Speaking of the differences between online and offline sales, one of the data that catches the eye is that of returns. While in brick-and-mortar stores, the percentage of returns on sales was around 8%, when it comes to e-commerce, we have seen a significant increase, reaching 25%.
With the rapid evolution of e-commerce that we have witnessed, we have seen that companies that offered their customers free returns have been very successful. In fact, free returns became an intelligent sales strategy when customers did not have the opportunity to go to a physical store to see or try the product in person. But it has also become a nightmare for small and medium enterprises because managing returns is often a costly and time-consuming operation. According to surveys (Barclaycard), 57% of retailers claim that returns have a negative impact on their business, and they increase the shipping costs or the product cost itself to cover the cost of returns.
The chart shows some of the reasons why returns happen. Among others, we can see that a large part of the returns occurs because the product is not what the customer expected. It doesn't match the description. In fact, for a company that has to think about production, sales, inventory, returns, costs, management, etc., attention to the description of a product to sell online can take a back seat. Yet, it is one of the main reasons for returns, and consequently, one of the profit loss factors. How to solve this problem? A PIM solution can automate and speed up these processes, making it possible to easily manage and edit product information.
Software of this type allows you to create fantastic and unique product information, with the possibility of adding infinite attributes and specifications. The result is an improved internal organization with a constantly updated and consistent distribution of information. With Katana PIM, it is possible to distribute this information across multiple sales channels and in various languages so that a company can reach customers everywhere.
The result will be an increase in sales, a lower percentage of returns, and a customer who knows exactly what to expect from the purchase.
But many more advantages come from using Katana PIM...would you like to discover them with us?
Cycleon, the internationally renowned reseller, has decided to aqcuire our Katana PIM system to store its product information.
In this era of omnichannel e-commerce, online stores face interesting challenges. Due to an increased demand from customers for online shopping, evidenced by growing online marketplaces and D2C (Direct To Consumer) shops, the demand for Product Information Management-systems has been growing.