Research by fulfilmentcrowd – a global fulfilment provider, driven by technology, for high-growth omnichannel brands – investigated the most common issues related to customer returns and delivery disputes.
Insights from The fulfilmentcrowd Platform have revealed key trends in customer returns and delivery disputes. Analysing data from April 1st to August 29th, 2024, the most common issue was related to ‘Where is My Order’ (WISMO) inquiries, accounting for 76% of cases. This was followed by returns due to items no longer being required (22%) and damaged items or parcels (2%).
Focusing on industry splits, household goods had the highest quantity of disputes in this time period. Household goods were also the most likely to be ‘no longer required’, whereas health and beauty goods were most likely to have been damaged, and fashion goods were most likely to be missing. Looking at monthly splits in the time period analysed, July saw the highest number of reported disputes overall.
Austin Waddecar, CPO (Chief Product Officer) at fulfilmentcrowd, commented: “Missing returns can highlight inefficiencies in the supply chain or issues with third-party logistics (3PL) providers. Retailers may need to improve their tracking and return logistics processes, potentially reviewing partnerships with couriers or warehousing solutions. High volumes of damaged returns may point to issues with product packaging, transportation, or storage. Retailers can use this feedback to improve their packaging or adjust their handling methods to prevent damage during transit.
“fulfilmentcrowd promotes sustainability by encouraging circular economy practices, such as helping retailers offer customers options like re-gifting or donating unwanted items, particularly those below a certain RRP, instead of returning them. This reduces waste, lowers costs for retailers, and fosters goodwill with customers who appreciate eco-friendly solutions”.
Through Delivery Assured the latest addition to the platform, fulfilmentcrowd enhances the consumer experience, improves consumer loyalty and retention, and saves time by eliminating back-and-forth WISMO and order issue queries. A well-managed returns process can lead to increased customer satisfaction, enhanced brand loyalty, a competitive advantage, and positive word of mouth.
Lee Thompson, CEO at fulfilmentcrowd, added: “Reverse logistics is now a vital aspect of modern retail. The number of items returned by consumers is increasing at the same time as customers’ expectation levels and desire to reduce carbon footprints grow. Reverse logistics needs to be innovative enough to build and maintain brand loyalty, avoid unnecessary financial losses, and contribute towards sustainability goals.
“One reason for greater levels of returned parcels is ‘bad’ deliveries: those that go missing, arrive too late, or even arrive damaged. Resolving bad deliveries usually entails frustrating, lengthy back-and-forth communication cycles, and 85% of online shoppers say that a poor delivery experience would prevent them from ordering again”.
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What consumers want in the returns process:
Free returns; Ease of return; Immediate refunds; Clear return policies; Environmental concerns
What consumers dislike in the returns process:
Complexity and inconvenience; Costs associated with returns; Slow refund; Rigid return windows
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Sustainability is a key consideration in reverse logistics, as high volumes of returned parcels have a negative impact on a company’s ESG targets. Another growing trend in retail could provide a solution to the carbon footprint challenges of reverse logistics, and create a new revenue stream for retailers: re-commerce. Thompson added: “Consumers are increasingly opting to buy or rent used items rather than purchasing brand new. This is especially true of the technology and electrical industry; in the UK, almost two-thirds (64%) of consumers have bought a refurbished or repaired electrical item. This is a potentially lucrative opportunity for many manufacturers and is hugely beneficial for encouraging a more circular economy”.
Chelsea Banister, Head of Customer Operations at fulfilmentcrowd also commented on ASOS’ decision to start charging for customer returns as part of its updated fair use policy: “ASOS changing their returns policy highlights the shift in e-commerce behaviour in recent years. As the market is consumed with fast fashion and influencer-led promotion, behaviour such as doing huge online shopping hauls has seen a drastic increase in volumes and subsequent returns. These returns carry a cost for return to centre, quality check and return to stock for resale (if returned in adequate condition), all of which need to be accounted for. Add to this a variation in sizing across brands and the volume of returns is higher than ever.
“As an industry, we are all under pressure to increase sustainability and reduce carbon footprint. I think the change in returns policy will support the reduction in mass purchasing and reduce the number of returns as a whole. ASOS are taking sensible steps to remain a profitable business. At fulfilmentcrowd we too have seen an increase in returns which has led to a demand for additional resource both within the centres and from a customer support perspective”.
For more information, visit https://www.fulfilmentcrowd.com/blog/optimising-ecommerce-returns-for-enhanced-customer-satisfaction
