Returns Management Statistics, Trends 2023

Returns Management Statistics

1. In 2020, the global returns management market size was valued at $2.34 billion and is expected to grow at a CAGR of 8.1% from 2021 to 2028.
2. An estimated 90% of online retailers have a returns policy in place.
3. The average return rate for e-commerce is between 20-30%.
4. Nearly 30% of all returns are made because of the wrong product being delivered.
5. In 2020, the average cost of a single return was $10.
6. Returns management software is used by an estimated 60% of retailers worldwide.
7. Approximately 40% of retailers believe that their returns process is inefficient and needs improvement.
8. E-commerce returns account for an estimated $100 billion in lost sales annually.
9. An estimated 70% of consumers are more likely to make a purchase if a returns process is easy and convenient.
10. Approximately 20% of all returns are made due to dissatisfaction with the product

Product Returns Management Services Market Size

Year	Market Size Growth (in %)
2023	5.1%
2017-2023 (average)	4.9%

Returns Management Latest Statistics

Statistic	Value (in %)
Returns rate of e-commerce sales	30.0%
Total goods returned by American consumers in 2020	$428 billion (10.6%)
E-commerce returns in 2020	Nearly a quarter of returns volume
Apparel return rate on e-commerce channels	25%
E-commerce growth in 2020	35%
Returns ending in a landfill	10%
Survey respondents who agree that a lenient returns policy is critical to increasing revenue and share of wallet	86%
Survey respondents who agree that returns are a necessary evil	75%
Pain point of lack of accountability for returns management within any single department or business unit	58%
Survey respondents who have a strategy to improve the economics of returns	Two thirds
Survey respondents who strongly agree that returns are a concern for profitability	83%
Survey respondents who offer free return shipping on some or all items	70%
Returns caused by poor fit or style	70%
Retailers who give merchandising any responsibility for returns	6%
Retailers who are actively guiding consumers to their preferred channel	30%
Repeat consumers who would choose to abandon a retailer if they had a “difficult” returns experience	33%

Returns Management Facts

1. Returns management is the process of managing the return of goods from customers.
2. A comprehensive returns management policy can improve customer satisfaction, reduce costs, and increase sales.
3. Returns management is an important aspect of supply chain management and is often integrated with other processes such as logistics, inventory management, and customer service.
4. A strong returns management policy can help build customer loyalty and reduce customer churn.
5. Returns management is especially important for e-commerce businesses, where customers cannot physically inspect the product before purchase.

Returns Management Benefits

1. Improved customer satisfaction: A well-designed returns process can improve customer satisfaction and reduce the likelihood of negative reviews.
2. Increased sales: A simple and convenient returns process can increase customer confidence and encourage repeat purchases.
3. Reduced costs: An efficient returns process can reduce costs by minimizing the number of returns and improving inventory management.
4. Increased transparency: A transparent returns process can help build trust with customers and reduce confusion.
5. Better supply chain management: Returns management is an important aspect of supply chain management, and can help improve overall efficiency and reduce costs.

Returns Experience Statistics

Statistic	Value (in %)
First-time consumers who would shop at a retailer again if they had an “easy” or “very easy” returns experience	76%
Total retail sales	$428 billion
Consumers who return between 5% and 15% of the items they buy online	25%
Apparel retailers	12.2%
Online-bought products returned	20%
Items bought in a brick-and-mortar store returned	9%
Consumer preference-based returns in fashion product categories	72%
Non-preference-based returns and “not as described” returns in fashion product categories	10%
Reason for returns (breakdown)	22% Changed my mind, 12% Style, 8% Not as described, 5% Defective, 5% Other or not specified, 18%
Average weekly return volumes of DHL during the start of the COVID-19 pandemic	20% decrease
Retailers who offer exchanges	18%
Retailers who give a gift card to redeem on a future purchase	18%
Customers who expect an exchange or refund within 30 days of purchase	62%
Customers who will return to buy again if returns are easy	92%
Shoppers who are more likely to shop online if they can return their purchase to a physical store	62%
Refunds performed manually	65%
Refunds performed via apps	35%

Returns Management Trends

1. Increased use of technology: The use of technology, such as returns management software, is becoming increasingly popular as retailers strive to improve the returns process.
2. Focus on sustainability: Many retailers are focusing on sustainability, and are implementing environmentally-friendly returns policies.
3. Personalized returns experiences: Retailers are beginning to offer personalized returns experiences, such as the ability to return items to a physical store location.
4. Increased adoption of omnichannel returns: Omnichannel returns, where customers can return items in-store, by mail, or through a mobile app, are becoming increasingly popular.
5. Increased investment in returns management: Companies are investing in returns management as a means of improving customer satisfaction and reducing costs.

Returns Management Market Analysis

1. North America is the largest market for returns management, accounting for approximately 40% of the global market share.
2. The Asia-Pacific region is expected to experience significant growth in the returns management market in the coming years, due to increasing e-commerce activity in countries such as China and India.
3. The increasing use of technology, such as artificial intelligence and machine learning, is expected to drive growth in the returns management market.
4. The increasing focus on sustainability and environmental friendliness is also expected to drive growth in the returns management market.
5. The increasing number of online retailers and the growing popularity of e-commerce are also contributing factors to the growth of the returns management market.

Returns Management Demographics

1. The majority of returns management software users are retailers and e-commerce businesses.
2. Small- and medium-sized businesses are the largest adopters of returns management software.
3. The returns management software market is dominated by companies based in North America and Europe.
4. The majority of consumers who make returns are between the ages of 18 and 34.
5. Women are more likely than men to make returns, accounting for approximately 60% of all returns.

Returns Management Software

1. Returns management software can automate the returns process, improving efficiency and reducing costs.
2. Returns management software can integrate with other systems, such as inventory management and customer service systems.
3. Returns management software can provide real-time tracking and visibility into the returns process.
4. Returns management software can help improve customer satisfaction by providing a simple and convenient returns process.
5. Returns management software can provide valuable data and insights into the returns process, helping businesses make informed decisions.

Returns Management Opportunities

1. There is a growing demand for sustainable and environmentally-friendly returns solutions.
2. The increasing popularity of e-commerce presents opportunities for businesses to improve the returns process and increase customer satisfaction.
3. The increasing use of technology, such as artificial intelligence and machine learning, presents opportunities for businesses to improve the returns process and reduce costs.
4. The growing demand for personalized returns experiences presents opportunities for businesses to differentiate themselves and improve customer satisfaction.
5. The increasing investment in returns management presents opportunities for businesses to develop innovative solutions and capture a share of the market.

Returns Management Challenges

1. The high cost of returns management software and the need for training can be a barrier to adoption.
2. The complexity of integrating returns management software with other systems can be a challenge.
3. The difficulty of tracking returns and managing inventory can be a challenge for businesses.
4. The need to balance customer satisfaction with the cost of returns can be a challenge for businesses.
5. The difficulty of managing returns from multiple channels, such as in-store and online, can be a challenge for businesses.

FAQ

Q: What is returns management? A: Returns management is the process of managing the return of goods from customers. It involves the tracking, processing, and handling of returned items, and is an important aspect of supply chain management.

Q: What are the benefits of returns management? A: The benefits of returns management include improved customer satisfaction, increased sales, reduced costs, increased transparency, and better supply chain management.

Q: What are the trends in returns management? A: The trends in returns management include increased use of technology, a focus on sustainability, personalized returns experiences, increased adoption of omnichannel returns, and increased investment in returns management.

Q: How does returns management software work? A: Returns management software automates the returns process by providing real-time tracking, integrating with other systems, and providing valuable data and insights. This improves efficiency, reduces costs, and enhances customer satisfaction.

Q: What are the challenges in returns management? A: The challenges in returns management include the high cost of software and training, the complexity of integration with other systems, difficulty in tracking returns and inventory, balancing customer satisfaction with cost, and managing returns from multiple channels.

In conclusion, returns management is a critical aspect of supply chain management for retailers and e-commerce businesses.

With increasing focus on sustainability, technology, and personalization, the returns management market is expected to grow in the coming years. Returns management software offers a range of benefits, including increased efficiency, reduced costs, and improved customer satisfaction.

However, businesses must also be aware of the challenges associated with returns management and seek solutions to overcome these obstacles.