Loop CEO Says Returns Experience Now Drives Brand Loyalty
GLOIn the world of e-commerce, customers now expect a straightforward and free returns process as a standard practice. However, rising costs for shipping and handling have put pressure on retailers, leading some to start charging for returns that were once free. This change has not gone unnoticed by consumers.
In a recent interview, Loop Return’s CEO, Jonathan Poma, discussed the current state of returns and the considerations for retailers to regain their costs. He emphasized that if retailers choose to charge for returns, they must ensure an exceptional returns experience for customers. Loop Returns has been chosen by Affirm, a buy now, pay later company, as its primary solution for handling returns, showing the growing importance of returns in the industry.
The desire for free shipping has been driving returns in the e-commerce industry since Amazon’s introduction of its Prime membership in 2005. However, there has been a shift in recent years, with more merchants opting to charge for exchanges, refunds, and store credit. Surprisingly, this change in pricing hasn’t significantly impacted shopper behavior, as customers are willing to pay for returns as long as they receive an excellent overall experience.
The practice of “bracketing,” where customers buy multiple variants of the same item intending to return most of them, has declined. Consumers are now more cautious about their purchases, preferring to buy items they are confident they will keep.
Despite this shift, returns still play a significant role in the industry and can even build customer loyalty. A well-designed and hassle-free returns process can signal confidence in the brand’s products, demonstrate dedication to customers’ needs, and reduce uncertainties for online shoppers.
Looking ahead, Poma envisions a future where returns policies will be personalized, tailored to individual customers based on data from warehouses and logistics providers. This personalized approach aligns with the broader trend of personalization in e-commerce. By streamlining the returns process through data integration, retailers can provide a more efficient and personalized experience for their customers.
