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A happy shopping experience starts with a strong returns policy. Here’s how to cut the costs of returns and keep customers happy.

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When it comes to selling your products, especially during peak shopping periods, many brands find themselves grappling with returns.It’s estimated that between 13 and 30 per cent of stock sold during the 2023 holiday season was returned. That’s the equivalent of<a href="https://nrf.com/research/customer-returns-retail-industry-2021" rel="noopener noreferrer" target="_blank"> hundreds of billions</a> of dollars’ worth of stock.And return rates are rising, thanks to a pandemic-induced surge in online shopping. Why? Because in-store shoppers return around 10 per cent of products, while online shoppers send back up to 40 per cent.

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Regardless of industry, returns represent a significant cost to many retailers. Not only are there delivery costs to factor in, but staff might also spend time checking products for faults, before repackaging them, re-warehousing them and reselling.Recently, global retailer <a href="https://www.asos.com/au/" rel="noopener noreferrer" target="_blank">ASOS</a> even pointed to soaring return rates as a contributing factor to its <a href="https://www.theguardian.com/business/2022/jun/16/asos-warns-on-profits-amid-significant-increase-in-customer-returns" rel="noopener noreferrer" target="_blank">downgraded profit estimate</a>. And there are other costs to consider too, with returns also impacting the environment.Here's how to reduce return rates and save money…<h2>Present products clearly</h2>The rise of e-commerce has given rise to a new trend: bracketing. This occurs when customers purchase a product in several sizes with the intention of trying everything on at home and choosing the best fit.In fact, a <a href="https://www.prnewswire.com/news-releases/narvar-study-finds-58-of-consumers-intentionally-buy-more-goods-than-they-intend-to-keep-301416568.html" rel="noopener noreferrer" target="_blank">Navar study</a> recently found that 58 per cent of shoppers intentionally buy more products than they intend to keep and that “fit and size” continue to be the primary reason for online returns, accounting for 42 per cent of returns.The solution? Providing as much detail as possible about every product – fit, size, dimensions, features, material and appearance – to give customers as much confidence as possible in committing to a single size. That also means providing multiple, clear photos of the product or garment from a number of angles. A clear and detailed size chart is another must for fashion and footwear retailers, making the consumer experience as streamlined as possible.Global clothing retailer <a href="https://www.everlane.com/" rel="noopener noreferrer" target="_blank">Everlane</a> takes this one step further by also photographing the same garment on models of varying sizes and body shapes so that consumers can better understand how they will look in the piece.&nbsp;&nbsp;Some brands such as <a href="https://www.ganni.com/en-au/home" rel="noopener noreferrer" target="_blank">Ganni</a> offer free alterations to buyers in a bid to reduce returns. The Danish fashion brand has partnered with clothing repair app Sojo for the service. “Online shopping has a huge environmental cost attached to it due to the amount of returns that are made – with the majority of returns being due to poor fit,” <a href="https://fashionunited.uk/news/fashion/ganni-partners-with-clothing-alteration-app-sojo/2021111859425" rel="noopener noreferrer" target="_blank">explains</a> Sojo CEO and founder Josephine Philips. “By partnering with Sojo to offer local tailoring, Ganni is reducing environmental impact and also creating clothes that fit customers perfectly, which [means they] will then be loved for longer.”

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"Online shopping has a huge environmental cost due to the amount of returns that are made."

<h2>Try a tech solution</h2>Technology can also help buyers achieve the perfect purchase and reduce returns. Start-ups like <a href="https://www.perfitly.com/" rel="noopener noreferrer" target="_blank">Perfitly</a> and <a href="https://themodernmirror.com/home/" rel="noopener noreferrer" target="_blank">The Modern Mirror</a> are developing augmented reality (AR) technology to help customers ‘see’ how clothing will fit before they purchase. Similar technology already exists in the beauty industry (L’Oréal, for example, offers AR services allowing customers to ‘try on’ makeup and hair colours) and for accessories.Optical retailer Bailey Nelson offers a ‘<a href="https://baileynelson.com.au/collections/virtual-try-on" rel="noopener noreferrer" target="_blank">virtual try-on</a>’ feature allowing people to try sunglasses and glasses. Not only can these types of services reduce returns, but, according to Bailey Nelson, the virtual try-on feature has also increased conversions by <a href="https://www.cmo.com.au/article/691080/virtual-try-on-sees-bailey-nelson-online-conversions-lift-400-per-cent/" rel="noopener noreferrer" target="_blank">400 per cent</a>.<h2>Forget free returns</h2>Although free returns policies have become ubiquitous – and it’s well known that many customers will buy but then abandon purchases thanks to free returns – some retailers are beginning to introduce paid policies.<a href="https://edition.cnn.com/2022/09/29/business/hm-return-fees/index.html" rel="noopener noreferrer" target="_blank">Global retailer H&amp;M</a> recently announced it was considering testing a paid returns policy, where online shoppers must cover the shipping costs of their returns. In May, <a href="https://www.zara.com/au/" rel="noopener noreferrer" target="_blank">ZARA</a> announced it would charge British customers a £1.95 return fee to return products by mail (a policy already in place in other countries). Other retailers, such as <a href="https://lisasaysgah.com/" rel="noopener noreferrer" target="_blank">Lisa Says Gah</a>, <a href="https://lisasaysgah.com/pages/faq" rel="noopener noreferrer" target="_blank">deduct shipping costs</a> from the overall amount refunded.Another way to reduce the shipping cost of returns is to partner with a reverse-shipping provider or logistics hub to give customers the option to drop returns at designated ‘<a href="https://happyreturns.com/#homepage-return-and-exchange-portal" rel="noopener noreferrer" target="_blank">return bars</a>’ or <a href="https://hubbed.com/network/" rel="noopener noreferrer" target="_blank">drop-off points</a>. That way, returns can be collected in bulk by retailers, removing the final-mile delivery costs and avoiding having to pay for every individual return.<h2>Add friction to ‘free returns’</h2>Charging for reverse shipping is one way to discourage shoppers from returning products. But there are other ways to add ‘friction’ to the returns process and dissuade returns.For example, offering free returns for products that are dropped off in-store removes the cost of final-mile delivery, while offering an extra-long returns period – say 30 days – removes the sense of urgency for consumers who may well forget to return their product or decide to wear it during that period.<h2>Opt for Afterpay</h2><a href="https://afterpay-corporate.yourcreative.com.au/wp-content/uploads/2021/04/Afterpay-Economic-Impact-report-2020-Accenture.pdf" rel="noopener noreferrer" target="_blank">A report by Afterpay Australia</a> found that those who pay with Afterpay are less likely to return their purchases.In Australia, return rates for in-store purchases are around 9 per cent and 20 per cent for online. With Afterpay, return rates are much lower: around 6 per cent for in-store purchases and just 2 per cent for online.This may be because many Afterpay customers use the buy now, pay later platform as a budgeting tool, which drives more considered purchases and a lower rate of return. Afterpay <a href="https://afterpay-corporate.yourcreative.com.au/wp-content/uploads/2021/04/Afterpay-Economic-Impact-report-2020-Accenture.pdf" rel="noopener noreferrer" target="_blank">reports</a> that in 2020, Australian retailers are estimated to have saved $30&nbsp;million in lower depreciation costs and shipping and handling as a result of lower returns.<h2>Outsource returns</h2>If you deal with large volumes of product returns, one way to mitigate the operational costs of handling them is to outsource the entire process to a third party. By engaging a dedicated ‘reverse shipping’ company, you can receive returned products in batches rather than as a steady stream of daily parcels, and even choose to have merchandise verified by a third party rather than overwhelming your warehouse staff.Specialist returns staff – from companies such as <a href="https://happyreturns.com/" rel="noopener noreferrer" target="_blank">Happy Returns</a> and <a href="https://smartreturns.in/" rel="noopener noreferrer" target="_blank">Smart Returns</a>, which operate dedicated returns facilities – may also be faster and more efficient at sorting returns. Many also have relationships with liquidators and recyclers who can help recapture value from damaged products.<h2>Reframe returns as an investment – not a cost</h2>Some experts believe that the secret to reducing the costs of returns is not to view returns as a headache, but to instead reframe them as an investment in long-term customer value.That’s because a good (or bad) return experience can make (or break) a customer’s relationship with that brand. According to <a href="https://optoro-corp.s3.amazonaws.com/WBRConsumerReturns2018OptoroReport.pdf" rel="noopener noreferrer" target="_blank">Optoro</a>, 89 per cent of consumers are less likely to shop at a retailer or brand if they had a bad experience with their returns. On the flipside, 97 per cent of customers say they would be more likely to purchase from a company that they had a positive return experience with.From that perspective, the solution to rising returns may well be to make returns as easy and fast as possible for customers to maximise brand loyalty and extend customers’ lifetime value.That means clearly outlining your returns policy online (including on your header or footer, product pages, cart checkout and FAQ page), and offering customers flexibility, speed and great communication when it comes to delivery and refunds.Reverse shipping provider <a href="https://returnly.com/" rel="noopener noreferrer" target="_blank">Returnly</a> takes this one step further. When customers return a product they are given an instant ‘<a href="https://returnly.com/blog/why-a-successful-holiday-season-starts-with-returns/" rel="noopener noreferrer" target="_blank">Returnly credit</a>’, which allows them to shop for a new item online rather than being forced to wait days or weeks for refunds to be processed. Not only does this enhance the customer experience – and engender their loyalty – but it also increases the shopper’s propensity to buy again.

"Being able to facilitate easy returns plays a huge role in success."

Brett Chester, chief marketing officer at <a href="https://www.shippit.com/" rel="noopener noreferrer" target="_blank">Shippit</a>, describes the returns process as “the other side of the shipping coin,” and something businesses should be thinking about as a core aspect of their business.“Being able to facilitate easy returns plays a huge role in success,” Chester says, explaining that in using third party providers like Shippit, retailers still have full control over return policies while enjoying the many benefits of outsourcing like a reduction in administrative tasks and cheaper shipping rates.Retailers could even look to build returns into the DNA of their brand. For Melbourne-based online furniture retailer <a href="https://eva.com.au/" rel="noopener noreferrer" target="_blank">Eva</a>, a lucrative returns policy that includes free delivery, free pick-up returns and a 365-day return window offers it a unique point of difference in a crowded market – and one that translates into meaningful brand growth.“It starts with thinking about the customer first and then building that into product margins,” says Lia Ang, Eva’s head of marketing, adding that its flexible policy “is the feature that resonates strongest with customers”.She explains, “We know that delivery and pick-up costs are huge turn-offs when it comes to purchasing online, so the balance to strike is to make sure your margins are enough to absorb those costs for the customer while not being so exorbitantly high [that] customers won’t pay for your product.”While a year-long-returns policy is generous, Ang says the unique position also works as a way of creating consumer confidence, saying, “what we were hoping to illustrate is the trust in the quality of our products, and that we design and build products to be with you for a long time”.

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A happy holiday season starts with a strong returns policy. Here’s how to cut the costs of returns and keep customers happy.

How to cut the costs of returns - from presenting products clearly to charging for returns - and keep customers happy during the holiday season.

Reduce product returns: 5 tips to save money and reduce returns

Five ways to reduce returns – and save money

The secrets to fast, efficient shipping during the festive season.

<a href="https://www.finder.com.au/online-shopping-statistics" rel="noopener noreferrer" target="_blank">Three in four Australians</a> now shop online every week, and whether they’re buying beds or beauty products, fitness equipment or flowers, online customers all have one thing in common: they want their purchases to be delivered quickly.So, at the end of the year, when customers are purchasing seasonal gifts, it’s more important than ever for e-commerce retailers to meet customer expectations for shipping and delivery.“A good shipping strategy is something that sets and meets customer expectations without impacting a business' bottom line,” says Brett Chester, the chief marketing officer of multi-carrier shipping platform<a href="https://www.shippit.com/" rel="noopener noreferrer" target="_blank"> Shippit</a>. “It also empowers businesses by giving them back time that can be eaten up with administrative tasks [allowing them to] spend on more important things like innovation, product development and planning for the future.”

"A good shipping strategy sets and meets customer expectations without impacting a business' bottom line."

Here’s how to create an effective strategy that meets shipping expectations and delivers on customer satisfaction – without breaking the bank.<h2>1. Communicate delivery times clearly</h2>Despite retailers’ best efforts, there’s always the possibility that shipping delays will occur, especially during major shopping events like Black Friday and Cyber Monday in November, and Christmas sales in December.To mitigate disappointment, it’s essential to communicate with customers about delays as soon as possible.“One thing we know is that consumers don’t like a surprise,” says Brian Walker, CEO and founder of <a href="https://trg-aus.com/" rel="noopener noreferrer" target="_blank">The Retail Group</a>. “A lack of transparency and customers being caught by surprise can be pretty injurious to trust.”To ensure communication channels are open, Walker says retailers should publish all shipping information – including approximate delivery times, prices and pre-Christmas purchase cut-off dates – online and let customers know about possible delays before they purchase.And don’t forget to publish your return policy. Shoppers will want to know whether you accept returns or offer refunds, and whether they have to pay to return items.<h2>2. Provide a range of delivery costs</h2>Where possible, multiple shipping options should be provided. Don’t assume that all customers want the cheapest delivery option; some may be willing to pay a premium for speedy shipping (especially if they’re running late with their holiday shopping).“Increasingly, we’re seeing retailers offering a choice of free, standard delivery or paid express delivery. The majority of customers will still choose the cheaper option, but having that optionality is becoming more important,” Walker says, reiterating, “it adds up to knowing your customer and providing them with the choices that are relevant to them”.<h2>3. Offer super-speedy delivery</h2>The concept of ‘fast delivery’ has been redefined in recent years, as more retailers, not to mention on-demand grocery delivery start-ups, seek to differentiate themselves with ever faster delivery times.Today, many retailers are offering two-day, same-day or same-evening delivery times in addition to standard shipping options. Consider how quickly you can deliver shipments to customers – and remember that you can always offer same-day or next-day delivery to customers who live within a specified distance from your shop or warehouse.If you do decide to offer super-fast shipping, ensure that your fulfillment, inventory and tracking processes are seamless and that your site and staff can handle large volumes of orders.<h2>4. Offer collection services</h2>Since COVID-19, when online shopping rates soared, consumer expectation has evolved; today, many buyers expect options like click and collect, which allows customers to find a product and pay for it online before heading in-store to pick it up themselves.<a href="https://cdn2.hubspot.net/hubfs/393073/2020%20Consumer%20Report/MedZing2020-Future-Of-Commerce-Report-FNL.pdf" rel="noopener noreferrer" target="_blank">Studies</a> have also shown that nearly 90 per cent of customers expect to use kerbside pick-up in the future, and that <a href="https://www.medallia.com/blog/buy-online-pickup-curbside-changing-customer-behavior-retail-biggest-opportunity/" rel="noopener noreferrer" target="_blank">customers</a> who enjoyed a positive experience with this option are more likely to ship with that brand again.<h2>5. Keep communicating, post-purchase</h2>Today, customers expect to know exactly where their parcel is as soon as they have pressed ‘purchase’. To offer customers reassurance – and a sense of control – consider providing real-time shipment tracking, SMS notifications (that alert customers when parcels have been dispatched or delivered) and email updates upon delivery.When clothing retailer <a href="https://www.cue.com/" rel="noopener noreferrer" target="_blank">Cue</a> partnered with Shippit, which offers real-time delivery updates to customers, the clothing brand saw a 70 per cent increase in sales conversions and an overall increase in sales of 130 per cent.“The more information and the more options a consumer has, the more confidence they will have in making a purchase because they know what to expect – and that all comes back to communication,” Chester says.Real-time delivery notifications can also be personalised so that they become part of the post-purchase customer experience.

"The more information and the more options a consumer has, the more confidence they will have in purchasing."

<h2>6. Consider free shipping</h2>Offering free shipping is one of the <a href="https://www.statista.com/statistics/1231069/leading-reasons-for-buying-products-when-shopping-online/" rel="noopener noreferrer" target="_blank">top reasons</a> customers decide to purchase, and many shoppers now expect free shipping, abandoning their cart to shop elsewhere if it isn’t available.For retailers, while ‘free shipping’ carries a business cost, absorbing this cost may be worthwhile if it secures a sale. Find out more about how to offer free shipping without breaking the bank <a href="https://www.afterpay.com/en-AU/business/access/shipping-strategies/free-shipping-guide-retailers" rel="noopener noreferrer" target="_blank">here</a>.&nbsp;<h2>7.&nbsp;Go green</h2>Another factor to consider is the environment as there is a growing demand among younger shoppers for sustainable and compostable packaging. Many customers have come to expect ethical brands’ packaging to reflect their stance on the environment, while others may want to pay extra to offset carbon emissions (a service that can be implemented with apps such as Carbon Click.

<h2>8.&nbsp;Look at shipping as a long-term investment</h2>While many retailers simply see shipping as the final step in a sales transaction, both Walker and Chester say good shipping experiences during peak sales time should be seen as a long-term investment in customer retention and growth.Walker points out that most shoppers have pre-researched their purchases before they make them, and checking shipping times and costs is often part of this process. “In addition to price, offering a better shipping deal can be the thing that gets you across the line,” he says.

The secrets to fast, efficient shipping during the festive season

The secrets to fast, efficient shipping during the festive season, so you deliver on customer delivery expectations

How to deliver on your customers' delivery expectations this holiday season

How to deliver on your customers’ delivery expectations this holiday season

Shipping Expectations Delivery

<h2>COVID-19 has caused delays and delivery changes. Here’s how to adapt.</h2>

When the global pandemic struck earlier this year, the world went into lockdown. Borders instantly closed and planes were grounded.Health fears aside, lockdown represented a cruel and ironic blow for retailers. With physical stores shuttered, shoppers turned to online shopping in droves; but just as e-commerce spending soared, the infrastructure to deliver purchases to their destinations crumbled.&nbsp;For brands relying on shipments from overseas, COVID meant scrambling to find new ways to get products into Australia; for those trying to deliver products domestically, it often meant contending with delays.&nbsp;&nbsp;In late August Australia Post recorded one of its busiest days ever, with 2.35 million parcels and letters delivered. But even with pop-up processing centres and additional chartered planes – to compensate for the 90 per cent reduction in “belly space” used for freight in passenger planes – delays and increased costs have remained concerns for retailers, says Paul Zahra, the chief executive officer of the Australian Retailers Association.

In late August Australia Post recorded one of its busiest days ever, with 2.35 million parcels and letters delivered.

The flipside, he says, is that the pandemic has forced retailers and delivery services to turn to creative solutions to win consumer confidence. “We expect this excellent standard to be one of the long-lasting legacies of COVID.”Those creative solutions include the rise of <a href="https://www.afterpay.com/en-AU/business/access/shipping-strategies/click-and-collect-guide" rel="noopener noreferrer" target="_blank">click and collect</a> and appointment-style shopping, and adoption of free shipping, which has become ubiquitous.&nbsp;Increasingly, says Zahra, shipping costs are being absorbed by retailers.&nbsp;“Most retailers are offering either free delivery or a minimum spend for free delivery to maximise sales. Those retailers that offer this proposition see delivery costs more like a marketing cost rather than an added logistics cost and, hence, have a thriving online business.”&nbsp;

"Most retailers are offering either free delivery or a minimum spend for free delivery to maximise sales."

Want to know how other Australian retailers are managing deliveries and shipping during the pandemic? Afterpay has created a special in-depth report on postage, where you can find out how brands like Country Road have adapted their delivery strategies during the pandemic here.&nbsp;We also have a step-by-step guide to click and collect, advice on how to offer free shipping, and a profile of eco-conscious packaging company and Afterpay merchant HeapsGood Packaging.And in the meantime, don’t forget to prepare for the expected surge in online shopping – and the subsequent delays in delivery – in the lead-up to Christmas.&nbsp;To avoid customer disappointment:

Finally, don't forget that Afterpay has partnered with HUBBED - a parcel pick-up and drop-off network - to offer a special discount to Afterpay merchants (find out more&nbsp;<a href="https://clickandcollect.hubbed.com/afterpay/" rel="noopener noreferrer" target="_blank">here</a>). Afterpay merchants can also access special offers with courier solution Shippit (find out more&nbsp;<a href="https://go.shippit.com/afterpay" rel="noopener noreferrer" target="_blank">here</a>.)

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COVID 19 has changed the retail landscape and shipping is no exception Here s how to manage.

COVID 19 has changed the retail landscape and shipping is no exception Here s how to manage

Business Guide to Pandemic Postage & Shipping | Afterpay

How to handle postage and shipping in a pandemic

<h2>How Hubbed tapped into customers’ cravings for convenience</h2>

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It’s a familiar – if frustrating – sight: a small note tucked under the door announcing that you’ve missed your parcel delivery.&nbsp;While most people might spot a missed delivery card and view it as an irritating inconvenience, in 2012 David McLean saw something much more exciting: a business opportunity.&nbsp;That was the year that McLean came up with the idea for Hubbed, an alternative parcel collection service that allows packages to be sent or dropped off at collection points, such as petrol stations or newsagents.&nbsp;For consumers,&nbsp;<a href="http://www.hubbed.com.au/phone/index.html" rel="noopener noreferrer" target="_blank">Hubbed</a>&nbsp;offers “convenience, security and reliability”, says McLean. “The, ‘I want to be able to pick up my parcel from a 24-hour, seven-day BP station. I know it will be there. I can pick it up when I want.’”

“[Customers think:] 'I want to be able to pick up my parcel from a 24-hour, seven-day BP station."

Today, Hubbed has more than 2000 collection points around Australia, and partners with a range of retailers, from BPs to newsagents, plus all major delivery providers, including DHL, Couriers Please and Sendle.&nbsp;As well as missed deliveries, Hubbed offers three other key services: click-and-collect, returns and the option for customers to pick up and send directly from a network location – all without standing in line at the post office.Increasingly, McLean says, consumers are paying for parcels to be delivered straight to a collection point near them, by selecting Hubbed ‘click-and-collect’ via a plug-in at retailers’ checkouts. “Maybe they don’t want the parcel left outside their house because it’s valuable or they don’t have a safe place,” he says.&nbsp;McLean launched Hubbed after spending more than a decade in sales and marketing at Microsoft. It was only after an intern quit to start his own (now-successful) business, that McLean, then 47, realised it was time to make the leap himself.&nbsp;“I’d always been inspired by entrepreneurs, but I never really had the courage to do it. When I saw this young man doing that, I thought, ‘Well, if I don’t do it now, I most probably never will.’ As much as everyone thinks that start-ups are a young person’s game, I thought I had a lot of knowledge and experience with consumer products and retail.”

“I’d always been inspired by entrepreneurs, but I never really had the courage to do it.”

The next step was to come up with a business idea, so McLean set about searching for an opportunity in the enterprise space, with which he was familiar, and in an industry that seemed ripe for disruption. “I thought about utilities, and one of those is managing, shipping and receiving parcels. I saw an opportunity there, and actually I was surprised it hadn’t been done before.”McLean then spent a year researching the delivery market before pitching the concept to newsagents, petrol stations and delivery companies, who were all receptive. “For a retailer, it was a relatively easy sell: ‘I’m going to deliver customers and pay you for it,’” he reasons, noting that newsagents, in particular, were struggling to attract foot traffic. “The average age of a newsagent customer was 57, and online [shopping] was taking away some of their business. So, right at the beginning, I thought that Hubbed would be a way to bring the community back to the newsagent.”For carriers, too, the collection model was attractive. “They're saving money because they're not having to bring parcels back to the depot and then redeliver it. They can just drop it at a collection point.”

“Couriers are saving money because they're not having to redeliver parcels.”

Next came the tech build. “I never had any doubts about [creating] the technology,” says McLean, who initially bootstrapped the business, before Singapore Post took a 30 per cent stake. “I have good people around me, and the technology will never stop being iterated and evolving.”&nbsp;COVID-19 has been a boon for Hubbed, which was valued at $25-45m two years ago, with the surge in online shopping driving more demand for click-and-collect services. However, McLean believes that, even after the threat of COVID-19 subsides, flexible delivery will continue to grow, with retailers realising they need to offer it to remain competitive.&nbsp;“Online retailers are increasingly understanding that the purchase experience no longer finishes at the cart. It actually finishes at delivery… and if you don’t give customers choice, convenience and control, that can affect your conversion rate.&nbsp;“Because if you’re an online merchant and you only provide next-day delivery, and you don’t provide same-day or express delivery, a customer might move to a competitor of yours who does provide those services.”Hubbed’s model is also more environmentally friendly than door-to-door delivery, says McLean. “If you think about a courier, he may be able to deliver 150 parcels a day, dropping off from house to house. If he or she is able to drop 20 or 30 parcels to one location, he’s just reduced a whole bunch of travel and congestion on the road and C02 generated, because most collections are done as part of an existing journey, typically to or from work or the shops on the weekend."

McLean says that the environmental benefits&nbsp;<a href="https://www.weforum.org/press/2020/01/urban-deliveries-expected-to-add-11-minutes-to-daily-commute-and-increase-carbon-emissions-by-30-until-2030-without-effective-intervention-e3141b32fa/" rel="noopener noreferrer" target="_blank">(some studies say collection-point delivery along with other initiatives reduces emissions by 30 per cent</a>) are becoming more of a draw for shoppers, especially Millennials.&nbsp;Promoting this benefit is one of McLean’s plans for 2021 – along with growing the international business. “We actually licence out technology to other customers now. We’ve now set up in New Zealand, and we’re just about to roll out in the Philippines.”

While missed delivery is an irritating inconvenience, in 2012 David McLean saw something much more exciting: a business opportunity. Read more on Afterpay Access

While missed delivery is an irritating inconvenience, in 2012 David McLean saw something much more exciting a business opportunity Read more on Afterpay Access

How Hubbed is Disrupting Online Deliveries | Afterpay

Meet Hubbed: the brand disrupting online deliveries

<h2>How the global pandemic changed retailers' approach to delivery</h2>

With the meteoric rise of online shopping in the wake of COVID-19, there has never been a more important time for retailers to look at their offerings around postage and shipping.&nbsp;From social distancing and contactless click and collect, to dealing with unprecedented delays on a strained delivery system, many retailers have had to overhaul the way they get their product into the hands of their customers.&nbsp;&nbsp;So, in the lead-up to the busy Christmas shopping period, we asked five well-known e-commerce brands to divulge their shipping secrets in the era of COVID.&nbsp;

<h2>Country Road on using ‘dark stores’ and introducing frictionless click and collect</h2>When the pandemic hit and stores were forced to close,&nbsp;<a href="https://www.countryroad.com.au/" rel="noopener noreferrer" target="_blank">Country Road</a>&nbsp;immediately adapted, turning empty shops into ‘dark stores’ where they could fulfil the large volumes of incoming online orders.&nbsp;“We also used strip stores [those on streets, rather than in malls], including those found on shopping strips in [Victoria’s] Brighton and Camberwell, into places where customers could have contactless click and collect,” says Matt Jones, head of digital.&nbsp;In the coming weeks, Country Road will also trial&nbsp;<a href="https://socialq.net/" rel="noopener noreferrer" target="_blank">SocialQ</a>’s “shop-by-appointment” booking and queue management platform at its Chadstone superstore. This, says Jones, will not only offer customers a seamless click-and-collect experience, but a frictionless process for exchanges and returns.&nbsp;“There’s still a bit of nervousness out there about being around crowds, so we wanted our customers to have the most frictionless and convenient experience possible,” he says. “With SocialQ, if a customer wants to exchange an item for a different size or style, they can book it in and we’ll locate the item from existing stock and have it there waiting for them.”&nbsp;

“There’s still a bit of nervousness out there about being around crowds, so we wanted our customers to have the most frictionless and convenient experience possible”

Overall, Jones says the brand has been fortunate to avoid the delivery delays experienced by many retailers, thanks to its premium service with StarTrack couriers.

<h2>Country Road’s shipping strategy at a glance:</h2>Standard shipping:&nbsp;&nbsp;Free standard delivery on orders over $50; $10 fee for orders under $50Express shipping:&nbsp;Flat-rate fee of $15 for same-day delivery in Australian metro areas&nbsp;Returns:&nbsp;Free online returns, 60 days (extended from 30 days since COVID)Courier:&nbsp;StarTrackTech:&nbsp;Trialling SocialQ

<h2>Bing Lee on being a click-and-collect pioneer and launching curbside pick-up&nbsp;&nbsp;</h2><a href="https://www.binglee.com.au/" rel="noopener noreferrer" target="_blank">Bing Lee</a>, which was founded in 1957, is one of Australia’s oldest electronics stores. But that didn’t stop it being among the first to adopt click and collect – and the retail chain has since taken this offering to the next level.&nbsp;“Bing Lee is the only major electrical retailer in NSW to offer ‘scheduled click and collect’,” says head of e-commerce, Nigel Price. “It’s a fantastic service that enables customers to have selected items that are out of stock transferred to their favourite Bing Lee store, in which they choose the date and time for collection.”

“Bing Lee is the only major electrical retailer in NSW to offer scheduled click and collect”

Since COVID-19 altered the retail landscape, Bing Lee has also launched a contactless shopping experience. This includes curbside pick-up, where a staff member brings an order to the customer’s vehicle.&nbsp;The retailer, which uses Zendesk software for online orders and customer service, has also extended its cut-off times for next-day delivery.&nbsp;

<h2>Bing Lee’s shipping strategy at a glance:&nbsp;</h2>Standard shipping:&nbsp;&nbsp;Flat-rate shipping on many items (otherwise calculated by nominated delivery address and weight)Express shipping:&nbsp;Next-day delivery available on large appliances within Bing Lee delivery&nbsp;areasReturns:&nbsp;Defective products can be returned to any Bing Lee storeCourier:&nbsp;Australia Post and dedicated Bing Lee delivery trucksTech:&nbsp;<a href="https://www.zendesk.com/" rel="noopener noreferrer" target="_blank">Zendesk</a>&nbsp;

<h2>Sass + Co. Body on launching free shipping on all of its products.&nbsp;</h2>Melbourne-based vegan skincare label&nbsp;<a href="https://sassandcobody.com.au/" rel="noopener noreferrer" target="_blank">Sass + Co. Body</a>&nbsp;took a double hit due to COVID-19, with its new eco packaging being held up overseas and their local manufacturer delaying production to concentrate on making hand sanitiser.&nbsp;“COVID has caused some ups and downs with the business,” says founder Colette Tattoli, who started the plant-based label in 2018. “I was all set to launch a new facial range when the pandemic hit, and I had to cancel the usual promo party and photo shoot due to the restrictions.“Then I found out that my packaging would be held up in China for months and my manufacturer in the next suburb was going to focus on producing hand sanitiser – so us smaller labels got bumped.”&nbsp;

“I found out that my packaging would be held up in China for months”

So, Tattoli looked at new ways of keeping her business healthy, including offering free postage on all products. Although this cuts into her margins, she believes it will deliver dividends by driving sales and building customer loyalty.<h2>Sass + Co. Body’s shipping strategy a glance:&nbsp;</h2>Standard shipping:&nbsp;&nbsp;Free shipping on all orders in Australia, and free shipping to NZ for orders over $100Express shipping:&nbsp;&nbsp;Free express shipping on orders over $50 in AustraliaReturns:&nbsp;No returns acceptedCourier:&nbsp;Australia PostTech:&nbsp;<a href="https://www.shopify.com.au/" rel="noopener noreferrer" target="_blank">Shopify</a>

<h2>Banish on drop-shipping and offering free postage&nbsp;</h2>With its focus on sustainable and eco-friendly household and beauty products, online store&nbsp;<a href="https://banish.com.au/" rel="noopener noreferrer" target="_blank">Banish</a>&nbsp;is on a mission to eliminate waste.&nbsp;&nbsp;“All Banish products are packed without any plastic – this means no bubble wrap, plastic post satchels, plastic air fill, or sticky tape,” says founder Lottie Dalziel, who started the company in 2018. “We sell products that help you reduce your waste, so it would be redundant if our packaging included plastic.”&nbsp;&nbsp;Dalziel, who uses the Shopify sales platform and a drop-shipping method where each brand sends directly to the consumer, says their commitment to free shipping (for orders over $100) has at times been tough on the bottom line.Fortunately, COVID-19 has fuelled demand for eco-friendly household products, and average order size has increased. Like many retailers, Banish has been affected by delivery hold-ups. “We’ve communicated with our customers that there will be delays.”

<h2>Banish’s shipping strategy at a glance:</h2>Standard shipping:&nbsp;&nbsp;Free shipping on all orders over $100Express shipping:&nbsp;No express shipping (due to plastic used on packaging)Returns:&nbsp;28-day returns policy for an e-creditCourier:&nbsp;Sendle and Australia PostTech:&nbsp;<a href="https://www.shopify.com.au/" rel="noopener noreferrer" target="_blank">Shopify</a>

<h2>Auguste on same-day dispatch and personal touches</h2>There’s nothing worse than purchasing a new piece of clothing, only to be slugged by expensive shipping fees, believes Ebony Eagles, the founder and creative director of&nbsp;<a href="https://au.augustethelabel.com/" rel="noopener noreferrer" target="_blank">Auguste</a>.&nbsp;That’s why the Byron Bay fashion label has long offered free and express shipping, eco-friendly packaging and handwritten notes “to show our customers how much they mean to us”, says Eagles.&nbsp;Although Auguste has been largely unaffected by the delays plaguing some retailers, the brand extended its same-day dispatch time and customer care hours, and “worked around the clock” to get as many parcels out as possible.&nbsp;&nbsp;

<h2>Auguste’s shipping strategy a glance:&nbsp;</h2>Standard shipping:&nbsp;Free express shipping within Australia and New Zealand on orders over $50 ($10 flat-rate shipping for orders under $50)Express shipping:&nbsp;Free express shipping on orders over $50Returns:&nbsp;30-day returns policy&nbsp;Courier:&nbsp;DHL, Australia Post and TNT

COVID-19s many challenges also brought innovation that will change the future of business. Hear from Country Road, Bing Lee, Banish and more on Afterpay Access.

COVID 19s many challenges also brought innovation that will change the future of business Hear from Country Road, Bing Lee, Banish and more on Afterpay Access

5 Business Shipping Innovations from Top Brands | Afterpay

Inside the shipping strategies of 5 successful retailers

Postage costs are a leading cause of cart abandonment. Luckily, there are clever ways retailers can offer free shipping

When Amazon first offered free shipping for a minimum spend in 2002, it shifted the goalposts in online retailing forever more.&nbsp;Now, free shipping is the norm, with brands such as THE ICONIC, ASOS, Cotton On, Bonds and Adairs extending standard free shipping to shoppers.&nbsp;It’s a compelling offer for shoppers – and without it, they may cancel their purchase. Studies show that high extra costs such as postage costs are a key<a href="https://baymard.com/lists/cart-abandonment-rate" rel="noopener noreferrer" target="_blank">&nbsp;reason</a>&nbsp;for abandoned carts.&nbsp;There’s no one-size-fits-all approach to offering free shipping. What works for one merchant may completely destroy the profit margins of another.Here’s how to weigh up whether free shipping is a good choice for you – and which option to try:<h2>1. Assess internal costs&nbsp;</h2>Free shipping sounds great, but it carries a business cost that retailers need to justify before simply introducing it as a blanket offer for all purchases. After all, absorbing the cost of free shipping within your business will prove costly over time.So, start by having clear visibility over your internal business costs, including product margins, average cost of online orders and the actual cost of shipping, before you consider whether or not to introduce free shipping.&nbsp;Do this by reviewing the current domestic and international shipping costs based on the average size of an order to determine how viable this is, and whether it’s a sustainable option for your business. Here’s the Australia Post&nbsp;<a href="https://auspost.com.au/parcels-mail/calculate-postage-delivery-times/#/" rel="noopener noreferrer" target="_blank">calculator</a>&nbsp;to help you get started.&nbsp;<h2>2. Set a minimum order amount&nbsp;</h2>To avoid being out of pocket for postage, most retailers set a minimum order amount to qualify for free shipping. Otherwise, customers could make small purchases and get postage costs covered – which is a steal for them, but a loss for you.Avoid absorbing shipping costs in your business by advertising a minimum order value to qualify, say $100. This can entice some shoppers to add items to their cart to get free shipping. In fact,&nbsp;<a href="https://pressroom.ups.com/pressroom/ContentDetailsViewer.page?ConceptType=PressReleases&amp;id=1565041068600-976" rel="noopener noreferrer" target="_blank">36 per cent of online shoppers</a>&nbsp;add more items to their cart to qualify for the free shipping.&nbsp;Australian fashion retailer&nbsp;<a href="https://bluebungalow.com.au/" rel="noopener noreferrer" target="_blank">Blue Bungalow</a>&nbsp;offers free express shipping for orders over $100. “In the fashion niche, it 100 per cent helps to bolster sales, as many people are happy to add another article of clothing to their basket to quality for free shipping,” says the retailer’s Leanne Lee.&nbsp;“This raises your average order, which in turn helps to cover the added cost for us, since we need to absorb the shipping costs.”<h2>3. Build shipping into the purchase price</h2>There are different ways to nudge your customer along the purchase pathway and, as marketers have long known, presenting the cost of an item including the shipping as an all-inclusive purchase will be perceived as good value.&nbsp;Do this by building the shipping cost into the price of the product and adding free shipping. For example, if a dress retails for $129 and shipping costs $9.20, selling it for $139 with free shipping will mean the cost of getting the dress into the hands of the shopper is clear in their mind.&nbsp;For Australian natural deodorant online retailer&nbsp;<a href="https://www.puredeoco.com.au/" rel="noopener noreferrer" target="_blank">Pure</a>&nbsp;Deo Co.,&nbsp;selling products online in one category makes shipping costs tricky. “Consumers may be willing to buy deodorant once and pay shipping to try the product, but regular shipping expenses on top of your day-to-day product costs soon gets old,” says co-founder Nathan Favre.&nbsp;He made a slight price increase to the product and offered free shipping on all orders, with a single deodorant for $12.90 with free shipping. The switch saw a 100 per cent increase in purchases in the first month, with order counts growing month on month. “There’s no profit margin in this approach on its own, but we have confidence that our product will in most cases be loved and lead to repeat purchases,” he says.&nbsp;&nbsp;<h2>4. Offer free shipping on select items&nbsp;</h2>Another approach is to offer free shipping on&nbsp;<a href="https://fitsmallbusiness.com/how-to-offer-free-shipping-on-your-products/" rel="noopener noreferrer" target="_blank">some items</a>, but not others. For example, you could apply free shipping only to items that aren’t as costly to ship, such as those that fit in small packages. Whereas large or bulky items that would cost more to ship could incur postage fees.&nbsp;<a href="https://www.davidjones.com/delivery-choices" rel="noopener noreferrer" target="_blank">David Jones</a>&nbsp;offers free shipping on orders over $50, but bulkier purchases, such as TVs, furniture and beds, incur delivery fees.&nbsp;Alternatively, you could introduce tiered shipping options so that regular shipping is free, and express delivery is at an additional cost.<h2>5. Use free shipping as a promotional event&nbsp;</h2>If your sales are lower earlier in the week, promoting free shipping for these days can entice shoppers to spend, which will even out the peaks and troughs in trade. Or, you could introduce a free shipping code for long weekends to boost sales, which could turn window shoppers into paying customers.&nbsp;Get the word out to your database via <a href="https://www.afterpay.com/en-AU/business/access/email-marketing/what-is-email-marketing" rel="noopener noreferrer" target="_blank">email marketing</a>, or utilise your Facebook page and other social media channels to reach your audience with a free shipping code that can be added to your cart when completing a purchase.

Free shipping has become essential to many customers. Here are five cost-effective ways retailers can offer free postage.

Free shipping has become essential to many customers Here are five cost effective ways retailers can offer free postage on Afterpay Access

5 Cost-Effective Ways to Offer Free Shipping | Afterpay

How to offer free shipping without breaking the bank

<h2>Discover how in-store pick-up can drive sales</h2>One in three Australians have tried it over the past 12 months, and&nbsp;<a href="https://www.retaildoctor.com.au/retail-doctor-group-mindarcs-expert-guide-to-implementing-an-effective-click-and-collect-model/" rel="noopener noreferrer" target="_blank">one in five</a>&nbsp;of us have done it in the last month alone. Click and collect shopping is on the rise – and the pandemic-induced trend looks set to stick around for the long haul.Neatly straddling the worlds of online and bricks-and-mortar shopping, click and collect allows shoppers to choose and buy products online and then pick them up (or collect them) in person.&nbsp;&nbsp;For consumers it’s not only a timesaver, but a method that bypasses delivery costs and delays – and offers more control for the busy shopper. In post-lockdown times, it’s also a way for retailers to manage how customers interact with their physical stores.&nbsp;“Consumers are looking for convenience,” says Anastasia Lloyd-Wallis, head of consumer insights at Retail Doctor Group Australia. She adds that this type of shopping has particular appeal to the “just-get-it-done” shoppers, as well as those who want reliability and security. Research by&nbsp;<a href="https://www.retaildoctor.com.au/retail-doctor-group-mindarcs-expert-guide-to-implementing-an-effective-click-and-collect-model/" rel="noopener noreferrer" target="_blank">Retail Doctor Group</a>&nbsp;has shown that customers who tried click and collect for the first time during COVID-19 have quickly grown used to the service and, crucially, will continue using it.&nbsp;

“Consumers are looking for convenience”

<h2>Work out your ‘why’ for click and collect </h2>One of the appeals of curbside pickup is the variety of ways in which it can work, from unique in-store experiences to contactless, 24-hour locker pick-up.&nbsp;No matter the size or type of store, rolling out this service is about understanding what both the retailer and customer want from the set-up, explains Lloyd-Wallis. Above all, know your customer and know your end goal.&nbsp;Do they own cars? Do they shop socially? If the aim is to boost sales of additional items, it makes sense to encourage the consumer to select and collect products from within the store, so they can browse before picking up their purchase. Shopping in-store also increases the likelihood that customers will make impulse purchases near the checkout.&nbsp;If the aim is to drive sales by making the collection of products as frictionless as possible, there is no need to draw the customer into the store. Instead, retailers can look to options such as&nbsp;<a href="https://insideretail.com.au/technology/dan-murphys-unveils-number-plate-recognition-drive-thru-service-202009" rel="noopener noreferrer" target="_blank">Dan Murphy’s number-plate recognition service</a>, where orders are placed directly into customers' car boots without shoppers needing to leave their vehicle.&nbsp;<a href="https://www.bunnings.com.au/drive-collect" rel="noopener noreferrer" target="_blank">Bunnings has a similar service</a>, while Coles allows shoppers to pick up groceries from&nbsp;<a href="https://shop.coles.com.au/a/national/content/onlinebetterbags-faqs" rel="noopener noreferrer" target="_blank">refrigerated lockers</a>, addressing social-distancing guidelines and convenience in one stroke. Another option is a parcel pick-up and drop-off network like Parcel Locker or HUBBED, where customers can opt to have items sent to one of 2000 pick-up points around Australia.<h2>Put pickup processes in place&nbsp;</h2>Once you’ve identified what you want to achieve from click and collect, the next step is setting up the necessary processes.Retailers must decide where orders will be fulfilled from – whether it’s a central distribution centre, store inventory or whether products can be transferred between shops. The next question is, how long will it take to get orders ready? Some retailers, such as fashion store&nbsp;<a href="https://www.cue.cc/Customer-Info/Click-and-Collect" rel="noopener noreferrer" target="_blank">Cue</a>, promise to prepare click-and-collect orders within as little as 30 minutes; others, like high-end boutique&nbsp;<a href="https://www.tuchuzy.com/pages/shipping" rel="noopener noreferrer" target="_blank">Tuchuzy</a>, will have goods ready within a certain timeframe (2-4pm) as long as purchases are made before 10am.&nbsp;Next, staff must be trained – and your policy must be clearly communicated on your website, so that customers understand, for example, that they need to bring their order confirmation into store.&nbsp;Many ecommerce platforms, including Square Online, allow retailers to integrate curbside pickup into their online store. This means that when customers simply choose the "in-store pickup" option on the checkout page.For some retailers, offering click and collect will require an update of their online capabilities. This was the case for Brisbane’s&nbsp;<a href="https://shaysshoes.com.au/" rel="noopener noreferrer" target="_blank">Shays Shoes</a>, a family business that was established in 1901.“Things have changed quite a bit since my grandfather's older brother started the business,” says owner Wayne Shay. “Technology is the way of the future and click and collect is another avenue for people.”

“Technology is the way of the future and click and collect is another avenue for people”

His end goal is to give his young customers a quick and easy way to buy. So, he changed Shays’ point of sale system so that payment methods and click and collect were seamlessly combined, giving the user the option to buy via an app or the shop’s website. Orders are processed in-store and customers can collect their items within minutes.&nbsp;As he watches the boom in e-commerce put pressure on post and couriers, he expects more shoppers to take advantage of click-and-collect options to secure their purchases this Christmas.&nbsp;“If people can go to their local stores, they will – especially now that they’re allowed to move around more freely.”<h4>FAQ about Click and Collect:</h4>How does Click and Collect work?<ul><li>Your customer places and pays for their order online or via phone, and chooses where and when they’d like to collect it.&nbsp;</li><li>You then prepare the order.</li><li>Your customer receives a notification - for example via email or text message - to confirm that the order is ready to collect.</li><li>Your customer visits your store and collects their item.</li></ul>Is Click and Collect the same as curbside pickup?Yes, click and collect is also called local pickup, curbside pickup and buy online, pickup instore (BOPIS).Can you offer Click and Collect with Afterpay?Yes. Your customers pays with Afterpay online and picks up the item.&nbsp;

Discover how in-store pick-up can drive sales. Just follow this step-by-step guide .

Discover how in store pick up can drive sales Just follow this step by step guide from Afterpay Access