Why Returns Are Retail’s Biggest Untapped Opportunity with Blue Yonder's Tim Robinson | 5IM
In this latest episode of our 5 Insightful Minutes Series, Tim Robinson, Corporate Vice President at Blue Yonder, breaks down the findings of their recent consumer returns survey and what they mean for retailers.
Key moments from the interview:
- 1:34 - Why treating returns as inventory is critical for retailers.
- 2:36 - How unique and tech-driven returns experiences can differentiate brands.
- 5:40 - The importance of visibility in the returns process for sustainability and customer satisfaction.
- 7:23 - Predictions on tailored return policies using customer and product data.
To read Blue Yonder's report in full, head here: https://chat.blueyonder.com/reimagine-returns?utm_medium=paid&utm_source=omnitalk&utm_campaign=jan25&utm_content=tim
Music by hooksounds.com
#returns #ecommerceinnovation #customerexperience
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Transcript
Foreigning us now for five insightful minutes is Blue Yonder's corporate vice president Tim Robinson.
Chris:Tim is here to take us through Blue Yonder's most recent consumer returns survey.
Chris:Tim, first question may be obvious, but I want to get your take on it.
Chris:Why should retailers be reimagining returns?
Tim Robinson:Hi, Chris here.
Tim Robinson:Thank you.
Tim Robinson:So I mean there are probably three key areas.
Tim Robinson:I think the first thing is it's easy to forget that returns are inventory.
Tim Robinson:Up to 15% of items that are fulfilled across the US come back as returns and 95% of those items could be resold or full price.
Tim Robinson:This is inventory.
Tim Robinson:They should be treating them like inventory with the same level of urgency and priority.
Tim Robinson:I think the second thing is the customer experience angle now that E commerce, online shopping is such a big part of the retail experience.
Tim Robinson:Looking at the deed, understanding the details around returns, what consumers want, the sort of experiences they want, but also thinking about your profitability and sustainability is very important in that regard as well.
Tim Robinson:And I think like lots of facets of E commerce as it's evolved over the years, the, the buynet, buy it now, one click experience or you know, new payment methodologies that grow and help grow E commerce.
Tim Robinson:I think returns can be a differentiator.
Tim Robinson:I think, you know, unique returns experiences, the technology you deploy, the experience that provides consumers can set you apart from the rest.
Speaker C:Well, Tim, I can imagine a few reasons, having been a retailer myself, but what are you hearing from retailers are making returns so complex these days?
Tim Robinson:Yeah, I mean that is the killer question for us.
Tim Robinson:It ultimately comes down to the fact that returns are by their nature multichannel.
Tim Robinson:They come at you from all different directions.
Tim Robinson:You know, you remember when you were in retail, some, some of those returns come from digital returns platforms where you have some insight and information.
Tim Robinson:Others, a customer has just ripped a label off of a parcel and filled out a form and sent it back to you.
Tim Robinson:You know, some returns go back to the stor store.
Tim Robinson:Colleagues may or may not capture reasons as to why that return is coming back.
Tim Robinson:It's like truly, truly multi channel.
Tim Robinson:One of our customers in Europe describes returns as their worst supplier.
Tim Robinson:So 15% of all my skus come from this supplier.
Tim Robinson:I don't have any visibility about when they're coming.
Tim Robinson:I don't know what's coming and I don't know what condition it's in.
Tim Robinson:And I think that kind of, that phrase is really kind of describes why it's so complex.
Chris:So Tim, I'm curious, from the chair top which you sit, how are you Seeing the best retailers address returns and how does that ultimately benefit their end consumer or their end customer?
Tim Robinson:So I mean, I would say over the last 10 years, lots of time, money and effort has gone into digitizing like the consumer front end.
Tim Robinson:So there's been some great businesses that born out of this desire to digitize the consumer experience.
Tim Robinson:And that feels like in many, many cases, particularly in more mature E commerce markets, that the job is done at that end of the experience.
Tim Robinson:Now it's all about what to do with that information.
Tim Robinson:You're now getting more and more information about returns than you ever were before.
Tim Robinson:Who's returning, where are they returning, why are they returning, what are they returning?
Tim Robinson:The best retailers in this space take that information and tailor both the choices and the options they give consumers.
Tim Robinson:Do you get a refund?
Tim Robinson:Do you get a full refund, partial refund?
Tim Robinson:Where can you take it in order to drop it off?
Tim Robinson:And they're also using that data to make the best supply chain decisions.
Tim Robinson:How quickly can I get this back into inventory and sell it for full price?
Tim Robinson:How can I avoid this item going to landfill and ultimately having the value ripped out of it because the system required me to.
Tim Robinson:So I think it's going to be about, is now about differentiation, the use of data and tailoring both under the hood logistics solutions and supply chain solutions to suit, but also those downstream customer experiences.
Speaker C:Well, Tim, you brought something up just now that I think is really important to highlight.
Speaker C:In the Blue Yonder survey that you did, 55% of consumers that were polled said they were somewhat concerned about the environmental impact when doing a return.
Speaker C:And only 27% though, would continue a returns process if they knew that their item would go to a landfill.
Speaker C:How do you expect circularity and recommerce to kind of affect how we as consumers look at returns?
Tim Robinson:I mean, I hope you know all this, all the signs, you know, the macro signs are that this whole return space will ultimately evolve into a sales channel.
Tim Robinson:Now that is the signs we're seeing.
Tim Robinson:You know, the speed at which consumers are adopting C2C pre loved recommerce experiences in different parts of the world is really encouraging in that regard.
Tim Robinson:You know, it kind of highlights that there is no kind of old world, old school, stuffy stuffiness around buying something that was ultimately, ultimately pre loved.
Tim Robinson:I think one of the key things that the industry is going to need to provide consumers with in the not too distant future is absolute visibility of where your return is going.
Tim Robinson:I think the idea that these items go back into a black hole and you don't see it is something which society is going to rally against as time goes on.
Tim Robinson:But it's like Chris's question earlier on about differentiation.
Tim Robinson:I think the brand that gets there quickest provides visibility and transparency about the second life of that item.
Tim Robinson:I think could differentiate and could win.
Tim Robinson:They could get ahead of the game really, really quickly.
Chris:That's a really, really interesting point that I've never thought about giving visibility to what happens when you return an item and that being a point of differentiation for a retailer.
Chris:So Tim, we always love to end with predictions and, and you just kind of made one there.
Chris:But I'm curious, do you have any other predictions in terms of how you seeing how you see RE returns evolving over the next say five to ten years?
Tim Robinson:Yeah, I've got one which I've clung on to for a while which is starting to starting to play out, which is generally in most cases, retailers apply a one size fits all approach to returns policies.
Tim Robinson:You know, it's 30 days return policy for everything.
Tim Robinson:It's 30 days returns policy for every consumer, regardless of whether you're a consistent spender, a loyal customer.
Tim Robinson:It's just, it's a blanket policy and it's 30 days and full refund whether it's a $10 t shirt or a $2,000 handbag.
Tim Robinson:The thing that I think the biggest move is going to be around using data.
Tim Robinson:You understand every sku, you understand its price, you understand its value, you understand every customer, you understand their value, you understand their behavior.
Tim Robinson:The idea that we can't use that data to offer tailored returns, policies and rules and experiences to consumers is nuts, really.
Tim Robinson:And that's where I think it will go.
Tim Robinson:I think we're having some fascinating conversations with retailers, particularly in the US at the minute, about using that data to tailor the rules, the returns rules, the policies for you, the consumer, based on what you're buying.
Chris:Wow, Great stuff, Tim.
Chris:Thanks for joining us.
Tim Robinson:Tim.
