Considering consumer sentiments and the state of shipping and returns, online retailer REVOLVE has introduced incentives to encourage customers to opt for deferred shipping instead of the standard two-day air shipping. Customers who choose the longer shipping option are rewarded with loyalty points, encouraging enrollment in REVOLVE's loyalty program across its various eCommerce platforms.
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GLOThe concept of shipping and returns has transformed into a comprehensive experience. Shipping plays a role in influencing shoppers’ decisions to engage with a retailer, and returns have also become a pivotal factor.
In a recent interview to PYMNTS Loop’s CEO, Jonathan Poma, discussed the importance of returns and how retailers should approach them to manage costs. Poma emphasized that providing an exceptional returns and purchase experience is essential if retailers intend to charge for their services.
Returns have evolved into a fundamental part of transactions. Properly managed returns can incentivize customers to make repeat purchases, thereby fostering loyalty. Similar importance is now being placed on shipping, with many retailers moving away from the long-standing practice of offering free shipping, which originated during the early days of eCommerce.
To stay competitive, retailers are adopting strategies like offering free shipping. A study by PYMNTS and sticky.io titled “Subscription Commerce Readiness Report: The Loyalty Factor” revealed that 42% of respondents would consider ending their retail subscriptions if free shipping was discontinued. This percentage was higher than for any other reasons mentioned for canceling subscriptions.
Interestingly, more retailers are introducing fees for exchanges, refunds, and store credit. Around 57% of merchants have implemented some form of return fee, in response to the fact that a substantial number of returns are due to customer preference rather than product defects.
Notably, customers appear to understand the rationale behind these fees and are willing to pay them as long as they continue to receive a satisfactory returns and shopping experience. This suggests a mutual understanding between consumers and retailers, where a fair exchange is perceived.
Considering consumer sentiments and the state of shipping and returns, online retailer REVOLVE has introduced incentives to encourage customers to opt for deferred shipping instead of the standard two-day air shipping. Customers who choose the longer shipping option are rewarded with loyalty points, encouraging enrollment in REVOLVE’s loyalty program across its various eCommerce platforms.
In addition to promoting sign-ups, this approach can also reduce costs since faster shipping typically comes at a higher expense. Consumer preferences are evolving, with convenience still being a priority, but a growing segment valuing conscious consumption, thoughtful decisions, and sustainability. Retailers are adapting by offering different shipping choices to cater to diverse consumer needs.
