Reverse logistics has proven to be one of the biggest problems in online business today. By 2022, conversions and returns of items purchased through this channel will grow by 41 percent. This is clear from the report.Insights iF Lastmile: Online Exchanges and Returns” produced by the digital platform iF LastmileIt analyzes the evolution of reverse logistics in our country and its impact on the profitability of brands till January 2023.
This growth means that the cost of return is increasing for companies; Reaching 66% of the price of the product. In fact, the report emphasizes that The cost of the logistics management involved in the process and the required manpower, 50% of the returned goods will not be returned to the sales channel with the original price. Similarly, when there is high demand, it is estimated Alterations and returns block 30 to 40 percent of inventory.
iF Lastmile also shows that The end of free returns is coming. 78% of online businesses analyzed in the report already charge for exchange and return services, on average 4/5 euros. However, one in three charges less than the real price, considering a portion of the cost.
Most of the changes and returns – 82% – are motivated by problems with the size. In the remaining 18%, dissatisfaction with the received product is highlighted – 7% of them. Although in exceptional cases – in 1% of cases – there is also a procedure known as “”.Bracket”, which involves finding different sizes or colors of clothing to review at home and returning most orders later.
The store’s exchange section is moving home and 70% of shoppers choose a location to collect their change and returns, compared to the possibility of choosing a delivery point. However, from this point of view, awareness among consumers is increasing, because when sustainability is attractive, the choice of collecting at home is reduced to 55%.
“Turnovers and returns are a drain on businesses’ profitability. Online shopping will inevitably increase this phenomenon, and therefore, it is necessary to change the rules of the game.” he confirms Gallo de Reyna, Founding Partner and CEO of iF Lastmile. “Encouraging conversion by offering store credit with incentives, introducing free exchanges in relation to returns, or implementing artificial intelligence to offer new options are options that many brands are betting on.de Reyna added.