Product Discovery Challenges + Returns Issues

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This week, the spotlight is on the challenges of e-commerce.

Returns remain painful for retailers

Retailers’ efforts to tighten returns policies are hurting consumers’ purchasing decisions, according to Blue Yonder’s latest retail returns study. The supply chain management solutions provider found that of the more than 1,000 consumers surveyed who said they were aware of stricter returns policies, “69 percent say stricter returns policies discourage them from making purchases, up significantly from 59 percent in 2023.”

Generation Z and Millennials are more likely to postpone purchases due to returns policies, according to the generational cohort. And 91 percent of all respondents said that “lenient returns policies affect their decision-making habits when shopping at retailers.” The researchers also found that when asked about stricter returns policies, 51 percent of respondents “felt that the returns restrictions were inconvenient or unfair, while 37 percent said they were fair and understandable.”

Given the stricter return policies, shoppers are also less likely to return purchases. Fifty-six percent of respondents said they return a product once or twice a year (or even less), compared to 61 percent in the previous survey last year. “In comparison, 34 percent of consumers surveyed said they “return more often (every few months or more), which is the same as in 2023.”

Other key findings include that 55 percent of respondents said they were “very or somewhat concerned about the environmental impact when returning items.” Researchers also learned that shoppers would take extra steps if they knew their returned items would end up in landfill. Of those surveyed, 36 percent said they would seek “an alternative, environmentally friendly method of disposal,” while 35 percent said they would attempt to resell the item. Only 27 percent said they would continue the returns process as planned.

Shopping Event Broadcasts

During the recent MTV Video Music Awards (VMAs), Shopsense AI introduced Shopsense AI Lens, a “built-in, cutting-edge product recognition technology.” The technology allowed VMA viewers across Paramount’s global network to purchase products “in the moment of inspiration across streaming and broadcast content.” For the first time in VMA history, the entire VMAs broadcast was available for purchase “from the red carpet to the stage, on shop.mtvVMAs.com,” the company announced.

The new feature lets viewers shop their favorite TV shows and live events — right from their second screen. “It creates a seamless shopping experience, curated specifically for each show, for broadcasters across linear, streaming, and their own and operated content,” the company said, adding that Shopsense’s proprietary, recently launched AI-powered Lens “activates viewers to take photos of what their favorite artists are wearing, then shop the looks they love in an AI-curated digital store.”

John Halley, president of Paramount Advertising, said MTV “is home to some of the biggest moments in music and popular culture and is at the forefront of innovation, pushing boundaries to connect in new and exciting ways. Shopsense is creating a truly immersive and interactive experience that seamlessly blends entertainment and commerce. We can’t wait to see how our fans embrace this new way to engage with the VMAs and look forward to expanding Shopsense AI Lens to additional Paramount content in the coming weeks and months.”

Glenn Fishback, co-founder and CEO of Shopsense AI, described the launch of Shopsense AI as a cultural milestone. “Content creators want to be closer to the point of purchase, and Shopsense AI has quickly become the new commerce engine for broadcasters,” Fishback said. “I can’t think of a better cultural moment to launch the new Shopsense AI Lens than during the VMAs, a music and fashion powerhouse that aligns perfectly with our vision of transforming how viewers engage with content.”

Retailers are underperforming in product discovery

Similar to other recent consumer studies, researchers at Constructor found a surprisingly high number of shoppers dissatisfied with their online experiences. In their report, 42 percent of those surveyed “gave their product discovery experience on retailer websites a grade of ‘C’ or lower.”

The results reveal whether retailers are “meeting the bill” for online search and product discovery. The results show that retailers may need to stay longer to get extra help.

Some of the key findings include that 68 percent of respondents “believe that the search functionality on retail websites needs to be modernized,” the report’s authors said, adding that this was “more pronounced in the US (71 percent) than in the UK (61 percent). Challenges with search included too much scrolling, having to rephrase search queries and missing irrelevant results.”

Other challenges include not knowing who is shopping, despite previous visits and engagement. The report found that 44 percent of respondents “say that when they shop at their favorite online retailer, the site treats them like complete strangers—with generic recommendations and a complete lack of personalization throughout the shopping journey.” The report also noted that shopping is not very enjoyable.

“Fewer than 1 in 3 shoppers (32 percent) say finding products online is ‘enjoyable’—underscoring an opportunity for retailers to create experiences that drive deeper engagement,” the report said. And there are consequences to a poor shopping experience.

“A poor product discovery experience often breeds poor results,” the report’s authors said, noting that online shoppers say that “when they can’t find what they want, they are more likely to leave a retailer’s site (52 percent) and take their wallets elsewhere—purchasing the item(s) from another retailer (48 percent), such as Amazon (38 percent), or through Google (27 percent).” Ouch. But if they could have a good experience, respondents said they would shop more often with that retailer, would choose it first for their shopping needs, and would leave positive feedback.

“A good product discovery experience literally pays off,” said Nate Roy, director of e-commerce innovation strategy at Constructor. “The bar for a good digital experience continues to rise, and successful retailers are working to meet and exceed customer expectations. As technology and cost barriers continue to fall, it’s become even easier for retailers to make incremental changes that measurably improve both customer experiences and business outcomes.”

Antigua “Elevates Innovation” with PTC’s FlexPLM Solution

Antigua Apparel partnered with PTC and utilized FlexPLM to manage product development for its golf and sports apparel business.

Antigua is a heritage golf apparel brand for men and women. The brand was founded in 1979 and soon branched out into sports licensing, offering golf-inspired products emblazoned with professional sports team logos. “Today, Antigua continues to be a leader in both golf and sports licensing, but with more comprehensive men’s and women’s apparel collections,” the company said, adding that its apparel offering is “trend-driven and made from the highest quality materials — allowing its customers to look, feel and perform their best on and off the course.”

PTC said Antigua will leverage the power of its FlexPLM solution “to equip its design, development and quality teams with a user-friendly platform that centralizes data, streamlines product development and increases day-to-day efficiency and collaboration.”

The company said FlexPLM will also play a key role in managing the growth and collections of accounts receivable for Antigua’s sports licensing division, which is expansive and includes a diverse portfolio of licenses such as “NFL, MLB, NBA, NHL, MLS, NWSL, US Soccer, top international soccer teams, MiLB, WNBA, NBA G-League, PBR Teams, NASCAR and over 400 colleges and universities,” PTC said in a statement.

Collaboration with PTC will increase Antigua’s operational efficiency, which is extremely important given the brand’s continued development.

Reid Harper, director of product development/design/technology design at Antigua, said that as the company has grown and expanded, “we realized that our current processes were too manual, with data scattered across spreadsheets, emails and multiple databases, leading to inefficiencies and duplication. That’s why we’re excited to partner with PTC to implement a best-in-class, end-to-end PLM solution. It will centralize our critical data, streamline decision-making and revolutionize our product development process.”

Kyle Marden, vice president of retail at PTC, said the company looks forward to partnering with Antigua “to fuel their next phase of growth by supporting both golf product development and sports licensing initiatives. Our goal is to equip their teams with the most advanced tools to drive innovation and success.”

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