Product returns are a significant challenge for both the environment and your bottom line. In an era where online shopping is more prevalent than ever, understanding how digital shelf analytics (DSA) can mitigate these costs is crucial. As ecommerce continues to grow, so does the volume of returns, leading to increased logistical expenses, waste, and a negative impact on sustainability goals. But could digital shelf analytics hold the key to reducing these costly returns? The ease of online shopping has led to a significant increase in product returns. A recent report from the National Retail Federation (NRF) found that U.S. retailers expected over $761 billion in returns in 2021, representing approximately 16.6% of total retail sales. This surge in returns is driven by various factors, including the inability to physically interact with products before purchase, leading consumers to buy multiple sizes or styles with the intent to return items that don’t meet their expectations. This issue isn’t confined to the B2C sector alone. The increasing consumerization of B2B purchasing has led to more returns in the manufacturing and industrial sectors. For instance, incorrect product specifications or missing details can result in costly project delays, especially in industries where precise measurements and materials are critical. But there’s hope for reducing these returns: digital shelf analytics (DSA) offers powerful tools to help brands and manufacturers minimize returns by ensuring product information accuracy, maintaining brand consistency, monitoring pricing, and leveraging product reviews. Digital shelf analytics (DSA) refers to the use of advanced software to analyze, monitor, and optimize the performance of your products across all digital touch points. These touch points include online marketplaces, retailer websites, social media platforms, and your own ecommerce site. DSA software provides brands with critical insights into buyer behavior, product performance, and competitive positioning on the digital shelf. With this information, brands can address issues that lead to returns and improve the overall customer experience, ultimately reducing the likelihood of returns. Several key factors contribute to product returns, including: Regardless of the reason, product returns have significant consequences for businesses. These include increased logistics and resource costs, a negative impact on sustainability efforts due to higher waste levels, and potential damage to brand loyalty, especially when products don’t match their online descriptions. Many product returns stem from a poor customer experience on the digital shelf. This could be due to inaccurate product information, missing images, or inconsistent product details across different channels. Digital shelf analytics helps brands identify and rectify these issues before they result in costly returns. Inaccurate or incomplete product information is one of the leading causes of product returns. A 2022 study by Salsify found that 87% of consumers are unlikely to make a repeat purchase with a brand if they experience incorrect product information. DSA software helps brands maintain accurate and consistent product information across all channels, reducing the risk of returns due to misleading or incorrect details. For example, a misplaced decimal point in a product’s dimensions can lead to serious issues, especially in industries where precision is critical. Digital shelf analytics can automatically identify such errors and alert you before they lead to customer dissatisfaction and returns. Your brand’s identity—logos, product descriptions, images, and other branding elements—must be consistent across all digital channels. Inconsistent branding can confuse customers and erode trust, leading to higher return rates. DSA software can monitor all your digital touchpoints to ensure that your brand identity remains consistent. If a discrepancy is detected, such as an outdated logo or missing product image, the software alerts you so you can make the necessary corrections. This consistency helps reinforce brand trust, making customers less likely to return products. Price inconsistency across channels can lead to customer confusion and dissatisfaction, especially if they find the same product listed at different prices on different sites. According to a study by Deloitte, 80% of consumers check multiple channels before making a purchase, and price consistency plays a significant role in their buying decision. Digital shelf analytics can monitor pricing across all your sales channels, allowing you to maintain consistent pricing strategies. This minimizes the likelihood of returns due to price discrepancies and enhances the overall customer experience. Product reviews are a critical component of the customer decision-making process. According to BrightLocal, 91% of consumers read online reviews before making a purchase, and 84% trust reviews as much as personal recommendations. Monitoring these reviews through DSA allows you to identify patterns in customer feedback, such as recurring issues with a product. By addressing negative reviews and responding to customer concerns, you can improve product quality and customer satisfaction, which in turn reduces the likelihood of returns. For example, if customers frequently mention that a product runs smaller than expected, you can adjust the sizing information in the product description to better align with customer expectations. Recent advancements in AI and machine learning have significantly enhanced the capabilities of digital shelf analytics. AI-driven DSA tools can analyze vast amounts of data in real-time, providing insights that can help you optimize product listings, detect errors, and predict future trends. For instance, AI can identify which product attributes (such as color, size, or material) are most frequently associated with returns and suggest improvements to product descriptions or images. This proactive approach can help reduce returns by addressing potential issues before they impact the customer experience. Search engine optimization (SEO) is crucial for ensuring your products are easily discoverable on the digital shelf. A recent survey by Conductor found that 64% of marketers believe SEO is more important than ever during the COVID-19 pandemic. DSA software can help you optimize product content by analyzing keyword performance and suggesting improvements, ensuring your products appear in relevant search results. By improving your product’s visibility and ensuring accurate information, you can attract more qualified buyers—those who are more likely to be satisfied with their purchase and less likely to return it. Industry thought leaders are increasingly recognizing the importance of digital shelf analytics in reducing product returns. According to Omnichannel expert Scott Silverman, “The ability to track and optimize every aspect of your product listings in real-time is a game-changer for brands. Digital shelf analytics not only reduces the risk of returns but also enhances the overall customer experience, leading to higher satisfaction and loyalty.” In today’s competitive ecommerce landscape, data is the key to success. Digital shelf analytics provides brands with the actionable insights they need to optimize their digital presence, reduce product returns, and improve the overall customer experience. By leveraging the power of DSA, AI, and real-time data, you can make informed decisions that benefit both your bottom line and your customers. Contact us today and start leveraging digital shelf analytics to cut down on returns and build a more sustainable, profitable ecommerce strategy. Get the latest articles delivered directly to your inbox!
How Digital Shelf Analytics Reduces Product Returns
The Growing Problem of Product Returns
Understanding Digital Shelf Analytics
Why Product Returns Are a Major Issue
How Digital Shelf Analytics Can Reduce Product Returns
1. Ensure Accurate Product Information
2. Maintain Brand Consistency Across Channels
3. Monitor and Optimize Pricing
4. Leverage Product Reviews for Continuous Improvement
5. Harness the Power of AI and Machine Learning
6. Enhance Product Visibility and SEO
Influencer Insights: The Impact of DSA on Returns
Conclusion: Better Analytics Lead to Better Decisions
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