Feb 18 2021

How return rates can be reduced

Returns in online retailing are a major challenge for furniture retailers. Returning bulky and heavy goods is not only inconvenient, but also expensive. And presumably no online retailer wants to charge its customers return shipping costs of 50 euros or more for pallet shipping or forwarding goods. An online furniture company has now developed a system that reduces its returns rate to less than one per cent.

Although the furniture trade currently lacks valid figures for large furniture - also because of the overall still manageable significance of online sales - the share of returns for small furniture is up to ten per cent. So avoiding returns is still the best strategy.  

Starter kit reduces logistical effort 

To reduce returns, the online furniture company Pazls sends furniture parts in advance. Customers can first have a so-called starter kit sent to them. "This way, a part of the furniture can be experienced in advance in real size. You get a much better and more realistic impression than with a material sample," says co-founder Thomas Poddey. With success: the return rate of complete furniture at Pazls is less than one percent. 

The starter kit is sent in a compact flat-pack box by parcel service. If it is returned, the expense is kept to a minimum. Pazls will soon be setting up a second-hand section for the returned items. This is made possible by Pazls' modular approach.

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Portrait of Thomas Poddey
Thomas Poddey Senior Management
Puzzles Living GmbH
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