How to stop the rising wave of returns in online stores? eCommerce News No. 77

Summer means seasonal sales for most online retail sectors. It's not only an opportunity to attract new customers and maximise sales, but also a series of challenges, such as dealing with a growing number of returns. What else is shaping the current state of eCommerce? Find out in the 77th edition of Advox Press Release, filled with the most interesting news from the world of online retail. Be sure to check it out!

What is convenient online shopping in 2024?

Time and convenience remain key factors in customer satisfaction with online shopping. Has anything changed in the approach to e-shopping in 2024? According to the report "Omni-Commerce: Kupuję wygodnie w 2024 roku" by the Polish Chamber of Digital Economy, consumers are increasingly favouring a single, preferred sales channel. Nearly half of customers still migrate between various channels, but this is a 27 percentage point decrease from the previous year, indicating a growing preference for one convenient sales channel.

However, the benefits of multi-channel shopping remain relevant. As many as 98% of consumers browse products in-store before purchasing online or vice versa. Customers also appreciate multi-channel returns and the ability to handle online purchase complaints in physical stores.

The e-Chamber report also provides a comprehensive overview of the state of Polish eCommerce. Key findings include:

• Nearly 40% of consumers shop online at least 5 times a month.
• The most frequently purchased products are food (48%) and pharmaceuticals (42%), a significant shift from the previously dominant categories of fashion and electronics.
• Poles are increasingly shopping on foreign platforms, particularly Asian ones like Shein, Temu, and Aliexpress, attracted by low prices and a wide selection.
• The most convenient payment method remains BLIK, and the most popular delivery method is parcel lockers.
• Up to 75% of customers admit to abandoning shopping carts, mainly due to higher-than-expected costs, lack of trust in the store, or lack of preferred payment methods.

Returns in eCommerce multiply during seasonal sales

Attractive prices and seasonal discounts encourage more frequent purchases, but they also lead to an increase in returns. According to ID Logistics, the number of returns in June 2024 rose by 90% compared to February of the same year. This surge poses challenges for eCommerce owners and logistics companies, as they need to handle the influx of returns and quickly reintegrate products into the online store's inventory to resell them during the sales period. This process typically involves several stages, including verification, quality assessment, and repackaging.

How are companies tackling this challenge, and is it possible to reduce the growing number of returns?

It’s important to note that returns are a natural consequence of seasonal discounts - customers often prefer to order more products and return those that don’t meet their needs rather than miss out on a deal. This trend is currently amplified by the option of deferred payments, allowing customers to order more without "freezing funds" and pay only after 30 days, once the returns are processed.

Despite the rise in returns, many customers continue to make thoughtful purchases, guided by the "smart shopping" mentality. However, online stores must prepare for increased demand during sales periods to effectively manage returns and ensure operational efficiency. Investing in technologies that automate processes, such as return tracking and inventory management systems, is crucial. Clear communication of return policies can also help reduce unnecessary returns. Additionally, partnering with logistics companies and improving customer service facilitates the swift reintroduction of products to the market.

Will the Vayu robot replace parcel machines?

Imagine not having to visit the nearest parcel locker to pick up your package, as an autonomous robot delivers it right to your door. This is the vision recently introduced by Vayu, which is launching this service in the U.S.

Vayu is not the first delivery robot, with companies like Uber and Amazon already utilising similar solutions. However, Vayu stands out due to several key features:

• Autonomous navigation using AI enables robots to navigate various environments independently.
• Cost-effective operation using passive sensors instead of costly LiDAR technology, reduces expenses and increases reliability.
• Load capacity, with robots capable of delivering packages up to 45 kg.

Vayu robots are currently being tested on U.S. streets, and the company has secured a contract with a major eCommerce player to deploy 2,500 units. It remains to be seen if this solution will be widely adopted, but it is certainly worth monitoring.

Interested in these updates? Learn more:

Summary of the Chamber of Electronic Economy's report "Omni-commerce. Shopping Conveniently 2024"
On rising returns during sales periods
Vayu - AI-powered delivery robot