eCommerce Can Be Greener: AfterShip Reveals Green Returns Practices for Various Industries
AfterShip conducted an analysis of Green Returns usage from over 4,000 retailers. Green Returns is a shipping method allowing retailers to refund customers without requesting them to return the items. The study focused on 14 eCommerce industries, including Vehicles, Beauty & Cosmetics, Health, and more, from 2021 to 2023.
Highlights
Among 14 eCommerce industries, Vehicles (8.75%) and Health (8.33%) have the highest adoption rates of Green Returns, followed by Beauty & Cosmetics (3.42%). Furthermore, the analysis revealed that 8 industries are above the average adoption rate of Green Returns across all industries (0.74%).
The majority of Green Returns come from products with lower price points:
Products priced under $50 account for 57.6% of total Green Returns.
Products priced between $50 and $99 account for 27%.
Products priced between $100 and $199 account for 9.9%.
Adoption Rate of Green Returns by Industry: Percentage of Green Returns Volume Out of All Returns Volume (Q3 2021 to Q1 2023)
Green Returns by Product Price: Percentage Distribution Based on Product Value (Q3 2021 to Q1 2023)
Findings and Implications
The analysis of 14 eCommerce industries has revealed that Green Returns is a common practice in many sectors, including Vehicles, Health, Beauty & Cosmetics. This indicates that retailers are likely using Green Returns for non-resellable or non-restockable items. Additionally, products with lower prices tend to adopt Green Returns more than those with higher prices, probably due to the consideration of supply chain and workforce returns costs.
Methodology
Data from over 4,000 eCommerce stores globally, utilizing AfterShip Returns, were analyzed between Q3 2021 and Q1 2023. This analysis identified approximately 14 industries from a sample of 1,500 stores assessed by SimilarWeb.
The findings regarding Green Returns volume and total Returns volume for the 14 industries under investigation are of particular interest. A snapshot of this distribution reveals valuable insights into these industry sectors.
Industry | Volume of Green Returns | Volume of all Returns |
Beauty & Cosmetics | 5,722 | 167,351 |
Vehicles | 4,214 | 48,183 |
Sports | 2,496 | 227,328 |
Health | 2,361 | 28,354 |
Home & Garden | 906 | 35,489 |
Fashion & Apparel | 650 | 1,654,421 |
Food & Drink | 191 | 23,913 |
Computers, Electronics & Technology | 190 | 25,449 |
Jewelry & Luxury | 131 | 27,575 |
Games | 60 | 3,484 |
Childcare | 53 | 22,330 |
Pets & Animals | 31 | 43,196 |
Arts & Entertainment | 2 | 1,472 |
Science & Education | 1 | 1,113 |
Grand Total | 17,008 | 2,309,658 |
Green Returns Is Relevant to Your Brand
eCommerce returns policies often give customers longer return windows and more leeway for accepting products in less-than-perfect condition. This leads to items that cannot be resold or restocked. In addition, returns on seasonal items may come in too late for resale, plus brands sometimes destroy returns to maintain high product value. Instead of throwing away damaged or defective returns, Green Returns issues a refund without requiring the customer to ship it back, which saves the planet and your money. It also enhances your brand’s social responsibility reputation. AfterShip Returns provides flexible routing rules triggered by conditions such as order value, return reasons, and product type. Retailers can leverage automation to enable Green Returns as a returns method for specific items, according to the return policy.
Updated:
April 21, 2023
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