Introduction
Customer demands are evolving, and so are the trends for return procedures and policies. Those evolutions that were on top of eCommerce retailers’ lists are going down and being replaced by some new ones.
However, you don’t need to be a prophet to guess which return trends are going to take off in the upcoming time. All you need is some research and data.
Thus, we interviewed some of our internal team members, dug deeper into industry research reports, and kept an eye on what our customers were favoring. Then, we have curated this list of the top 11 trends for return procedures and policies.
11 Top Trends for eCommerce Return Procedures and Policies to Watch Out for
Here are the top return trends we have figured out:
1) Free returns are on top of customers’ minds
If you’re thinking about charging your customers for return shipping - think again! Sure, free returns pose a lot of challenges to eCommerce sellers, like higher operational costs, abuse of the policy, and wardrobing (a practice where buyers purchase items with the sole intention of returning them), but it’s here to stay, and more retailers will still offer a free return policy.
Why? SAP Emarsys customer engagement recently conducted a survey where they interviewed over 2000 US online shoppers. 88% of them said that they stopped shopping with eCommerce brands that introduced a paid return policy. In fact, over 54% of customers avoid sellers who charge to return an item.
So, if you consider the customer experience and sales parts, free returns will still rule in the upcoming time.
Plus, with giant eCommerce marketplaces like Amazon, and Flipkart offering free returns, it has raised the bar of expectations among shoppers, who will continue to purchase from those brands that don’t cut costs for return shipping.
Key Takeaway: Add a return shipping process to your policy. However, if you flag any fraud customers who return every item they purchase, segment those buyers and restrict the process for them.
2) A detailed and customized return policy will be the key to minimizing returns
There’s no doubt in the fact that returns are a nightmare for every eCommerce seller. While they can’t avoid these returns since it’s a part of online businesses, they can reduce them to a great extent by adopting several methods. A detailed return policy is one of them.
When you craft a return policy outlining all the terms & conditions, it maintains clarity and provides transparency on what products are returnable and which ones are not.
As a result, you can restrict your customers to certain criteria that lower the return rates. We have seen many brands offering ultra-detailed return policies.
Take Adidas’s return policy as an instance. It clearly mentions that “items designated as final sale are not eligible for returns or exchanges.”
On the other hand, Sugar’s return policy clearly announced that used products can’t be returned.
Key Takeaway: Clearly define your return policy, mentioning all the rules and terms one needs to follow to return an item.
Plus, you can also point out those products that are not eligible for returns to avoid unnecessary hectic processes.
3) AI will play a big role in return management
Be it for forward logistics or reverse logistics - AI proves to be a game changer. Hence, as time passes, eCommerce business owners are integrating AI into their operations more than before.
Last year, around 58% of online logistics companies have adopted AI to speed up the process and eliminate repetitive daunting tasks.
These include automatically placing returns, automated return approval, pick-up exception management through automation, and more. Brands like Myntra, Meesho, AJIO, and Amazon, have adopted AI to streamline to make the return process hassle-free.
Key Takeaway: If you’re not leveraging AI, you’re missing out on something great and letting your competitors win against you (maybe they’re already using it).
So, go for shipping software like ClickPost and automate most of your return-related tasks to stay ahead of the curve.
4) Extended return windows will redefine customer satisfaction
Do you ever feel skeptical when you see a brand offering a 7-day return period? That’s exactly what happens when you offer a limited return policy to your customers.
Considering 63% of customers want the return window to be at least 30 days, brands are inclining towards a lengthy return period. It fosters a sense of credibility among the shoppers and makes them feel confident about their purchases.
Allbirds, a fashion retail brand, offers a 30-day return period, and that too, with a “no questions asked” system.
In fact, Nike also knows this game really well. It even offers a 60-day trial period and accepts a return for any reason.
Key Takeaway: Offer a decent period for your customers to return the items. If you can’t offer a 60-day return period, a 20-30 day return policy works well.
You can also stretch the return period during holidays like Amazon. Amazon extends the time to 30 days during the holiday season.
5) Businesses will rely on top-notch return management platforms
Looking to add a return management solution to your arsenal? It’s the perfect time to do so. According to a recent index, the global market size of product returns management services is expected to grow by 5.1% in 2024.
This indicates that the return management system is one of the most effective investments retailers are making. They will continue to do so since an online retailer faces an average of $145 million in return for every $1 billion in sales.
Since returns are common challenges for eCommerce retailers, returns management software proves to be a savior in this case. And why not?
They offer a self-serve return portal, help the brand track every return initiated by customers in a single place, manage non-pick-up reports, and, most importantly, provide them with insights on the returns.
This makes return management solutions a must-have in the eCommerce tech stack.
Key Takeaway: Opt for an effective return management solution. However, if you feel lost in an ocean full of options, consider giving a try to ClickPost. It has partnered with over 350+ logistics companies.
This means it doesn’t matter what your favorite carriers are; you can seamlessly deal with them via ClickPost.
Oh! And did we tell you that it already offers all the exclusive return features (mentioned above) to make your return procedures easy? Plus, you can also boost your brand credibility by showing a customized return portal.
6) While prepaid return labels will still remain, label-less returns will take a rise
There was a time when pre-paid return labels were on top of every retailer’s list who wanted to make the return process more seamless for customers. Now, the time has evolved, and so have customer’s expectations. They want label-less returns!
Ever returned a product bought from Amazon? If yes, you know that they don’t even ask the customers to print the return label. Just give the item back with its original box to the delivery agent and that’s it.
The same label-less returns are being adopted by today’s eCommerce brands. It has become way more intensive since around 25% of customers find return labels to be one of the biggest pain points in the entire return procedure.
Thus, no doubt, prepaid shipping labels will still exist, but label-less returns will take place in most brands’ return policies.
Key Takeaway: Offer a mix of both prepaid and labelless returns to better meet customer needs and your operational efficiency.
7) Customers will crave for time-to-time refund updates
Just like in forward shipping, customers wait for their items; in reverse logistics, too, customers eagerly wait for the refund.
The sooner they receive the refund, the better. That’s exactly what Zipdo’s study found. It mentioned around 56% of customers expect a return within 1 week after the return processing.
But throughout the process, they remain in anxiety. Hence, they want frequent assurance of their refund initiation. Either way, they lose trust in the brand, which leads to a lower customer retention rate.
Key Takeaway: Ensure to keep your customers in the loop throughout the return process by sending on-time notifications.
Typically, the return management software already comes up with an in-built feature that sends time-to-time return & refund updates to the customers. Thus, you don’t need to invest in any other solutions for updating shoppers.
8) Shoppers favor self-serve return portals and easy returns
Put yourself in the customers’ shoes for a moment. Suppose you want to return an item but find out that the process is way too tricky.
You have to email the staff, wait for a long period for approval, print return labels, and then go through a hectic process to get it done.
Doesn’t it feel daunting? Your customers feel the same. Since several brands, including Zalando, Sugar, and Amazon offer hassle-less returns, shoppers want the return process to be as easy as possible.
One of Invesp’s studies found that 92% of customers would more likely buy from those brands that make the return process painless for them.
On top of that, a self-serve return will also stay on top of the customer’s list as it helps them request returns with just a single click.
Key Takeaway: Add a self-serve customized return portal and apply an auto-approve process to your system. If possible, opt for the “no-question asked” return policy.
9) Return policy placed on the product and checkout pages will maintain transparency
Trend 1 of our list already proved that a detailed return policy can make or break the whole game. But what if they need to go through countless pages of your site to find this return policy? It’ll drain their excitement.
If you consider that 60% of the store visitors check the return policy before they purchase anything, it’s mandatory to make the policy visible to them. Fortunately, brands are adopting this approach.
They are now linking the return policy on the product and checkout pages. Not only does it improve brand loyalty, but it also helps win customers’ impulse buy-ins.
Take a look at Allbirds’ product page. There, it has added the policy link with details so customers can shop with confidence.
Likewise, Patagonia added the return policy to the checkout page to win customers’ buy-ins faster.
Key Takeaway: Like the brands mentioned above, you can add return policies to the product and checkout pages. If possible, also add it to the relevant places of your stores, such as the FAQ page, website banner, and website chat.
10) Retailers will adopt diverse return methods
The usage of diverse return methods will be trending this year and beyond.
Since improved customer experience is the brand’s main focus and the easy return process is the customers’ first priority, we’ll see retailers opting for several return methods to meet this growing demand.
These include but are not limited to in-store returns, drop-off locations, and parcel locker service.
Lenskart is a burning example. If you visit its return policy page, you’ll find options like “visit the nearest store,” “schedule a pick-up,” and “ship product to Lenskart.”
Key Takeaway: Try to implement multiple return methods to your policy to stay on the safer side and improve shoppers’ experience.
11) Businesses are inclining towards eco-friendly reverse logistics
With the rise of the circular economy and green logistics, eCommerce brands’ focus is shifting to eco-friendly return procedures. The study stated that the global green logistics market is going to touch $1481.5 billion in 2028.
And why not? The Business of Sustainability study reported that around 78% of customers want to shop from brands that support the circular economy.
That’s why they are exploring different approaches like remanufacturing, selling at discounted rates, and repairing.
H&M is a perfect example of it. It encourages its customers to return gently used items in exchange for a small discount on their next purchase.
In fact, to endorse this trend, well-known 3PL providers like DHL, FedEx, and Ceva have integrated carbon-neutral operations into their service packages.
Key Takeaway: Adopt different approaches to green reverse logistics to meet shoppers’ needs.
Stay a step ahead with these eCommerce return procedures and policy trends
When you get a sneak peek of what’s going to happen this year and beyond, it helps you stay updated in this ever-changing world, and you can serve your customers in a better way. This further contributes to your business growth.
So, count on these strategies, lay a strong foundation, and set your business up for success.