Philipp Lück - Factor Returns in German E-Commerce

2015 | L.13 Beratung und Beteiligung

L.13 Beratung und Beteiligung Lychener Str. 13 10437 Berlin Philipp Lück Freiberuflicher Unternehmensberater Mail: [email protected] Mobil: +49 176 6400 9303 Web: www.Lpunkt13.de

Factor Returns in German E-Commerce Landscape Study Tour Logistics "Finns visit Germany“ 25. September 2015

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About me: L.13 is a privat E-Commerce consultancy and invests in Digital Business Models with focus on the German market.


Short CV, Philipp Lück

2007 – 2008: Head of Sales and Cooperation

2010 – 2012: Business Development & Full-Service E-Commerce BPO

2012 – 2014: Chief Operating Officer, Managing Director

2013 – ... : Founding Shareholder

2012 – ... : Consultancy and Private Investments

2015 – ... : Vice President Händlerbund

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Factor Returns: Speaking about return volumes and rates, German Consumers hold a special position – „We are European Champions in Returns!“


Market Overview, Returns in Germany

1950 Establishing the principle

1998 Transform into the digital world

2005 Intensify the principle

2012 - ... Copy and form a standard

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German Market: The biggest European E-Commerce potential is confronted by the „Most-likely-to-return-an-order-Customer“.


German Market Figures

German E-Commerce Figures

§  43.6 Billion Euro E-Commerce revenue in 2014

§  63 % usage of Retailer-Website for information.

§  24.2 Billion € market-place volume 2014 §  Fashion by far biggest vertical followed by

Consumer Electronics and Media

German Return Behaviour

§  40% of Online-Customers plan to return while ordering.

§  >40 % of Retailers are confronted with a return rate higher 10%.

§  Fashion Retailers see return rates of 25%. §  50 % of Retailers see growing return rates. §  10 % of returned goods cannot be used

again.

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Legal Situation: Many online retailers show significantly higher goodwill than the legal situation requires – especially market leaders.


Examples for market behaviour

14 Days return right Up to 100 days return right

Customer pays return shipping

costs

Bad condition leads to reduced payback

No shipping fees

Very high grade of Goodwill

... ...

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Return Management: Today it is necessary to manage returns along the value chain as those are crucial part of the E-Commerce process.


Goods In Data Content Sales Logistics Customer Service Returns

Retoure •  Product Condition •  Learn from Reasons •  Re-Packaging •  Internal Com-

munication •  Fast Remarketing

Goods In •  Prevent picking

mistakes •  Fastidious Behaviour

Product Data •  Use all data

available •  Data Sheets •  Continuous

optimizing

Sales/Marketing •  Continous

Monitoring •  Expectation

Management •  Transparent

Communication to Customer

Customer Service •  Open

Communication •  Easy to be

contacted •  „Please“ is allowed •  Steering of costs

and goodwill

Logistics •  Fastidious processes •  Continious control

samples •  Optimized packaging

material

Return Management along the Value Chain

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Retailer Behaviour: German Online Retailers changed their answers to customer returns over the recent years.


Retailer Image

2000

Clueless about shaping returns in

digital world.

2005 - 2010

Fighting returns and sceptical busines

behaviour.

2015

Managing returns as key competitive

factor.

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Solution Example: Several companies offer services in the area of returns management from logistics to integrated full-service solutions.


Business Model Returbo | www.returbo.de

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My recommendation: Returns Management is a critical success factor in the German E-Commerce environment – no rocket science, but be prepared.


Manage me...

This is my plan .


L.13 Beratung und Beteiligung Lychener Str. 13 10437 Berlin Philipp Lück Freiberuflicher Unternehmensberater Mail: [email protected] Mobil: +49 176 6400 9303 Web: www.Lpunkt13.de

Thank you.

Philipp Lück - Factor Returns in German E-Commerce

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