What if we viewed the increase in e-commerce returns during the pandemic positively? "TBYB," which allows try-before-you-buy, offers a starting point for this shift in thinking.

Amid the boom in e-commerce driven by the pandemic, rising return rates due to product mismatches have become a problem. Gaining popularity in this environment is a service called "TBYB (Try Before You Buy)," which allows customers to try on clothing while shopping online. Additionally, companies introducing systems that make returns easier are emerging one after another. At first glance, these initiatives might seem to have significant drawbacks, such as "won't this just lead to even more returns?" So, what advantages do they offer for both customers and businesses?

This time, under the theme "How does creating 'easy-return systems' like TBYB contribute to improving the customer experience?", we consider how to address the "returns" problem in e-commerce.

TBYB: A Service That Addresses "E-Commerce Frustrations"

Have you ever experienced something like this? "I bought clothes on an e-commerce site, but when I actually tried them on, the size didn't fit." "I can't wear them, but returning them is such a hassle, so I just left them as is."

According to a survey on fashion/apparel site usage conducted by AtoJ Inc., an e-commerce platform provider, the top reason customers felt inconvenienced or dissatisfied with online shopping was "The actual product looked different from the image (34.5%)", followed by "Couldn't gauge the size from the photos (31.0%)". Many people can probably deeply relate to these results.

To address this situation, e-commerce companies and brands are beginning to adopt a try-before-you-buy (TBYB) service. As the name suggests, it allows customers to try products before purchasing. This concept gained recognition when a major online retailer, considered one of the big tech companies, introduced it. With this retailer, customers can try items for up to 7 days after delivery and only purchase the ones they like.

What sets TBYB apart from standard "returns" is that payment isn't required at the time of order. The system allows customers to pay only for items they decide to keep after trying them on, and returns are also free of shipping charges. This enables uses like ordering multiple color or size options to try together. This eliminates the common e-commerce problem of "not being able to physically touch and try items," preventing mismatches like "it looked different in the picture" or "the size didn't fit."

Additionally, more companies are implementing initiatives similar to TBYB, such as changing return methods or revising conditions for e-commerce.

Case Study 1: A Fast Fashion Brand's Return Policy
While many e-commerce sites require customers to cover return shipping costs, this brand allows returns at no cost to the customer—including shipping fees and handling charges—if the item is "undamaged, unstained, and unworn," even if it's simply the wrong size.

Children's clothing and shoes are particularly prone to sizing issues. Children grow quickly, often outgrowing their previous size before long. Lowering the barrier to returns makes it easier for customers to try ordered items and exchange them for a different size if needed, creating a more relaxed shopping experience.

Case 2: Eyewear Brand's 5-Day Free Trial
A New York-based eyewear startup founded in 2010 offers a free trial service for eyewear in its e-commerce business. Customers answer about seven questions on the website and can select up to five recommended frames to try on. They can also customize the recommended frames to their preferences before ordering.

A box arrives with the glasses and a prepaid return label. Customers can use this label to return the samples they tried on at no cost. The ability to freely try on frames for five days, gathering feedback from others while finding their favorite pair, has made this service popular. For more information on "product recommendations," see this article.

This development is significant, as it brings the experience of trying on and testing products—previously only possible by visiting a physical store—to the world of e-commerce. Initiatives like TBYB are expected to help address the disadvantages of e-commerce compared to brick-and-mortar stores and alleviate customer frustrations.

Shifting from "returns" to the positive concept of "try-before-you-buy": The user-centric TBYB model

"Try Before You Buy" (TBYB), which tackles the e-commerce-specific challenge of "not being able to see the actual product before purchase," is undoubtedly an attractive service for customers. However, it also increases opportunities for returns. Is there any benefit for businesses?

At first glance, TBYB seems to lower the barrier for returns, suggesting significant disadvantages for businesses. Indeed, research indicates that in the US, partly due to the pandemic, the e-commerce return rate in 2020 more than doubled compared to the previous year. According to this study by the National Retail Federation (NRF), e-commerce accounted for $565 billion (14%) of total US retail sales in 2020, with approximately $102 billion worth of online purchases being returned.

While Japan's e-commerce return rate is generally around 5-10%, the U.S. rate is approximately 18%, indicating a significantly higher number of returns. It seems there are also quite a few people who purchase items with the intention of returning them, and the reality is that returned goods often end up being discarded or sent to secondary distribution channels.

This situation certainly represents "increased costs due to returns." However, looking at it another way, a high number of returns also means customers are handling and trying out many products. TBYB's approach can be seen as leaning more towards this latter perspective. It transforms returns, previously viewed as a risk, into a service and part of the customer experience. This shift in thinking is considered crucial for differentiation from competitors and for driving the expansion of e-commerce businesses.

Let's revisit the example of the eyewear brand discussed in the previous chapter. This company champions the brand concept that "choosing glasses should be easy and fun." One of its concrete strategies, the free trial of glasses, perfectly aligns with millennials' desire for "Instagrammability." According to a survey by the US company "Crowd Twist," 43.5% of millennials surveyed "share purchased products or services via social media."

Indeed, with this company's service, customers often post selfies wearing the glasses they tried on to social media with captions like "Which glasses look best?" Specialized staff sometimes comment on these photos, suggesting which frames suit them best, making this try-on-centered interaction part of the fun. This shows that the strategy behind manufacturers without physical stores boosting brand awareness and gaining close customer connections seems to be building their brand around the core experience of "trying on."

As seen so far, TBYB not only creates a customer experience where "you can freely try things on despite being an e-commerce site," but also offers advertising benefits for businesses by encouraging customers to actively share information about products and services and generate buzz.

Designing the act of trying on itself as an enjoyable experience makes it easier to gain customer goodwill and build trust. This approach is particularly effective as a means to increase users during the initial stage of making a new brand known.

Considering a consumer-centric approach to "returns" in e-commerce sites

In the previous chapter, we confirmed that TBYB offers various benefits for businesses, in addition to enhancing the customer experience. While fitting services like TBYB are increasing, it remains crucial to continually rethink the approach to "returns" – the starting point of this initiative – from the consumer's perspective.

Reexamining returns from the customer's perspective, e-commerce site conditions like "no returns" or "return shipping at customer's expense" may easily trigger negative thoughts like "What if I make a mistake?" when shopping. Even if a customer really wants an item, perceiving even a slight risk could ultimately lead them to decide "not to buy."

According to a survey by the e-commerce media outlet 'Digital Commerce 360', 89% of consumers stated that "if they have a bad experience with returns, they will stop shopping with that brand." However, this also implies that if a brand can create a positive impression for customers during the often cumbersome process of returns, it has the potential to enhance brand value.

Offering return-friendly systems like TBYB's "7-day try-on period with free return shipping" allows users to casually test various products. This fosters a positive mindset, encouraging them to think, "I'll just order it and see." When customers can verify a product's characteristics and quality with their own eyes before purchasing, their psychological burden decreases, increasing the likelihood of satisfaction with their e-commerce experience. Expanding touchpoints with products may also encourage concrete behavioral changes, such as consumers reaching for other items from the same brand.

Reducing return rates is essential to prevent product loss. However, equally crucial is maintaining a mindset focused on designing experiences around "what customers truly want." Even if it requires initial investment, this approach will likely lead to stable customer trust in the long term.

Beyond TBYB, services enabling "trying before buying" on e-commerce sites are continuously being developed. Examples include "virtual fitting" using smartphone camera features and "try-on salons" where customers can try items at dedicated venues before purchasing online. Such initiatives are expected to expand beyond the apparel industry into various product categories. As one means of enhancing customer experience, why not consider implementing TBYB or similar new initiatives within your own business?

The issue of "returns," which often acts as a barrier to shopping on e-commerce sites. The pandemic has highlighted this challenge, prompting more companies to tackle it. TBYB, which allows customers to try items before deciding to buy, is a prime example of such solutions. The idea of transforming the return process—previously just a routine task—into a service users can enjoy may be the first step in revolutionizing the future of e-commerce. If you're exploring ways to update the customer experience for your own e-commerce business, why not consider the "returns" issue from this perspective?

To learn about trending topics like the "2024 Problem," please also refer to this resource.