UK fashion retailers are struggling with product return rates approaching 50% of sales. Does winning business and staying competitive in the online shopping space mean that we need to offer consumers free return shipping on every order?
If the answer is yes, then we are potentially entering a dangerous area where costs can blow out unexpectedly, eroding precious margins that were usually expected from online sales. After all, if you take away the physical store cost (rent, signage, staff, utilities) and simply attract consumers to your online store, your margins should be higher in an online environment – right? Not necessarily…add in logistics costs and free shipping to the consumer PLUS the cost of the consumer returning unwanted goods and you have a potential cost which you didn’t expect, and often can’t control.
Visit www.retailexpress.com.au or call 1300 732 618
Aaron Blackman is the CEO of Retail Express. Follow Aaron on Google+
Topics Covered: All
Author of Post: Aaron Blackman | Date of Post: 2014-08-13