New data from returns and reverse logistics platform, Loop shows a continued pattern of increasing returns following Father’s Day this year, compared to last year.
Interestingly, returns decreased 6% in the two weeks after Father’s Day in 2023, but this year there was an 8.2% increase in returns in the two weeks after Father’s Day – compared to the two weeks before – marking a year-on-year increase of 14.2%.
This follows a nearly 5% spike in returns in the week after Mother’s Day compared to the same period last year.
The data indicates that it’s a crucial time for retailers to refine post-purchase strategies, especially in the lead-up to the holiday shopping season when returns may skyrocket.
Loop recommends a few ways retailers can review and optimise their returns strategy to better retain profit:
- Improve return policies: Ensure return policies are transparent, flexible, and customer-centric to foster trust and boost satisfaction.
- Simplify return processes: Implement technology to streamline returns, making them quick and easy, and encouraging customers to opt for exchanges over refunds.
- Prioritise customer communication: Keep customers well-informed with timely updates, order tracking, and clear instructions throughout the return process.
- Utilise data insights: Analyse return data to uncover patterns and preferences, enabling enhancements in product offerings and marketing strategies.