• by Ray Schultz , Columnist, December 30, 2024

Email teams are skilled at sending abandoned cart messages. But how good are they are following up with emails about returns?

The question is pertinent because returns are on the rise. For instance, there was a 30% hike in returns on December 26 (British Boxing Day) YoY, according to a report from Loop Returns, based on interactions seen on its own platform.  

Overall return volume rose by 15.2% YoY. And return value jumped by 17.5% YoY. 

This could be an opportunity for brands seeking to recoup some of this lost revenue. They can send emails offering other options, whether to gift-givers, gift recipients or consumers in general. 

Indeed, brands retained 18.73% more revenue YoY by persuading consumers to forego cash refunds in favor of exchanges and gift cards.

This could add up: The average return volume (ARV) was $134.

Just about every vertical saw an increase in return volume. The sole exception was swimwear, which experienced a 3.5% decrease.  

The Cosmetics & Personal Care sector suffered the biggest jump in returns: they rose by 36% while return value increased by 38% YoY. Apparel accounted for 50% of total returns seen by Loop both in 2024 and 2023. The category also saw a 19% hike in the general merchandise value over the prior year, the second highest. 

In the Accessories area, 25% more retailers used Keep Items returns — a feature that allows consumers to keep an item instead of paying for the shipping to return it. 

It’s not clear whether this was good or bad: There was a 61% increase in Keep Items returns YoY.