E-commerce businesses are decreasing the sales of brands
Brands and companies are sweltering in the challenge of returning purchased products or items. Whenever, a product is purchased, and then returned by customer, it put bad smudges on the face of the brand or company as the product neither can be resold nor can be displayed on shelves for marketing purposes.
E-commerce has its share in almost every industry
Original price of the product cannot be retained in order to sell it to others. Previous reports and findings of various researches depict the reality that the trend of returning online products are escalating day by day. This aspect is challenging their economic incentives and causing decline of brands. The situation becomes more disgusting, when we come to know that e-commerce has its share in every market. This includes, both purchases and returns. These share also damages the product related brand or company.
Change of prices in E-commerce is making impact
Free shipping services also challenge interests of brands. But in these days, free shipping services are provided and retailors have moulded themselves. Usually, their policies are responsive and customer friendly. Retailors adjusted the attitude of return with changing prices of their products by looking over interests of brand as well as of customers. It is a factual reality that return ratio of physical shopping has been lesser than the ratio of online buying. E-commerce has a large share of retails.
Challenges for both retailers and online businesses
Rising return ratio and high return handling costs have been deteriorating and cutting economic pledges of the brands or companies. Unstable return rates are posing threat to quality of brands and for the comfort of customers. Moreover, many companies and brands are still committed to post cold war liberal economic policies to provide more and more facilities to their customers like free shipping. On a few occasions, they even sacrifice their economic interests just to retain competitive marketing trends. There are a number of such other rising challenges, not only for retailers but also for online businesses. They are providing online shopping services by playing a role of bridge between customer and brand like amazon. Complaints and apprehensions have been prevailed from both sides but retailers are still committed to their liberal economic policies to maintain their reputation and existence following competitive marketing trends. If the customer attitude of high return remains high, retailors will have to redefine their policies to meet with the harsh realities.