The 2025 holiday shopping season may be a while away, but for retailers, the real challenge often begins in January - what many now dub "Returnuary." With shoppers rushing to return, exchange, or get support for holiday purchases, businesses face an annual test of their customer service capabilities. While the surge in returns can seem like a logistical nightmare, it also presents a significant opportunity to build trust, improve brand loyalty, and unlock new value through more intelligent after-sales support.
According to 8x8, more than $171 billion in merchandising returns were returned in America and nearly £1.5 billion in the UK in January. 8x8's retail clients highlight the same challenges time and time again: providing an aftersales experience. Poor CX lessens the likelihood of a returning customer, and increases CSAT scores and repeat sales.
Retailers are increasingly recognizing that the customer journey doesn't end at the point of purchase. A strong post-sales experience plays a crucial role in building loyalty and encouraging repeat business. When done right, after-sales support can do more than handle returns or refunds - it can help customers activate products or warranties, offer personalized guidance, and ensure they feel supported every step of the way. Small business insurance can help cover claims arising from negligence, mistakes, or omissions during a sale. But otherwise, retailers must abide by their returns policies and foot the bill of any losses.
What's Driving the Return Surge?
A return can be for several reasons. However, just over 20% of online shoppers have admitted to returning non-defective electronics due to frustration or confusion around installing or using the product. Recently, serial returns in the fashion industry have captured the headlines.
Several consumer behaviors exacerbate the returns problem:
- Bracketing: This involves purchasing multiple sizes or colors of a product with the intention of returning those that don't fit or aren't preferred. A significant 69% of Gen Z consumers engage in this practice, compared to just 16% of Baby Boomers. Retail Management Success Site
- Wardrobing: Some consumers buy clothing or footwear with the intent to use them for a short period, such as for a single event, before returning them. Overall, 16% of shoppers admitted to this behavior, with higher prevalence among younger demographics. Retail Management Success Site
- Staging: This refers to purchasing items solely to showcase them on social media and then returning them. About 15% of shoppers have engaged in this practice, again with a higher incidence among Gen Z consumers.
The Power of Great Aftersales Assistance
Great aftersales assistance isn't just about solving problems - it's a powerful strategy that can drive growth, build brand loyalty, and reduce long-term costs. Benefits include: