This trend enables customers to order multiple items before deciding what they would like to keep. There is no upfront cost: shoppers simply pay for anything they keep after a certain number of days, usually thirty days following dispatch. They return anything else that they don’t want, for which they are never charged.
It means that customers can order and try items as they would in-store but crucially they do not have to wait for returns to be processed in order to receive reimbursement for goods that they don’t want.
This “try-before-you-buy” scheme was launched by ASOS in November 2017 and is becoming more and more important, especially with the launch of the Amazon’s service “Wardrobe” which allows customers to choose their clothes and to pay according to their returns.
However, this trend increases the number of returns (around 3 or 4 additional returns per month per consumer). E-merchants need to be equipped with a return management platform as powerful as their order management tool to take advantage of this business opportunity.
2) E-commerce shopping festivals
Ecommerce shopping festivals and themes are popular in the ecommerce retail world. This convinces many consumers to make purchases during these festival periods. Black Friday, Cyber Monday and Singles Day are just a few of the many online festivals that are popular. For example, based on Nielsen’s survey 79% of consumers said that they would participate in the festival. Many online platforms such as Alibaba and JD.com has realized that their sales growth doubled on Singles’ Day. On these festival days many consumers are more open to trying new products which allows for many more new brands to be recognized when entering the market during this time period.
3) New retail: online and offline are merging rather than competing
New retail is a new concept that emphasizes the integration of online and offline retail elements which includes products, services, logistics, big data, marketing and management and so on. This is a concept that is gradually growing in China. Alibaba recently invested 2.9 billion in China’s biggest offline retail group.