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Expanding return policy, Brands adopting new strategy to boost sales

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Brands agree to expand return times by closing brick-and-mortar stores and neighborhoods that struggle with shelter guidelines. Adore Me changed its stance immediately from 30 to 90 days. Birdy Gray has revised its exchange and return policy for two weeks for all orders placed after March 20; shoppers can return items through May 31. It is possible to return orders after March 20th. Cuts, a luxury men’s T-shirt brand, extended its window from 20 to 60 days.

Returns are already a big challenge for e-commerce companies, known to have higher return rates than brick-and-mortar. Statista predicted returns would cost brands $550 billion by 2020. And, 41 per cent of shoppers buy things online with the intention of returning certain items, according to Shopify.

Christi Campbell, Head of the fashion, retail and consumer branded products team at national law firm Duane Morris, says companies that will win the most respect from customers are ones that aren’t setting hard deadlines for customers to return products. While building customer loyalty is key over the next few months, there are clear challenges for companies that decide to extend their return window — mainly the financial strain that could be put on the company.

Companies who make the decision to select a longer, 90-day or more return period must contend with an inventory that is possibly out of season. Fast-fashion businesses are probably best at work, as they work in a fast turnaround that is up to date week-to-week with the latest trends, says Campbell.

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