Add another layer to your #Business literacy. We at Serebral360° would love to know if the Forbes – Entrepreneurs article was helpful, leave a comment, like and share. Let’s dive in and discuss the information and put it to use to grow your business. #BusinessStrategy #ContentMarketing #WebDevelopment #BrandStrategy
Info@serebral360.com 762.333.1807 www.serebral360.com
Grap a copy of our Strategy Books 👉 CLICK HERE FOR VOL1 and 👉 CLICK HERE FOR VOL2
An estimated 25% to 30% of all purchases are returned according to the United States Postal Service. Approximately 5 billion pounds of retail returns end up in landfills, by some estimates. It’s an environmental disaster— and a massive waste of time for those in the returns supply chain.
For companies selling products that cannot be reused, such as beauty and lingerie, this is creating a serious challenge: what to do with all the returned items? Plus, the process of getting the refunds back to their warehouses is costly and has its own carbon footprint.
San Francisco-based Returnly is offering a simple solution: allow customers to keep the product for free and instead, offer them store credit. 100% Pure, a clean beauty brand, is launching this option on their site, enabling customers who qualify for a return to just hold onto the product and receive store credit instead for an alternative product.
“Traditional return policies don’t give direct-to-consumer brands the flexibility or freedom needed to meet modern shoppers’ expectations,” says Eduardo Vilar, founder and CEO of Returnly. “We built Green Returns to help these mission-driven companies live out their values, putting the customer and the planet front and center.”
These Green Returns are not going to work for every industry, he admits, particularly if you’re selling high-value items. But in beauty and lingerie, two industries where hygiene is key, it could be a convenient solution for brands to build some loyalty with customers and minimize the process of returns.
Vilar is aware that some customers may wish to abuse this process, buying products that they want and then requesting a refund to get more products at the company’s expense. To account for that, Returnly looks at the return history of a customer and makes a call on whether or not they qualify for a Green Return; if there are no red flags, he says, customers will see the option pop up on their screen.
For Ric Kostick, CEO and founder of 100% Pure, this is an ideal solution for the beauty industry, which can see return rates from 5% to 20%, he says. “It’s so hard to get colors to match. Our team works really hard to make the color as true as possible on a computer screen, but screens can vary and there will be customers who may not like the color, once they see it.”
In situations like that, where there’s nothing wrong with a product, per se — just a matter of preference or match. So these customers can pass that item along to a friend or family member and get store credit to purchase something else on the 100% Pure site. That eliminates some of the burden for the company to bring the product back to their warehouse and then figure out what to do with it.
“It pains me when I go into our warehouse and see bins of products that are not usable anymore. And it’s not just the product, it’s the packaging that goes with it. Why not just let customers hold onto it and they can pass it on. That model made so much more sense for us,” he explains. “When I see our product go out for home shopping, where return rates are higher, I know that some of that is going to end up in a landfill —and that really bothers me.”
Kostick had been looking for a solution, while trying to stay competitive with Amazon on their return policy. Previously, he says the brand offered free shipping and returns both ways to customers. “Then I realized maybe we don’t need to do what Amazon is doing. So we have a minimum dollar amount now for free shipping. But this is the first idea I’ve seen in the industry that’s truly game-changing.”
Given the feedback on this initial launch with 100% Pure, Returnly may tweak the model further, based on their findings. But Vilar is less worried about the “few bad actors,” he says that may abuse the model and more excited about what it could mean for industry-wide change and impact.
“We really helped bring the organic movement to beauty, and we’d love to do the same with cutting down on waste,” Kostick adds. “I hope that brands who are less concerned about environmental impact also think about it from a finances and efficiency perspective. It just makes sense.”
June 30, 2019 at 01:41PM
Forbes – Entrepreneurs