What online retailers can expect after Christmas

For online retailers, returns management is a year-round issue, with the return rate hovering around the industry average without any major ups and downs. The reasons for a return are manifold and, especially in the textile sector, range from “don’t like” to “doesn’t fit” to “selection order”, for technology or furniture mostly from “does not meet expectations” to “delivery too late or even “item damaged”. Just in time for Christmas, however, another component comes into play: the customer does not order the goods for himself, but as a gift for a third person.

What I have always (not) wished for….

It is not uncommon for the gift-giver, with the best of intentions, to be quite wrong! The number of returns skyrockets… But it’s not only at Christmas that people order to give presents. For us, this is an occasion to put together a few generally valid recommendations…

In order not to have to use all the reindeer jumpers, mobile phones for senior citizens and guidebooks, the smart buyer should already make sure when ordering and inform himself about the conditions of the individual online shops. In addition to the price, the return conditions in particular, but also the availability and stated delivery period decide whether the order is placed or not. Therefore, it makes sense for online traders to deal with the following points:

1. State the shipment or delivery promise realistically

The occasion comes as a surprise! Online shops have adapted to the ordering habits of their clientele; at Christmas, the vast majority (42%) promise punctual delivery for orders placed no later than three days before Christmas*. In contrast, consumers generally like things a little more relaxed: 40% of all customers do without this special thrill and order at the latest 2 weeks before the gift-giving. This behaviour can also be transferred to all other gift-giving occasions such as birthdays, anniversaries, weddings, Easter (…). Either way – keep your customers informed! Because a few days before the deadline, many people get nervous again: Is my parcel coming? In case of doubt, they will order in parallel from another online shop or make purchases in the stationary trade. Your product, although on time, may be returned unseen because of this double purchase! Therefore, inform your customers about the receipt of their order, the status of their order and the shipping confirmation with the delivery date.

2. Return shipping costs - a consideration

If you charge return shipping costs, regularly reconsider the cost-benefit ratio: Perhaps it is worthwhile for you to offer free return shipping? Increases the number of returns for sure, but on the other hand lowers the inhibition threshold to order – since the reaction of the recipient is not exactly predictable, return shipping costs are not infrequently a reason to migrate to other online shops or to the retail shop.

3rd principle Boomerang: catch it, throw it back

If the item is returned after all, it pays to process it quickly. After the quality check, the item should be returned to the available stock as soon as possible, because only then will a new buyer be found. Especially now, in the post-Christmas period, numerous vouchers are being redeemed. A serious trend: while it was only 12% in 2012, 22% of German citizens gave away vouchers for online shops last year. And that’s probably the end of the moose jumper!

*Source: German Retail Association (HDE) and the E-Commerce Center Cologne (ECC).