4 omnichannel tips: Save money and encourage sales as retail reopens
As physical stores reopen and purchasing starts to rise, retail continues to navigate uncharted consumer concerns and other COVID-related constraints. Evergreen executive priorities like encouraging sales and saving money are at an all-time high.
We know companies can build a competitive moat around their business by innovating during times of trouble. Below are a few best practices we see across our customer and partner base this summer—proving constraints can be the cradle for creativity and competitive differentiation.
Enhance omni-channel offerings
Target CEO Brian Cornell believes shoppers will embrace online shopping and convenient pickup options long after the pandemic is over. As he told Women’s Wear Daily, “millions and millions of Americans have learned to shop online. [In Q1], we had 5 million new users at target.com and 2 million new guests who discovered our drive-up lane.”
It’s important to offer alternative shopping methods to counteract consumer hesitation and encourage shopping through more modern options.
Things like curbside pickup and Buy Online, Pickup In Store (BOPIS) allow shoppers to make a purchase online and retrieve it in-person when it’s most convenient. Consumers are attracted to these offers because they don’t have to wait for their purchases to be mailed to them, and retailers don’t have to pay for shipping.
Ultimately, new technology will create the biggest post-pandemic shift in retail, including:
Contact-free payments: Cashless payment options and digital wallets will become the norm, in an effort to help shoppers avoid touching money or POS keypads.
Augmented reality: Accelerated technology updates will help bring the delight of in-store shopping to customers at home.
“Technology will allow shoppers to feel like they’re in store – picking up and inspecting products, asking questions to virtual assistants, and even trying items on – all from the comfort of their computer or smartphone,” Happy Returns Sr. Manager of Location Partnerships Rachel LaConti told Raydiant.
“Grab-and-go” method: Advancements in radio-frequency identification technology and sensor fusion will allow shoppers to avoid checkout lines. They can simply pick items off the shelf and leave the store, while the tech keeps track of merchandise and charges shoppers accordingly.
2. Encourage exchanges during the online return process
A recent Raydiant study showed that 43% of retailers plan to go entirely online (29%) or significantly reduce its store count (14%). Since we know that online shoppers return three to five times more often than when they buy in store, this trend indicates an impending onslaught of returns.
Beyond that, consumers shop differently online than they do in-store. Many order multiple sizes to try on at home, with no intention of keeping them all. In fact, a Bodyblock AI poll found that 37% of online clothing shoppers regularly buy more than one size of an item, and return what doesn’t work.
But more returns doesn’t have to mean doling out more refunds.
Consider keeping more of your revenue by promoting easy exchanges on your site. Over half of all returns are made because of a size issue, which means it’s possible to avoid a lost sale by ensuring shoppers can effortlessly swap the unwanted item for one that fits properly. Offering one-click exchanges and free shipping encourages adoption and reduces refund rates.
3. Promote contactless in-store returns
Retail sales surged 17% in May after tumbling 16% in April, with clothing and accessories stores seeing the biggest sales increase at 188%. One way retailers have encouraged this spike is through offering unique in-store amenities to elevate the customer experience and increase foot traffic. In the same Raydiant study, 85% of retailers say designing in-store experiences with consumer concerns in mind will be critical for reopening success.
Happy Returns’ partners like Bed Bath & Beyond, Cost Plus World Market, and Paper Source have been delighted to find that per-day traffic to the Return Bars that they host—as well as coupon usage—remains consistent with daily averages pre-COVID. Shopper NPS scores are also consistent. This data suggests that designing in-store, contactless returns experiences are a great way to encourage shopper foot traffic that converts.
Kohl’s also adopted this concept by partnering with Amazon to accept the eCommerce giant’s returns at all of its stores. Customers who came in to return would stay to shop.
“It has brought new people into Kohl’s who otherwise wouldn’t have gone into Kohl’s. And many of them buy something. It has underscored how important a physical transaction is to some people.”
–Paul Gaffney, Kohl’s Chief Technology Officer
There are several reasons to promote in-store returns, whether you’re offering your own or serving as a drop-off location for other retailers. You will:
Raise loyalty: Shoppers prefer returning in-person, without the headache of taping boxes and printing labels that comes with by-mail returns. Even online shoppers prefer to return in-person.
Make shoppers comfortable: Developing a contact-free return process helps combat the effects of COVID-19 on this popular return method. By using QR codes and having shoppers place items in return bins themselves, you can eliminate person-to-person contact.
Reduce costs: In-store returns will save you money on reverse logistics costs, especially if you bulk-ship items in reusable containers.
Increase sales: Offering returns in your store will add valuable foot traffic to your retail location. Offer coupons to entice shoppers to make a purchase after completing their return.
4. Aggregate shipments in reusable packaging
Do consumers still care about sustainable retail during the pandemic? According to a joint report from Boston Consulting Group (BCG), Sustainable Apparel Coalition, and Higg Co, the answer is yes—particularly Millennials and Gen Z. Last month, Walmart partnered with reseller thredUP, following Madewell, Macy's, and Gap. Allbirds and Adidas also joined forces to design the lowest carbon footprint shoe.
"This is a moment of truth for fashion industry players. [...] Relentlessly incorporating sustainability practices into these changes will be the critical factor that separates winners from idlers."
— Javier Seara, BCG Partner and Managing Director, Global Sector Leader of Fashion and Luxury
While Allbirds, Adidas, Everlane, and others have pioneered sustainable retail initiatives around eco-friendly materials, not as much attention has been paid to the incredible waste associated with reverse logistics:
Out with cardboard. Whereas eCommerce returns kill 1B trees each year through cardboard production, reusable packaging can be used up to 100X.
Bulk shipping for a better world. Individually shipped boxes squander fuel and pump carbon emissions into the environment. But as in-person return options become more prevalent, retailers are increasingly able to put multiple items in a single tote and ship all at once.
Reusable packaging designed with efficiency in mind. With an intentional design, these reusable boxes can more efficiently stack inside trucks, reducing the number of trucks and amount of fuel needed even more.
What may be surprising is that the above ideas are actually far more cost-efficient in addition to being more sustainable. In fact, our customers find that they save about 20% when they use all of the above. (We guarantee 10%.)
Want to learn more about how omnichannel retailers can decrease refund rates with Happy Returns' returns software and reverse logistics? Read the full breakdown of benefits below.
Caitlin Roberson
VP of Marketing
Caitlin Roberson is the Vice President of Marketing at Happy Returns. Previously, she served as Director of Enterprise Marketing at Lyft and Partner at top-tier venture capital firm Andreessen Horowitz. Before that, she started and sold a content marketing agency.
