Insight about returns management in German B2C ecommerce

1. 2015 | L.13 Beratung und Beteiligung
L.13 Beratung und Beteiligung
Lychener Str. 13
10437 Berlin
Philipp Lück
Freiberuflicher Unternehmensberater
Mail: lueck@Lpunkt13.de
Mobil: +49 176 6400 9303
Web: www.Lpunkt13.de
Factor Returns in German E-Commerce
Landscape
Study Tour Logistics "Finns visit Germany“
25. September 2015

2. 2
About me: L.13 is a privat E-Commerce consultancy and invests in
Digital Business Models with focus on the German market.
2015 | L.13 Beratung und Beteiligung
Short CV, Philipp Lück
2007 – 2008: Head of Sales and Cooperation
2010 – 2012: Business Development & Full-Service E-Commerce BPO
2012 – 2014: Chief Operating Officer, Managing Director
2013 – ... : Founding Shareholder
2012 – ... : Consultancy and Private Investments
2015 – ... : Vice President Händlerbund

3. 3
Factor Returns: Speaking about return volumes and rates, German Consumers
hold a special position – „We are European Champions in Returns!“
2015 | L.13 Beratung und Beteiligung
Market Overview, Returns in Germany
1950
Establishing the
principle
1998
Transform into the
digital world
2005
Intensify the
principle
2012 - ...
Copy and form
a standard

4. 4
German Market: The biggest European E-Commerce potential is confronted by the
„Most-likely-to-return-an-order-Customer“.
2015 | L.13 Beratung und Beteiligung
German Market Figures
German E-Commerce Figures
§ 43.6 Billion Euro E-Commerce revenue in
2014
§ 63 % usage of Retailer-Website for
information.
§ 24.2 Billion € market-place volume 2014
§ Fashion by far biggest vertical followed by
Consumer Electronics and Media
German Return Behaviour
§ 40% of Online-Customers plan to return
while ordering.
§ >40 % of Retailers are confronted with a
return rate higher 10%.
§ Fashion Retailers see return rates of 25%.
§ 50 % of Retailers see growing return rates.
§ 10 % of returned goods cannot be used
again.

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Legal Situation: Many online retailers show significantly higher goodwill than the
legal situation requires – especially market leaders.
2015 | L.13 Beratung und Beteiligung
Examples for market behaviour
14 Days return right
Up to 100 days
return right
Customer pays
return shipping
costs
Bad condition leads
to reduced payback
No shipping fees
Very high grade
of Goodwill
... ...

6. 6
Return Management: Today it is necessary to manage returns along the value
chain as those are crucial part of the E-Commerce process.
2015 | L.13 Beratung und Beteiligung
Goods In Data Content Sales Logistics
Customer
Service
Returns
Retoure
• Product Condition
• Learn from Reasons
• Re-Packaging
• Internal Com-
munication
• Fast Remarketing
Goods In
• Prevent picking
mistakes
• Fastidious Behaviour
Product Data
• Use all data
available
• Data Sheets
• Continuous
optimizing
Sales/Marketing
• Continous
Monitoring
• Expectation
Management
• Transparent
Communication to
Customer
Customer Service
• Open
Communication
• Easy to be
contacted
• „Please“ is allowed
• Steering of costs
and goodwill
Logistics
• Fastidious processes
• Continious control
samples
• Optimized packaging
material
Return Management along the Value Chain

7. 7
Retailer Behaviour: German Online Retailers changed their answers to customer
returns over the recent years.
2015 | L.13 Beratung und Beteiligung
Retailer Image
2000
Clueless about
shaping returns in
digital world.
2005 - 2010
Fighting returns and
sceptical busines
behaviour.
2015
Managing returns as
key competitive
factor.

8. 8
Solution Example: Several companies offer services in the area of
returns management from logistics to integrated full-service solutions.
2015 | L.13 Beratung und Beteiligung
Business Model Returbo | www.returbo.de

9. 9
My recommendation: Returns Management is a critical success factor in the
German E-Commerce environment – no rocket science, but be prepared.
2015 | L.13 Beratung und Beteiligung
Manage
me...
This is my plan .

10. 2015 | L.13 Beratung und Beteiligung
L.13 Beratung und Beteiligung
Lychener Str. 13
10437 Berlin
Philipp Lück
Freiberuflicher Unternehmensberater
Mail: lueck@Lpunkt13.de
Mobil: +49 176 6400 9303
Web: www.Lpunkt13.de
Thank you.