Product Returns-Burden or Opportunity? (3)
Overall, however, I presume the return rates are lower in Japan.
That’s good news for retailers.
Not necessarily, Tim. Some e-commerce companies are encouraging customers to return more. You see, a typical Japanese consumer, knowing that product returns are a burden on retailers, often hesitates to initiate the return-but they would vow to never patronize the same merchant again. And that would be bad news.
Interesting consumer psyche and cultural difference. Consumer product returns aren’t all bad. They can actually be a positive opportunity for companies, a chance to showcase excellent customer service.
Traditionally, returns were viewed in a wholly negative light. However, customer expectations have shifted that perspective.
So, like Kyohei said, the challenge for companies is finding the right balance: having flexible return policies to retain customers without incurring excessive costs. Smart retailers are trying to find a way to leverage the return experience to boost sales instead of just being a drain on company resources.
Now, let’s face the reality. The pandemic accelerated the growth of e-commerce, and today there are well over two billion people worldwide who shop online. More online shoppers means more returns.
It is of great use to the sailor to know the length of his line, though he cannot with it fathom all the depths of the ocean.
