As Amazon's Prime Day comes to a close, online businesses are capitalizing on the largest summer sale of the year to boost profits. However, to reap the benefits of this massive shopping event, retailers must prioritize logistics and customer experience.
According to a survey by DHL, 40% of online sellers view shipping costs as the biggest threat to their business, while 38% identify inflation as their primary challenge. Despite these challenges, 65% of respondents believe that the U.S. presidential candidates' stances on international trade will affect their vote.
To succeed during Prime Day, retailers must focus on providing a seamless customer experience, including quick deliveries and easy returns. Kristen Kelly, vice president of product at Loop Returns, emphasizes the importance of a solid return policy, noting that "nothing will frustrate a customer more than thinking they understand the return policy and then being caught off guard."
Kelly also highlights the need for merchants to make returns a simple and easy process for customers, citing the rise of returns fraud as a major challenge. To combat this, some merchants are implementing measures such as boxless, labeless drop-offs, where items are physically accepted and validated before refunds are issued.
In addition to returns, speed and quality are gaining prominence over cost, according to DHL's survey. This shift is attributed to online merchants looking to expand their businesses and focus on time-definite delivery options.
To overcome the challenges of Prime Day, retailers must prioritize logistics and customer experience. By providing quick deliveries and easy returns, merchants can ensure a positive customer experience and drive repeat business. As Kelly notes, "returns cost a lot of money to merchants, and we're seeing that customers are tolerating fees by merchants. Merchants should be looking at ways that they can save on the cost by shifting some of that to consumers."
In conclusion, Prime Day is a critical period for online retailers, and those that prioritize logistics and customer experience are likely to reap the greatest rewards. By focusing on quick deliveries, easy returns, and a seamless customer experience, merchants can drive sales, build loyalty, and stay ahead of the competition.
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