Returns rates are hitting ever higher levels each year with a 26% increase reported in the UK between 2021 – 2022. Clothing, shoes, and accessories brands are feeling the impact of returns the most with brands like Next and ASOS starting to charge for returning product, to curb the huge costs across supply chain and logistics caused by returns.
On top of rising returns rates, Amazon continues to dominate market share, adding pressure to already stretched trading and marketing teams to innovate and meet demands of growth targets from boards and shareholders. Combine this with changing demographic spending shifts and consumer expectations driven by Gen Z audiences, brands are expected to redefine the digital shopping experience, embedding social principles into ecommerce.
So, what’s the answer to these challenges?
Could the rise of digital communities help to solve them?
Whilst ecommerce has a long way to go to become a social, hang out with your friend’s activity like offline shopping of days gone by, virtual social shopping is becoming possible within Web3 environments and by borrowing from the social networking playbook.