Managing international returns
Al Gerrie, Zigzag Global
WINNERS OF THE INNOVATION AWARD 2016
www.zigzag.global
hello@zigzag.global
Serial returners drive
up online price tags
• Women are the worst offenders!
• ¼ admit to buying with the intention of returning
• 60% say returns policy influences purchase decision
• 2/3 retailers say returns are hurting their business
Wednesday, 18
th
May 2016
zigzag global provides a
software platform linking
retailers with a network of
local warehouses around the
world – where ecommerce
customers can send returns.
© Copyright ZigZag Global Ltd 2016, All rights reserved. Confidential – not to be distributed without written permission.
Instead of sending the goods
back to the retailer, zigzag
can store and resell the stock
locally and provide cash
recovery - not returns.
Cost of returns can
exceed cost of goods
US consumers returned
over $260bn in 2015
Simple returns are more
important than price
Customers want
faster refunds
Fashion has the highest
return rate
Local returns now a
requirement on Amazon
Free or cheap returns
increase sales
Free or cheap returns
increase sales
Returns can be over 40%
In Germany and India
20% returns rate
=20% stock OFF SALE!
"Returns levels for Germany are considerably higher than other countries across
Europe - up to three times the level seen in France and Spain,"
"This can largely be attributed to Germany's catalogue shopping heritage”
"We see a very high number of multiple pair orders in Germany, and these
multiple orders more often consist of colour or style variations, as opposed to
multiple sizes.“
Dave Elston – Clarks Shoes
Retailer
FREE
UK
FREE INTERNATIONAL DAYS
M&S YES YES 35
NEXT IN STORE ONLY OR £3.99 NO 28
Aracadia YES YES 28/14
PRIMARK YES YES 28
Debenhams YES YES 28
New Look YES NO 28
Matalan NO NO 28
Sports Direct NO NO 14
Clarks YES YES 28
JD Sports NO NO 14
Make it Easy!
• Don't hide your returns policy
• Consider a longer returns period
• Include returns info on confirmation emails
Add 'Return' or 'Exchange' tick boxes to inbound label
• Help your warehouse prioritise returns
• Include the channel the goods were sold on
Improve your dispatch notes!
• Add return reason codes
• Make forms easy to fill out / Pre fill
Preprint the basics
• Dynamically print the rest
Control the cost of your returns
• Don't let the customers decide courier
• Send Returns Tracked
• Provide returns labels via a portal
Use the correct language
• Localise delivery address e.g. cyrillics
• Translate your dispatch notes
• Print local returns policies dynamically
Provide a localised returns address
• Requirement for some marketplaces
• Easier for customers
• Faster Refunds / Exchanges
• Cheaper for retailers
Refulfil from local warehouses
• Save on costs
• Faster delivery times
• Lower carbon footprint
• Reduce stock duplication
Refulfil from local warehouses
• Factor in cost of return postage
• What is staff cost?
• What is the cost of lost business?
• Consider cash recovery models not returns?
Experiment with Free vs Paid
• Set thresholds for exchanges and returns
• Personalise for high value customers
Resell returns via Marketplaces such as eBay & Amazon
• Consider markets you don’t currently trade on
• White label to protect your brand & price points
M&M Direct
• M&M Direct upsell a returns label with every purchase
Amazon.co.uk
• Promoting Exchanges on FBA items
• Intelligently offering different sizes or colours
• Refunding automatically on low value items
• Different service for Prime customers
Local returns
addresses worldwide
Intelligent returns based
on sales
Returns resold
to new customer
Returns Portal
(multi language)
© Copyright ZigZag Global Ltd 2016, All rights reserved. Confidential – not to be distributed without written permission.
zigzag provide a simple self-service returns
portal on the returns page
Customer service costs are reduced
© Copyright ZigZag Global Ltd 2016, All rights reserved. Confidential – not to be distributed without written permission.
Read our Returns Policy FREE RETURNS WORLDWIDE
Read our Returns Policy
FREE UK RETURNS
Read our Returns Policy
Read our Returns Policy FREE RETURNS WORLDWIDE
Read our Returns Policy
FREE UK RETURNS
Read our Returns Policy
FREE UK RETURNS
Read our Returns Policy
zigzag displays the customers basket
The buyer selects items to return, with
bespoke return reasons
© Copyright ZigZag Global Ltd 2016, All rights reserved. Confidential – not to be distributed without written permission.
FREE RETURNS
Read our Returns Policy
FREE Postage paid label
FREE Local DPD Pickup Shop
£5 Collection by DPD
How do you want to return your
item?
Choose from:
• FREE Postage paid label
• FREE Local DHL Service Point
• £5 Collection by DHL
Choose from free/paid
convenient returns options:
Postage, PUDO, Collection…
Braintree Payments
in 130 currencies
Intelligent cost controlled
returns label
ZigZag can become
cost neutral
Goods can be relocated
according to demand
Warehouse + Carriage
costs calculated
Fully tracked postal
courier solution
Free or cheap returns
increase sales
Free, Paid or retailer
subsidised returns
Reduce return parcel
journeys by 65%
Save up to 50% on
carriage costs
= £££
+
© Copyright ZigZag Global Ltd 2016, All rights reserved. Confidential – not to be distributed without written permission.
Stock can be graded
and priced ABCD
Full visibility - goods
scanned on receipt
Custom business rules by
Grade or brand
Products back in the
supply chain in 2-3 days
Goods consolidated
weekly or monthly
Improve customer service
and retention
Free or cheap returns
increase sales
Retailers need to turn
stock quickly
Goods Reprocessed
and repacked locally
Customers refunded
on receipt = 4x Faster
© Copyright ZigZag Global Ltd 2016, All rights reserved. Confidential – not to be distributed without written permission.
A Grade stock sold
back via main website
Wholesale, Donate
or destroy locally
Recover up to 75% of sale
price on average
Resale in bulk via B2B
marketplaces
Send back to retailer or to
local store network
B&C Grade goods can
be resold as clearance
© Copyright ZigZag Global Ltd 2016, All rights reserved. Confidential – not to be distributed without written permission.
Resale via
Marketplaces
Single view of stock,
worldwide
ZigZag can integrate
into multiple 3PL’s
Export stock reports
in local currency
Single integration into
Multiple warehouses
Custom business rules
to clear stock
Filter by warehouse,
grade, value, date
© Copyright ZigZag Global Ltd 2016, All rights reserved. Confidential – not to be distributed without written permission.
Local warehouses for
fast moving stock
New warehouses
coming in 2016
Or clear stock from
your own warehouse
ZigZag can integrate
into multiple 3PL’s
China, India, Russia, Brazil
Japan, Canada, Mexico...
Software integrations
eg Magento, Hybris etc
© Copyright ZigZag Global Ltd 2016, All rights reserved. Confidential – not to be distributed without written permission.
Typical Order Flow
• Customer returns itemvia ZigZag Returns Portal
• Carrier collects item from customer
• Warehouse receives item
• Retailer refunds customer (optional)
• Goods sent back to Retailer weekly
WINNERS OF THE INNOVATION AWARD 2016
Winner of the Innovation Award at the World Retail Congress
Shortlisted for Disruptor of the Year 2016 – Retail Week Tech & Ecomm Awards
Shortlisted for Innovation of the Year 2016 - Supply Chain Awards
Winner at London Technology Week - GetInTheRing
