Listen to Al Gerrie on Retail Sector’s Talking Shop Podcast

You can now listen to Al Gerrie on Retail Sector's fantastic Talking Shop weekly podcast!

ZigZag's Founder & CEO was invited on to talk about how retailers can better manage serial returners & lessen their impact on profitability & resources.

There's a delicate balance between providing a smooth, user-friendly returns experience and combatting opportunistic behaviour from a select, and often small, group of customers. Lewis Catchpole was a wonderful host as always!

Make sure you listen to the podcast when you get a chance on Spotify

You can also listen to the segment on Apple Podcasts - https://podcasts.apple.com/gb/podcast/talking-shop-by-retail-sector/id1700438692

Here are some of the key takeaways of the podcast, but there’s so much more detail to be had!

ZigZag’s history

ZigZag was founded in 2015 to address the increasing costs of returns in the fashion sector and simplify the returns process for customers. Today, ZigZag has grown to 190 staff and works with major retailers like Zara and Puma, providing a white-labelled returns management solution for carriers like DHL and FedEx.

Retailers approach ZigZag with various issues, such as reducing costs, expediting product returns, or enhancing sustainability by minimising packaging waste. The software allows for customised solutions, addressing concerns such as return rates, product quality, and packaging issues, and identifying 'toxic products' with high return rates.

Sizing is the primary reason for returns, but issues can also stem from packaging damage. ZigZag collects data on return reasons to help retailers improve their processes.

Transitioning from paper to digital solutions provides retailers with better visibility on returns, allowing them to understand the impact on their operations and finances.

Paid returns

The shift from free to paid returns is becoming more common and is seen as beneficial, despite initial retailer hesitations due to concerns about sales impact.

The average return cost can reach £13, with additional hidden costs related to repackaging, grading, and customer service inquiries. ZigZag helps retailers manage these costs and improve customer interactions.

Retailers should consider implementing paid returns, as it can positively impact their bottom line without harming conversion rates.

Returns Policies

Common mistakes retailers make include not offering label-free returns, making returns policies hard to find, and not providing enough carrier options. Personalising return processes based on the reason for return can improve customer satisfaction.

Data suggests that making returns easier does not negatively affect sales but can enhance customer loyalty, indicating that retailers should prioritise a seamless return experience.

A positive returns process is crucial; a bad experience can deter customers from shopping with a retailer again. Strategies to improve returns include offering gift cards instead of cash refunds, facilitating exchanges, and expediting refunds, especially for international sales.

The importance of a seamless online returns portal

The importance of software in managing returns is highlighted, as it helps detect fraudulent returns and ensures products are safely processed before refunds are issued. A digitised returns process is more efficient than traditional paper methods.

Retailers should proactively communicate with customers who are likely to return items, encouraging them to initiate returns early to minimise losses.

Retailers should improve transparency about their returns processes to educate consumers on the benefits of following procedures. This could enhance customer experience and encourage better return behaviours.

Using data to improve the returns experience

Retailers can use returns data to provide better sizing guidance and help customers make informed decisions before purchasing. While technology is improving, the tactile experience of trying on clothes remains irreplaceable.

The trend of increasing returns among younger consumers is seen as reversible, but it may take time. Retailers are incentivising larger basket sizes, and customers are still not buying only what they need.

Returns sustainability

Retailers need to educate consumers about the environmental costs of returns and promote sustainable practices.

Retailers should eliminate paper from packaging and drive customers to online returns to streamline the process. Encouraging exchanges and refunds via gift cards keeps customers engaged within the brand ecosystem, making the return journey seamless.

Cross-border returns

Retailers need to focus on data accuracy, including HS codes and clear product descriptions, to reduce returns. Collecting and analysing data is crucial for understanding return patterns and improving product offerings.

Cross-border retailers are increasingly interested in local grading and processing of returns. This shift allows for quicker restocking and reduces the time products spend off sale. AI technology can assist in grading and processing returns more efficiently.

ZigZag on Shopify

ZigZag aims to expand its services to Shopify retailers and other markets, managing returns for various sectors beyond fashion, including health and electronics. The company is also focusing on partnerships with charities for efficient donation management.

‍