In the long and winding history of ecommerce – from CompuServe’s founding in 1969 to Amazon selling its first book online (remember that?) in 1995 to Apple Pay’s introduction in 2014 – nothing made as instant of an impact as COVID-19 in 2020.
While ecommerce was already embedded in the consumer experience, the global pandemic’s lockdowns and quarantines suddenly turned nearly every shopper into an online shopper. Total online retail spending more than doubled in 2020 driving 33% of total retail sales for the year1. Note that the growth in ecommerce sales in that one year outpaced the cumulative growth from the prior 10 years. Retailers had to adapt, and fast.
To survive this seismic shift, retailers introduced new ecommerce platforms or reinforced their existing processes and policies. To truly succeed in this new reality, many of these platforms and policies addressed new consumer behaviors, such as the rise of BORIS (buy-online-return-in-store) and BOPIS (buy-online-pick-up-in-store) transactions.
After all, more online purchases have naturally led to more returns and pick-ups – and they’re not slowing down anytime soon. That’s why BORIS and BOPIS provide retailers great opportunities to meet and exceed consumer expectations as they turn returns and pick-ups into a positive brand experiences.
While online storefronts are more innovative than ever, there will always be the barrier of a screen that keeps shoppers from truly knowing if the item they’re buying is the right choice.
Consumers can’t touch, taste, or try your product before buying it online. That basic fact drives the need for BORIS and BOPIS – and it’s a major reason online returns more than doubled in 2020 from 2019, with $102 billion of merchandise bought online returned.
Amazingly, these types of transactions didn’t even exist in the realm of retail until relatively recently. Now, as demand continues to grow, so does your organization’s chance to capitalize on shifting consumer behaviors to offset loss from returns, engage your consumers, and maximize profit.
In a recent survey of more than 7,600 consumers by Power Reviews, 70% of respondents stated “item didn’t fit” as the primary reason for return. Considering that same survey showed that clothing and shoes are the types of products most likely to be returned, that’s a big problem for many retailers.
Clothing | 88% |
Shoes | 44% |
Electronics | 43% |
Home & Garden | 24% |
Health & Beauty | 21% |
Toys | 19% |
Appliances | 18% |
Groceries | 14% |
Baby | 11% |
Computers | 8% |
Looking at the data from a different perspective tells a similar story. Appriss Retail analyzed 44,000 stores to build blended return rates by retail category – reviewing 2020 data direct from anonymous ecommerce and POS T-Logs so all returns, exchanges, online returns, employee sale returns, and other refund scenarios are considered.
Retail Category | 2020 Blended Return Rate |
Auto Parts | 19.4% |
Apparel | 12.2% |
Home Improvement | 11.5% |
Housewares | 11.5% |
Department Stores | 11.4% |
Footwear | 9.1% |
Sporting Goods | 7.6% |
Beauty | 4.3% |
Hard Goods | 3.8% |
Drug/Pharmacies | 1.6% |
Free shipping | 96% |
Free returns | 79% |
Fast shipping | 74% |
BORIS | 48% |
BOPIS | 48% |
Free and fast shipping are table stakes for many online consumers. Likewise, free returns have become the norm as competition for shoppers has reached a fever pitch. Looking at the list above, the next big opportunity for retailers to maximize is clear: BORIS and BOPIS.
Amazingly, these types of transactions didn’t even exist in the realm of retail until relatively recently. Now, as demand continues to grow, so does your organization’s chance to capitalize on shifting consumer behaviors to offset loss from returns, engage your consumers, and maximize profit.
1 Bank of America, U.S. Department of Commerce, ShawSpring Research, Forrester Analytics, McKinsey Retail Practice.