaries with continuous innovation and the world’s largest carrier network. Build customer loyalty with comprehensive experience-enhancing tools. Unify data into actionable insights that connect and optimize processes. With nShift, make delivery the essential link between your brand and your customers.

nShift. Worry Less. Send Smarter. www.nshift.com

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