Direct-to-Consumer commerce is booming. Volumes are exploding and the number of returns grows too. But it is not just the volume of returns that causes a headache. Do you recognize the top 3 challenges for the returns process?
Local returns
Shipping to customers globally is quite easy. The problems start when returns occur. Because shipping returns back to your (global) fulfillment center take time and involves high freight costs. Your customer wants a fast refund and your CFO wants fewer costs. Local returns are a solution to this problem. You can leverage the power of local freight carriers to reduce shipping costs. Handling returns locally can trigger the refund much earlier. The solution to (global) returns is local.
Platforms
D2C brands discover the power of e-commerce platforms such as Amazon, Zalando, BOL.com, and eBay. But each of these platforms have specific requirements for the returns process. Platforms measure the merchant's performance for fast refunds and so the returns process needs to support this. Selling on platforms brings new challenges for returns. Consider returns when opening up a new sales channel on a platform.
UK
Selling to the UK has changed with Brexit. As a result, returns from UK customers have changed too. This change impacts customs clearance and tax declarations. The solution to the UK returns is local.
Let's talk if you recognize these challenges.