E-commerce trends: reducing returns while maintaining revenue

The e-commerce market is evolving rapidly. Online sales surged during the pandemic, and that growth continues today. Younger generations of consumers shop online with ease, but webshops face the persistent challenge of high return rates.

Returns spike after Black Friday

Return rates can increase by as much as 140% following Black Friday. We spoke with Bas Jansen of EsQualo and Olivier Muller of Returnista about strategies to reduce returns and retain revenue.

Impulse buying impacts profitability

High energy costs, reduced consumer spending power, and rising taxes are pressuring webshops to find solutions for these challenges. At the same time, many stores are dealing with excess inventory.

Jansen explains, “During the pandemic, demand was so high we couldn’t keep up. Most businesses bought stock to match. Now, with demand stagnating, we’re left with surpluses. I expect many companies will use Black Friday to clear those inventories.”

Online shopping made easier than ever

The pandemic accelerated online shopping, and webshops have implemented technology to make the buying process as seamless as possible.

Jansen notes, “It’s easier than ever to shop online. We’re seeing orders come in at 2 a.m. now.”

Muller adds that innovations like same- or next-day delivery and buy-now-pay-later services encourage impulse purchases. “By separating the moment of purchase from the moment of payment, you psychologically stimulate impulsive buying.”

Black Friday: does it really pay off?

Black Friday is a prime opportunity for webshops to offload excess inventory. Discounts drive impulse purchases, but Muller offers a word of caution:

“It’s great to clear out stock, but you have to ask if it really pays off in the end. We see November sales decline overall, and after Black Friday, return rates skyrocket—sometimes by 140%. Sustainable solutions are the way forward.”

Less returns, more revenue, happier customers

To make Black Friday a success, Jansen and Muller suggest three key strategies:

1. Use data to reduce returns

Muller highlights the importance of data: “Understanding why products are returned allows you to refine your sales process.”

EsQualo uses these insights to invest in product videos, photos, and descriptions. Thanks to Returnista, they’ve reduced their return rate from 47% to 32%.

2. Offer exchanges

Jansen shares, “This works well for us. If a customer indicates that the size isn’t right, we can immediately offer a different size based on our live inventory.” According to Muller, this approach can help webshops retain up to 35% of revenue that would otherwise be lost.

3. Focus on customer satisfaction

Every customer has different needs. Some prefer to drop off returns, while others want at-home pickups. Muller emphasizes the importance of a smooth, flexible process to boost customer satisfaction.

Jansen adds, “Clear communication is key. Keep customers informed about where their package is and when they’ll get their refund. It keeps them connected to your brand.”

The elephant in the room: sustainability

Sustainability is an unavoidable topic when discussing Black Friday. Many brands have opted out of the event due to its environmental impact.

EsQualo acknowledges the importance of sustainability but also recognizes the need for revenue. Jansen says, “We focus on making our production processes and materials more sustainable, but the consumer’s desire for new products remains.”

Muller explains that Returnista’s mission is to achieve “the road to zero returns.” “We aim to help webshops gain insights into their return flows and make exchanges easier. It’s up to all of us to raise awareness and work toward this goal.”

Curious to hear more from this discussion?
Watch the full webinar here.

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