🛒 The problem with eCommerce

According to Vogue Business, eCommerce return rates have spiked 95% in the past five years. On average, this means that retailers lose a third of their revenue to returns, says RSR Research retail analyst Paula Rosenblum. This loss is much more significant in the online world, where trying on the products is impossible. Social pressure in-store als... See more

Provide education on the environmental impact of shipping and returns (ideally coupled with sustainable packaging); then allow customer to make their own choice

Despite advances in the online shopping experience, most online shopping remains need-oriented (Amazon represents 38% of total eCommerce sales in the U.S., and leans heavily toward transactions that start in the search bar).

If customer accepts a slower shipping speed, give them a small rebate to donate to a charity of their choice

Issue a rebate back to the customer if they do not return anything after 30 days (goal is to disincentivize ordering of multiple sizes/variations)

While social media has created opportunities for purchase inspiration similar to a beautifully-merchandised department store window, we’re still in the early days of Instagram Shops. Replicating discovery in the way that people organically find things in-store has so far proved elusive, resulting in fewer opportunities to grow transaction size.

Online shoppers tend to transact across a larger number of small transactions. Rather than going to the store once and stocking up, I’ll go online and buy laundry detergent, a pair of socks, and dog food in three transactions as the need arises (welcome to my glamorous life). This results in three separate shipments, and three corresponding orders ... See more

California e-tailer Revolve did $499 million in sales last year but spent $531 million on returns, after accounting for processing costs and lost sales. The number does not account for the retailer also covering the shipping costs of returns. Revolve declined to comment on whether it’s working to resolve this discrepancy.

I recently noticed when ordering on Amazon that I was offered the option to opt-in to a slower shipping speed in exchange for an Amazon credit. I’m curious whether other brands can adopt this policy. Slower shipping speeds can result in significant savings for brands. Amazon’s offer is especially elegant because the credit must be used on Amazon, e... See more