apparel

Returns Will Become a Problem for Retailers as Stores Re-Open

Buyer's remorse hits different these days.
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Francis Scialabba

· less than 3 min read

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

As lockdowns ease and most Americans realize they don't need six pairs of tie-dye sweatpants, retailers are bracing for heaps of returns.

How I know this: In the best of times, returns are a persistent problem. Shoppers return around 40% of what they buy online, and clothing has one of the highest return rates. Retailers can incur costs of up to $10 for each returned item, per Forrester.

  • Not that shoppers love returns either: Printing return labels and paying shipping fees are frequent frustrations.
  • All that friction means 66% of consumers prefer in-store returns, per Optoro.

In these uncertain times...apparel brands have shown customers they’re in this together by extending online return windows on top of Black Friday-esque discounts. It’s a nice customer service touch, but it encourages shoppers to act on their silk pajama buyers’ remorse.

As stores reopen, Optoro expects IRL returns will spike. Before the pandemic, pushing in-store returns saved retailers on shipping expenses. Now, it’ll cost them.

  • Goodbye, in-store exchanges and impulse buys. Where shoppers used to see a chance to browse, they now see a health risk.
  • So long, fresh inventory. Items customers bring back today are weeks old in people years, 800 in merchandising years. Additional discounts may be necessary to move dated items off the floor.

Are there solutions? Tech companies like Narvar have stepped in to connect apparel brands to low-cost return networks hosted by larger retailers like Walgreens. Sign-ups for Narvar’s service have doubled since the pandemic started, Vogue Business reports. As for stale inventory, it could have a home on recommerce services—better resold on another site than destroyed.

My takeaway: Returns generate steep receipts, but they're essential to building customer loyalty right now. 89% of shoppers are less likely to stick with brands after a bad return experience, according to Optoro.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.