13 January 2023
3 min read
Don’t let Christmas Returns saturate your Business
During January, with the recent consumption peak of Christmas holiday sales, e-commerce shops are trembling at the arrival of the returns. More than 40% of Spaniards return some of the items purchased online!
Free returns are considered to be a demand generator for e-commerce because the conditions can make or break the purchasing decision of many customers. In fact, 7 out of 10 Spanish consumers always check the Return Policy before getting a product.
What is more important for online customers?
- That e-commerce offers a clear and accessible Return Policy.
- Returns should be free of charge.
- That returns are easy to manage.
Being returned a product seems like a negative thing, but with good management, it may end up playing in your favor. Take advantage of the period with the most returns of the year so that the management of your returns helps you to increase the conversion rate, improve customer loyalty and increase the competitiveness of your e-commerce.
Collision with the e-commerce sales period
In January, there are several factors to take into account if you don’t want your business to be overwhelmed:
- More than 70% of consumers prefer to make their returns online rather than in physical shops.
- Around 75% choose to do their sales shopping online.
- 80% of Spaniards state that they usually wait for the sales to buy cheaper.
January shopping is chaotic for both consumers and e-commerce, not only because of the collision with Christmas shopping returns, but also because of the customers’ relentless search for the best deal among hundreds of websites.
Get your business ready for the sales
As a retailer, you can’t always match your offer and discounts with your competitors, but there are some factors that can help you avoid drowning in the attempt to make January a profitable month:
Devise a clear and structured strategy
Do you want to go for products that sell a lot and launch special offers on these to play it safe or prioritize products that sell less?
Don’t limit yourself to discounts
If you want to differentiate yourself, you need to take advantage of opportunities. Try offering free shipping or discounts depending on the number of items.
Build customer loyalty
Regular customers are more profitable than sporadic ones. Offer them special discounts or gift cards.
The environmental cost of returns
Express deliveries (less than 24 hours) are increasing by more than 10% each year, resulting in a 20% increase in CO2 emissions in the last phase of delivery, as they do not consolidate delivery to shops or convenience points. In addition, it is estimated that emissions generated during this phase will have grown by 30% by 2030. This translates into 25 million tonnes of CO2 per year.
In the United States, approximately 50% of products that are returned are re-sold. However, about 2.2 billion kilos of products end up in landfills. That is why it is important to have a well-structured Returns Policy with clear terms and conditions to avoid returns that force you to waste such a high rate of returned products. After all, this waste of materials is a concern for both the planet and the costs your company has to bear.