How Retailers Can Make the Returns Process More Sustainable

Consumer spending reached an all-time during the last holiday season, but 65% of consumers noted they subsequently returned or exchanged a holiday purchase.

According to a recent survey carried out by Akeneo, 62% of consumers said having more reliable information would reduce the likelihood of making a return, while 59% made a return specifically because a product description was misleading or inaccurate.

What's more, 44% of consumers said knowing a brand’s returns process is ethical and sustainable impacts their decision to shop with them. 

Here, Romain Fouache, CEO at Akeneo, discusses the survey results and their implications for retailers hoping to tackle one of the industry’s fastest growing issues.

How does accurate product information help reduce returns?

Consumers make returns when they don’t have the right information to inform their initial purchase. In fact, according to our latest research, 59% of consumers have made a return specifically because the online product description was misleading or inaccurate.

All consumers have experienced this and are aware of how frustrating and disappointing it can be. It also negatively impacts brands because consumer trust decreases, and there’s a potential that they stop shopping there altogether. Reviews with customer photos, accurate sizing charts, and product descriptors help consumers make the right purchase, the first time around.

It’s simple – when a customer has the latest, most reliable product information, they make confident purchases, knowing exactly what they’re getting.

What are the biggest reasons consumers return products?

As I said before, a lot of returns come down to the product information, or lack thereof. But to dive in a little deeper, our data found that clothing items (60%) were the most commonly returned products. When asked why they return those items, sizing issues were the number one reason (58%) followed by 35% reporting conflicting or lack of customer reviews.

In modern times, brands have worked to build a customer experience that centres on the ease of returns and exchanges, and, as a result, brands have let the initial product experience fall to the wayside. It’s now commonplace to order multiple sizes of the same item, just to find the right fit. This may have flown ten years ago, but now that we understand the environmental impact (product shipping and returns account for 37% of total greenhouse gas emissions, according to Statista) and financial impact (a business will lose an average of $10-20 per returned product, according to Shopify) of shipping and returns, it’s time to shape up the product experience and get it right the first time.

By providing more accurate details on the sizing of products, encouraging real customers to review and share on how the product fits, and investing in enhanced and in-depth product descriptions, businesses across all industries but in particular fashion and apparel can help mitigate return rates. 

How can brands make their returns process more ethical and sustainable?

Alongside the rise of eCommerce, returns have rapidly ballooned into a major issue for both retailers and the environment. From increased transportation emissions to excess packaging waste and mountains of discarded products, returns create a vicious cycle of ecological harm. As consumers have grown increasingly comfortable making purchases from apps, mobile phones and online, the number of mistaken or unwanted products has quickly grown out of hand. The time is now to get these returns under control. 

While there are numerous strategies brands can take to make returns more sustainable, such as offering in-store returns or minimal packaging, the most sustainable way to approach returns is to reduce them altogether. Returns may be one inevitability retailers will always have to grapple with, but the current state of returns has blown far past necessity. While consumers want an easy and seamless experience above all, sustainability is a growing concern for them too. 

In our research, 44% of consumers said that knowing a returns process is ethical and sustainable impacts their decision to shop with a brand. By focusing on better product experiences, brands can tackle two birds with one stone: reducing return rates by equipping customers with accurate, enriched product information and minimising their environmental impact, meeting the expectations of today’s eco-conscious shoppers.

What do Akeneo's survey results reveal about shifting consumer expectations?

The survey results have shown us just how important the product experience has become in a world where shopping can happen anywhere at any moment. Whether customers are browsing the shelves of a brick-and-mortar store, scrolling through TikTok, or viewing the vast marketplaces of Amazon and Walmart, the product experience must remain consistent, complete and accurate to instill brand trust and loyalty. 

It also reinforced the younger generation’s passion for sustainability. Gen Z and millennials are far more likely to identify as conscientious consumers, voting with their dollar. In our survey, half of Gen Z said they are aware of the environmental impact of returns and that it does have an impact on their purchasing decisions. 

How can retailers balance sustainability with customer satisfaction?

Luckily for retailers, it’s becoming more and more common that sustainability and customer satisfaction go hand in hand. As I highlighted above, sustainability is a growing customer expectation and, by perfecting the product experience, retailers can ensure customer satisfaction, reduce returns and minimise their environmental impact.

Brands that invest in a strong product experience will find they’re positively impacting their bottom line, all while fostering customer loyalty through trust and transparency.