Returns Increase by 83 percent during Peak Season: Reversso
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Returns Increase by 83 percent during Peak Season: Reversso

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Antonio Gozain By Antonio Gozain | Senior Journalist and Industry Analyst - Fri, 01/06/2023 - 09:06

Purchase returns increase by 83 percent in peak seasons such as Buen Fin, Hot Sale and Black Friday and return to normal four weeks later, according to Reversso’s 2022 annual report on exchanges and refunds.

The study, which analyzed hundreds of thousands of requests for returns and refunds from over 300 e-commerce retailers in six Latin American countries, revealed that 81 percent of the requests were made due to satisfaction reasons. Regarding the refunding process, 92 percent of clients requested the money through the original payment method and only 8 percent through gift cards or store credits.

The fashion industry is the main top return category, given the product attributes such as size and color, which make successful purchases even more challenging. Size is the main challenge within fashion, with 28 percent of return requests due to inaccuracy when choosing size.

In Mexico, 23 percent of total returns are concentrated in Mexico City, followed by the State of Mexico with 14 percent, Jalisco with 8 percent and Nuevo Leon with 7 percent. In addition, 80 percent of clients prefer the option of having the package picked up at their home, while 20 percent prefer to leave it themselves at a branch.

Logistics play an essential role for e-commerce companies to succeed. While same-day and next-day deliveries, in addition to all last-mile operations, already represent a challenge for logistics operators and e-commerce companies, reverse logistics adds difficulties for retailers. Having the ability to return an item and get a refund is important for customers; a simple return process, accessible from any channel and device, is critical to maintain customer satisfaction.

“Returns were previously considered an optional part of the logistics process but brands are turning toward more customer-centric services,” said Benjamín Santa María, Co-founder and CEO, Reversso, to MBN. The company makes the entire return process more seamless for customers through a self-managed, automatic process, leading to a better relationship with the brand, he added.

Clear, Simple Return Policies

Return policies are important and companies should keep it simple when writing them, says Santa María: “If a return policy is similar to a contract, it can intimidate customers. Policies have to be simple and communicate information clearly, while simultaneously showing customers they are trusted. If the policy includes protections for every possible unlikely scenario, customers will likely run away from the website.”

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