06/02/2023
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No more free returns in online stores? eCommerce news #no.46

The first Tuesday of the month? It's the perfect time to refresh your knowledge on the latest news in the eCommerce industry. In this, as always, our Advox Press Release will help. What will you learn about by reading its 46th edition? In the latest edition of the publication, we reveal why live commerce is not growing so rapidly. We also share news about a controversial idea from one of Sweden's online stores and an innovative look at logistics from Polish scientists. Are you curious? Read on and start June by staying on the wave of eCommerc changes.

Live commerce proved to be only a temporary trend. Inquiry agency report

The growing popularity of live commerce (e-commerce using live streaming) was one of the so-called industry hot topics last year. How is this type of online sales developing this year? It turns out that compared to other forms of social media shopping, live commerce is doing significantly worse. These are the conclusions of the next edition of the report "Live Commerce in Poland 2023" conducted by the Inquiry agency.

What else can be learned from this year's report?

  • Nearly 40% of Poles have watched online sales broadcasts, and 12% have chosen to shop during them.
  • Live commerce is most popular among users between the ages of 18 and 34.
  • The majority of viewers watch such broadcasts via platforms such as: Facebook (64%), YouTube (31%), Instagram (25%) and TikTok (16%).
  • As in the previous year, the most popular are the "live's" where clothes and accessories can be purchased.
  • Compared to last year, the average amount of purchases made in this way fell from PLN 310 to PLN 210 this year. This represents a decline of more than 30%.

Despite the above results, it should be noted that the share of various forms of sales on social media continues to grow. 47% of Poles report that they have decided to make purchases through such portals, an increase of 7 percentage points compared to 2022.

You can read the detailed results of the report here. And you - are you developing your eCommerce on social media?

Are free returns era coming to an end?

For a long time, online stores have been trying to reduce order returns in order to optimize sales. For this reason, eCommerce owners are constantly improving their platforms. Among other things, they take care to properly and comprehensively present information about the offer on the product card. They also often decide to implement innovative functionalities (such as virtual fitting rooms) to minimize the chance of a buyer making the right choice. We recently wrote about other ways to reduce the number of returned shipments on our blog.

Swedish online clothing retailer Boozt Fashion has decided, however, to take more controversial steps to reduce the level of returns. The e-store's managers decided to delete the accounts of users who used the free returns option with above-average frequency. As a result, the number of accounts of registered users (until now it was more than 3 million shoppers) decreased by 2%. How do the managers explain their decision?

The excessive costs generated by the consumer behavior described above prevailed in deciding to take such action. In addition, the company explains that one factor was also a desire to reduce environmental pollution. By reducing unnecessary returns, Boozt eliminated the need to use about 600 delivery trucks in one year. This saved some 791 tons of CO² in 2022.

It is worth mentioning that the Scandinavian e-tailer's actions are not the first such idea. Amazon's marketplace has also decided on similar actions.

How do you see the future of free returns? Learn more about the Swedish company's plans in this article.

One step away from the package of the future - Lukasiewicz Research Network continues e-Pack project

Imagine that a parcel from an online store independently secures the goods, monitors its condition and location, and, in addition, is reusable... An intelligent parcel called e-Pack, developed by the Łukasiewicz Research Network, has been equipped with such functionalities. We have already written about the project of Polish scientists in previous editions of the Press Release. How has the work progressed since then?

Currently (after three years of intensive work), preparations are underway to test the product in practice. The developers of the solution are looking for online stores interested in trying out smart packages. Initially, they plan to launch about 50,000 units of the product on the market. Why should eCommerce owners decide to use e-Pack in their business?

Although the e-Pack at first glance resembles a folding box, looking at it more closely, one can see many innovations. What are they?

  • The package is equipped with an electronic label and a small photovoltaic panel. In addition, inside it there are a number of sensors that monitor the status of the shipment in real time and record all information about its transportation.
  • The e-Pack is also equipped with humidity and temperature sensors, which allows you to have greater control over sensitive goods (such as medicines).
  • Thanks to its modular design, the package is extremely durable. The creators estimate that it can be used for up to 5 years.
  • When making purchases from the online store, customers will be able to choose the type of packaging, including e-Pack. In order to use this form of delivery, it will be necessary to register in the system. When ordering a package, the buyer will have to pay a deposit of several PLN.

It should also be mentioned that the e-Pack is reusable packaging. Whether a customer wants to return or leave an order, he or she will have to return the package (e.g., by leaving it with the courier, taking it to a parcel machine or a pick-up point).

Will e-Pack herald a revolution in the logistics industry? Find out by reading the details of the project.

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