As the e-commerce industry continues to expand, return costs have become a significant concern for many brands. With REKEEPIT, companies can incentivize customers to commit to keeping their purchases by offering a discount, thus reducing return costs and generating savings for both the customer and the brand. In this blog post, we’ll explore the potential savings that can be achieved through the REKEEPIT program, using a hypothetical example.
Discover how REKEEPIT can help brands save on return costs while offering discounts to customers, resulting in mutual benefits for both parties.
Let’s consider a brand with a gross daily sales of $10,000. If the return costs for this brand amount to 35% of the orders, and the brand offers a 15% discount through REKEEPIT, we can calculate the potential savings for both the customer and the brand.
Calculating Return Costs: Gross Daily Sales: $10,000 Return Costs: 35% of orders Return Costs = 0.35 * $10,000 = $3,500
Calculating REKEEPIT Savings: Assuming that all customers opt-in to REKEEPIT and receive a 15% discount: Discount Offered = 15% of orders Discount Cost = 0.15 * $10,000 = $1,500
Comparing Return Costs and REKEEPIT Savings: Original Return Costs = $3,500 Discount Cost with REKEEPIT = $1,500 Savings for the Brand = $3,500 – $1,500 = $2,000
Mutual Benefits: Customers: By opting in to REKEEPIT, customers save 15% on their purchases, leading to lower prices and increased satisfaction. Brands: By offering REKEEPIT discounts, brands can potentially save $2,000 per day on return costs in this example, leading to reduced expenses and improved profitability.
REKEEPIT offers a win-win solution for customers and brands by reducing return costs and providing discounts for customers who commit to keeping their purchases. In our hypothetical scenario, the brand could save $2,000 per day on return costs, while customers benefit from a 15% discount on their orders. By implementing REKEEPIT, both parties can enjoy substantial savings and contribute to a more sustainable and responsible e-commerce experience.