Trends in E-Commerce Return Processes

Last year I had a call with the VP of ecommerce of a $300M+ retail company who was convinced their 32% return rate was "just the cost of doing business" When I dug into their data I discovered that almost half of post-purchase revenue loss is preventable. This happens all the time, retailers are pouring their heart and budget into hitting sales targets, only to watch a third of that revenue disappear due to inefficiencies and refunds. It's demoralizing to be a retailer these days. It doesn't have to be this way! Here's the playbook we used to help that company recover over $6.8M in just 4 months: Most retailers focus on the wrong metrics, for example they celebrate $10M in sales while silently losing $3.2M to returns, and another $1M to operational inefficiency, plus $800K to return fraud and abuse. Quick observations: Your "best customers" are killing you! 37% of "VIP shoppers" are serial returners, they look great in your CRM but they're negative margin customers. We found one customer returning over $14K → this is totally preventable! This is our framework that we developed after working with hundreds of enterprise retailers in the past 5 years: Prevent returns Enable size/style swaps and allow for uneven exchanges (more expensive or cheaper options) Store credit options instead of refund Relevant product recommendations for exchange and upsell Analyze the return reasons by product - this can save you a lot of products from being returned! Results: Over 60% reduction in refunds b) Prevent fraud and abuse Fraud rules to prevent return abuse Automate policy enforcement and verification of product quality before the product is sent back Product inspection workflows at the warehouse level Results: the highest we seen last year for a customer was over 90% c) Streamline Operations Setup rules for returns routing to the closest warehouse or outlet stores Minimize clicks and enable a scan, scan, refund workflow Centralize all returns data and actions into one system, to prevent system switching Results: 42% faster processing Returns are not a cost of doing business. They're a goldmine of hidden opportunities. But here's the truth: Most retailers will read this and do nothing. They'll keep losing millions because "that's just ecommerce." The smart ones will see this as the competitive advantage it is. What side do you want to be on? P.S. If you're a retail executive seeing 20%+ return rates, DM me. I'll share our full framework as it’s way more detailed.

Zappos, REI, and Costco are just a few retailers that have spoiled us with generous return policies. No questions asked. 356 days. Sometimes longer. But the return party might be coming to an end. Saks Fifth Avenue and Target are just a couple of big names leading the charge on implementing stricter return policies. As an honest consumer (as I'm sure you are!) you might think the issue is costs associated with shipping and restocking. That's part of it for sure. But the bigger, emergent problem: fraud. Issues ranging from wardrobing, i.e. wearing something then returning it, to receipt recycling where legitimate receipts are used multiple times to return stolen or unrelated items are killing margins. This has spawned an entire ecosystem of vendors (Narvar, AfterShip, Loop and others) who have built their business on managing post-purchase customer experience. In the past that mostly meant logistics like shipment tracking and return facilitation. But today, fraud is at the forefront for retailers. And therefore presents a huge opportunity for post-purchase vendors to level up. I wrote more about this today in Total Retail. https://lnkd.in/epy3_4jU

Trying to keep up with Amazon news is my new full-time job Keeping up with Amazon feels like trying to assemble furniture without instructions. Just when you think you have figured it out, you find something new that tells you otherwise. Every week brings new policies, marketplace moves, and updates to which sellers must pay attention. These weeks? Amazon is shaking up logistics, marketplace competition, and seller performance tracking. 1. Amazon Wants to Disrupt Freight Logistics (Again) Amazon is planning to expand into Less-Than-Truckload LTL freight services by 2026. If successful, this could change how sellers move inventory, but it comes with challenges. ✅ Potentially cheaper and faster shipping options ✅ More control over fulfillment timelines ⚠️ But also… more Amazon dependency and potential logistics headaches Amazon has a habit of entering industries and forcing competitors to adapt (or disappear). Will this shake up the freight world or just add more confusion? Time will tell. 2. Amazon vs. TikTok Shop: The Global Battle for Marketplace Dominance Amazon is expanding its budget shopping platform Haul into Europe, taking on Temu and Shein directly. At the same time, TikTok Shop is launching in Italy, Germany, France, Japan, and Brazil. The way customers shop online is changing fast. ✅ More opportunities to reach global audiences ✅ New platforms = new customers = new sales potential ⚠️ But also… higher competition and price wars Amazon is not just fighting TikTok Shop. It is adapting to a world where social commerce is driving sales. 3. Amazon’s New Return Badge System: Help or Headache? Amazon just updated its Voice of the Customer dashboard to track products with high return rates. Sounds useful, right? Well… sellers aren’t exactly excited. ✅ A new badge marking “Frequently Returned” ASINs ✅ Warnings for ASINs at risk of getting the badge ✅ Insights on return trends and benchmarks What sellers are actually saying: ⚠️ No way to challenge false return claims ⚠️ No search or filter function (so sellers are scrolling endlessly) ⚠️ Encouraging more returns instead of solving return fraud Sellers have been begging Amazon for better protection against return fraud and bad actors. Instead, they got a system that flags listings but doesn’t fix the real issue. I get it, this is too much to process... and one of sellers' biggest challenges is staying ahead of updates that impact their business. I guess that's why I always get asked, "How do you keep up with everything?" At Carbon6, we focus on understanding and breaking down what is happening inside and outside Amazon. Knowing what is changing is not enough. Sellers need to know what to do next. What do you think about these updates? Are they helping sellers or just adding more challenges? --- To learn more about these updates, check out C6’s Blog https://lnkd.in/gjR-98hc #AmazonSellers #AmazonNews #FBA #AmazonFBA