Return rate: major differences between product categories

The European Champion of Returns – it’s a less than laudable title that Germany and Switzerland share (linked articles in German). According to the parcel service provider DPD and the University of Bamberg, online shoppers in these two countries returned every fourth order last year. However, there are question marks over the reliability of the two studies. For example, a 2022 study by the Lucerne University of Applied Sciences and Arts concluded that the average return rate of online shops operating in Switzerland is just seven per cent (linked article in German).

For the first time, online department store Galaxus and electronics specialist Digitec are now disclosing their own detailed figures. Since January 2023, the two shops have been displaying the warranty score and return rates for brands in each product category. For example, you can see that at Galaxus, garden hose nozzles from the brand Gardena are returned on average at a rate of 0.6 per cent (as of May 2023).

Clothes are making a return

The current evaluation shows that customers of Galaxus and Digitec in Switzerland return 1.75 per cent of all orders. In Germany, this figure rises to 5.9 per cent, while in Austria, it’s as high as 25.8 per cent. In addition to this, 0.4 and 0.45 per cent, respectively, are returned as warranty cases.

One of the reasons for the difference between the countries is likely the more generous return periods German residents are used to. On average, retailers in Germany allow customers more time to return an item than in the rest of Europe. At Galaxus, the return period is 100 days in Germany, but only 30 days in Switzerland. «In addition, Germans order more frequently by invoice, and that makes it easier for them to return products,» adds Lauritz Fricke. Lauritz is Head of After Sales & Retail at Digitec Galaxus and as such responsible for returns and warranty cases.

Another reason might be that returns at Galaxus in Germany are generally free of charge. In Switzerland, on the other hand, Digitec Galaxus will only pay the postage for the return of clothing and shoes – or if, for example, the wrong product was sent. «In German online retail, free returns are the norm; in Switzerland, it’s only common for clothing,» Lauritz explains.

Clothing and shoes are indeed the products that generate by far the most returns at Galaxus. In Switzerland, customers send back just under one in ten items of clothing, while in Germany as many as one in seven T-shirts or pairs of leggings are packed up and sent back. Return rates are also high for sporting goods as well as watches and jewellery – in other words, products that people will usually want to try on before making a purchase decision.

So, the more clothing (retailers) are included in the calculation, the higher the return rate, which may explain the differences in the figures from DPD, the University of Bamberg and the Lucerne University of Applied Sciences and Arts. Meanwhile at Zalando, Europe’s largest online fashion retailer, customers ultimately return half of all orders (linked article in German).

I like it? I’ll buy it time and again

Beauty and health products such as hair dryers, shampoo or mascara are returned relatively rarely (see graphs above). The same applies to office supplies such as printer ink, ballpoint pens and envelopes. And Galaxus customers hardly ever send back foodstuff either. «These are often standardised products that people aren’t buying for the first time,» Lauritz says. «So, you know what you’re getting.» In addition, Galaxus won’t take back hygiene and safety products if the packaging has been opened. Examples of such products include toothbrushes, sex toys, car seats and bicycle helmets.

According to Lauritz, the fact that customers often keep electronic items is due to the fact that they’re described in above-average detail – think a PC’s features, for instance. In addition, there are many reviews available on electronic products from journalists and bloggers as well as from the shop Community.

Product data galore

While the Community on Galaxus and Digitec may frequently criticise missing or incorrect product data, the two online shops do provide significantly more data compared to the competition. This includes, for example, the noise level of refrigerators in decibels, the target group for remote-controlled toy cars, pictures of garden chairs from different angles and in different settings as well as which face creams are vegan. «This wealth of data is one of the key reasons for our low return rates,» Lauritz says. «If customers can get comprehensive information before they order something, they’re less likely to send it back.»

The independent editorial team, which tests products for Digitec and Galaxus and writes and films honest reviews, is also helpful – they don’t deal in cajoling marketing speak. «And our shop Community also helps us keep the rate low,» Lauritz states. «Namely, by rating and commenting on products, asking questions and then answering three out of four of those questions within three hours.» All this supports consumers in choosing the right product.

When things don’t quite fit

Should a Galaxus or Digitec customer wish to return a product after all, they must give a reason for doing so. The most frequent reason is «Did not like it», followed by «Wrong size» and «Wrong product». «This data feeds into our processes,» Lauritz says. If, for example, a sweater fits only a few people, then perhaps something’s wrong with the size specification. And if an umbrella is returned more often than average, it may be because it’s in fact green and not red like in the product picture.

Responsible for handling returns are the two teams at the After Sales site in Dintikon in the Swiss canton of Aargau as well as in Krefeld in the German state of North Rhine-Westphalia. There, the goods are inspected for damage and put back on sale either as new or at a discount as «used + tested». «These bargains are very popular with customers,» Lauritz says.

Galaxus and Digitec only dispose of what really can’t be used anymore. Returns that are still usable but that the online retailer can no longer sell because of minor defects are donated to charitable organisations. Disposal, in turn, is handled by ISO 14001-certified partners who guarantee that the materials are recycled properly.

When was the last time you returned an order and why? Do you as a rule buy clothes and shoes in multiple sizes and send back what doesn’t fit? What product data should Galaxus and Digitec urgently fix? Let us know in the comments!