Trend: Paid Returns vs Free Returns

Trend: Paid Returns vs Free Returns

Trend: Paid Returns vs Free Returns

Trend: Paid Returns vs Free Returns

To address the increase in returns, more and more ecommerce giants are starting to charge for returns.

To address the increase in returns, more and more ecommerce giants are starting to charge for returns.

Mollie-guides

Dec 14, 2022

In 1985, Marty McFly travelled back to the future to assist his children. In 2023, ecommerce merchants are reverting to paid returns to cope with the surge in their costs.

Free returns have almost become a norm in online shopping. Nearly half of ecommerce merchants offer free returns, while 79% of buyers prefer sites that provide this option.

During the pandemic, free returns became widespread as ecommerce merchants aimed to make consumers comfortable with online shopping. Consumers adapted, even buying the same item in 2 or 3 sizes or colours, deciding at home before returning unwanted products. The return rate by consumers worldwide nearly doubled between 2020 and 2022 (from 10.6% to 18.1%), and companies are increasingly struggling to handle the costs of processing returns.

A Rising Trend

In May 2022, the retail leader Zara began charging its customers €1.95 for returns. Since November 27, 2022, PayPal no longer offers reimbursed returns and does not accept refund requests for return fees, a service that was highly appreciated by its consumers. The same goes for the Japanese retail giant, Uniqlo.

Charging for returns helps reduce last-mile costs, especially as fuel prices have significantly increased in 2022. It also encourages consumers to shop more responsibly to avoid returning parts of their orders to the merchant. This new trend aligns with companies' eco-friendly initiatives to reduce their carbon footprint.

In 1985, Marty McFly travelled back to the future to assist his children. In 2023, ecommerce merchants are reverting to paid returns to cope with the surge in their costs.

Free returns have almost become a norm in online shopping. Nearly half of ecommerce merchants offer free returns, while 79% of buyers prefer sites that provide this option.

During the pandemic, free returns became widespread as ecommerce merchants aimed to make consumers comfortable with online shopping. Consumers adapted, even buying the same item in 2 or 3 sizes or colours, deciding at home before returning unwanted products. The return rate by consumers worldwide nearly doubled between 2020 and 2022 (from 10.6% to 18.1%), and companies are increasingly struggling to handle the costs of processing returns.

A Rising Trend

In May 2022, the retail leader Zara began charging its customers €1.95 for returns. Since November 27, 2022, PayPal no longer offers reimbursed returns and does not accept refund requests for return fees, a service that was highly appreciated by its consumers. The same goes for the Japanese retail giant, Uniqlo.

Charging for returns helps reduce last-mile costs, especially as fuel prices have significantly increased in 2022. It also encourages consumers to shop more responsibly to avoid returning parts of their orders to the merchant. This new trend aligns with companies' eco-friendly initiatives to reduce their carbon footprint.

In 1985, Marty McFly travelled back to the future to assist his children. In 2023, ecommerce merchants are reverting to paid returns to cope with the surge in their costs.

Free returns have almost become a norm in online shopping. Nearly half of ecommerce merchants offer free returns, while 79% of buyers prefer sites that provide this option.

During the pandemic, free returns became widespread as ecommerce merchants aimed to make consumers comfortable with online shopping. Consumers adapted, even buying the same item in 2 or 3 sizes or colours, deciding at home before returning unwanted products. The return rate by consumers worldwide nearly doubled between 2020 and 2022 (from 10.6% to 18.1%), and companies are increasingly struggling to handle the costs of processing returns.

A Rising Trend

In May 2022, the retail leader Zara began charging its customers €1.95 for returns. Since November 27, 2022, PayPal no longer offers reimbursed returns and does not accept refund requests for return fees, a service that was highly appreciated by its consumers. The same goes for the Japanese retail giant, Uniqlo.

Charging for returns helps reduce last-mile costs, especially as fuel prices have significantly increased in 2022. It also encourages consumers to shop more responsibly to avoid returning parts of their orders to the merchant. This new trend aligns with companies' eco-friendly initiatives to reduce their carbon footprint.

In 1985, Marty McFly travelled back to the future to assist his children. In 2023, ecommerce merchants are reverting to paid returns to cope with the surge in their costs.

Free returns have almost become a norm in online shopping. Nearly half of ecommerce merchants offer free returns, while 79% of buyers prefer sites that provide this option.

During the pandemic, free returns became widespread as ecommerce merchants aimed to make consumers comfortable with online shopping. Consumers adapted, even buying the same item in 2 or 3 sizes or colours, deciding at home before returning unwanted products. The return rate by consumers worldwide nearly doubled between 2020 and 2022 (from 10.6% to 18.1%), and companies are increasingly struggling to handle the costs of processing returns.

A Rising Trend

In May 2022, the retail leader Zara began charging its customers €1.95 for returns. Since November 27, 2022, PayPal no longer offers reimbursed returns and does not accept refund requests for return fees, a service that was highly appreciated by its consumers. The same goes for the Japanese retail giant, Uniqlo.

Charging for returns helps reduce last-mile costs, especially as fuel prices have significantly increased in 2022. It also encourages consumers to shop more responsibly to avoid returning parts of their orders to the merchant. This new trend aligns with companies' eco-friendly initiatives to reduce their carbon footprint.

How to Easily Manage Paid Returns

Manually deducting return fees each time a refund is processed can be time-consuming and challenging to manage. To make life easier for ecommerce merchants, Mollie and Sendcloud have partnered to eliminate all frictions in return management.

Sendcloud is a platform that supports e-retailers by automating all logistics aspects of the business. It allows e-retailers to offer their customers preferred delivery methods, increase conversion rates, and centralise all logistics in one place. The Mollie payment solution is directly integrated into the Sendcloud portal, enabling merchants to automate customer billing.

Consumers still have the option to return purchased products, but ecommerce merchants are no longer obligated to charge more or reduce their margins on each sale to absorb the cost of returns.

This new integration allows you to accept almost instantly all major payment methods used in Europe, making the payment experience smooth and transparent for your customers, directly in the Sendcloud portal. Choose the countries in which you want to enable paid returns and select the most suitable payment methods through Mollie.

Bandit Paris is an ecommerce specialising in pet accessories. They have been assisted in their growth by Sendcloud since 2019 and started using the Paid Returns feature shortly after its release, during the summer of 2022.

"The Sendcloud portal has allowed us to save time on return processing, optimise our logistics, and enhance the experience for our consumers," explains Agathe Troadec, Logistics and E-commerce Manager at Bandit Paris.

It's the all-in-one solution that combines online payments with your logistics.

Don't let parcel returns hinder your growth anymore.

Manually deducting return fees each time a refund is processed can be time-consuming and challenging to manage. To make life easier for ecommerce merchants, Mollie and Sendcloud have partnered to eliminate all frictions in return management.

Sendcloud is a platform that supports e-retailers by automating all logistics aspects of the business. It allows e-retailers to offer their customers preferred delivery methods, increase conversion rates, and centralise all logistics in one place. The Mollie payment solution is directly integrated into the Sendcloud portal, enabling merchants to automate customer billing.

Consumers still have the option to return purchased products, but ecommerce merchants are no longer obligated to charge more or reduce their margins on each sale to absorb the cost of returns.

This new integration allows you to accept almost instantly all major payment methods used in Europe, making the payment experience smooth and transparent for your customers, directly in the Sendcloud portal. Choose the countries in which you want to enable paid returns and select the most suitable payment methods through Mollie.

Bandit Paris is an ecommerce specialising in pet accessories. They have been assisted in their growth by Sendcloud since 2019 and started using the Paid Returns feature shortly after its release, during the summer of 2022.

"The Sendcloud portal has allowed us to save time on return processing, optimise our logistics, and enhance the experience for our consumers," explains Agathe Troadec, Logistics and E-commerce Manager at Bandit Paris.

It's the all-in-one solution that combines online payments with your logistics.

Don't let parcel returns hinder your growth anymore.

Manually deducting return fees each time a refund is processed can be time-consuming and challenging to manage. To make life easier for ecommerce merchants, Mollie and Sendcloud have partnered to eliminate all frictions in return management.

Sendcloud is a platform that supports e-retailers by automating all logistics aspects of the business. It allows e-retailers to offer their customers preferred delivery methods, increase conversion rates, and centralise all logistics in one place. The Mollie payment solution is directly integrated into the Sendcloud portal, enabling merchants to automate customer billing.

Consumers still have the option to return purchased products, but ecommerce merchants are no longer obligated to charge more or reduce their margins on each sale to absorb the cost of returns.

This new integration allows you to accept almost instantly all major payment methods used in Europe, making the payment experience smooth and transparent for your customers, directly in the Sendcloud portal. Choose the countries in which you want to enable paid returns and select the most suitable payment methods through Mollie.

Bandit Paris is an ecommerce specialising in pet accessories. They have been assisted in their growth by Sendcloud since 2019 and started using the Paid Returns feature shortly after its release, during the summer of 2022.

"The Sendcloud portal has allowed us to save time on return processing, optimise our logistics, and enhance the experience for our consumers," explains Agathe Troadec, Logistics and E-commerce Manager at Bandit Paris.

It's the all-in-one solution that combines online payments with your logistics.

Don't let parcel returns hinder your growth anymore.

Manually deducting return fees each time a refund is processed can be time-consuming and challenging to manage. To make life easier for ecommerce merchants, Mollie and Sendcloud have partnered to eliminate all frictions in return management.

Sendcloud is a platform that supports e-retailers by automating all logistics aspects of the business. It allows e-retailers to offer their customers preferred delivery methods, increase conversion rates, and centralise all logistics in one place. The Mollie payment solution is directly integrated into the Sendcloud portal, enabling merchants to automate customer billing.

Consumers still have the option to return purchased products, but ecommerce merchants are no longer obligated to charge more or reduce their margins on each sale to absorb the cost of returns.

This new integration allows you to accept almost instantly all major payment methods used in Europe, making the payment experience smooth and transparent for your customers, directly in the Sendcloud portal. Choose the countries in which you want to enable paid returns and select the most suitable payment methods through Mollie.

Bandit Paris is an ecommerce specialising in pet accessories. They have been assisted in their growth by Sendcloud since 2019 and started using the Paid Returns feature shortly after its release, during the summer of 2022.

"The Sendcloud portal has allowed us to save time on return processing, optimise our logistics, and enhance the experience for our consumers," explains Agathe Troadec, Logistics and E-commerce Manager at Bandit Paris.

It's the all-in-one solution that combines online payments with your logistics.

Don't let parcel returns hinder your growth anymore.

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MollieGrowthTrend: Paid Returns vs Free Returns
MollieGrowthTrend: Paid Returns vs Free Returns