As the dust finally settles on the last holiday returns, insights from AfterShip’s recent eCommerce Returns Report reveal that preparations for Black Friday and Cyber Monday may need to begin sooner than retailers think.
AfterShip’s eCommerce Returns Report reveals that sales reached USD$38 billion over Cyber Week 2023—up 7.8% from 2022. This was driven primarily by record spending on Thanksgiving and Black Friday. But as sales increase, so do returns. Compared to 2022, returns were up 15% for 2023’s peak season, outpacing sales. This pattern extended beyond Cyber Week, with December consistently seeing the highest monthly volume of returns.
Returns Growth Rate by Year (2021-2023)
|
Year |
RMA |
RMA |
RMA |
|
2023 |
32% |
22% |
15% |
|
2022 |
39% |
5% |
17% |
|
2021 |
26% |
n/a |
n/a* |
Source: eCommerce Returns Report, Aftership, 2024
“Retailers are seeing a greater need for streamlined and robust returns solutions. Those who are prepared earlier are more well-equipped to handle the growing volume of both online sales and returns,” said Andrew Chan, Chief Marketing Officer at AfterShip. “Our report demonstrates that although peak return times remain consistent, it’s essential to optimize the process year-round to know what works best for your customers and remain competitive.”
With global online sales projected to exceed USD$5.307 trillion by 20281, the eCommerce market presents new opportunities for businesses. The report showed that merchants who reduced friction in their returns processes were not only able to retain revenue, but also improve their customer experience by providing greater transparency and quicker resolutions for peak-season shoppers.
Additional key findings from AfterShip’s eCommerce Returns Report:
- Impact of automation: Merchants who leveraged automation for returns approval experienced a remarkable 100% reduction in the time taken to process returns, leading to a swift and efficient process for customers.
- Fashion and Accessories set the trend: 75% of returns in 2023 were for the fashion and accessories industry.
- Freedom of choice: Retailers who enabled three or more return resolution options had a revenue retention rate of more than 30%.
For more such updates, follow us on Google News Martech News