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With the holiday season out of the way, next to come is a wave of returns that will stretch into the new year. The value of merchandise being fraudulently returned to retailers hit an all-time-high in 2024 at over $100 billion , up four-fold compared to just four years ago, according to industry sources.
Welcome to the world of retail returns, an expensive, cumbersome yet essential part of the industry. The number of returns is growing and managing them is critically important to maintaining margins and customer satisfaction. of all purchased goods were returned to retailers. of all purchased goods were returned to retailers.
The pressures on retailers to seamlessly fulfill orders across physical stores, online platforms and mobile apps continue to intensify. Reduce Return Volumes Accuracy is essential in order fulfillment, and errors can quickly erode customer trust. Orgill , the worlds largest independently owned hardlines distributor, achieves 99.6%
With the holiday season just concluded, the challenge of managing merchandise returns is a reality for many retailers. According to the latest data from the National Retail Federation (NRF), merchandise returns are projected to reach an astounding $890 billion in 2024, accounting for approximately 16.9%
Poshmark has partnered with Loop Returns for a new program that will allow shoppers to sell unwanted items that they cant return to the original merchant, extending the life of these products and cutting return handling costs for retailers. One click will produce a complete, pre-filled listing on Poshmark with item details.
As consumer expectations continue to evolve, fulfilment has emerged as a competitive differentiator in the retail industry. By embracing smarter fulfilment strategies, these retailers differentiate themselves, build stronger customer relationships, and establish a sustainable competitive advantage.
FedEx has introduced FedEx Easy Returns , a box- and label-free returns solution supported by approximately 3,000 brick-and-mortar dropoff locations that include FedEx Office and Kohls stores. In December 2024 , the NRF forecast that total returns for the year would reach $890 billion , up 19.8%
According to PwC, businesses that reduce friction for consumers and empower all employees to make things right whether through returns, price adjustments or other policies bring higher customer satisfaction and more forgiveness. Delivering a smooth and frictionless post-purchase experience should be a top priority for every retailer.
During the pandemic, ecommerce returns majorly impacted retailers profit margins. As customers return to in-store shopping, retailers are continuing to face an increase in returns from online and in-store sales. This holiday season, consumers who frequently make returns may be in for a surprise.
With returns siphoning off a staggering $743 billion from retailers bottom lines in 2023, its clear that the industrys approach needs an overhaul. But instead of leaning on rigid policies that risk driving customers away, retailers can use this as an opportunity to rethink returns.
Whenever we need a more efficient fulfilment solution, ShipStation’s support team is ready with helpful suggestions,” says Jen from Subo. ShipStation has also revolutionised fulfilment for Aussie retailers like Lovisa and Frank Green, earning the coveted 2024 Shipping Platform Partner of the Year Award from Cin7.
As stores try to balance protecting profit margins while delivering a unified customer experience, the escalating cost of returns has reached a breaking point. returns reached a staggering $743 billion in 2023, representing over 14.5% As a result of this burgeoning problem, retailers have started to incorporate return fees.
The NYC-headquartered Fillogic will support the retailer through ecommerce and store-based fulfillment, reverse logistics and returns, forward-staging of inventory and final-mile delivery. The space will allow the retailer to stage inventory, satisfy merchandise pickup and delivery and fulfill store-based and ecommerce orders.
Shopify will acquire fulfillment solution provider Deliverr for $2.1 With the Deliverr acquisition and integration of its 6 River Systems ’ warehouse automation technology, the ecommerce platform plans to fortify its Shopify Fulfillment Network (SFN).
Results from Retail TouchPoints annual Omnichannel & Fulfillment Survey show that most respondents conduct business through an average of three different channels and for 35% of them, marketplaces are critical to building brand awareness and driving business growth.
Returns provide brands and retailers the opportunity to delight their customers. market saw over $400B in returns in 2020. If this dollar value were a proxy for revenues, the returns channel would be the second largest global retailer behind Walmart. That is a significant amount of capital tied up in the returns channel!
Smart warehousing and automation technologies offer a path forward, enabling local brands to streamline operations, reduce delays, and improve fulfilment speed. Ferags role in fashion retail innovation To remain competitive, Australian fashion brands need scalable fulfilment strategies that support both in-store and e-commerce operations.
Introduced in April 2022 , Buy with Prime allows brands to offer the benefits of Prime membership including fast free delivery, easy returns and 24/7 customer support to customers on their own DTC platforms. After the purchase is made, Amazon fulfills all Prime-eligible items in the order.
With the 2024 holiday season not too far away, it’s an opportune moment to evaluate your fulfillment operations and determine which technologies require an upgrade or replacement to secure your future success. That’s where a modern fulfillment management system (FMS) steps in to meet both internal and external needs.
Australia and New Zealands leading pureplay online fashion, lifestyle and sporting destination has had a year of evolution; with seemingly smooth transitions overhauling the businesss order warehouse management system (OWMS), building a new B2B platform business and tackling the intricate returns issue. So of that, whats actually bracketing?
billion in gross merchandise volume (total spend before fees, discounts and returns) up from $4.5 This, combined with Amazons dedicated focus on building a vast fulfilment network to underpin its delivery proposition, has allowed the brand to achieve the size and scale it has in the UK. billion in the prior year.
Simon Properties is partnering with Dropit to bring omnichannel inventory management and fulfillment capabilities to its facilities. Dropit layers AI technology into existing fulfillment systems to empower merchants to use real-time data that powers dynamic decision-making to balance inventory, optimize sourcing and streamline returns.
The Exchange has run order fulfillment through Manhattan Active Omni since 2019 and now has deployed Manhattan Active Maven to better support its human customer service agents.
Store-based fulfillment of customer orders got an enormous boost during the COVID pandemic, when both curbside pickup and delivery offerings became survival tactics for so many retailers. Want to find out more about how retailers are meeting omnichannel and fulfillment challenges?
In 2023, fraudulent returns accounted for a staggering 13.7% of all returns , resulting in $101 billion in losses. One common tactic is receipt fraud, where fraudsters will attempt to return stolen items or items purchased at a discounted price, with an altered or fake receipt. Refund fraud is a significant issue for U.S.
Ecommerce returns are the new reality for retailers, but their rapid rise doesn’t have to crush conversion rates and profitability. Consider how returns are central to the customer experience and can create a competitive advantage, differentiate a brand and increase customer lifetime value. Turn Returns Upside Down.
Target is rolling out its Drive Up Returns service nationwide following a successful pilot test. Drive Up Returns lets shoppers return any item, including those purchased online, directly to a Target associate without leaving their car. That’s why we’re launching Drive Up Returns.
A huge part of retaining customers is having a return policy that is clear and concise, giving customers the security they expect and want. In trying to accommodate all customer demands while simultaneously fighting for market share in a rapidly expanding and competitive fashion industry, retailers are relaxing their return policies.
Burgeoning demands for exemplary customer service and lightning-fast order fulfillment leave unprepared retailers scrambling for their share of the market. Data-heavy, complex operations hamper efforts to deliver positive customer service interactions, address errors and fulfill orders accurately.
Ask any retailer or consumer and they’ll agree on this point: ecommerce returns are a problem — albeit for diametrically opposed reasons. Meanwhile, more than three in four (78%) consumers say they’ve had an inconvenient online returns experience recently, per Pitney Bowes latest BOXpoll survey. consumers love the USPS.
First Step: Expanding the Online Offering Part of the reason for that low number was the fact that the companys website only featured a subset of products and minimal fulfillment capabilities. One of the key strategic goals was increasing online sales, which had previously accounted for approximately 6% of all sales.
The problems with getting products to people quickly and cheaply are well-known: consumers want fast fulfillment, which is costly to provide, but they don’t want to pay high (or really any) shipping fees. Even Amazon , the trendsetter in fast fulfillment, isn’t immune to higher labor costs.
In Amazon ’s latest moves to bolster its logistics and fulfillment network, the company has partnered with Staples to accept customer returns and is looking for 2,500 local business to join its new Hub Delivery network. Staples Joins Amazon’s Network of Returns Partners By July 31, 2023, all Staples U.S. Retail in a statement.
Ikea has been adopting these new smaller store formats as it takes a larger role in last mile fulfillment, which a top Ikea exec said in July 2024 is critical to maintaining lower prices on its products. The retailer opened eight of these stores during its FY 2024, which ended Aug. Other major developments from Ikeas FY 2024, which ended Aug.
In 2021, returns cost retailers a whopping $761 billion , or almost 17% of total U.S. This year the powerful combination of the special sale dates in Q4 (like Target, Amazon and Walmart holding October Black Friday events) and an increase in ecommerce holiday shopping means that this upward trend for returns will continue.
Kohl’s has added brands including Carhartt, Hanes and Levi’s to its newly christened in-store returns service, The Return Drop @ Kohl’s. The retailer has partnered with Inmar Post-Purchase Solutions and Narvar to provide shoppers with package-free, label-free returns in its 1,100+ stores nationwide.
But Kickstarter fulfillment is where many projects run into trouble. If you approach your campaign with a well-planned fulfillment strategy, it will be much easier to keep backers happy, ward off unexpected costs, and set the stage for long-term success. People dont pay much attention to fulfillment when it goes well.
Associates have to be omnichannel fulfillment specialists. the fulfillment scenarios really are endless. And process returns of stuff people don’t want! They need to keep track of what’s new, what’s unique to their location and what just went on sale. And don’t forget that they need to sell stuff!
Returns are, like it or not, as much a part of retail operations as the sales themselves. The exact return rate varies among different verticals and individual retailers, but online sales consistently generate higher levels of returns compared to brick-and-mortar. That means you’re out of business.
It’s meant to be quite simple for a shopper, but as an ecommerce retailer, you know it’s not that easy — especially if the customer changes their mind and wants to return said magical shipment back to your shop. What happens next, by way of return experience, most certainly impacts whether they will purchase from your business again.
For some, however, this trade-off comes at the price of navigating frustrating and, at times, confusing return policies. With return policies differing from brand to brand, it can be exhausting for customers to keep track and often leads to more hassle than reward.
Over the past 12 months, we have been building up our selection of products, investing in our operations network, and opening new fulfilment centres, said Anthony Perizzolo, general manager of delivery and supply chain for Amazon Australia.
UPS has agreed to acquire reverse-logistics solution Happy Returns from PayPal for an undisclosed amount. Happy Returns offers box-free, label-free returns for more than 800 merchant partners at over 10,000 locations across the U.S. of retail purchases (both online and in-store) were returned last year.
From mountains of packaging to returned products that may contain hazardous materials, management of returned, damaged or expired products becomes increasingly complex and voluminous during the holidays and post-holiday season. The holiday season brings a surge in shopping, both in-store and online.
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