A recent survey by Software Advice’s 2023 Retail Returns and Sustainability Strategies indicates that small and midsize retail businesses (SMBs) grapple with increased product return rates and rising consumer expectations for eco-friendly practices. Notably, 93% of SMB retailers focus on sustainability in managing customer returns, with 58% recognizing inventory cost optimization as a benefit.

Key findings from the survey show a growing emphasis on environmentally friendly practices among SMBs:

• 59% of SMB retailers use eco-friendly logistics, up from 43% the previous year.
• 49% are partnering with third-party experts for product returns, marking a significant increase from 31% in 2022.
• 63% adopt right-size packaging, while 55% use recyclable/reusable shipping boxes.

The survey highlights a shift in the perception of returned products, with 51% of retail SMBs viewing recycling as a top action in managing returns. This strategic approach enables them to resell or recycle items, reducing waste and recovering lost sales. Approximately 35% claim they can recoup over half of the cost of a returned product through these efforts.

An effective and sustainable returns process not only aids cost recovery but also enhances a retailer’s market standing. This year, 41% of retail SMBs reported increased brand competitiveness due to their returns process. Moreover, 64% cited elevated customer satisfaction, a notable rise from 35% in 2022.

However, despite aligning sustainability efforts with customer satisfaction, 63% of SMB retailers admit a discrepancy between their company’s actions and public messaging on sustainability. This indicates a need for better communication and integration of sustainable practices into the overall brand narrative.

The article also touches on the broader context of the Uyghur Forced Labor Prevention Act enforcement, emphasizing its impact on importers dealing with goods from China. The legislation aims to combat forced labor and has led to the blacklisting of several Chinese companies involved in such practices.

The survey underscores the growing importance of sustainability in managing returns for SMBs, aligning with broader industry trends and consumer expectations.

Inspired by: https://www.mhlnews.com/global-supply-chain/article/21277059/small-retailers-can-now-recoup-customer-returns-losses