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RMA: Returns Make Another (Purchase)
When life gives you returns…
Returns offer an opportunity more than refunds and reverse logistics.
Although 9.4% of GMV is returned, a portion of that revenue can be recouped. Between retained revenue (exchanges) and the upsells on exchanges, net sales rises to 95% of original GMV.
Taken together, the direct opportunity of avoiding a pure refund reaches 4.4%. And, as with all ecommerce investments, uncovering real revenue opportunity north of 1% is an initiative worth exploring.
And, across verticals, the revenue recapture rate varies widely. While home goods and jewelry don't leak returns revenue, swimwear is all wet, with a high return rate and a low returns recapture rate.
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