Consumer shopping behavior, specifically when it comes to eCommerce returns, have significantly changed in the post COVID-19 era. eCommerce returns management, solutions, and processes are increasingly more important for both consumers and retailers, especially during high velocity shopping times like the holiday season. Supply chain, returns management and reverse logistics management trends mean retailers must prepare to handle the various challenges across channels. Those who navigate the new normal will drive greater profits and build consumer loyalty along the way.
The Rise of Online Shopping and eCommerce: A Surge in Holiday Sales
Holiday sales weren’t always so complex. For example, since the term was first coined in the 1960s, Black Friday enjoyed decades of unencumbered dominance and simplicity. Starting from Thanksgiving day afternoon, hordes of Americans flocked to stores to grab the best deals on items ranging from electronics and home goods to jewelry and apparel. Those were the good ole days for brick and mortar until Cyber Monday came along in 2005.
Over the years, Cyber Monday and Black Friday have vied for supremacy, but that all changed in 2020 when the point became relatively moot. As a result of the pandemic, a record-breaking 100 million consumers shopped online, while millions of fewer people shopped in stores Thanksgiving weekend. As a result, retailers quickly rolled out online deals that launched weeks in advance, in some cases. The swift transition increased Black Friday profits by 21.6% year over year. With $9 billion in sales, Black Friday became the second-largest online spending day in the US, next to Cyber Monday, which reached $10.8 billion.
Holiday Online Shopping and eCommerce Returns Management
Generally speaking, the record-breaking sales expectations during the holidays is great news for retailers. However, due to continuing supply chain issues, labor shortages, and shipping delays, retailers must work harder than ever to prepare their online and in-store product management strategies with the right product mix, resources, and policies to overcome customer hesitation. According to goTRG’s 2021 data, 85% of Gen Z consumers said they’re going to shop early to avoid supply chain issues, and over 55% of all respondents say they plan on skipping Black Friday and Cyber Monday altogether.
Here are some top trends goTRG found in a recent consumer survey we conducted on the topic of online shopping and returning merchandise:
- Top Holiday Gifts
Apple AirPods stole the spotlight in 2020, led by Walmart, which offered some of the lowest rates of the season ($169). AirPods will likely continue dominating the electronics category, but they may share the spotlight with Google’s Pixel Buds A-Series and Amazon’s new Echo Buds this year. Last year, other top-selling products included Apple Watches, Lego sets, HP Laptops, and Samsung and TCL 4K TVs. Tech products were among the hottest selling items and will remain in demand this year for both Black Friday and Cyber Monday. Sixty-four percent of consumers in a 2021 goTRG survey said they planned to focus on electronic gifts followed by apparel (59%), toys (43%), and home furnishings (35%). Given supply chain issues, many consumers told goTRG they’re ditching physical goods and opting for gift cards instead fearing the unorganized eCommerce returns process.
- Free shipping and eCommerce returns
Most shoppers look for free shipping opportunities all year-round, but they expect it during the holiday season. Free shipping and a seamless eCommerce returns solution offers strong purchasing incentives that most retailers leverage to get more eCommerce sales. In fact, retailers typically drop the minimum order value requirements for free shipping by 8% during the holiday season, offering peak deals on Black Friday and the day after Christmas. However, customers may not always utilize the free option post-Covid due to worries over shipping delays. Instead, those who do not purchase in advance may pay for premium shipping to guarantee their items arrive on time.
- Easy and Simple eCommerce Returns Management for the Holidays
Most of the time, customers love shopping online and prefer returning items in-store. In fact, 45% told goTRG earlier this year they were ready to ditch e-commerce returns altogether and go back to stores despite Covid risks. But during the holidays, that all changed. According to goTRG’s 2021 holiday survey, 60% of Gen Z and Millennial shoppers said they prefer to return merchandise via eCommerce return solutions and shipping methods rather than deal with in-store lines this year. At the same time, they recognize that shipping items back takes a bit longer than driving to their local stores. So consumers expect retailers to make it easier for them. Over 80% of respondents to a new survey from goTRG said that retailers need to extend their eCommerce returns window.
How Retailers Are Optimizing Forward and Reverse Logistics for the Holiday Shopping Season
- Dark spaces
The exponential growth in digital sales has forced retailers to disrupt their entire forward and reverse logistics infrastructure to fulfill orders and returns. As a result, some retailers transformed storefronts into “dark spaces,” or warehouses specifically for online order fulfillment and returns processing rather than forward sales. Dark stores are especially helpful during the holiday shopping season because they allow nearby customers to receive same-day delivery or pick-up and reduce total shipping requirements.
- Fewer toy deals
Toys are extraordinary popular holiday gifts for clear reasons. But supply chain and shipping issues mean retailers may not have ample toy stock to offer widespread Cyber Monday and Black Friday deals. That means customers will have to work harder to find the sales if they can even find the toy itself. Nearly 60% of shoppers told goTRG they’ve encountered out0of-stock messages when looking for items this holiday season.
- Extended sales duration
Even before the pandemic, retailers started to extend Black Friday and Cyber Monday deals. Now, facing the reality of shipping delays and labor issues, retailers are announcing sales even earlier this year. In fact, Walmart’s deals are going on now, and Kohl’s is launching sales starting November 21st! The traditional mad rush is officially a thing of the past, replaced by the need to get products in customers’ hands by any means necessary.
- In-store and curbside pickup
Free shipping and, specifically, on-time delivery may not always be available this year. But retailers who leverage large physical footprints will offer something even better–free in-store and curbside pickup for online orders with enhanced returns management solutions. With buy online pick-up in-store options (BOPIS), retailers can alleviate their supply chain and avoid disappointing customers with late arrivals. Plus, contactless pick-up options are desirable to customers with covid related concerns. Last year 20-25% of all online orders were fulfilled through curbside pickup, and this year will be no exception.
The bottom line
The holiday season has seen a push for eCommerce shopping and eCommerce returns. Now it’s up to retailers to deliver a seamless omni-channel online shopping and eCommerce returns management solutions that offer convenience and efficiency to enhance the consumer shopping experience during peak holiday shopping seasons.
