How to tackle holiday ecommerce returns: Tips from the experts at UPS

The pandemic has dramatically accelerated the growth of ecommerce retail, with many brick and mortar retailers moving operations online to respond to changing consumer behavior. Shoppers remain as demanding as ever, and that’s particularly true when it comes to returns. 

We sat down with Marla Miller, a digital Channels Manager at UPS, to discuss returns in a post-pandemic world. Marla shared some powerful stats about consumer trends and practical tips to streamline your ecommerce returns operations. 

What’s different about the 2021 holiday shopping season?

When the pandemic swept the country in 2020 and shoppers turned online en masse, many providers were not prepared. For instance, 7.2 million more packages were shipped each day during the 2020 Peak season, defined as the time period between Thanksgiving and the Winter holidays, than all mail carriers combined had the capacity to handle. 

With another year behind us, consumers, retailers, and shipping carriers have adjusted for the holiday shopping season. 

Here are some notable trends from the 2021 Peak Season:

• Total U.S. retail sales are predicted to rise by 3% compared to 2020
• Ecommerce sales are forecasted to rise by 11% year-over-year and will account for roughly 19% of total holiday retail sales
• Brick and mortar sales, by contrast, are forecasted to rise 1%
• Cyber Weekend sales were down relative to 2020, with consumers spending 85% of their Hhliday shopping budget by Black Friday

This last point may seem surprising at first glance. But you’ve likely heard the news about supply chain log jams. Many consumers shopped early this year to mitigate delays while retailers offered discounts early to ensure plenty of time for inventory to ship. 

So, what does this mean for ecommerce merchants? 

With shopping starting earlier this year, there’s more time for pre-holiday returns to find the perfect gift. Moreover, consumers are actually less forgiving of delays after more than a year of high-volume online shopping. As a result, retailers and shippers both must plan ahead for increased returns this holiday season.  

What consumers are saying about online shopping and returns

It’s no surprise that consumers care about fast, free, and easy shipping. But consumers care almost as much about their return experience. Almost 75% of shoppers will choose a retailer for fast return shipping and 50% want a straightforward and easy return policy. 

What’s more, a customer’s return experience can play a huge role in retention and repurchase behavior. Data shows that 76% of first-time customers who had an easy return say they would shop again while 33% of repeat customers who had a difficult return say they would not shop with that retailer again. 

More than half of all consumers say they review a merchant’s return policy before making an online purchase, according to a 2020 UPS Pulse of Online Shoppers. 

‍How to create a straight-forward return policy for your ecommerce business

So how do you set yourself up for success to meet customers’ high expectations when it comes to returns? 

Here are three steps to help you streamline returns:

1. Extend your return window. Many retailers cannot afford to offer free returns, so extending the timeframe for returns is a great alternative, especially for holiday shoppers who need more time to return gifts. Make sure to broadcast the extension on your shopping cart page and through all customer support channels. 
2. Automate your returns process. Set up ways customers can start a return directly online to reduce the need for upfront customer service involvement and to make it easier for consumers to manage their return needs. 
3. Enable easy returns with technology. Let your customers generate a label directly on your website or through your mail carrier partner. Check out more on tools below! 

Merchants should keep in mind that returns take 4x more time to handle than an outbound order. Many companies have limited staff and resources to handle large return volumes, particularly during the holidays. Make sure you plan ahead with extra hands on deck. 

Saltbox Members can lean on our trained dedicated operations team to help with reverse inventory management for returns. Our eForce experts can receive returned product, sort through items to check for quality, and help restock them back into your inventory system. All you have to do is share your specific needs and preferences with the eForce team, and they can take it from there – so you can focus on generating sales, providing excellent customer service, or dreaming up your next product.  

How to leverage carrier partners to optimize your returns process

Take advantage of returns features offered by your mail carrier partners. For instance, UPS’s returns portfolio includes a number of low-lift solutions that won’t leave your IT department (which might happen to be you!) overburdened with messy integrations. 

Here’s a summary of the services you might want to explore to optimize your returns. All the major mail carriers offer free consultations and returns support, so explore options that are right for your business. 

In addition to returns processing, you’ll often find that mail carriers have discounts with affiliates in other areas like digital marketing, software integration, packaging solutions and more. Ask your preferred mail carrier provider about their affiliate partnerships. 

About Saltbox

Saltbox offers a cozy and practical spot for small to medium-sized ecommerce businesses looking for a mix of warehouse and co-working space. Think of our spaces as a blend of a functional warehouse and a trendy co-working area, complete with all the essentials like conference rooms, kitchens, and comfy lounges—perfect for both storing goods and getting work done. 

We take the hassle out of logistics with accessible loading docks and our helpful staff who can manage your shipments and inventory for you. Plus, our flexible logistics services are designed to adapt to your business needs, whether you need help by the hour or prefer a dedicated team to handle your orders. Saltbox is here to make your business operations smoother and help you focus on growing your enterprise. 

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