Returns have reached the tipping point. After years of offering free returns, retailers are starting to realise they can’t ignore the monumental cost associated with reverse logistics. With the cost of doing business and inflation skyrocketing alongside some of the highest return rates ever, paid returns are unfortunately becoming a necessity for many retailers.
Zara, New Look, Next, and Uniqlo are just some of the retailers that have recently made the move to paid returns. A brave first step. The fees they are charging are a mere fraction of the price it actually costs to get returned goods back through the supply chain and on the shelves, but the jury is still out on how customers will react. Although all early signs point to shoppers being understanding of the current climate.
With retailers questioning their stance on paid returns daily, it’s now eCommerce's hottest topic. Against this backdrop, Retail Week’s Chloe Mills reached out to ZigZag Co-Founder & CEO Al Gerrie to get his expertise and insight into the debate.
Al stated, "VIP customers and subscription customers could get free returns, and certain customers that spend over a certain threshold may still qualify for free returns, but otherwise returns could and probably should be paid for to help start to turn customers more profitable."
In the article, Al also talks about the top reasons shoppers are returning goods, how retailers have begun to offer store credit as a means of keeping cash in the business, and how to build trust with customers with fast refunds.
It’s a great piece on a paid returns debate that is far from over.
ZigZag was delighted to be interviewed by Retail Week, one of the industry’s most trusted sources for the latest retail news and insights, and you can find the rest of Al’s commentary and some supporting shared experiences from some great retailers in the article below.