An insightful report written as a summary of a design thinking workshop attended by Polish e-commerce experts and practitioners in 2019. Return policy now represent important aspect in the online consumer journey - they have become one of key aspects in decision making process. The more liberal policy and easier process - the less hesitation from consumer part. Learn what are the points worth looking at
Jakub Krolikowski (Mirakl), Deja Horvat Zupanc (Big Bang).pdf
Mondi Ideabook #1 Returns in e-commerce
1. Three underlying expert perspectives.
Concepts developed during a design thinking
workshop with e-commerce experts
RETURNS
IN E-COMMERCE
Mondi IDEA BOOK
2. MONDI IDEA BOOK < >2/20
Presenting the
“Mondi idea
book”
Here you will find ideas for
e-commerce returns, worth
looking into, which arose during
a design thinking workshop with
e-commerce experts
we studied the customer journey
to develop good return practices,
we came up with ways to reduce the return rate –
we turned the worst ideas into best ideas,
we made predictions on what
e-returns will look like in the future.
The ”Mondi idea book vol. 1” will tell you:
• how to ensure positive experiences for those returning online purchases,
• what are the worst and best ideas for reducing returns,
• how we will return goods in the future.
During the workshop:
3. MONDI IDEA BOOK 3/20
Iwo Zmyślony – methodologist
of design processes, anthropologist
of design and new technologies,
academic lecturer
Joanna Skorupska – founder;
sustainable future strategist
at Radicalzz
Magda Rysuje – illustrator
who creates graphic notes
About the
design thinking
workshop
on e-returns
The goal of design thinking
is to design consumer-focused
solutions using available insights
Within our first design thinking workshop we took a closer look at the e-commerce returns
process and the related experiences of online buyers, which are one of the key elements
influencing the e-store user experience.
Our experts, represented the following companies: Decathlon, e-obuwie, InPost and Mondi.
The workshop was conducted by Iwo Zmyślony, Joanna Skorupska, and graphically
documented by Magda Rysuje.
4. MONDI IDEA BOOK 4/20
1
Working on identifying
the basic challenges for
e-commerce returns
2
Discussing the results obtained
while working in subgroups
3
Analysing trends and processes
related to e-commerce returns
4
The Futuro game helps
us look into the future
5
The workshop is being
visually documented
6
Thinking, discussing
and reasoning
1 5
4
6 2 3
Photos from the workshop
5. MONDI IDEA BOOK 5/20 Perspective I Perspective II Perspective III
Perspective I
User experience
in e-commerce returns
The return process starts at the beginning of the customer’s shopping
journey! 66% of American consumers check the return policy before
purchasing (UPS, 2015). Returns are an integral part of the customers’
online shopping experience. The final impression depends on each
interaction that can cause even the slightest dissatisfaction of the buyer.
These are the so-called pain points, which we must determine and then
neutralize. How then, according to experts, can we ensure a positive
experience for customers who return merchandise?
6. MONDI IDEA BOOK 6/20
Customer journey
Awareness Search
Reviewing the store
Decision
Awaiting the refund
Purchase
Sending the return
Waiting for delivery
Transporting
the package
Delivery
Packing
Unboxing
Return form
Examining and testing
Deciding on returning
Together with representatives of the e-commerce industry, we developed the online customer journey.
We identified points of contact or interaction. Each of these can create a competitive advantage for an e-store.
1 2
15
3
14
4
13
5
12
6
11
7 8
910
Customer
journey
Perspective I Perspective II Perspective III
7. MONDI IDEA BOOK 7/20
Good return practices
We analysed every pain point and offered solutions. Good practices will help you determine if your e-store is fully meeting
your customers’ needs. We start with sales, because awareness of the possibility of return accompanies consumers from
the start of the shopping journey. Next, we move to the key stage, i.e. deciding whether to return the product, which should be
as user-friendly and intuitive as buying the product. The goal of e-commerce is to provide a consistent user experience.
Awareness
No refund for return,
extended return period
Search
Easy to find and clearly
explained return policy
Reviewing the store
Decision
Simple icons explaining
the return policy in the
purchase confirmation
email
Awaiting the refund
Information on the date of
the refund, quick refund,
payment title associated
with the purchase
Purchase
Choice of many payment
and delivery options,
as well as packaging
method (e.g. many items
in one package)
Sending the return
Quick return process
without unnecessary
paperwork, choice
of several options for
posting and tracking
the package
Waiting for delivery
Shipment tracking,
welcome email with
information about
returns
Transporting the
package
Packaging suitable
for carrying, and
various return options
(including parcel
machines)
Delivery
Courteous courier or
pickup from a chosen
location
Packing
Return packaging,
return label or code
Unboxing
Convenient packaging,
easy to open, adapted
to the size of the goods
Return form
Return without the
need to register,
a user-friendly
electronic form
Examining and testing
Deciding on returning
1 2
15
3
14
4
13
5
12
6
11
7 8
910
Customer
journey
Good
practices
Perspective I Perspective II Perspective III
8. MONDI IDEA BOOK 8/20 Perspective I Perspective II Perspective III
9. MONDI IDEA BOOK 9/20
What types of returns do customers want?
For 53% of respondents of the Gemius survey “E-commerce in Poland 2019”, the biggest incentive to shop online is the
option of returning the product for free by courier. The 2018 survey: “The State of Returns, What Today’s Shoppers
Expect” conducted by Narvar, shows that 50% of customers expect information on the refund status and 59% expect
notifications on the refund date.
One customer bought shoes from us and
tested them by climbing the Śnieżka mountain. He
described everything in the email. We sent them to
our expert. It was checked whether, and if so -
to what extent, they were destroyed. We refunded
the money minus the consumption factor. We
explained everything clearly. People appreciate it.
They return things because something doesn’t
suit them. There is never a guarantee that the
product will meet their expectations.
In my opinion, free returns came about
because companies wanted to break the
barrier of buying shoes and clothes
online. When it comes to books and
CDs, you know the product, but shoes
or a jacket should be tried on.
Perspective I Perspective II Perspective III
10. MONDI IDEA BOOK 10/20 Perspective I Perspective II Perspective III
Perspective II
How to reduce
the return rate?
Returns have become very popular. For some stores (e.g. Zalando) they have
become an element of competitive advantage. However, a liberal return policy
has its price. Some customers began to abuse this service. In addition, every
return reduces profits, often reduces the value of the product, strains the supply
chain, and increases the e-commerce carbon footprint. How to counteract this
tendency, keep old customers and gain new ones? We focused on this question
when considering the worst and best ideas for reducing returns.
11. MONDI IDEA BOOK 11/20
The worst ideas for reducing returns
We began our attempt to solve the problem of a rapidly growing number of returns by coming up with the worst ideas, together
with the experts of Decathlon, e-obuwie and InPost. They often hide very good ideas. This method is called brain dumping.
It lets your imagination run free, which is normally closed off as you go about your regular habits and routine. The next step
is to adapt unrealistic ideas to reality. What will effectively discourage most customers from returning merchandise?
High return
fees
Blocking access
to promotions
Publishing lists of names
of customers who
notoriously return goods,
in order to embarrass and
expose them to public
criticism
Incomprehensible
return form
Penalties for returns,
e.g. in the form of
progressively rising
shipping prices
Displaying the most
frequently returned
products to effectively
discourage their purchase
Returning for returning –
that is, shipping items,
which were previously
returned to customers
abusing returns
Complicated
return procedure
Perspective I Perspective II Perspective III
12. MONDI IDEA BOOK 12/20
The best ideas for reducing returns
After identifying the worst ideas, which often discourage customers from shopping in the e-store,
we strengthened some of them by turning them into positives, and came up with some completely
new ideas. We came to the conclusion that the following ideas could work well on the market:
Rewarding for not
returning goods, e.g. with
points or promotions
Carbon footprint
calculator, which allows
you to calculate the
environmental costs of
returns
Using the most realistic
photos of the items as
possible
Optimising returns by
determining the best
collection times, which
reduces environmental
and operational costs
Introducing micro-fees along with information
that justifies a given company policy by
promoting responsible consumption. This is
an idea that is contradictory to the presented
good practices, but by creating a small obstacle
it will reduce the number of returns
Perspective I Perspective II Perspective III
13. MONDI IDEA BOOK 13/20
Examples of return options
Zappos, a subsidiary of Amazon since
2009, was one of the first companies
to introduce free returns for 365 days.
Others followed, including FringeSport,
which, as a result of repeated overuse of returns,
decided to tighten its policy in this area, as explained
by the founder and CEO of the company, Peter Keller,
in Practical e-commerce.
Eobuwie.pl customers have
30 days to return the goods.
They can be returned free of
charge at DHL outlets (e.g. Żabka
stores, FreshMarket, Inmedio
newsagents, Shell gas stations)
by DHL courier, in InPost parcel
machines or selected RUCH kiosks
(Parcel in RUCH).
The undisputed king of returns
on the European market is
Zalando, which changed
customer behaviour by
liberalizing this e-commerce
service. Estimates published
by Die Zeit magazine indicate that returns occur in
a minimum of 50% of cases.
AliExpress started a trial
programme for free returns in
8 countries. Within 15 days of
receiving the package, you will
be able to send back electronics,
jewellery, footwear and cosmetics.
Products costing over $1,000 are
excluded from the programme. According to the
company, free returns are meant to improve the customer
shopping experience. This also means that returned
products will have to cover increasingly long distances.
Decathlon offers unlimited returns to
customers holding Loyalty Cards.
The returns can be done online
or in a stationary store.
Returning the package
through the InPost parcel
machine is free.
Perspective I Perspective II Perspective III
14. MONDI IDEA BOOK 14/20
How does e-commerce limit returns?
To defend itself against overuse of returns,
Zalando places large labels in prominent
places. Only items with all product labels
intact are eligible for returns.
The Canadian e-store Indigo grants
a 10% discount when collecting online
orders from stationary stores, which
is expected to reduce returns and
increase sales.
Nordstrom, known for its pro-customer
approach, has a more restrictive return
policy for event dresses and designer
items. The reason for this change is the
disproportionately high percentage of
items returned in these categories.
In 2018, the Wall Street Journal wrote about Amazon
closing the accounts of customers who notoriously
return goods. According to a Brightpearl study conducted
among 200 retail store managers, over 60% of American
and 45% of British companies declared that they would
follow in the footsteps of the Seattle giant, blocking
customers who notoriously return goods (so-called serial
returners).
Ecommerce companies don’t want to punish all
customers for the mistakes of some. According to MIT
Sloan, introducing mass restrictions is not profitable.
On the basis of big data, companies identify individual
consumers abusing liberal return policies. They deal with
bad behaviour in various ways. For example, some Polish
e-stores stop sending out newsletters, make payment
difficult, or end cooperation.
-10%
The HM clothing store chain accepts
e-commerce returns solely online.
Perspective I Perspective II Perspective III
15. MONDI IDEA BOOK 15/20 Perspective I Perspective II Perspective III
Perspective III
What returns could
look like in the future?
E-commerce is growing rapidly, overcoming barrier after barrier. Today,
some e-stores are already offering same-day delivery. When will we see the
entire refund process take place on the same-day, including the transfer of
funds to the account? How will returns be affected by technologies that
ignite the imagination of experts from many industries, such as artificial
intelligence, the Internet of Things, 5G network, or blockchain? Read what
ideas our experts had when searching for answers to the question: how will
we return goods in the future?
16. MONDI IDEA BOOK 16/20
How do we imagine the returns of tomorrow?
Stores will introduce AR/VR or
hologram technologies, allowing
customers to learn more about the
products, which will limit the number
of returns.
Better selection of goods and
reduction of returns will be ensured
by mechanisms based on big data,
thick data, deep learning and artificial
intelligence.
We will be able to return
purchased food online.
In the more distant future, e-commerce
will involve more of our senses, e.g.
smell and touch – which will also
reduce the number of returns.
Intelligent devices will inform the
e-shop if a return is justified.
The return process will be faster.
They will be delivered by drones,
robots, autonomous couriers, or
other intelligent, low-emission
vehicles.
They will be more personalised –
adapted to time, channel,
in the appropriate packaging
or without it.
Forms will be a thing of the past,
replaced by voice-activated
purchases and returns.
Perspective I Perspective II Perspective III
17. MONDI IDEA BOOK 17/20
Turning towards the future
According to Rzeczpospolita
(Polish daily newspaper), the
courier company DPD has
opened fitting rooms in major
Polish cities. Customers can
try on the ordered items and
immediately return those that
don’t suit them.
In one of the 350 Return Bars located,
e.g. in American shopping malls, you
can return items from selected online
stores for free. The goods are checked on
the spot, packed and sent back on pallets, which reduces
logistics costs. The customer provides an email address
so that the refund is initiated immediately. The service
is paid for by e-stores. Behind this idea is the Happy
Returns start-up, which received funding of $11 million
from PayPal, U.S. Venture Partners, and Upfront Ventures.
According to the futurist Thomas
Frey, if all purchases in America were
conducted through the Internet, we
would need 10 times more delivery
vans. Unfortunately, it is not known
whether the author took into account
the number of returns that would need
to be handled if this scenario came true.
In 2014, Amazon filed a patent for the so-called Airborne
fulfillment center. It is shaped like a zeppelin and can
function like a shipping centre. An Internet user made
a film about it that has nothing to do with reality, but
appeals to the imagination.
IKEA has started to try out a furniture
leasing service, including in Poland.
Instead of buying furniture, we will
rent it, and when we get tired of
it – we can exchange it. Borrowing
will replace possessing. As a result, trading will evolve
towards retail-as-a-service.
Switching to the retail-as-a-service model or, even
further, product-as-a-service, means that returns will
become a permanent part of this service. We can expect
that every year there will be more and more of them.
Perspective I Perspective II Perspective III
18. MONDI IDEA BOOK 18/20
Well packed returns according to Mondi
Make sure that the packaging can be opened easily without using tools. This increases the
chances that the box will not be damaged and will be suitable for reuse - i.e. for return.
Ensure a positive user experience and help him prepare the package for return. One proven
method is to use additional tapes in the packaging, the so-called hot melt. Remember that many
people do not have packaging or adhesive tape at home.
Make sure that the raw material and design of the packaging allow the package to easily
make its way back through the return route to the distribution centre and further on to the
original sender. If you are unsure about the strength of the package, please contact us by email:
e.commerce@mondigroup.com
Adjust the packaging to the size of the product being shipped: eliminating empty space
reduces the likelihood of damage during both delivery and return.
Consider adding a short return instruction to your package.
It might be a good idea,
but we don’t want to waste our
customers’ valuable time. That is
why we only measure the general
level of satisfaction with our
services.
Do you measure
satisfaction
with returns?
Perspective I Perspective II Perspective III
19. MONDI IDEA BOOK 19/20
e-conomic
e-fficient
e-asy
processes
logistics
consumer
experience
environment
protection
Mondi
e-commerce:
e-conomic,
e-ffective,
e-lastic
We are constantly improving
packaging that is conducive to
the development of e-business
In our 3e approach, we challenge packaging to support
the profitability of your e-store. We have created
e-conomical, e-ffective and e-lastic solutions. These are
effective projects ensuring customer satisfaction, fast
and safe packaging, and full use of space and materials.
Our solutions guarantee added value and reduce costs.
Looking for information on optimising packaging to the
needs of e-commerce customers and the supply chain?
Contact Maciej Sawina:
Maciej Sawina
Expert in the field of UX e-commerce packaging
e.commerce@mondigroup.com
https://www.linkedin.com/in/maciej-sawina
20. MONDI IDEA BOOK 20/20
Mondi IDEA BOOK
Write to us at e.commerce@mondigroup.com if:
• you want to share your insights with us about the ideas presented,
• you are interested in a specific topic related to modern
commerce and want to take part in our workshop.
We look forward to hearing from you!
Best Regards,
Team Mondi
Thank you for reading the
“Mondi idea book”
We will continue the expert discussion on the
challenges of modern commerce and e-commerce
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