Meeting the Challenge of Bracketing Head On

Reverse logistics – which naturally includes customer returns – is becoming a major challenge for retailers and needs to be a point of focus for strategy development as we move into the latter half of 2022 and beyond.

In part, this is a rod we have made for our own backs. In our never-ending quest to make returns more convenient and simpler to facilitate, we have partly been responsible for the surge in customer returns actually being carried out. This is only part of the picture of course, online shopping and its proliferation during the pandemic is also responsible for these increased volumes.

Customer behavior is also creating issues for retailers and reverse logistics. Wardrobing – the act of buying an item for a particular occasion and then returning it afterwards – is very well known in the business. However, there is a new kid on the block.

Bracketing

One of the newer phenomena impacting returns volumes is the practice known as bracketing.

With bracketing, customer order multiple variations of the same item. For example, they might order an item of clothing in various colors and sizes. Once they receive all the items, they try them on, choose the one they like the best and return the rest.

The ease of online shopping and the uncertainty of purchasing items you cannot physically see, or hold has fed into this practice and made it possible and is creating havoc for retailers. The additional pressure being put on reverse logistics operations is significant and is causing reverberations up and down the value chain. A recent survey found that 58% of shoppers have bracketed their online purchases. 

This is just one of the practices which is driving an increase in returns volumes and retailers need to meet them head on or risk becoming overwhelmed. With shoppers returning around $100 worth of merchandise each year, the cost to retailers can be staggering.

"Returns impact every link across the supply chain, and it requires transportation, processing and a sufficient number of workers," said CEO, Association for Supply Chain Management, Abe Eshkenazi. "We’re witnessing a drastic shift in consumer spending behaviors, from in-store to online buying. It’s turned the entire supply chain landscape on its head, and in tandem with that change, there’s been a significant increase in the returns that follow."

The Environmental Cost

The increase in returns also comes with a significant environmental cost as well. Not only must we consider the additional fuel – carbon dioxide produced from ecommerce returns in 2019 was equivalent to three million cars driving in a single year – packaging, and other resources needed to facilitate returns, but also the fact that around 25% of returns are not sent back in a resalable condition and must therefore be disposed of.

This is especially true of products such as undergarments which cannot be resold due to hygiene reasons.

"Many retailers end up throwing away over 25 percent of their returns," said CEO and Cofounder of reverse logistics technology company Optoro, Tobin Moore. "Holistically, that ends up being over 5 billion pounds of goods that end up in landfills a year from returns."

With sustainability becoming an ever-greater concern for global industry, it’s clear something needs to be done to address practices such as bracketing and to reduce the overall volume of ecommerce products being returned.

How to Combat Bracketing

Unless your brand wants to start limiting the number of purchases of the same item customers can make – which is not something we’d recommend – bracketing is not a problem which can easily be fixed with policy or process.

Brands need to better engage with customers and give them more methods of establishing the right fit and color for them, so they can make an informed purchase, without relying on practices such as bracketing.

Better sizing charts with specific measurements will help reduce the need for bracketing, as will including more images of the various colors and on models with a range of body types. Implementing virtual changing room technology can allow customers to see how the items look on actual images of themselves.

In extreme cases, brands can put some limits on returns. It’s not unusual to see companies – especially those selling undergarments – state that returns will only be accepted in the case of there being a real fault with the item and not simply because of a change of heart.

Final Thoughts

Bracketing will continue to increase returns volumes and retailers need to find a way to balance providing the kinds of generous returns options the modern customer expects and limiting their ability to engage in such practices.

Bracketing is sure to part of the conversation at Consumer Returns 2022, taking place in October at the Hyatt Regency Austin, TX.

Download the agenda today for more information and insights.