In-Person Returns Increase Retail Sales
Return bars are proving to not only be a way to handle reverse logistics of online orders, but they also increase in-person sales.
By Kelsi Maree Borland | July 29, 2020 at 04:00 AM
Happy Returns’ return bars are proving to do more than handle reverse logistics returns for ecommerce retailers. New data from the company shows that these return stations—which accept in-person returns of goods purchased online—are helping to drive in-store shopping. Retailers with return bars saw a 6.3% increase in store revenue and a 16.8% increase in online shopping.
“Retailers find that offering returns inside their stores is a proven method for adding valuable foot traffic and increasing sales,” David Sobie, CEO of Happy Returns, tells GlobeSt.com. “New and existing customers spent more after Paper Source started hosting Happy Returns’ Return Bars at its retail locations. An academic study quantified the program’s contribution to in-person sales: ‘Existing Paper Source customers spend more because of Happy Returns. Shoppers who frequent Paper Source prior to using a Return Bar spend an average of 3.2% more after using the in-person return service.’”
Return bars have also been a source of capturing new customers, and those new customers spent more on average. The data shows that new customer spending increased 20.5% while existing customer spending increased 3.2%. “New customers spend even more, repeatedly. New Paper Source customers, sourced via the Return Bar channel, spend 20.5% more than existing Paper Source patrons on average,” says Sobie. “New customers also return to stores later without a return, with the express purpose of buying Paper Source items.” Happy Returns’ return bars shut down during the pandemic to adhere to local retail closure mandates, but in some ways it highlighted the need for an ease of return option. “The pandemic caused a massive influx of items and significant shipping delays across most carriers, leaving many consumers waiting for weeks for their returned items to reach retailers, so that they’d finally receive their refunds,” says Sobie. “Although our return bars closed with the rest of the retail world during stay-at-home orders in March and April, many shoppers were eager to get back to the convenience of in-person returns when stores and Return Bars re-opened. When Paper Source reopened its doors in May, customers called immediately to ask if they could drop off returns again.”
The acceleration of online shopping that manifested during the pandemic could also drive an increased need for retail return bars. “Online shopping has been picking up speed for years and has accelerated even faster during COVID—bringing with it 3-4X the number of returns,” says Sobie.
In the post-pandemic world, however, the return process could look different. “We’ve updated our Return Bar process to now be completely contact-free. Shoppers bring items without boxes or labels. Stores associates scan QR codes on shoppers’ phones to verify the return, and then bagged items are placed in containers without contact between the two people. It all happens in under a minute, and the shopper gets her refund immediately,” says Sobie. “Shoppers still receive refunds immediately and complete the process in under 60 seconds per item. Participating retailers save an average of 21% on reverse logistics when they use Happy Returns’ full solution.”
Original article was published here.