The apparel industry has been focused on making returns easier for consumers and lowering the cost of returns for themselves, but not enough attention is being placed on how to reduce bracketing and lower the number of returns that occur in the first place. I had the opportunity to chat about this during Manifest: The Future of Supply Chain & Logistics with Harshida Acharya from Fulfillment IQ
Partner @ Fulfillment IQ | Creator 🎙️ eCom Logistics Podcast | Digital Transformation & Innovation Leader | Top 40 Under 40 | Women in Supply Chain '23 | RETHINK Retail Top Retail Expert | Investor in Logistics Startups
73% of retailers ranked returns as a “moderate-to-severe issue for their business. The retail sector deals with the challenge of returns everyday. But what if I told you that leveraging data and AI could transform this hurdle into a strategic advantage? In a conversation with Peter Sheldon, SVP Strategy & Growth, Maergo at Manifest: The Future of Supply Chain & Logistics, we dove deep into how partnerships can leverage data not only to understand but also innovate around the returns process. Here's the breakdown: ➡ Leverage Data Sharing & AI: Utilizing data across partnerships can uncover inefficiencies and drive process improvements, showcasing the transformative power of AI in retail. ➡ Tackle Returns Head-On: By analyzing the data behind returns, retailers can pinpoint causes and strategize effectively to reduce their impact, turning a significant problem into an opportunity for innovation. ➡ Embrace Technological Innovations: Virtual fitting tools and 3D augmented reality are changing the game, enabling consumers to make more informed purchasing decisions and, in turn, reducing return rates. ➡ Predictive Analysis for Consumer Behavior: Understanding patterns such as 'bracketing' through data can lead to targeted strategies that mitigate returns and enhance customer satisfaction. ➡ Adopt a Risk-Based Approach: Imagine tailoring return policies in real-time based on predictive insights into consumer behavior. This strategy could lead to a more balanced and economically sustainable model. ➡ Foster Data-Driven Partnerships: The future of retail partnerships lies in shared data ecosystems, which can unlock innovative solutions and drive collective growth. ➡ Customize Return Policies: Data insights allow for a more nuanced approach to return policies, potentially introducing variable policies that reflect the true nature of consumer behavior. Thank you for an amazing conversation, Peter. Keen to dive deeper into the future of retail and data-driven strategies? Stay tuned for the latest eCom Logistics Podcast with Peter. P.S. What other strategies can be employed to tackle the returns challenge? Let me know your thoughts in the comments. #returns #data #partnerships #ai #supplychain #ecomlogisticspodcast
Great comments & example, Peter. As you know, we're firm believers in real-time variable shipping policies for customers, based on numerous factors, to improve both profitability AND CX. Why not variability in Returns policy as well. When you enough of the right data, the ability to make smarter decisions becomes a lot easier.
Founder @ Ecom💡Ideas
1yI remember touring Zappos HQ and they said they encourage bracketing, was big part of their value prop (free 365 day returns and all), but that was pre Amazon acquisition (2008)