Descubriendo los secretos de las empresas DTC exitosas

When operating as an international brand that sells to consumers in the UK, it's vital to understand the rules you must follow and the requirements you need to reach to begin shipping products to consumers successfully. Choosing the right strategy for your logistics in the market is crucial for your success in the country. Why? UK consumers are extremely sensitive to the delivery experience, and 55% will abandon their shopping cart if the delivery time is too long or the delivery fees are too expensive.

If you’re not compliant, it will become difficult for you to sell to UK consumers or even attract their business in the first place. The good news? When you put effort into finding out what it takes to sell to an international market, you can provide an incredible delivery experience that leaves a lasting impression on the consumers.

With that in mind, you're probably wondering which shipping method is best for your business model: international or local. The truth is that either option can work, but there are some things you will need to know beforehand to help you decide on the method you plan to use to reach UK consumers.

‍

‍

The British are very sensitive to the delivery experience

‍

One of the first things you NEED to understand is that the British care about the delivery experience they will have when buying from different businesses. 70％ of consumers in the UK will feel more enticed to buy from a company if they know they won't have to worry about paying additional fees or dealing with costly taxes at checkout.

Because the British are so sensitive to the delivery experience, prioritising affordable, fast shipping is the most effective way to make a good impression on them. If you're leaving a better impression on the consumers, you have a greater chance of getting them to buy from your business again because they will look forward to getting their items on time. 

When focusing on meeting their expectations, you will need to choose between local shipping in the UK and international shipping, where you ship directly from your location to your UK consumers.

‍

Mastering the steps to ship from abroad to the UK

‍

You can begin shipping to consumers in the UK when you've received your GB EORI number and GB VAT, which are must-haves when importing goods throughout England.

‍

Ship from abroad to the UK

When it comes to shipping abroad to the UK, you may think it's a feasible solution. And while it's optional, there are pros and cons to it that you need to be aware of before making your decision.

Choosing international shipping can help you gauge the level of interest you can gain from UK consumers. It's a great way to see if you have enough customers wanting to support your business and purchase your products before you take additional steps to invest in a UK warehouse. But while you can use it to get an idea of UK consumers' overall interest in your business, that is one of the few benefits of international shipping.

Unfortunately, international shipping leads to significantly longer delivery times because your products need to go through customs. Even if they pay extra, they may still need to wait weeks to receive their goods from you. In addition, your packages take longer to get to customers because they have to travel even further.

Believe it or not, international shipping can take up to 10 business days (or LONGER). However, customers can receive their items the next day when you're shipping from the UK to UK consumers.

The 4 fundamental steps

No matter what you decide, there are a few basic steps that you must follow to prepare your e-commerce for shipping to consumers in the UK. These steps include:

1. Create your account on the UK Government Gateway.
2. Acquiring a GB VAT number from the Government Gateway account. Before submitting any tax declarations to HM Revenue and Customs, you need to have this number. (Keep in mind it will take a minimum of eight weeks and up to 12 weeks to get this number, so apply for it as soon as possible.)
3. Apply for the GB EORI. You must have this if you want to import goods into the UK. Suppose you have yet to obtain a government portal ID. In that case, you can create your portal ID when completing your application.
4. Following the mandatory administrative declarations to remain compliant while shipping your items to consumers throughout the UK.

‍

The documents attached to each order

When relying on Bigblue, you can generate all must-have documents automatically without worrying about taking additional steps.

‍

Mastering the requirements for shipping locally in the UK

‍

If you've decided it's better to go with local shipping because you can lower shipping fees and reduce overall expenses for the consumers, you're making a good move. Of course, this means achieving the necessary paperwork, but it's worth it if you can provide faster delivery speeds, ultimately improving the delivery experience for your consumers.

When shipping from the UK, you can provide custom-tailored experiences for consumers who typically can receive their online orders quickly. While this benefits consumers, shipping locally is also better for the environment and can help you save 101% on shipping-related expenses.

Now that you're more aware of the expectations of UK consumers and what they want when ordering online from companies that operate outside their country, you may be ready to go for local shipping instead of international shipping. With many advantages, such as speedy shipping, low costs, and a more positive environmental impact, you can earn a better reputation among UK consumers, which will help your brand flourish over the years.

‍

To master the requirements for shipping locally in the UK, you need to get your GB EORI number. If you have this number, you can legally sell throughout the UK. However, registration is easier than it sounds and is something you can achieve in a day! It typically takes roughly 13 days to set up a company in England, whereas it often takes up to 32 days in other European countries.

After you receive your GB VAT number, be sure to send a copy of your VAT declaration. Keep in mind that you must report your VAT quarterly. You must also create a Making Tax Digital (MTD) report each year if you've earned a minimum of £85,000. 

Many resources are available to help you with any concerns over tax declarations, including multiple MTD-enabled software providers. Just like the United States has its own digital tax compliance solutions, so does the UK, and you can use these solutions to your advantage to stay on top of all things tax-related for your business.

‍

Choosing the right carrier

‍

Although choosing to ship locally is one crucial decision, there are other things you need to prioritise. You will also need to select a suitable carrier to help you deliver your goods to the customers. Always research the different carriers available when shipping to UK consumers to ensure you're working with a reliable one that will deliver your products as quickly as possible and improve the overall delivery experience.

84% of UK consumers agree that the shipping carrier used impacts their decision to order from e-commerce businesses. When British consumers see costly delivery fees, they typically leave the website and look elsewhere for the items they want or need. And most of these consumers want to ensure their goods are getting to them within a reasonable timeframe. They're less likely to buy from your business if they see that shipping will take a few weeks.

So which carrier is the best? 55% of consumers in the UK prefer Royal Mail because the logistics company has a reputation for providing fast and convenient delivery experiences to consumers. They also prefer UPS when ordering express delivery to ensure their packages arrive swiftly.

‍

Importing your merchandise stock into the UK

‍

It helps to know how to import your merchandise stock into the UK. Any stock imports must have customs declarations. The good news? You don't have to constantly clear customs on every order when shipping products from a warehouse in the UK to consumers in the same country. Also be mindful of fashion labelling regulations and especially strict cosmetics label regulations.

You can keep your products in Bigblue's UK warehouse while having quick and easy access to the most accurate, up-to-date information on inventory. Being able to track your inventory comes in handy because you will know when you're beginning to run low on certain items. Ultimately, shipping more out to the UK warehouse to continue fulfilling orders for your customers without any additional delays.

Local shipping is the best delivery method when catering to UK consumers. These consumers have high expectations and will want to receive their products from your business as quickly as possible, even in as little as 24 hours from the time of making an initial order. While this may seem nearly impossible to do, it's a goal you can accomplish when you have items fully stocked in a UK warehouse and select the right carrier to work with to deliver your goods.

Would you like to begin using user-generated content to your advantage? It's an excellent way to increase your brand's visibility, boost awareness, and receive more web traffic that converts. Several e-commerce brands are utilizing this convenient and impactful marketing method to see some of the most incredible results.

Gymshark has built a name for itself on social media, honing in on the power of platforms like Instagram and TikTok to connect with its audience and build a massive cult-like following. Supporters of Gymshark love the products and are willing to create and share content using the brand's products for their followers to see, which has helped the company grow and expand tremendously in recent years.

Creating challenges and encouraging consumers to share their content has helped the company receive more than 250 million views on TikTok alone! The sportswear and accessories company is now valued at £1.2 billion.

‍

‍

Many brands are following the same path, utilizing user-generated content to help spread awareness of their brand, gain followers, and leave a lasting impact that boosts sales and overall success. For example, Aerie uses hashtags to encourage its customers to share photos and videos of them wearing and using products the company sells. One hashtag, #AerieREALPositivity, has over two billion views. This approach has helped the brand reach targeted audiences and increase conversion and sales.

Other brands using user-generated content to their advantage? Fashion Nova, Levi's, Rare Beauty, and Rhode Skin. These are only a handful of the brands getting in on the opportunity to spread content that connects with the consumers better than ever before.

‍

The massive impact of user-generated content for D2C brands

1 - User-generated content advertisements cost D2C brands 50% less than the average digital advertisement. You can save money while using user-generated content as an opportunity to advertise your brand and the products you sell to consumers instead of relying on traditional advertisements that don’t convert.

2 -  78% of consumers are willing to share brand-related content if it helps them connect on a deeper level with their peers. Encourage customers to create this kind of shareable content by enhancing the unboxing experience and providing excellent customer service. It will make a difference.

3 - 69% of consumers feel a sense of fulfillment when creating user-generated content and believe their content can make a difference. Be clear about what your products can do for the consumers. If they know and understand, they may be more willing to share content they've created of them using the products for those reasons.

4 - 45% of people in the United States have uploaded pictures and videos to social media accounts within the past three years. Consider setting up a hashtag campaign to get your customers to share their pictures and videos to different social media accounts! The added exposure will benefit your business.

5 - 90% of consumers will make their buying decision based on user-generated content. Make user-generated content for your business easier to find. If consumers can find the content with ease, they may feel more inclined to buy from your business, which will boost sales.

6 - 81% of consumers don't mind paying more or waiting a bit longer for shipping when buying products based on user-generated content. While it helps to ship at faster speed, genuinely good reviews of your business will make the consumers much more patient and willing to spend the amount of money you’re charging for the items you sell.

7 - A staggering 97% of people between the ages of 18 and 29 believe user-generated content heavily influences their overall buying decisions. Because this type of content can have such an impact, it’s important to start collecting videos and photos uploaded by consumers and resharing them or even including the content on your website for consumers to see.

8 - 73% of consumers feel more confident buying from a brand if the brand is using user-generated content to display their products and how they work. Collect videos of consumers showing how they use your products or describing what they like best about the items. Place this content on your site to encourage consumers to complete that purchase.

‍

9 - 61% of shoppers feel more inclined to engage with brands because of the different types of user-generated content they see online. Make your presence known with user-generated content on many platforms. Don’t just settle for one social media platform. Share the content on Facebook, Instagram, TikTok, etc.

10 - More than 93% of consumers will read reviews before buying a product from any brand. When sending products to customers, encourage them to leave a review. You can even entice them with a discount code for a review. Of course, don’t push for a five-star review. Let them decide that on their own.

11 - 50% of people learn about new products online from friends, family, and acquaintances. Use this to your advantage to get more attention for your brand.

12 - 85% of consumers believe that user-generated content has more of an influence than content created by the brand itself. While you still need to create content as the brand owner, focus more on taking a user-generated content approach.

13 - Up to 61% of consumers have made buying decisions based on user-generated photos posted to social platforms like Instagram. Once again, encourage consumers to use hashtags when they post this type of content. It makes it easier for others to find it.

14 - 93% of consumers agree that user-generated content helps them when making buying decisions. If you have more user-generated content shared on social media sites, you can boost sales and conversion rates. More people will want to buy from your brand.

15 - Millennials spend roughly 30% of media time interacting with user-generated content across different platforms. Make an effort to connect with this audience because of how much time they’re spending using their phones, laptops, and other electronic devices.

16 - 90% of consumers are more likely to buy from a brand if they feel the brand is authentic. Create genuine content to connect with your audience. If they feel they can relate, they won’t mind buying from your brand, and that means they might even create content on your products in the future.

17 - 84% of consumers say they trust peer recommendations over any other recommendations. With more peer recommendations about your brand online, you may begin seeing an increase in the total number of sales received each day.

18 - Consumers are impacted by user-generated content 9.8x more than influencer-generated content when making a buying decision. Although connecting with influencers and having them provide reviews and tutorials on your products can make a difference, it’s the user-generated content that is truly helping consumers make important buying decisions.

19 - Millennials are the most significant contributors to user-generated content, contributing to up to 70% of this content. Take the time to understand your audience. Learn more about what millennials like and dislike about the buying experience to appease them because they’re the ones making most of the user-generated content.

‍

20 - Product pages containing Q&As have a 447% higher conversion rate than those that don’t. Need proof? Take a look at Amazon's product pages, and how they use them to clear out any questions and objections to buy. Q&As and real answers from buyers are public and accessible for everyone to read.

21 - Millennials trust user-generated content 50% more than any content generated by the brand itself. Because they trust this content over anything else, it’s important to have plenty of it. You can get more user-generated content simply by providing incredible service to your customers.

22 - 74% of consumers utilize social media to help them make buying decisions. If you’re not already active on social media, now is the time to create accounts for your brand. You’re missing out on the opportunity to connect, share valuable information, and get more people to buy from you.

23 - Over 50% of consumers would prefer if brands encouraged them to curate content by telling them what types of content would be best to create. Consider including a cute note in your packaging that encourages consumers to create content, such as product descriptions and tutorials to help out other consumers. Giving them fresh ideas will increase your chances of getting the user-generated content you need.

24 - The average consumer spends a little more than five hours exposed to user-generated content per day. Because so many consumers are exposed to user-generated content for hours on end, you need to develop a content strategy that helps these individuals find your brand.

25 - Incorporating user-generated content can help brands boost engagement by up to 50%. If you’re interested in boosting engagement, the key is to start incorporating user-generated content into everything you do. Share it on your website, your Facebook account, TikTok, and many other platforms to broaden your reach.

26 - 48% of consumers agree that user-generated content helps them discover new products. With consumers coming across products on social media at random, you could potentially reel in a bunch of new customers simply by having user-generated content posted on platforms for them to find.

27 - Content shared by employees of a brand can receive 8x more engagement than content shared directly by the company on its social media platforms. If you have employees working for your brand and they have a following, sharing your brand’s content can boost engagement and benefit your business even more.

28 - 87% of brands are using user-generated content for the free added exposure. Make sure you’re one of those brands getting in on the opportunity to receive more exposure. When users create content on your brand, you’re essentially getting FREE advertisement.

29 - Advertisements containing user-generated content receive 73% more positive comments from consumers. Create advertisements that include user-generated content you’ve found online. People will feel less irritated by the advertisement and will be more likely to engage with it, leaving positive comments instead of negative ones.

30 - User-generated content leads to a 29% higher web conversion rate. Have a special spot on your website where you will display some of the user-generated content people have created. It can boost your web conversion rates and help you make more sales.

As a business owner, one of the things that may be most important to you is your CRO, otherwise known as Conversion Rate Optimization. But how can you optimize and boost conversion rates to get more consumers who discover your brand on social media? Through the power of user-generated content on social media.

➡️ Gymshark, the top-rated company known for its superior fitness apparel and accessories, experienced a compound sales increase of a massive 193% for three years in a row between 2013 and 2016. But that's not all. The company has essentially built a cult surrounding its brand by honing in on influencer marketing and user-generated content. The company promotes customer reviews on product pages and even has "GS Family" Fridays, where it posts some of its customers to their stories on Instagram. The brand has 3.9 million followers on TikTok and regularly posts user-generated content that includes consumers wearing Gymshark’s apparel while completing their workout routines.

➡️ Fashion Nova earned itself a top spot in the fashion industry, capitalizing on social media and the opportunity to partner with influencers. The fast fashion brand has since amassed a following of over 15.5 million on Instagram alone. It has since expanded to TikTok, gaining 3.8 million followers while regularly posting video content from major influencers who support the brand and its products.

While you can post user-generated content anywhere, including the website consumers will visit to view and purchase products, one of the best places for it is TikTok. There are over 750 million active TikTok users across the globe, meaning your chances of reaching a massive audience through this social media platform are incredible.

‍

‍

1. Unboxing videos posted to social media have increased by 57% in a single year…

So, what are they, and why are they leaving such a lasting impression on consumers? Unboxing videos include footage of consumers or influencers opening their orders in front of the camera, showing people what they received. In most of these videos, the consumers are excitedly talking about the quality of the products and the packaging.

Unboxing videos fall under the category of user-generated content. The content resonates with the audience for a few reasons. Not only is it created by someone who may look like them, act like them, or even have the same preferences, but it also provides them with more details about products they may be considering buying. In addition, there is something exciting about watching people open packages while showing off the items and talking about how they smell, feel, and work.

Because consumers LOVE these videos, more of them are creating this kind of content on their own without brands even asking for it. But it works in favor of the brands because they receive more exposure and can boost sales.

💙 Bigblue Tip: Lashilé Beauty places its user-generated reviews on its site to give shoppers an idea of what previous customers think of their brand. Want to do the same? The Loox App makes it easy to display video and photo reviews on your product pages like Lashilé.

🔥 Dermalogica’s unique unboxing experience, designed with help from Bigblue, has enabled the company to receive more than 155 million views on TikTok alone.

‍

2. Product benefit 

🥳 70% of consumers watch UGC reviews to learn more about products before buying.

⬆️ 92% of consumers believe UGC can help them determine if a product is worth purchasing.

Source: Social Media Today

The key is to provide details on the product's benefit to let consumers know what it can do for them and why they should buy it. It's one of the most important details worth discussing during an unboxing. If the average consumer is watching an unboxing video, they will expect the person behind the camera to explain some of the advantages of using the product while also going over how it works. After all, most people want to know what makes a product special enough to spend money on before they head over to the website themselves and purchase.

You can get user-generated content that goes over a product’s benefits by:

• Making the how-to-use instructions clear for consumers
• Providing an enhanced unboxing experience
• Offering high-quality products that offer numerous advantages
• Letting consumers know what these products can do for them before they purchase

When consumers know how to use the products and how these products can help them, they may feel more inclined to create video content showing others their results and discussing the steps involved in using these products.

➡️ FROM FUTURE delivers a unique unboxing experience for consumers to enjoy when receiving their merchandise. Making simple adjustments, such as custom packaging, branded tracking emails, and an easy-to-use return portal helped the company increase buyer satisfaction by 89% in less than four months.

➡️ Cosmetics brand Merci Handy built a name for itself by creating fun, relatable content on TikTok, including behind-the-scenes footage that consumers love. The brand has since gained a following of over 260,000!

3. Transform FAQs into an evergreen source of content and reassurance elements

⭐ User-generated TikTok videos resonate with consumers' emotions 22% more than content created by brands on TikTok. In addition, the UGC content is nearly five times more effective at connecting with consumers and getting them to make purchases than the average advertisement on Facebook.

Source: UGC Shop

✨ Product pages containing Q&As have a 447% higher conversion rate than those that don’t.

Source: The Shopper Experience Index, Bazaarvoice

Strengthen the trust between your brand and the consumers by transforming some of the most frequently asked questions into evergreen content that reassures the consumers. Providing a certain level of reassurance will make them feel more inclined to buy from your business. If people have to ask the same questions about your business, it means you need to explain the details better, so work on creating content that answers these questions and gives people a better idea of what to expect from your brand.

Have you noticed the TikTok Q&A bubble on a user's profile page? Even if you've seen it, you might not know how to utilize it. You can use this feature to provide consumers with access to frequently asked questions and answers, which will prevent confusion and potentially boost sales.

💙 Bigblue Tip: Pull inspiration from commonly asked questions, using the answers to create relatable advertisements that provide users with valuable information. It's an easy and efficient way to explain the details of your product, what it can do for others, and how they can use it to their advantage.

4. Provide the viewer with three reasons to Buy Your Product

Value proposition refers to anything that stands out and can capture the audience's attention. In this case, when following TikTok UGC trends, you would want to provide the following information:

1. What Makes Your Product Great? Explain in detail the things that set your product apart from the rest. Let the consumers know why your product is great.
2. Why Should Consumers Buy the Product? Once you’ve explained what makes the product great, don’t hesitate to explain everything, including what it does, how it works, and what’s in it! These small details add up and can truly make or break the experience for consumers.
3. What Value Does It Add to a Consumer’s Life? Connect with consumers on a deeper level by going over the value your product brings to them. What are some of the features of your products that make them worth buying and using? You would know this better than anyone, so be sure to touch on this in the content created!

✨ If you type "Three Reasons to Buy" in the TikTok search feature, you will see dozens of videos created by users. These videos typically discuss some of the best reasons to buy nearly everything, including properties, vehicles, beauty products, and more. Take the same approach when touching on the top three reasons any consumer should buy your product!

‍5. Things TikTok made me buy

🤩 49% of TikTok users claim to have bought a product after seeing reviews or promotional video content on the popular social media app.

Source: World Finance

Perhaps one of the biggest trends on TikTok is the "TikTok Made Me Buy It" content created by users and social media influencers. Many have wondered if this means 2022 was the year of shoppable media, with more people being influenced to buy based on video content viewed on TikTok.

The great thing about this approach? You don't even necessarily have to say much of anything. Of course, this depends on the products your brand offers. But in some user-generated TikTok Made Me Buy It videos, users have shown how a product works while pairing the content with a viral sound, such as a snippet of Ariana Grande's "Just Like Magic" song.

Having just ONE person with somewhat of a following on TikTok post your products using this trend could lead to a viral video that boost sales and conversion rates.💙 Bigblue Tip: 6.1 billion people have viewed the #TikTokMadeMeBuy hashtag. Use this hashtag to your advantage to get more views for the products you sell, with more consumers taking the time to create user-generated content and post it to social media to follow the trend.

‍

While there are many European e-commerce markets, the UK takes the lead at number one, with a market valued at €148 billion. It's more than double the size of France and is expected to reach €365 billion within less than two years. In addition, it comes in seventh as the largest cosmetics market worldwide.

It's not hard to see that the UK e‑commerce market is booming, providing you with an exciting opportunity to reach millions of people with your products. Knowing that this can help boost your business, check out these TEN tips that will help you get started!

‍

‍

1. Ensure a good delivery experience

‍

If you didn't know, Brits care about the delivery experience. For 83% of UK consumers, delivery is one of the most critical factors that can make or break their buying decisions. For example, if shipping costs too much or takes too long, most of these consumers will look elsewhere for the products they want.

If you plan to ship products from a different country to the UK, you must obtain a GB EORI number, which appears on customs declarations. It's a must-have when importing your products into the UK. You will also need to get a GB VAT number.

It can take a minimum of eight weeks and up to 12 weeks to get the number, so apply sooner rather than later.

When expanding to the UK e‑commerce market, the goal is to make the shipment process as successful as possible. Of course, this means deciding if you will ship internationally or invest in a UK warehouse and begin shipping products locally, which is better for the environment and will help your business save money while meeting the expectations of UK consumers. 

‍

2. Avoid administrative errors

‍

Make a conscious effort to avoid administrative errors when diving into the UK e-commerce market. 70％ of UK consumers are willing to place an order if they know they won't have to pay extra to have their items shipped to them. However, you may unintentionally charge your customers additional fees if you haven't completed the proper documents.

The best way to avoid the hefty taxes and potential delays through customs is to complete your custom documents and include them with each package you send. You need to attach four specific documents to orders, including the order invoice, delivery note, customs declaration (CN23), and a Single Administrative Document for any parcels valued at more than £8,000.

Bigblue simplifies this process by automatically generating the documents needed to ship products with ease to avoid hefty taxes and lengthy delays.

‍

3. Choose the right carrier

‍

The next step on your to-do list is choosing the most suitable carrier to handle your packages. There are a few things to consider when selecting a carrier, such as their reputation for handling goods and how fast they can get your products to the customers. After all, you know that Brits care about the delivery experience and want to receive their merchandise in the mail quickly instead of waiting too long for what they've ordered.

Sadly, 1 in every 2 British consumers has avoided ordering items from international brands because they assume shipping would cost too much. If you plan to ship to the UK from a country like France, you can always choose UPS, the preferred carrier for express delivery. At Bigblue we use Royal Mail and UPS, the UK's two preferred carriers, for orders shipped from our Kuehne+Nagel warehouse in the UK. 

The carrier you select can make or break the shipping experience, so choose wisely. Of course, this means performing extensive research on the shipping carrier options available to you and learning more about which ones are best to work on based on different factors, including shipping speeds and costs.

‍

4. Decipher the consumption patterns of the British...

‍

The consumption patterns in your country of origin may be different from the consumption patterns of those living in the UK. However, the good news is that the British are e-commerce enthusiasts willing to spend money on products they've purchased online instead of from a physical establishment.

47% of Brits have made a minimum of six online purchases within the last three months. Therefore, by expanding to this international market, you have the opportunity to drastically increase sales and boost revenue! But before experiencing such expansion, you need to know why these consumers are more likely to abandon their carts.

British consumers will often abandon an online shopping cart if they notice delivery taking much longer than anticipated. In addition, if shipping costs are expensive, they will likely look elsewhere for the items they wish to purchase. Lastly, if they notice that the returns process would be overly complicated, they might not want to bother. Although most consumers don't plan on returning anything they've purchased, consumers may worry that if something doesn't work well for them or fit correctly, they won't be able to get their money returned to them.

‍

5. ... and adapt to it!

‍

Once you understand the consumption patterns of UK consumers, it's time to adapt to those patterns and use your new knowledge to your advantage. For example, 33% of UK consumers within the 18-34 age range will frequently return items for various reasons. 

If you're planning to enter the UK e‑commerce market, you need to be prepared for a potentially higher return rate than what you're currently experiencing in your country of origin.

Returns often come with hidden costs that can become quite frustrating as you work on growing your business. However, simplifying the return process can reduce these costs, keeping them low and appeasing the customers. 

Make returns fast, simple, and efficient to achieve better results. With Bigblue's return portal, it's easy to provide a more optimised experience that can prevent revenue loss from the returns process.

‍

6. Get into User Generated Content!!!

‍

Start honing in on the power of user-generated content and what it can do for your business as you focus on expanding to the UK. 63% of online UK shoppers have stated they trust customer reviews and will read them before purchasing something new. If you have positive ratings and reviews from previous customers, you have the potential to increase your sales by a staggering 270%.

So, what are some of the best ways to boost conversion rates and get more people visiting your website to purchase products from you? Place user-generated content on your site! Look on social media for consumers who've posted positive things about your brand and the products you sell and place some of those videos, pictures, and comments throughout your site to give consumers an idea of what others are saying. 

Consumers in the UK will feel more inclined to buy from you if they see the user-generated content and realise people are saying lots of positive things about your brand.

You can take a page out of Lashilé's book and post customer reviews on the front page of your website. Lashilé places its customer reviews at the top of each product page, much like what you'd see when shopping on Amazon for items. You can take this approach with any user-generated content on your brand to leave a better impression on the consumers.

‍

7. Embrace "Buy Now, Pay Later"

‍

Don't be afraid to embrace buy now, pay later, which will entice more consumers to buy from your business. Buy Now, Pay Later purchase volume in the UK has the potential to grow by 50% by the end of the year, reaching around €30 billion in 2023.

Offering such a convenient payment method would boost average shopping cart sales, with customers willing to spend more if they can break up the payments instead of paying for everything in one shot. Klarna, one of several buy now, pay later providers, noticed an up to 45% increase in the value of customer shopping carts.

It's all about finding the right partners to work with when selling to your UK consumers. Besides Klarna, you have other ways to provide consumers with the option of buying now and paying later, such as Shopify Payments, Mollie, and Scalapay!

‍

8. Switch your e-commerce to British time!

‍

Take the time to cater to UK consumers and provide a more inclusive experience. For example, 73% of products ordered online throughout the UK come from British merchants, and it's likely due to the fact that roughly 65% of online shoppers enjoy seeing fresh content in their language. Not providing content in their language or spelling could alienate consumers, driving them away from your brand.

Localise your ecommerce to the UK to achieve better results when selling to these consumers. The good news is that Shopify makes it easy to duplicate your store and change the language, so you won't have to spend too much time or effort on this transition.

‍

9. Prepare your marketing campaigns for the UK

‍

Next, it's time to build solid marketing campaigns that resonate with your UK audience. The UK has a reputation for being one of the most competitive e-commerce markets of all time, so you need to focus on developing an innovative strategy that produces excellent results. Look for inspiration from some of the leading e-commerce brands in the UK, such as Chilly's Bottles and Gymshark, to see how they're reaching their targeted audience and making a name for themselves.

‍

10. Anticipate your costs and resources.

‍

Start tracking your expenses to get an idea of how much you will need to pay to ship to consumers throughout the UK. It helps to anticipate costs to get a feel for how much you will need to spend to ensure it's worth expanding to the UK e‑commerce market. 

In most cases, it's worth it, especially if it means making thousands of additional monthly sales. Once you've anticipated your costs and resources, you can focus on your marketing campaigns and begin selling to this new audience of people who will love your products.

‍

Have you thought about expanding to the UK ecommerce market? The United Kingdom has the largest e-commerce market of all European countries, coming in at number three behind the United States and China. You may be surprised to learn that sales within the UK ecommerce market reached an all-time high of $169 billion in 2021 and will likely more than double, reaching around $368 billion within the next 12-18 months. 

With millions of people in the UK shopping online for their favorite products, it's an excellent time for your D2C brand to begin focusing on this international market.

Broadening your reach to an international market can provide numerous benefits to your business, enabling it to grow, and drastically increase revenue over the years. But before you start selling to these customers, you're probably wondering if it's a good idea to transition and begin serving customers throughout the UK.

The benefits of selling to UK consumers

While you now know that the UK ecommerce market is one of the largest, there are other additional benefits associated with expanding to an international market. As a business owner, you will have the opportunity to:

• Easily connect with an international market - Some markets are more challenging to relate to than others because of a language barrier. For businesses based in the United States, Canada, Australia, and other English speaking countries, nothing will get lost in translation when you launch your brand in the UK.
  If you own a European brand, coming to the UK will significantly speed up things when you are ready to open new international markets, because English is the official language of the country and one of the primary languages spoken worldwide.

• Boost sales revenue - Depending on your local market size, targeting the UK audience can help you double, triple, or even quadruple your sales in due time. If you're looking forward to experiencing tremendous growth and would like to bolster your profits, and a great opportunity to learn and expand into additional European markets.

• Build a solid reputation in a different country - Once you've developed an excellent reputation in your local country for your e-commerce, you may want to broaden your reach and make waves in different countries. Connecting with one of the largest international markets is a fantastic way to build your fanbase and build a strong community of influencers and consumers that will facilitate expanding to new markets by posting user generated content

‍

What to consider before launching your e-commerce in the UK

‍

With thoughts of benefiting from expanding to the UK ecommerce market currently on your mind, you're likely wondering what you will need to consider before you officially begin selling to these consumers. 

‍

What do the consumers care about most?

‍

Even if you know your targeted audience quite well, it's important to remember that UK consumers are different from consumers in the United States, France or any other local market. So what they care about during the e-commerce experience can differ. 

For example, in the United Kingdom, 70% of consumers feel more inclined to make a purchase when they know they won't have to pay extra taxes or fees when completing the purchase. In addition, 83% of consumers say that the anticipated delivery time can make or break their purchase. 

So, what does this tell you? It lets you know that lowering fees and offering speedy shipping times are two of the ways you can get UK consumers to complete purchases on your website.

Let's face it – the British have a reputation for expecting fast and reliable shipping services, meaning it's something you need to prioritize if you're going to sell products to them. After all, you want to offer the most enjoyable and unforgettable experience that encourages them to buy from you again. When you provide that ideal experience, you can turn first-time customers into loyal supporters of your e-commerce.

‍

Will you ship from abroad or from the UK?

‍

Another thing to consider is where you're planning to ship products from when selling to the UK market. You have two options – you can ship internationally or directly from the UK by investing in a UK warehouse. But which option is the best?

The delivery time will take much longer if you ship from abroad to the UK. Of course, this may be something you plan to do initially to test things out and see how well the UK market likes your products. It's a good way for you to gauge interest before going all out and investing in a UK warehouse that would hold these products and ship them out locally. 

However, if you want to make the most significant impact, shipping from the UK to UK consumers is the best way to do that. It's much cheaper than international shipping, and you wouldn't have to worry about purchases going through customs and taking several weeks or months to get to your customers. As a result, you could save on costs, your customers could save on shipping fees, and the customers would receive their items much faster than they would if you were shipping internationally.

‍

‍

Additional benefits of shipping locally instead of internationally

‍

While the savings and faster shipping speeds are certainly a good enough reason to start shipping to UK consumers from a UK warehouse, there are a few additional advantages you may not know.

• You can make the shipping process eco-friendly - Shipping internationally can take such a toll on the planet. However, if you ship locally instead of internationally, you can lower your carbon emissions - shorter distances mean speedy delivery times and greener delivery methods, instead of shipping every order by plane for both express and standard orders. And it's the kind of thing you can mention to customers who may appreciate your green initiatives!

• The delivery process becomes much easier and more enjoyable for everyone involved - When shipping internationally, you have so much to worry about, including when your customers will receive their packages and how long those items will be stuck in customs. However, if you ship locally, you don't have to stress over that. In addition, the customers can get their products when they want and need them, improving their experience and increasing their likelihood of leaving positive reviews or creating user-generated content on your brand.

‍

What will you need to start selling in the UK?

‍

Don't forget to list everything you will need to begin selling to UK consumers. For example, you will need an Economic Operators Registration and Identification Number, also known as an EORI number. It can take up to 12 weeks to obtain one, so apply for it as soon as possible to avoid further delays. Along with this number, you will need to apply for a UK VAT number and create an account on the UK Government Gateway.

‍

‍

Take the time to learn about the specific requirements of shipping to your UK customers. Once you know what you need to have to legally begin selling and shipping products to them, you can focus on building UK-inspired marketing campaigns designed with these audiences in mind.

‍

How to connect with UK consumers and entice them to buy from your e-commerce 

After you have everything you need to start selling to the UK ecommerce market, it’s time to begin building relationships with the UK consumers. These are some of the simplest ways to do that:

• Create a UK-friendly version of your website - While many people in the UK speak English, the spelling of words can differ. Be sure to make a UK-friendly website with all the correct spellings to provide a more inclusive feeling to the consumers.

• Build a campaign for the UK consumers - What works with consumers in America or your local market doesn't always capture the attention of those in other countries, so be strategic and create a marketing campaign specifically for your UK consumers. Think of how your products can make a difference in their lives and use that to your advantage when creating marketing materials.

• Connect with social media influencers from the UK - Start reaching out to UK influencers to see if they'd be willing to partner with your brand. You can offer to send them products for free, enabling them to start making influencer-generated content that they will post on their favorite social platforms, such as Instagram and TikTok. When they start posting to these platforms, it can help increase awareness for your brand and lead to many more sales.

With straightforward steps like these, you can begin catering to the international market, broadening your reach, and building a name for your brand in an entirely new country. You can turn this into an exciting opportunity to connect with UK consumers, providing high-quality products they will love. Launching your e-commerce in the UK is a wise move to make, especially if you’d like to start selling more and increasing your earnings. By taking the right approach, you can begin selling to this new market and gain thousands of loyal customers.

User-generated content is increasingly becoming important to e-commerce brands' marketing strategies. 

As acquisition costs escalate, UGC becomes an excellent conversion tool for online brands. As well as inspiring consumer confidence, they help to strengthen your brand's online presence - all at unbeatable prices because, most of the time... they're free! 

This article will reveal the best practices of the most successful e-commerce brands to achieve successful UGC campaigns and how you can apply them to your brand to succeed in your strategy! 

1. Boost brand presence with UGC across social networks.

A key feature of any UGC strategy is making your customers want to create content about your brand. Only if inspired will your customers make the best user generated content campaigns to drive success for your brand.

First, you should share your brand-specific hashtag across all social media platforms. This way, your customers know how to tag your brand when they’re creating UGC. Other leads can click the hashtag to view more user generated content focused on your brand (as well as your brand’s social media and website, too).

Next, your focus should be generating the best user generated content campaigns to inspire the creation of user generated content.

Many brands have successfully achieved this by hosting competitions or providing incentive in the form of rewards for creating UGC.

Fast-growing clothing brand UNIQLO partnered with TikTok to host a #UTPlayYourWorld contest, where platform users were encouraged to share short videos wearing the UNIQLO ‘UT’ logo shirt. 

Contest winners earned space on the brand’s platforms, enabling them to gain higher visibility for their own socials. The result: 95,000+ TikTok users created content for the contest, generating a total of 330 million views. 

Many of these views no doubt came from leads who were eventually turned into customers.

Similarly, GoPro puts user generated content at the centre of its marketing strategy. By implementing UGC best practices, a large proportion of GoPro’s YouTube content – include the three top performing videos – is user generated content.

This cost the brand nothing, since production was entirely in the hands of the customer – using GoPro equipment of course. 

In return, GoPro received authentic content that would raise awareness of their brand, since the channel has received billions of views. 

GoPro user generated content has become so prolific that the brand even gives awards to the best user generated content. The brand also hosts daily photo challenges to keep the influx of user generated content fresh. 

In addition to competitions, it’s a good idea to check what customers are already posting about your brand (or similar brands). 

By leaning into what your customers are already inclined to do, it could give you some ideas to create the best user generated content campaigns to inspire your customers to make content.

Simply communicate via your website and social media about the content you’d like to see – and where and how you’d like to see it – and your customers are likely to respond.

Moreover, employing UGC tools like Flowbox can help to drive your UGC strategy at a greater scale, as well as collect content created by your customers to integrate into your wider digital strategy.

2. Generate social proof through influencer UGC.

User generated content is incredible at leveraging the power of social proof.

By definition, social proof is a phenomenon in which people observe and emulate the actions of others in a given situation. 

This roughly translates to “they’re doing it, I should be doing it too”.

In a marketing context, social proof – a.k.a. evidence that someone else is using and enjoying a product – fuels purchasing decisions.

This can come from all kinds of user generated content examples. However, influencer UGC is especially effective.

When someone we admire uses a product or service, we automatically hold that brand in higher esteem. The social proof that an influencer values a product enough to share it on their social media is enough to make many customers believe it’s worth buying.

Countless campaigns have proved the effectiveness of influencer marketing.

Recently, Glossier marketed their new blush by using the product on celebrity clients, sharing the results in native feeling content on social media. 

In response, customers posted 1,700 UGC images trying out the blush in the first 7 days of the campaign. This jumped to 6,000 images by the end of the fourth week. 

As more people posted images associating themselves with the brand and its products, it encouraged more to do the same. This is a phenomenon known as the ‘bandwagon effect’. 

Human beings are social creatures. As such, we seek to be part of a wider community – particularly one occupied by those we admire. The best user generated content campaigns present the opportunity to do just that.

3. Continue the momentum on your website.

User generated content doesn’t have to start and end with social media. In fact, a number of big brands have incorporated user generated content into their websites as part of their UGC strategy.

Calvin Klein has an entire landing page dedicated to user generated content. In the place of edited, professionally shot photos of models, real customers sporting the brand’s clothing take pride of place. This gives prospective customers a more relatable idea of how they might look wearing the brand.

Not only does this deliver an authentic experience to leads browsing your website, it can also enhance your brand’s relationship with its existing customers. 

Displaying user generated content on your website shows your customers you value and appreciate the UGC content they’ve created. Feeling rewarded for their loyalty to your brand, they’re more likely to remain loyal – continuing to make purchases and to be an advocate for your brand.

User generated content on your website also improves brand trust. 

As we discussed earlier, trust is vital to converting leads into customers. People want to know that when they spend money, they’re going to get something valuable in return.

A recent study showed that 96% of travellers are more likely to trust a recommendation from an individual than branded content. With this in mind, the Hilton hotel chain uses user generated content to improve trust in their hotel experience.

Hilton integrated photos from the #MyHGV user generated content campaign into their website. Highlighting the authentic experiences of previous customers, this display helps convince leads of the value of the Hilton hotel experience. It highlights that customers – just like them – had a great experience with the brand.

Remember: always ask your customers for consent to use their content, as some may not want their photos posted all over your website. To avoid damaging your relationship with your brand advocates – and to prevent issues with copyright – always get customers’ permission first.

4. Re-use UGC in your email campaigns.

Email marketing is crucial to keep your customers reminded of your brand, to inform them of promotions and – of course – boost revenue.

Email marketing is a key driver of sales, responsible for around 19.8% of all e-commerce transactions. Only two channels accounted for more: paid search (19.9%) and organic traffic (21.8%).

Essentially, email marketing is neck and neck with the top sales channels. So ensuring your email marketing campaigns are as persuasive as possible is essential to e-commerce business success. 

By using UGC best practices, you can make email marketing part of your UGC strategy.

Lingerie brand Ysé repurposes customers’ Instagram photos for their newsletters and email campaigns. With email subjects reading “they look so good on you” and “you in Ysé”, the brand harnesses user generated content examples to bolster the personal relationship the brand has with its customers.

What’s more, by embellishing email campaigns with user generated content, brands can activate the ‘bandwagon effect’. You can show leads how great other customers look with your products, tempting them to want a slice of the pie.

Embedding user generated content in cart abandonment emails is especially effective. By showing customers what they could have experienced if they’d checked out – highlighting that other customers have done the same – you tempt them into returning to a purchase they previously decided against.

💡 Bigblue Tip

Follow-up emails have an average open rate of 75%.
The Bigblue app allows you to send your customers ultra-personalised, branded post-purchase emails!

‍

To reap the many incredible benefits of UGC for your e-commerce business, implement the four UGC best practices listed above to create the best user generated content campaigns.

With over 12 million e-commerce shops, it’s becoming increasingly difficult for brands to attract, and retain customers.

Traditional marketing channels are becoming more and more expensive, and Customer Acquisition Costs (CAC) are at an alltime high. In such a competitive environment, brands need to be creative when marketing themselves to thrive among their competitors. 

One way they are accomplishing it is through user generated content (UGC.)

In the last few years, brand strategies focused on increasing user generated content have skyrocketed in popularity – because they work. In fact, UCG is up to 42% more effective than brand-created content, and generates almost seven times more engagement.

In the social media age, UGC strategy is dominating the marketing sphere as one of the most lucrative tactics for businesses – especially, for e-commerce brands. 

What is user generated content (UGC)?

Any content created by your customers about your brand is user generated content.

In practice, this could be anything from clients sharing reviews on social media, to posting entire YouTube videos unboxing products they purchased from you. 

Two of the most effective platforms for implementing UGC strategy are Instagram and TikTok.

Instagram’s reputation as a picture-posting platform makes it the ideal hub to share photos of products and experiences. What’s more: the ability to use hashtags allows pictures to be easily associated with your brand – and direct leads towards your online store.

Similarly, TikTok and its trend-fueled culture has been driving video views, and influencing users in their purchasing decisions in everything from beauty products to books.

What makes user generated content special is its authenticity. Which allows consumers to connect with a brand. Actually, consumers are around 2.4 times more likely to view user generated content as authentic than content created by brands.

User generated content examples exist because customers want to create content about your brand. So, they do – without being influenced

In this article, we’ll see why UGC are so interesting for your business and how D2C brands integrate them into their marketing strategy.

1. Consumers listen to other consumers.

Traditional marketing methods – in which messages about products come from the brands themselves – aren’t as effective in the social media age.

Instead, consumers look to the opinions of other people when they are considering buying a product. Over half of millennials look to friends and family members when making a purchasing decision.

As such, 64% of marketers believe word-of-mouth marketing is the most effective form of marketing.

Well, user generated content is the word-of-mouth marketing for the digital age. 

Through social media platforms such as Instagram, YouTube, Twitter and TikTok, customers are posting about their interactions with brands. In doing so, they’re influencing the purchasing decisions of their followers.

If your brand successfully implements a UGC strategy, it’s akin to distributing a sea of personal recommendations. This is incredibly effective because the content is coming from a source your new potential customers trust: other customers.

2. Generates trust.

If customers have never heard of your company or seen other customers use – or review – your products, they’re probably not going to trust your brand.

A lack of brand trust can be fatal – especially to e-commerce businesses. 

After all, to feel comfortable entering their card details onto your site, your customers need to trust the legitimacy and quality of your brand and its products. The good news is that 92% of customers are more likely to trust a brand recommended by their peers.

Simply knowing of your brand through user generated content examples helps to generate awareness and familiarity: the cornerstones of brand trust.

Knowing that more of your customers have had successful, positive experiences with your brand – shown through their UGC content – helps further build this trust.

‍

3. Drives brand loyalty.

By offering chances to engage with your brand, you create opportunities for the relationship between your brand and your customers to grow.

When you encourage customers to create content with their purchases, like their posts and/or repost their user generated content on your own platforms, you increase engagement and loyalty towards your brand.

Why is brand loyalty important? 

Because it keeps customers coming back to your brand (crucially, over others). Since it’s less costly – and more profitable – to encourage repeat customers than to attract new ones, this is vital to e-commerce success.

What’s more: brand loyalty generates brand advocates that deliver positive word-of-mouth marketing to potential future customers.

4. Presents the opportunity to receive feedback.

Perhaps a less obvious advantage of user generated content is its ability to generate feedback.

Receiving feedback is an essential cog in the business machine. Feedback allows problems with your product/service to be identified, so that you can make improvements and keep customers happy.

As a result, user generated content and word-of-mouth marketing about your brand should stay positive and encourage sales.

Feedback also allows your brand to take stock of its strengths, identify its unique selling points and market accordingly to boost sales.

5. It boosts brands’ online presence.

As discussed earlier, customers are more likely to view and engage with user generated content than content created by brands. This makes UGC excellent for boosting brand awareness.

More than this, because of the digital native nature of UGC, it’s unparalleled for your web presence. The best user generated content campaigns boost SEO and let search engines know that browsers are engaging with – and interested in – your brand and products.

Customers sharing reviews on social media, posting photos of your products among countless other user generated content examples all direct traffic back to your online store. 

The cumulative effect of these things can help to boost your site rankings and expose your brand to more leads.

6. Often, it doesn’t cost a thing.

68% of customers would be willing to leave a review after their order if you ask! The most incredible part about user generated content ? It’s free !

What is user generated content? It’s content created by customers.

In other words, in addition to being an incredible marketing tool it’s also one of the most cost-effective. After all, your customers create your marketing content for you.

You’ll indeed need to put some energy into inspiring your customers to make content about your brand and products. However, once you’ve got this formula down you can look forward to viewing high quality branded content made by your customers – that cost you nothing and increase your sales!

Returns can cost your business... According to the latest Shopify report, the cost of returns in e-commerce is indeed expected to peak at over $550 billion this year!

If you want to know how much the bill will be for your business, just multiply your projected sales volume by the average return rate (15%). And, of course, add in the cost of returns (if you are responsible for them), restocking fees, lost and damaged items, etc.

As expensive as it is, the bill for product returns is unavoidable. No matter how good an experience you provide to your customers on your site, you can't avoid these demands.

However, these requests do not mean the end of your relationship with a customer. On the contrary, if the customer has shown enough interest to place an order, all is not lost! Take advantage of this opportunity (even though it may seem like a poisoned chalice at first glance) to maintain contact. You may even succeed in increasing its Lifetime Value!

Yes, it is possible to turn the person wanting to return their product into a loyal and profitable customer for your brand. In this article, Bigblue explains how to monetise your returns!

Why monetising returns in e-commerce?

Like any business, the goal of your e-commerce business is to be profitable and maximise your return on investment.

However, the main expense of your online business is the acquisition of new customers. The figures are clear: acquiring a new customer can cost up to five times more than retaining an existing one. Your brand cannot afford to lose the consumers it has managed to attract to its site and convince to place an order!

On the other hand, the online shopping experience, despite many efforts to improve it, remains much more uncertain than the in-store experience. This is why one in two consumers consider the return policy as a determining factor in their purchase decision. This is perfectly logical, given that 44% of them have already returned an item purchased online.

Monetising returns is therefore an absolutely essential strategy for sustaining your e-commerce business. It will indeed impact your ability to convert potential new customers. But above all, it will enable you to build loyalty, since 72% of buyers are more inclined to buy from you again if they have had a good return experience with your brand in the past!

Monitor returns and choose the right strategy for your e-commerce

In order to monetise your e-commerce returns, it is crucial that you have a good understanding of why your customers may return a product.

Among the statistics that you should pay attention to are the following:

• Overall return rate, but also for each item;
• Variations in your return rate over certain crucial periods (such as holidays or any important period in your industry - sales, season, etc.);
• Return rates for each product category or range;
• NPS score of your e-commerce;
• Return rates by geographical area;
• Customer satisfaction rate after an interaction with your support.

This data will allow you to define key performance indicators, in order to monetise the returns of your shop. You will be able to focus your efforts on the weak points of your customer experience (product descriptions, image quality for better colour rendering, etc.).

1. Offer an exchange for a variation

On Shopify, 60% of returns are requested because the customer ordered the wrong size or style of clothing after browsing the e-commerce site.

If your online shop offers fashion apparel or accessories, you are likely to find yourself in this situation. Your customers will not be able to try on their item before checking out. Some have even taken to ordering multiple sizes, favouring e-commerce brands that make returns easy.

💡 The example to follow: Zalando allows its customers to return their items in the same packaging. The brand even communicates that they can try them on at home, and only pay for the clothes they like or fit!

The advantage of this strategy for monetising returns is that it allows you to maintain the relationship with your customers as well as your sales revenue. Returning an item in exchange for a variation saves you the hassle of getting a refund, and ensures that your item ends up in your customer's hands. If they have a smooth and easy exchange experience, they will be more likely to recommend your site.

The downside is that this solution can also increase return requests, putting your business at risk. The key is to find the right balance to encourage your prospects to order (with the confidence that they can exchange their item if they need to). All the while, making sure they make the right choice the first time.

How can you monetise exchange-for-variant returns?

To reduce the number of exchange-for-variant requests as much as possible, be as clear as possible about the characteristics of your products. In the fashion sector, this means a very detailed description of the cut and composition of your clothes. But also high quality photos to render their colour as accurately as possible, etc.

Also make sure that the selection of colours and the visual display of your articles are as fast and fluid as possible. This will allow your customers to easily browse through all the possible variations of the same item. And choose the one that best suits them.

💡 The example to follow:  Adidas gives ultra precise sizing advice. For example, the brand indicates which models fit small, and shares recommendations based on a customer's previous orders.

2. Offer an exchange for a new product

In addition to sizing issues, your customers may request a return because they are not satisfied with their order.

Don't panic: this doesn't mean that they don't like your brand. It just means that the shirt they ordered on your site doesn't fit, or that your mattress doesn't offer the support they were looking for.

To turn this negative experience into a positive one, and again avoid the refund option, your brand must be flexible. This means making it easy to exchange for another product on your site.

This approach will allow you to monetise returns and even increase your sales. When a customer knows they can return an item and exchange it for a product that suits them better, they will feel more confident about buying more or a higher value product.

But returns for another product are also a great opportunity for cross- or upselling. Because your customer has already had their product in their hands, they have a better appreciation of the quality your brand is likely to offer. They may therefore opt for another, more expensive model. Or even complete their order with additional items!

How to monetise returns with an exchange of the product?

Requests for exchange for another product increase the rate of repurchase from your brand by almost 34%. Use this data to your advantage by suggesting relevant similar or complementary items in your exchange management email (or via the customer area on your site).

💡 The example to follow: Tediber allows its customers to try their mattress for 100 days! A good way to encourage the decision to buy, and to allow people who don't know the brand to discover the quality of its products (or to opt for another model, if necessary).

3. Manage refund requests by offering in-store credit

Sometimes your customers will not want (or need) to order from your brand again immediately. Again, your goal is to avoid at all costs that your relationship ends there, and that they ask you for a refund.

To give them more flexibility, and to give them time to discover the other products you offer, a good option is to suggest an in-store credit. This works in the same way as a gift card and above all boosts your strategy of monetising returns, as in-store credits result in immediate redemption from the brand in 40% of cases!

By offering credits in your shop, you give your customers more freedom to choose between a variation of their product or a completely different item. Above all, you give them the time to better immerse themselves in the world of your brand, and to choose a product that really suits them. In addition to retaining the revenue generated by the initial sale, this gesture of goodwill may also encourage them to increase the amount of their order by opting for more expensive products or complementary items!

How can you monetise returns with credit on your e-commerce shop?

If a customer returns to your shop to use their credit, this is an excellent opportunity to present them with new products that they would have missed on their first visit! So take advantage of this opportunity to show them your new collections (giving them enough time to use their credits).

Also, make good use of the data you have (and the comments you may have collected via your customer support or feedback form) to make ultra-personalised, and therefore more impactful, suggestions!

💡 Leading by example: Caval bends over backwards to offer as much flexibility as possible to its customers. Returned products can be refunded within 30 days. But after that time, the brand offers a credit to use in shop!

4. Offer a refund

Refunding an order is the return option that offers the least value to your e-commerce business. Unfortunately, in some cases, your customer will not have been seduced by what your brand had to offer. They will not want to exchange their product for another or even a voucher. And you will definitely have lost the revenue from the initial sale.

However, this does not mean that they will not be able to recommend your brand in the near future. Or even recommend your products to friends and family to whom they might be better suited! So don't give up, and always take the opportunity to leave a positive impression of your company.

Offering a refund is also a good way to boost your conversion rate, as your customers will feel more secure.

How do you monetise returns for refunds?

To monetise your e-commerce returns, even when your customers demand a refund, be as clear as possible about the conditions under which you agree to refund them. This will prevent abusive requests and save your customer support a lot of time!

Never forget to specify :

• How long it will take to process each customer return request;
• When and how they will receive the refund in their account;
• Whether you offer a full refund, or deduct a return fee;
• When you refuse to refund an order.

💡 The example to follow: Amazon states exactly where and when its customers will receive their refund. As for the brand Asos, it has set up a blacklist of customers who have made too many return requests thanks to an algorithmic system!

‍