The Edge - Volume One

Impact in EMEA 1 The situation is similar in the UK and continental Europe. BarclayCard, a leading global payments business with extensive data on online and in-store purchase and return behavior, reports: “It’s clear having an effective and convenient returns policy that satisfies customer needs is a crucial factor of success for retailers.” Aside from the competitive pressure to offer free and simple returns, BarclayCard finds inconsistency in clothing sizes among leading retailers as a contributing factor to over-ordering by customers. One retailer’s size 12 is not necessarily another’s. In the UK, for example, survey data finds that 26 percent of retailers have experienced an increase in returns in-store and online over the last two years, with the number of returned items up an average of 22 percent. The so-called ‘Phantom Economy’ of reverse logistics is a global challenge. Impact in APAC 2 While not identical, similar customer behaviors are pressuring retailers to up their returns game across Asia. According to UPS’s Pulse of the Online Shopper Study, a convenient and transparent return policy increases sales and customer satisfaction. Two-thirds of shoppers surveyed in Asia indicated free returns shipping is important when selecting online retailers. There appears to be plenty of room for improvement in the service, as only 47 percent of shoppers are satisfied with the ease of returns. Remarkably, return rates in Asia are well below those in EMEA and North America, with most shoppers returning 10 percent or less of their orders. Similar to other regions, however, Asian shoppers are heavy impulse buyers when processing returns, with 69 percent reporting new purchases when returning in-store, and 67 percent when returning online. The massive retail market in Asia – online and in-store – faces the continuing challenge of providing customers fast, seamless and free returns experiences. 1 https://www.home.barclaycard/media-centre/press- releases/Retailers-face-a-Phantom-Economy-of-7-billion- each-year.html 2 https://www.enterpriseinnovation.net/article/asias- consumers-most-dissatisfied-expect-free-shipping-and- returns-1358588189

BEN CONWELL Senior Managing Director eCommerce & Fulfillment Advisory Group Lead and newCommerce Lead ben.conwell@cushwake.com

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