How EsQualo retains revenue after Black Friday

The e-commerce market is changing. We already saw online sales increase significantly—partly due to the pandemic—and that trend is continuing. The new generation of consumers orders items online with the greatest of ease. Yet, online stores are facing the challenge of high product return rates. 

‍Especially after Black Friday, return rates can climb by as much as 140%. We spoke with Bas Jansen from EsQualo and Olivier Muller from Returnista about ways to reduce returns and retain revenue.

Impulse buys put pressure on revenue

High energy costs, reduced consumer purchasing power, and the prospect of higher tax burdens mean that online stores must look for solutions to tackle these challenges. 

On top of that, online stores are currently dealing with excess inventory. Jansen: “During the pandemic, we sometimes couldn't keep up with demand, and most stores stocked up accordingly. But now, demand is stagnating and we are left with surpluses. I expect companies will use Black Friday to clear that stock.”

Online ordering is more accessible than ever

Online shopping took off during the pandemic. Online stores implemented technology that lowered the barriers to making an online purchase as much as possible. Jansen: “Ordering online is more accessible than ever. We even see orders coming in at 2 a.m. these days.” 

According to Muller, it is precisely technological developments like same/next day delivery, or buy now pay later that entice consumers to make as many purchases as possible. Muller: “You separate the moment of purchase from the moment of payment. Psychologically, that encourages impulse buying.”

Black Friday: what’s the real payoff?

With Black Friday just around the corner, it’s the perfect opportunity for online retailers to clear out their excess stock. And according to Muller, those discounts drive impulse purchases. 

However, Muller warns: “It’s great that online stores can offload their inventory, but you have to wonder if it’s actually profitable in the end. We see a dip in sales throughout November. Furthermore, we see return rates at many online stores jump by as much as 140% after Black Friday. In my opinion, you need to look at more sustainable solutions.”

Fewer returns, higher revenue, and satisfied customers

To make Black Friday a success, Jansen and Muller suggest three solutions to consider. Muller: “The first is reducing the number of returns using data. If you gain insight into which products are being returned, you know exactly what to focus on in your sales process.” 

EsQualo acknowledges this, noting that thanks to these insights, they now invest significant time and effort into product videos, photos, and descriptions. With the help of Returnista, they have managed to reduce their return rate from 47% to 32%.

Another solution is offering exchanges. Jansen: “This works really well for us. When someone indicates that the size isn't right, we can immediately offer a different size based on our current stock.” According to Muller, this helps online retailers retain up to 35% of their revenue. 

Finally, according to Muller, you should focus on customer satisfaction. Every consumer has different needs. Some prefer to drop off their package themselves, while others want it picked up from home. If you make that process smooth and offer flexibility, Muller says, it contributes to overall customer satisfaction. 

According to Jansen, clear communication is also key: “Let the consumer know where their package is and when the money will be back in their account. That’s how you keep the customer connected to your brand.”

The elephant in the room: sustainability

When we talk about Black Friday, sustainability is a topic that cannot be ignored. Several brands have stated they do not want to participate due to the environmental impact. 

EsQualo values sustainability, but also acknowledges the need to generate revenue. Jansen: “We focus primarily on making our production processes and the materials we use more sustainable. However, the consumer’s desire to buy new items remains.” 

Muller states that Returnista’s mission is to work towards zero returns; ‘the road to zero returns’. Muller: “We want to achieve this by providing webshops with insights into their return flows and by making exchanges easier. It is our collective responsibility to raise awareness about this.”

Curious about what other topics were discussed during the conversation? Watch the webinar here .

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