How EsQualo encourages exchanges during the return process to retain revenue

Esqualo is a fashion brand designed for style-conscious women aged 30 to 55. Their mission is simple: to ensure women feel happy when they open their wardrobe and step out into the world looking beautiful. With over 12 years of experience and 2,500 points of sale, Esqualo has grown rapidly. But that growth brought challenges, including a rise in return rates. Over the past year, they have tackled this by encouraging exchanges during the return process, resulting in fewer returns and higher customer satisfaction.

EsQualo started over 40 years ago as a family business, founded by Bas Jansen's parents. Originally a manufacturer selling collections to department stores, the company pivoted 12 years ago when Jansen took over. He gradually phased out production and implemented a wholesale strategy, which has proven to be a winning formula. Today, Esqualo employs about 40 people and their products are sold by 2,500 stores.

Esqualo's unique collection can be adapted to different looks, whether youthful, mature, or feminine. Jansen explains:
"That versatility allows us to serve two target groups on the high street. In that sense, we are a bit of a chameleon."

According to Jansen, the company's growth stems from offering fun, affordable clothing that is easy to combine. Their ultimate goal? To help women feel happy and confident when they open their wardrobe.

As for the future, Esqualo wants to continue growing while fostering strong customer relationships. Jansen shares:
"We are commercially priced and have a commercial design signature. We want to expand to as many points of sale as possible while building customer loyalty for lasting relationships."

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E-commerce has evolved significantly, driven by the pandemic and changing consumer habits. However, Jansen points to new challenges:
"Online shopping took off and webshops had an oversupply. Now that consumer purchasing power is declining, they are left with excess inventory."

In addition, he notes a shift in consumer expectations:
"It is especially the younger generation: they are lazier and more spoiled. They expect seamless processes, excellent service, fast delivery, and above all, convenience."

Technological trends, such as "buy now, pay later," also pose obstacles. Jansen explains:
Consumers are tempted to make impulsive purchases. They order hundreds of euros worth of clothing in the middle of the night, try them on the next day, and send back what they don't like. This behavior has caused our return rates to rise significantly.

To address these challenges, EsQualo looked for ways to lower return rates while simultaneously improving service. They partnered with Returnista to find a solution.

Jansen shares:
The first step was to gain insight into why returns were happening. For years, we relied on paper return forms, but we didn't have the resources to analyze them. In short, we didn't know why items were being returned. With Returnista, we now have a dashboard that tracks all returns and their reasons.

This data revealed a recurring issue: products did not always match their online descriptions. EsQualo responded by updating product descriptions, photos, and videos to set clearer expectations.

Another impactful solution was the introduction of an exchange service. Customers can now immediately order a different size when registering a return marked as "too big" or "too small." Jansen highlights:
This creates a sales opportunity within the return process while providing better service. Customers no longer have to search for the right size themselves. And speaking of service, I have to mention the home pickup service. With Returnista, customers can schedule a pickup time that suits them. This feature really appeals to the convenience-oriented younger generation. It's the icing on the cake.

EsQualo has been using Returnista for just over a year now, with impressive results. Thanks to improved product descriptions, photos, and videos, the return rate has dropped from 47% to 32%.

Regarding the exchange service, Jansen says it is still too early for concrete results:
We haven't been using that module long enough to draw firm conclusions, but we expect to convert 10% to 20% of returns into exchanges. That is revenue we might otherwise have lost.