Découvrez les stratégies des marques les plus inspirantes pour exploser votre taux de conversion

Returns are a fact of life for any business. No matter how hard you try to accurately describe your items or help customers choose the right size/model, you'll still have to deal with returns. That's why having a well-thought-out return policy is so important - it shows your customers that you care about their satisfaction and makes their shopping experience with your business a positive one.

‍

To avoid returns harming your profitability or brand image, you need to be as accommodating and flexible as possible. Remember that 6 out of 10 customers will read your terms and conditions of sale and return before placing their order online.

‍

Don't worry. You don't have to start from scratch! We've compiled 10 inspiring examples of successful product return policies for you. Plus, we've included tips for adapting them to your business. Take a look and find the perfect return policy for your brand.

‍

‍

1. Asphalte's excellent product return policy

‍

‍

Asphalte's return policy is just as impressive as their best-selling "the perfect sweater." Launched less than 5 years ago, they go the extra mile to make returns easy for their customers.

‍

What's unique about Asphalte's innovative return policy? They send a courier to pick up products to be exchanged or returned directly from the customer's home or workplace. This saves customers time and hassle but is only available to Parisians and residents of the inner suburbs.

‍

<sub>Bigblue tips

Asphalte's return policy is an excellent example for clothing brands to follow. By offering this service, they can reduce the number of returns and make the most of their investment. If you're in the clothing industry, consider implementing a similar strategy to improve your customer's post-purchase experience.</sub>

‍

‍

2. Tediber: simplifying product returns, even for bulky items

‍

‍

Delivery and returns of bulky products like mattresses can be a challenge. That's why Tediber's return policy is so impressive. The French sleep essentials brand gives customers 100 nights (instead of the mandatory 14 days) to decide if they want to keep their mattress. They also make it easy to return the product by scheduling a pickup at the customer's home. 

‍

<sub>‍Bigblue tips

Follow Tediber's lead and ensure that the products you'll take back for free and at pick up directly from the client's home are in good condition. The brand asks clients to send photos of the mattress or box spring before approving the refund request. Another good practice they follow is that returned products are reconditioned and donated to charities. It's a win-win for everyone involved.</sub>

‍

‍

3. Adidas: size exchanges without headaches

‍

‍

Adidas' return policy is designed to address the most common problem their customers encounter -choosing the right shoe size! After carefully analyzing customer feedback, they've established a policy that makes it easy to exchange shoes for a different size. No more headaches when trying to find the perfect fit!

‍

Thanks to their detailed customer feedback analysis, Adidas has made it easy to exchange shoes for a different size.

‍

They don't require customers to print out a return label and have even created a platform dedicated to tracking orders and managing returns. This helps preserve their brand identity and gives customers confidence. Plus, they're refunded in less than a week - talk about fast service!

‍

<sub>Bigblue tips

Learn from Adidas and be proactive in preventing returns. They give accurate sizing advice to keep returns to a minimum. For example, they let customers know which models run small and suggest the correct size based on the pairs the customer usually buys. By providing this information, they can help customers make the right choice and avoid the need for returns.</sub>

‍

‍

Even better, use Bigblue's returns solution to win customers for life. Offer store credit to retain revenue, hassle-free and printerless returns!

‍

‍

‍

4. Zalando: send back your article in the same package

‍

‍

Zalando's returns policy is designed to make the process as simple and painless as possible: "there are no risks when you buy from us". They allow customers to return products in the same packaging and even provide the necessary scotch tape to close it. Aditionally, orders are shipped within 48 hours, making the whole experience smooth and seamless. This encourages customers to shop with them again and again.

‍

<sub>Bigblue tips

Boost your sales by removing any barriers to purchase that buyers may encounter online. Zalando's tried-and-true strategy lets customers order items, try them on at home, and only pay if they fit or like them. However, this can also result in more return requests. Be prepared with a transparent and fair return policy to handle these situations and keep customers satisfied.</sub>

‍

‍

5. Sézane's product return management

‍

‍

Sézane, like all successful online clothing stores, had to create a strong product return policy. Even though they only offer a few extra days beyond the legal time limit for returns (15 days instead of the 14 required by European law), they allow customers to return items directly in-store (when applicable). 

‍

<sub>Bigblue tips

Make returns as easy as possible for your customers by simplifying the process. Sézane, for example, provides the return label in the package and refunds the order within 10 working days. Making returns quick and painless will keep customers happy and encourage repeat business.</sub>

‍

‍

6. Asos: avoid returns abuses

‍

‍

When it comes to returns, it's important to be generous but not too generous. Asos learned this the hard way when they had to deal with a high volume of returns. Now, customers can return items up to 45 days after their purchase. However, if they start a return after 28 days, customers will receive a voucher for the same amount instead of a refund. This helps balance customer satisfaction with managing returns.

‍

The brand has also set up a blacklist of customers with too many return requests (using an algorithm system). And has added large, flashy tags that can't be removed to prevent returned pieces from being worn. 

‍‍

<sub>Bigblue tips

Balancing customer satisfaction with profitability is key when it comes to managing returns. Be flexible with your customers, but be careful to maintain your profitability. Consider what actions will generate the most satisfaction while minimizing your operating margin.</sub>

‍

‍

7. Allbirds: transparent return management

‍

‍

Allbirds is a great example of how to manage product returns effectively. The brand is transparent about its return policy (30 days without having to justify the request). It keeps customers updated on their order status with automatic notifications at every step. Providing clear information and regular updates, Allbirds keeps customers happy and builds trust.

‍

<sub>Bigblue tips

Allbirds provides an excellent model for managing product returns. Returns are free online and in-store; customers can choose their carrier to pick up their packages at home. By making the process simple and convenient, Allbirds maximizes customer satisfaction and increases its chances of retaining customers.</sub>

‍

‍

8. Moea: reconverting customers who wish to return items

‍

‍

Moea's return policy is designed to maximize customer loyalty without cutting into margins. Customers can receive a refund within 30 days if they want to return an item. But after that, instead of losing the customer, Moea offers them store credit to use on their site. This clever strategy keeps customers happy and loyal!

‍

<sub>Bigblue tips

Moea's return policy is a great way to retain customers and avoid losing them to the competition. By offering store credit for returned items after the 30-day refund period, Moea can win back customers. With the help of Bigblue for logistics and returns management, Moea makes the process seamless and stress-free for customers.</sub>

‍

‍

9. Amazon marketplace product return: a detailed and flexible return policy

‍

‍

Amazon is known for having one of the friendliest product return policies in the e-commerce world. In particular, we recommend that you use it to:

• Make return and refund information easily accessible.  Amazon has a dedicated area on its site, where consumers can browse a considerable amount of resources and find answers to almost any question they have;
• Offer quick and easy returns. When users click on the "Returns and Replacements" link, Amazon gives them an accurate step-by-step overview of the process. The e-commerce giant also guarantees that they won't have to contact support for the most straightforward requests;
• Define a reasonable refund policy. To build customer loyalty and improve their experience, Amazon is making its conditions more flexible. Refunds vary depending on the state of the item, the time it took to place the order, and the method of purchase used;
• Assume full responsibility (even for third-party sellers). The A to Z guarantee protects the platform's customers, even for a product purchased from a third-party seller;
• Think in terms of customer satisfaction (and retention). An unpleasant product return experience automatically affects retention rates. Amazon ensures that even unhappy consumers continue to order from the site by making it as simple as possible!

‍

10. Jimmy fairly

‍

‍

To facilitate the return of its products, the eyewear manufacturer Jimmy Fairly has created a dedicated portal. This "return portal" allows customers to enter their order number and organize its forwarding via Colissimo. The procedure remains available on the website to keep users on the platform and offer them a branded, more qualitative experience. 

They facilitate returns in-store (within 30 days) and from abroad!

‍

_{Bigblue tips}

_{The simplicity and transparency you facilitate product returns on your online store will have a powerful, persuasive effect on your future customers. Your policy will encourage them to validate their cart since, if they need to, it will be easy for them to return their order and get a refund.} 

‍

‍

Among the good practices we have just presented, remember to :

• Refund your customers as quickly as possible to improve their experience and prevent any potential damage to your brand;
• Communicate as effectively as possible in the event of a return request. Good customer service avoids frustration and protect your reputation.

‍

Explore Bigblue's returns management portal to streamline the e-commerce brands' return process.A branded returns portal to offer a seamless and hassle-free experience for their customers. Want to know more? Get in touch with our team for a demo.

‍

‍

When it comes to providing a seamless post-purchase experience for their clients, e-retailers tend to focus solely on shipping: free or very low shipping costs, shorter delivery times, proactive package tracking. Everything aims to reassure buyers about receiving their package on time. 

And rightly so, the delivery experience is a crucial step in any consumer journey. But what about sending the products back? Even if it’s an unfortunate situation, your company will certainly deal with customer returns. And faster than you thought, your e-commerce return policy can highlight problems.

From the deadlines to return an item, to the terms and reshipment conditions, including who will pay for it... The conditions for returns, exchanges, or refunds of an order placed on your site must be as transparent as possible.

Put the odds in your favor with 6 best practices to optimize your reverse logistics. Maybe you’ll turn your e-commerce return policy into a highly effective conversion lever!

‍

1. Why is your e-commerce reshipment policy so important?

Let’s start with the bad news: you will not be able to avoid reshipment. However, they can become an opportunity! If correctly implemented, a returns policy for e-commerce offers you the chance to prove to your future clients that you care about their needs and address their concerns. This is particularly important, knowing that most e-tailers don’t meet the expectations of their customers.

According to a recent study, 54% of consumers said that free returns are important when purchasing from specific a e-commerce. And 34% of them will not buy if the reshipment costs are not free.

In contrast, only 14% of e-commerces offer free returns. While 60% of them aren’t ready to put in any effort to help buyers return the products.

Such a gap is an opportunity for your brand to stand out from the competition! It is even more urgent, knowing that 92% of buyers indicated they would buy again on the same e-shop if the returns processes are simple. 

‍

2. The risks of a sloppy designed returns policy

E-commerce return policies weigh in more heavily than we could imagine in the success of a brand. While this is the case across all sectors, not all of them are impacted equally. For instance, the fashion industry averages a return rate of 25%.

Being slow to meet customer’s demands concerning returns can negatively impact your revenue. Buyer dissatisfaction will quickly show on client’s ratings and reviews about your e-commerce. This will also be the case for negative comments on your social media. 

If left unattended, your brand image will suffer, and you’ll struggle even more to convince new clients to trust you. A vicious circle to avoid…

Operationally, an inefficient e-commerce returns policy will make you waste a lot of time. And thus, it will distract you from growing your business. 

Continue reading, and don’t panic. We’ll explain step by step how to avoid the most common mistakes. 

‍

3. Which are the main components that you should definitely include in your e-commerce returns policy?  

Before jumping into optimizing your e-commerce returns policy, you must understand your obligations. If you sell within the European Union, you must respect the current legislation. It stipulates that all online purchases can be returned to the merchant within 14 days following the acquisition. This is known as the right of withdrawal.

The latter applies without requiring the client to justify their decision. They must be reimbursed for the product or given store credit for the same amount. You must also pay for the initial shipping costs, but you are not obliged to pay for reshipments. After 14 days, the clients may exchange the product if it doesn’t match your description.

The same applies if the package is damaged. According to studies, replacing a damaged product can quickly become expensive: up to 17 times the initial shipping cost. On average, during the shipping process, a parcel is dropped or falls 17 times. And unfortunately, damaged goods are responsible for over 34% of returns.

For additional information on your legal obligations concerning returns, visit the European Consumer Center France.

‍

4. Good practices to optimize your e-commerce returns policy

You are aware now of the rules you must follow when implementing an e-commerce returns policy. However, that is the bare minimum! You need to push the legal frame and convince online buyers visiting your website to buy from you, eyes closed! 

Here are 6 best practices that will allow you to stand out from the competition and boost your conversion rate. Putting them into practice will ease the returns management process and enable you to focus on the core of your business.

‍

Calculate your reshipment rate (and limit it as much as possible)

First things first! You need to calculate and analyze your current returns rate. How to do it? Just divide the number of returns by the total number of orders on a given period. For example, if you sold 1000 units this month and 100 of them were returned by your clients, your return rate would be 10%.

This will enable you to think of a strategy that responds to the specific needs of your business. The goal, avoiding establishing return policies that could put your shop in a complicated economic situation.

Do whatever you can to limit your returns rate. You can achieve this by writing precise and detailed product descriptions. For example, a size equivalence tool will be more than welcome if you have a fashion brand. And why not test augmented reality tech to enable online shoppers to try on your clothes before purchasing?

‍

Your e-commerce return policy must be easy to find

Often, merchants fear that making their reshipment policy too visible will encourage clients to return articles. However, they also risk making their purchasing experience online frustrating! Hiding information damages brand trust. We must remember that 20% of online shoppers will not go through check-out if the returns policy is not transparent.

The easier it is to find and the more explicit it is, the more time you’ll save your customer care team!

‍

Use straightforward language

Your e-commerce return policy technically states the legal conditions of exchange, of course. However, avoid using technical jargon that could confuse potential customers. Keep it simple, so they don’t have to read several pages to understand the conditions related to their purchase.

We recommend you opt for a detailed description of your return policy in your site's terms and conditions while giving customers a concise, step-by-step summary of your returns management process.

The main things you should mention are:

• The delays to accept returns;
• The process to follow to make the return request;
• The cases in which items are not reshipped (defective or damaged products, for example);
• The terms of refund and exchange;
• Who will have to pay the return shipping costs.
  

Another best practice is to provide them with a return label directly in their package. Or, make it as easy as possible to download or print it from your website!

‍

4. Give them more time to return the products 

Giving extra time may seem counterproductive or even likely to encourage returns. However, many e-merchants find that their return rate slightly decreased after they applied this best practice. Moreover, this decision allows them to boost their conversion rate.

The more consumer-oriented your e-commerce return policy is, the more they will be encouraged to buy. Transparent and accommodating conditions have a positive psychological effect on buyers. This is demonstrated by the example of Zappos, which offers a 365-day return policy. 

‍

5. Make it easy to track the packages

In the same way that clients appreciate tracking their package when they purchase from you,  they will also be reassured if they can track  returned items. Carriers such as Chronopost, Colissimo, or Mondial Relay provide a tracking number in case of problems or disputes. Be sure to offer several options to your buyers, from the return from the post office to the return via a relay point.

Another easy way to stand out is to create personalized tracking emails. Rather than relying on your carrier, personalize your tracking messages for a smoother, more readable experience. You can (and should) also match these emails to your brand colors. Our customers who have done this have a 75% open rate!

‍

6. Re-engage your customers following a return

Just because a buyer returned a product, it does not mean you lost them for good. Don't forget that acquiring a new customer is 7 times more expensive than retaining existing ones. You might as well focus your efforts on keeping your existing customers to maximize your results.

Following a return, send the customer an email thanking them for their trust and a discount for future purchases. It is also an opportunity to ask for feedback. Who knows, you may discover new ways to improve your customer experience? This will help you refine your e-commerce return policy, update your FAQ and improve your product descriptions.

The more efficient your returns management is, the better impression you will leave on the consumer. This way, you will reinforce their trust in your brand and maximize your chances of turning them into loyal customers!

‍

5. E-commerce return policy: key takeaways

The success of your business depends almost entirely on the experience you provide to your customers. So consider optimizing your return policy by making sure it's as clear, precise, and transparent as possible.

This will help you limit the potential logistical or legal problems that an unhappy customer could cause. Moreover, your e-commerce return policy will also become a real asset to differentiate you from your competitors. And at the same time, you will reinforce your brand image and the trust that Internet users give you!

International logistics remains one of the most significant challenges for e-tailers growing their business at a worldwide scale.

The regulations for specific goods crossing the border are more or less complicated, depending on their final destination.

When preparing for international growth, it is essential to understand the complexities of global logistics. Which territories are concerned by specific regulations? How is transportation outside the European Union regulated? What is the applicable VAT? 

‍

1. International logistics: Which territories are concerned?

‍

Countries of the European Union and the European Union Customs Union (EUCU)

If you want to export your products to the European territories, you are in luck.

You benefit from the free movement of goods, a fundamental principle of European law. If you are exporting from France, it being part of the European Union (EU), you will ship to 26 EU member countries without undergoing any administrative export formalities.

This rule is also applicable within the Customs Union, including all EU members and four other countries: Turkey, Monaco, Andorra, and St Martin. 

In other words, if you send a package to one of these countries, no customs duties will be applied. And even better, this allows shorter delivery times. A customs control delays the delivery from 12 hours to several days.

‍

Non-European territories

‍

What happens when you venture beyond European borders? 

The first obstacle to overcome is customs. Once the package is on foreign territory, it can be controlled, opened, and handled carelessly. 

To avoid that, your best bet is to make your customs declarations correctly.

​​Finally, the most significant disadvantage when shipping outside the European Union is the customs fees. They vary according to the country of origin mentioned in the customs declaration, the type of product determined by the HS code, and even the invoice value of the shipment. Would you like to estimate the customs fees? You can use a simulator.

‍
The same applies to overseas countries and territories. Even if they are part of an EU Member State, their ultraperipheral nature subjects them to specific customs duties.

‍

The particular case of the United Kingdom 

‍

We cannot talk about international logistics without discussing our British neighbors. The Brexit has complicated the logistics for e-tailers who want to sell in this territory.

‍

The re-establishment of EU-UK borders

‍

As any country that is not part of the EU or the Customs Union, the merchandise must cross a customs border. You guessed it: forget about the free movement of goods principle. 

The United Kingdom is setting up a "smart border.” The goal is to offer a "simplified" administrative process for goods entering the British territory.

It is a logistics envelope that allows transportation companies to group several customs declarations - for both import and export - under a single document to save time when crossing the border, especially at the Calais/Dover Strait.

How does it impact e-tailers? The re-establishment of customs means more paperwork, and your carrier may charge you about 5€ extra to handle this new administrative formality.

‍

Customs fees and VAT

‍

The good news? There are no customs duties or VAT on entry into the UK. Therefore, goods entering the territory are not taxed as such.

However, the VAT applies:

• When the goods are worth less than £135, the customer pays the VAT (20%) to the merchant. The e-tailer must have made the necessary arrangements with HMRC to obtain a UK VAT number. This number and the EORI number will appear on the invoice. It is the responsibility of the e-commerce to remit the VAT to the UK authorities.
• When the goods are worth £135 or more, e-commerces do not pay the VAT directly. Parcel Force recovers the VAT from the final customer.
  

There are two scenarios:

• If the shipment falls under the DDP incoterm, the sender pays the buyer’s customs fees and the VAT. It is fully transparent for the latter.
• If the shipment occurs under the DAP incoterm. Then the customs fees are paid by the buyer, and the sender is charged about €6 / package. It covers the administrative costs of processing the parcel while waiting for the payment of the customs fees of the recipient.

‍

2. International logistics outside the European Customs Union 

‍

HS Code + EORI number: the basic requirements for international logistics

‍

1. EORI (required) 

‍

What is the EORI number? 

EORI stands for “Economic Operators Registration and Identification number.” It is a unique reference number attributed by a customs authority to identify the economic operators within the EU.

The EORI is listed on all customs declarations.

You can request an EORI number at the customs website. Then fill in this CERFA and return it by mail or online to the customs authorities of the EU country you are established.

‍

2. Harmonized System (HS) Codes 

‍

It is also mandatory. Developed by the World Customs Organization, it is an international product nomenclature that describes the type of shipped goods.

How to get an HS Code? You will have to be patient, and look it up on RITA, the French customs application. 

‍

3. Specific process for exporting to the United Kingdom 

‍

Do you plan to ship to the UK? Then you should get familiar with the specific requirements:

• You must have a UK EORI. Visit this website to request it.
• Be registered on the HMRC, the British authorities, and obtain a UK VAT number

To master the post-BREXIT rules, we encourage you to read this guide.

‍

International logistics and which documents to submit

‍

1. Invoices, three printed copies

‍

If shipping a package were just a matter of obtaining international HS and VAT references, it would be so simple!

Unfortunately, this is not the case. When shipping abroad, you will have to print three copies of the invoice on your company letterhead. Some carriers digitize invoices, but this is not a widespread practice yet.

‍

2. CN23; 4 printed copies

‍

The internationalization of a business requires compliance with certain formalities. For example, the CN23 is a mandatory document to inform authorities about the contents of a package. 

It includes describing the products contained in the package, their value, who are the sender and the buyer, and the parties involved in its transportation.

The CN23 only concerns commercial shipments. A SAD (Single Administrative Document) must be completed and attached, for all parcels valued over €8,000, instead of the CN23.

‍

3. The packing slip

‍

The packing slip, or shipping label, contains the delivery instructions. It indicates to whom and where the package must be delivered. It is, therefore, different from the invoice.

Once the packing slip is printed, you stick one outside the package and leave one inside it.

As you can see, international logistics requires expertise in customs law. Bigblue makes it easy to ship abroad by providing and placing all the necessary documents on the package.

‍

3. International logistics and VAT: the rules to master

‍

Reclaiming import VAT in France on consignments valued at 1€ or more

‍

Until July 1st, 2021, consignments valued at 22€ or less were exempt from import VAT.

This exception was removed, and all products entering the French territory are subject to it. This change responds to the EU’s ambition to regulate dropshipping and consequently reduce unfair competition from companies that used to ship directly from China, under-declaring the value of their products to avoid import fees.

There is a new process for imports of less than 150€ to simplify VAT collection. If the supplier is registered in the IOSS (Import One Stop Shop) system, they are no longer required to register with the tax authorities of each Member State. With this one-stop-shop system, VAT is declared and paid to a single Member State. 

It is the responsibility of the marketplace to collect, declare and pay the VAT on behalf of the merchants. The goal is to prevent any risk of fraud.

‍

Uniform VAT thresholds for intra-Community trade

‍

The EU-wide threshold of €10,000

• If the sellers’ revenue from distance selling within the EU is less than €10,000 (excluding VAT), then the VAT is due to the sellers’ country. For example, imagine a transaction of €65 for a pair of jeans bought from a French e-commerce shop by clients in Spain. If there are 139 similar transactions made, the total sales value of €9,035 will be subject to 20% VAT in France.
  

• If the sellers’ revenue from distance selling within the EU surpasses €10,000, the VAT is due to the final clients’ country. Imagine a transaction of €65 for a pair of jeans bought from a French e-commerce shop by clients in Germany. If there are 231 similar transactions made, the total sales value of €15,015 will be subject to 19% VAT in Germany.

‍

How to declare the intra-community VAT 

‍

The One-Stop-Shop System (OSS-IOSS)

‍

As mentioned before, this one-stop-shop system is available for distance selling within the EU of goods worth less than €150, coming from another EU Member State or a third country. 

The rationale is that transactions are taxable in the Member state where they are purchased.

To simplify VAT payment by the vendors, the One-Stop-Shop makes it possible to simplify the procedures by declaring and paying the VAT via a unique portal.

‍

Risks in case of error

‍

We do not mess around with fiscal matters! VAT errors generate penalties for up to 240% of the tax and block access to OSS-IOSS for two years.

You will have to file for re-registration in all the countries in which you are selling.

‍

BtoB: handling the VAT

‍

How does it work when you have a BtoB model?

For clients outside the EU Customs Union, you do not need to invoice the VAT. For customers within the Customs Union, if they have a valid VAT number, you are not required to invoice the VAT. However, special notice must be in the invoice.

Nevertheless, let's imagine that your BtoB customer is exempt from VAT. You will have to invoice him for the latter.

‍

4. International logistics: the importance of reassuring your international clients

‍

Checkout: an educational approach

‍

Depending on the country of destination, international clients will be subject to additional customs fees. Your job is to inform them beforehand, the exact amount to avoid unpleasant surprises.

The Shopify apps allow you to estimate the customs fees at checkout.

To demonstrate your professionalism, you can offer the same shipping options abroad and France: express, standard, or relay.
To reduce transportation costs related to international shipping and encourage greener deliveries, use the least polluting and cheaper option. Promote relay or standard delivery.

‍

The package: prepare it carefully for shipment abroad

‍

International shipments must comply with strict formalities. So make sure that all customs documents are up to date to prevent the package from being opened or blocked at the border.

Additionally, shipping abroad can be chaotic due to the distance involved. We advise you to use double flute packaging and additional protections according to how fragile the goods are. 

‍

The key difference when sending orders internationnally:

‍

Actual weight (Gross weight):

• This is the physical weight of your package as measured by a scale. It's the most straightforward concept – the heavier the package, the more it costs to ship.

Volumetric weight (Dimensional weight):

• This is a calculated weight based on the package's dimensions (length x width x height). It considers the space a package occupies in a plane or ship, even if it's lightweight.

Why volumetric weight matters:

• International shipping costs often consider both actual and volumetric weight. Whichever is higher is used to calculate your shipping fee.
• This is because airlines and shipping companies have limited space, and a bulky, lightweight package takes up just as much space as a denser, heavier one.

Here's an example:

• Imagine you have a box of clothes that weighs 2kg (actual weight). However, the box measures 50cm x 40cm x 30cm.
• Using the volumetric weight formula (often provided by the carrier), you calculate the volumetric weight as: (50 x 40 x 30) / divisor (divisor varies by carrier, let's say 5000). This gives you a volumetric weight of 12kg.
• Since the volumetric weight (12kg) is higher than the actual weight (2kg), the shipping cost will be based on the 12kg weight.

‍

Make sure to choose optimized packaging to reduce the volumetric weight and consequently reduce the shipping costs.

‍

Follow-up: Reassuring the customer

‍

It is not easy for a foreign customer to place an order for a product that is in a country other than their own. 

To reassure them, be very transparent about the shipping of the package. Try to anticipate questions to remove all purchase objections.

It is even more critical when you are a small brand. The post-purchase service must be flawless. The follow-up must reassure international clients: keep them informed on each of the shipping stages.

‍

Returns: Be transparent about the conditions and customs fees

‍

45% of buyers say that the return policy was a determining factor in their online purchase.

The return process must remain straightforward. The most important thing is that they know, from the moment of purchase, how they can return the products if they are not satisfied:

• Clarify the conditions for international purchases on your T&C and at checkout.
• Publish an FAQ explaining all the steps to return a package in their native language if possible.
• Offer reasonable return costs. High prices will dissuade customers from purchasing.
• Facilitate the return, set up a process on your website, either directly from the client account or the follow-up emails;
• Make sure you can arrange for transportation within the specified geographic area. Failure to do so can make the return process difficult, which can ruin the customer experience.

Conversely, payment can also become a real growth vector for your store. But then, how to exploit its full potential?

Here is an overview of the features that will help boost your sales while offering your customers a memorable shopping experience.

1. Increase your average basket

Consumers are more and more fond of financing solutions such as payment in installments: it allows them to spread their expenses, a significant asset in this period of health and economic crisis. In fact, according to Opinion Way, one in four French people used split payments in 2020!

Proof that to meet buyers' expectations, it is now necessary to offer this payment facility. 

Moreover, by removing the last obstacles to purchase, payment in installments allows you to improve your conversion rate and increase your average basket. Indeed, an internet user will be more inclined to buy additional products or in a higher range if he knows he can spread his payment.

We particularly advise you to opt for the guaranteed split payment: this functionality (proposed by PayPlug) allows you to offer the payment in 3 or 4 installments to your customers without incurring the risk of fraud or unpaid bills. In other words, you receive the full amount from the first payment.

TheProject X Paris store integrated the guaranteed fractional payment on its website in 2020: its average basket went from 80€ with the cash payment to 200€with this payment facility. 

2. Accelerate your shopping journey

Checkout is the last step in the buying process, so it's important to identify and eliminate potential friction points. To start, you can use this free tool to evaluate the performance of your checkout page: you will receive personalized recommendations by email based on your results. 

Next, think about the features that can help you shorten your checkout process. For example, with one-click checkout, your customers can choose to save their credit card information, so they don't have to re-enter it the next time they check out. A timesaving feature that they will appreciate and that will encourage them to place other orders on your site! 

We also advise you to choose a payment solution that offers automatic detection of the type of bank card being used: a small detail, certainly, but one that will save your buyer a few precious seconds.

In the same spirit, you can also activate the numeric keypad to facilitate the entry of credit card data from a smartphone.

There are so many techniques to make your customer journey more fluid!

3. Improve your conversion rate

Conversion is the nerve of war in e-commerce. How can you counter cart abandonment at the very last step of the purchase process? How do you avoid payment failures?That's what we're going to see in this section!

A responsive and reassuring payment page

First of all, to increase your conversion rate, it is essential to have a simple and reassuring payment page. Some payment solutions allow you to customize your page by adding your logo, your colors, and the background image of your choice.This way, your buyers stay in the world of your brand until the moment of payment, which makes them feel confident. 

You can also opt for a "lightbox" page template, which is displayed directly on the order page and contains many reassuring elements (image of a padlock, "100% secure" mention, logos of accepted card types). 

We encourage you to test different templates to identify the one that will best convert your visitors.

A PSD2 compliant payment solution

The Payment Services Directive 2 (PSD2) aims to improve the security of online transactions. Since May 15, 2021, in France, all digital payments over €30 a reverified using at least two of the following three authentication elements: a password the user knows, a device the user owns (phone, computer), a personal characteristic of the user (fingerprint, facial recognition). This is called strong authentication. 

Eventually, payment solutions should be able to "request" strong or friction less authentication (in which case the user does not need to identify himself),depending on the estimated risk level of the transaction.

Since it adds an extra step in the purchase process, strong authentication can apriori negatively impact your conversion rate. How do you minimize this loss?

• Inform your visitors in advance about the consequences of the PSD2 to avoid payment failures due to a lack of knowledge of the steps to follow;
• Check that your payment solution is compliant with this new directive;
• Choose a solution that generally records little fraud because the issuing banks will have more confidence in the choices it will recommend. 

4. Close sales on all channels

So far, we have given you tips on how to optimize the payment stage on your e-commerce site. But did you know that some payment solutions allow you to cash out your customers directly in your WhatsApp, SMS, or phone exchanges? This is the principle of conversational commerce!

We've put together a complete guide on the subject: we invite you to read it to find out which contact channels to use first, how to configure your chatbot to boost your engagement rate, and what techniques to use to conclude each conversation with a sale.

In concrete terms, all you have to do is send a payment link to your customer during an exchange. All they have to do is click to be redirected to a secure payment page. This way, you offer a truly differentiating shopping experience while generating additional sales! 

As an example, the Laudate store now makes 14% of its sales by phone, thanks to payment links. When a customer calls into the store, especially to place a click & collect order, the salesperson can offer to pay directly by email or SMS. 

5. Conclusion

You now know which levers to activate to improve the payment stage on your site, but also which tools to implement to generate sales on any channel! 

Choose your payment solution carefully, and make sure that it offers features in line with your needs and your customers' expectations. Beyond a simple tool, it must be a real partner that will accompany the growth of your store in the longterm. 

As an e-merchant, you are probably wondering if there are any solutions. At Bigblue, we have listed the best practices to help you optimize your packaging, making it less polluting and more pleasant for the customer experience.

So, how do you fight against over-packaging? Is it possible to lighten the weight of the package by eliminating superfluous layers? And above all, are there alternatives to polluting materials?

If, like us, you think it would be good for the environment (and for your wallet) to change the game, here are our 3 directly actionable tips.

‍

‍

1. Fight over-packing with the right size packaging 

‍

‍

Empty spaces: the first cause of over-packaging! 

‍

‍

Some e-tailers standardize packaging for productivity reasons. This way, assembly teams don't waste time looking for the right size package for the ordered item. So, buying a single-size package in large numbers to hold small and large products seems to be rather logical.

‍

A logical choice, certainly, but not very economical and not at all ecological:

• According to DS Smith's study, on average, 25% of packages sent have empty space. But to adjust the package, you weigh it down with materials that impact the price of transport (yes, the heavier it is, the more expensive it is!). The same study estimates that $46 billion could be saved each year worldwide. How much could you save?

• The empty space of the package is filled with bubble wrap, polystyrene, or the famous air cushions that do not give an environmentally friendly image to the consumer. And the consumer is right not to be happy: 122 million tons of carbon dioxide are emitted every year due to the transport of half-empty packages.
  ‍

From a macro point of view, we can say that overpackaging is not a good business! But from a more micro perspective, it's no better. One of the crucial points to consider is the consumer: what does he think about all this?

‍

In general, this aspect is not well received by the final customer, who doesn't plan to store a box the size of a bicycle in his dustbin when he has only ordered a simple bedside lamp. This is especially true for a consumer who has only ordered a simple bedside lamp (if you have ever ordered in a large store, you know what we are talking about!).

‍

However, mentalities are changing: people are concerned about the environment. Logistics is, therefore, an element on which you will have to be attentive, at the risk of getting bad press!

‍

Don't oversize your packages: simple and effective

‍

‍

We know that ingrained habits are hard to break. But the figures quoted above prove it: by remaining minimalistic in your packaging, you will not only optimize your costs but also please the planet and your customer.

So why not start slowly but surely? The truth is, there is no miracle solution. In fact, you just need to be pragmatic:

• Order the right packaging for each product. The idea is not to do custom-made but to plan several sizes of packages. There are packages adapted to the weight, the sensitivity of the product, the size, etc. The customer experience will be better, and your brand will be more valued.

• Call on a packaging specialist. Packhelp offers packaging adapted to the products and constraints of e-tailers. But you can also make the customer experience unforgettable by customizing your packages with your colors and logo. Packages of the right size, secured  according to the specificities of the object (the shipment of pottery differs from the shipment of a T-shirt), with the colors of your brand. What more can you ask for?

• Go through a logistician whose job will be to help you fight against over-packaging. At Bigblue, we have created an algorithm that calculates the size of the optimized package according to the type of product being shipped. In concrete terms, you enter the dimensions of your product, and we choose for you the ideal size for transportation. What is the objective? To reduce the empty space in the package.

‍

‍

2. Do away with layers of unnecessary packaging: do less but better.

‍

‍

Why put one plastic inside another plastic that will be surrounded by another plastic?

‍

The process of preparing an order described above is hardly exaggerated. For example, for a jumper and a pair of socks that come from the same store, we have:

• the polybag for each garment;
• the tissue paper for each of them too.

‍

That is 4 packages in total. But we can still find:

• another plastic to protect the two packages together in a parcel during transport (just in case);
• and the sometimes-oversized cardboard.

‍

Total of the operation? 6 layers for two items.

‍

Overpackaging is responsible for pollution. To compare:

• 122 million tons of carbon dioxide is produced every year because of overpackaging;
• 22 million tons of carbon dioxide was produced in 2017 due to air traffic in France.

‍

In addition, the waste these materials produce is not environmentally friendly at all.

‍

So ask yourself: at your level, what packaging could you remove?

‍

Remove unnecessary layers: a new way of working on logistics. 

‍

At Bigblue, we've noticed that end customers place a high value on the delivery experience and packaging. The latter is part of the brand image.

An overlay of bags, plastics, and other additions do not make for a pleasant customer experience.

What do you think are the areas where you could improve? Here are some ideas to guide you:

‍

Identify completely unnecessary packaging.

‍

You know the ones that are not useful for your product or your customer. For each container, ask yourself what its real added value is.

‍

Focus on less but better.

‍

For example, to avoid the use of tissue paper and guarantee an optimal customer experience, you can adopt personalized packaging (inside). Sézane integrates this element in its marketing strategy.

‍

Promote eco-responsible values.

‍

Here, it is, of course, a question of being in phase with your positioning and values. Lush is ultra-transparent about the packaging material used. The site indicates that the cellophane bags used to wrap and protect bare items for orders are made of vegetable cellulose, 100% biodegradable, and 100% compostable. 

‍

3. What about using eco-friendly materials? 

‍

Overpackaging, a factor that encourages the use of plastic

‍

You guessed it. The side effect of the empty package is the need to fill it with readily available materials that seem economical.

Indeed, not having suitable packaging means fearing that the item ordered will travel poorly in transit. 

‍

To alleviate this problem, the materials used to avoid any alteration of the object have components for which the logisticians remain unclear like:

• Bubble wrap;
• Air cushions;
• Polystyrene.

‍

Although practical for delicate and fragile goods, they have a significant disadvantage: they are made of plastic whose manufacture and waste are polluting. 

Moreover, it is difficult not to think of plastic tape when talking about packaging. This adhesive is unfortunately not recyclable and even prevents a package from being recyclable.

‍

Abandon the overuse of plastic for eco-friendly materials

‍

What could you replace plastic with? Easier said than done!

But rest assured.

‍

There are environmentally friendly, affordable alternatives that can give you a good brand image (without greenwashing). 

‍

For sensitive products such as Unbottled soaps that can break in transport, it is almost mandatory to have “protections”. You may wonder if other materials are as reliable as the ones you are used to. 

‍

The answer is yes!

‍

And here is what you can integrate into your logistics, being sure that all this is recyclable:

• Kraft paper: perfect for cushioning products and wrapping them in the package;

• Crimped paper: ideal when there are several products in a package; 

• Paper wrap: similar to an insulator for products;

• Pre-cut packaging: practical for storing products, but also for closing a package in an ecological way and reducing the use of plastic as much as possible. Have a look at the Dollar Shave Club, which features 100% cardboard packaging, is tailor-made for the razors sold, and offers an excellent customer experience.

To go even further, there is Hipli which offers packaging adapted to your merchandise while avoiding the use of materials that are harmful to nature. In short, environmental protection is clearly in their DNA as this brand focuses on reusable and responsible packaging.

‍

In short, the triptych of over-packaging is not a fatality. You can start by doing an audit of where you stand:

• What package sizes could you order?
• What “layers” could you eliminate?
• What affordable materials could you use to replace plastic?

‍

At Bigblue, we're very aware of these environmental issues, which is why we talk about them. If this resonates with you, and you want to discuss it, you can always contact us! 

‍

Main image created by vectorjuice - fr.freepik.com

But the transport between the warehouse and the final customer is a delicate step that logisticians are constantly trying to improve. And for good reason – not only is it polluting, but it is also expensive. 

With the exponential development of e-commerce in France, i.e., 1 billion shipments in 2020, the negative effects of the "last mile" will only increase.However, rest assured: e-commerce is not necessarily more polluting than physical commerce (home/shop journey, store operating costs, etc.). Nevertheless, the pollution linked to the delivery does exist. 

So, is it possible to limit the negative effects of the last mile? If so, does it involve the selection of the carrier? To go even further, wouldn't it be appropriate to offer the customer delivery choices? Moreover, can we make consumers aware of this issue?

We decrypt the solutions in this article...

‍

1. Why is it important to limit the effects of the last mile?

‍

The last mile: a challenge for the environment

‍

Developing express delivery is a great opportunity for some e-retailers whose goal is to ensure perfect customer service. But there is a drawback. This type of service is carried out by plane, which is 125 times more polluting than the truck for the same distance. 

However, contrary to appearances, air logistics is not the only one to be wary of. In fact, urban logistics is a major ecological challenge. With the success of e-commerce and its corollary, home delivery contributes to urban traffic congestion (the famous traffic jams on the ring road!). Of course, this contributes to air pollution: it is the cause of 25% of greenhouse gas emissions. 

Even with this knowledge, customer satisfaction is so essential that express shipping is the only option for many e-tailers. The result? Trucks don't wait to be filled to leave, and they travel with few packages to be delivered. But driving almost empty is not ecological logistics.

‍

By the way, why is the last mile so expensive? 

‍

‍

It is quite paradoxical that such a small distance represents more than 53% of the logistics costs. In reality, everything can be explained by the figures. 87.5% of French internet users buy online, and fast delivery has become a norm among consumers. Customers now instinctively expect to receive their package"within 48 hours."

E-merchants and logisticians do not have the time to share the transport. The orders being geographically varied, the parcel delivered to the customer leaves the wholesale transport system. We have to adapt and customize to deliver quickly.

At the end of the chain, the success of a delivery depends on the meeting between the delivery person and the final customer. However, there are some recurrent failures:

• When the customer is not at home because he has not been informed of the time of delivery;
• When the customer has not given the exact address to be delivered, and it is impossible to reach him.

‍

As a result, the delivery person ends up with a package that he will have to deliver again. If you combine empty trucks and routing errors, you can understand the loss of revenue. The drivers lose time, which costs the logistician and the e-merchant money. 

In addition, longer than expected delivery times have a negative impact on customer satisfaction. 84% of shoppers say they are unlikely to buy from a company again after a bad delivery experience.

‍

Finally, it's important to remember that delivery is not just about the urban environment. What happens when the package to be delivered is in rural areas?The unit cost of shipping simply explodes.

‍

2. Can green logistics solve the last mile problem?

‍

Choosing a carrier that pollutes less: logical and efficient 

‍

It's no longer news: ecological values are sought after by the consumer. Some logistics companies have understood this, and ecology is an integral part of their value proposition. Today, we can observe the development of real "green logistics," which takes several forms. 

‍

Reduce the CO2 emissions

‍

First of all, you can look for a carrier that offset sits CO2 emissions. 

For example, Colissimo finances environmental projects that allow offsetting nearly 1.5 million tons of CO2 each year. 

Of course, this does not reduce pollution, but this system has the merit of trying to repair pollution that is inevitable due to our lifestyles.

‍

The development of green transportation 

‍

Then, you can consider looking at transporters, such as Chronopost, who have a fleet of ecological vehicles: 

Green utility vehicles are perfect for city delivery. No CO2 emissions, minimal fuel consumption, and, best of all, they make no noise;

Bicycles, if the size of the parcel lends itself to it, are a good option for short distances in the city and for avoiding traffic jams in town. 

The result is obvious time saving and extremely reduced pollution. In addition, the appearance of cargo bikes now makes it possible to deliver more packages.

Today, there are multiple solutions at the local level. It will be up to you to do some research according to your geographical situation. 

‍

Technology for an optimized route

‍

Finally, you can also choose a carrier such as DHL that uses route optimization.

Thanks to technology, you can better organize your logistics and calculate the best route based on traffic congestion, fuel consumption, the distance the package travels, the type of vehicles driven, or the way the delivery drivers drive. 

The goal? Consume less fuel to reduce pollution (and save money in the process).

‍

Propose alternatives to fight against the last mile

As an e-commerce brand, you can directly fight against the perverse effects of the last mile. All you have to do is offer your customers several delivery options. 

As you now know, the empty trip of trucks is due to fast delivery. Overnight, it is impossible for logisticians to organize themselves. And yet, empty running, whether for parcels or trucks, is an ecological and economic plague. 

So what can you do?

• Favor relay points. Thanks to this system, the carrier can combine several orders from the same area and avoid the inconveniences of the last mile: pollution is reduced, unit costs per parcel are lowered, and, above all, the deliveryman's return trips due to the customer's absence are avoided. The customer is free to pick up his parcel provided, of course, that he respects the timetable of the relay point (it is often local stores that take care of it).

• Offer lockers. Less widespread than the relay points, the Chronopost pickup, for example, proposes lockers where the customers can recover their parcels without the constraint of a schedule. Here, the flexibility is complete, and this type of delivery is appreciated precisely for the freedom it offers to consumers. 

Consumers are now used to these types of delivery. It is, so to speak, part of the way of life. The system is now well established, and for a few euros less, the buyer will potentially agree to be active in receiving his package (he will sometimes prefer this option to home delivery).

_{‍
Bigblue Tips
Elevate your customer experience with Bigblue's Pickup Point app for Shopify. When working with Bigblue, you can also integrate seamlessly with leading carriers like Mondial Relay, giving customers the option to choose a convenient pickup location at checkout. This translates to a smoother shopping journey and happier customers, ultimately increasing conversions.}

‍

3. What if green logistics also meant raising end-customer awareness?

The gentle sensitization of end customers on the evils of fast delivery.

Fighting against the effects of the last mile (and against pollution in general) is a collective issue. Many consumers are unaware of the harms of fast shipping.

The idea is not to make the customer feel guilty but rather to inform him about his ecological impact. They will, of course, remain free to take into account or not the alternative delivery methods that you propose.

Some e-merchants have undertaken work to include information about the ecological cost in the purchase or delivery process.

Paygreen offers a positive impact payment system.  

It is simply a matter of engaging customers without disrupting your sales tunnel, thanks to a simple possibility for them to compensate their order by paying a few cents for an ecological program.

Ensure the traceability of the package: green logistics must be transparent

At each stage of delivery, you can also inform your customer of the status of his parcel in your tracking emails. 

This way, they will be aware of the different stages their order goes through (and the kilometers covered).

To go even further, at Bigblue, we offer you the possibility to create and personalize the emails that your customers will receive at the time of the preparation of the order, of its sending, as well as its arrival.  

Therefore, it is possible to integrate your branding elements and educate your customers on the subject of the last mile! 

The objective is to maintain a pleasant customer experience while demonstrating your commitment to greener logistics.

When creating e-commerce, we think about the product, the crowdfunding campaign, and the packaging...but did you ever think that one of the best ways to stand out is your customers' delivery experience?

Logistics can be a real secret weapon to boost your sales! A quick checklist to get started: 

• Have you chosen the best tools for your e-commerce?
• Are you comfortable with the terms "SKU" and "barcode"? 
• Is your returns policy perfect? 
• Do you have a handle on tracking emails?
• Are you 200% sure that you have selected the best carriers? 

If you answered no to at least one of these questions, then this article is for you! We present to you our best articles to help you develop your business thanks to your logistics. 

‍

1. The use of barcodes and SKUs:

Products are the essence of e-commerce. They attract customers and keep the business going, but only if the inventory is well managed: to be able to determine the number of products of a reference, the stock-outs, the unsold products... 

One way to manage stocks efficiently is to identify products. But there are different methods that adapt to the development stage of your shop: the SKU and the barcode. The difference between the two is sometimes a little blurred, yet they do not have the same use for your e-commerce.

• The SKU is a means of identification within your company, but it is not understood by other actors of the e-commerce (supplier, warehouse, marketplace ...)
• The barcode, on the contrary, is a "universal language" understood by all (carriers, logistician, marketplace)

Why is it essential to use barcodes to develop your e-commerce?

• Marketplace: the creation of barcodes will allow you to sell on other platforms and reach other customers. This means that you will boost your sales.
• Logistics: barcodes allow you to track your products, update your stocks, reduce order errors, limit losses, etc...

The process of creating and managing barcodes may seem long and complicated, but in reality, it is quite simple. 

‍

2. Choosing your carriers:

Delivery options can drive your potential buyers to order from you rather than your competitors. 82% of online shoppers abandoned their shopping cart because they found the delivery options unsatisfactory. 

Having a wide choice of carriers ensures that you don't lose your potential customers and can go after those of others.

Why your potential customers care so much about their choice of carrier:

• It is the reflection of your e-commerce image. For example, if you refuse to offer express delivery to reduce the environmental impact of your orders.
• It is one of the links in the supply chain. If it is defective, the whole delivery experience is impacted. For example, if a package is lost, your customer will remember it and may order from your competitor.

There is a wide choice of carriers from Colissimo to Relais Colis to DPD. All of them meet the specific needs of each e-commerce.

‍

3. Work on your return policy:

Once the customer receives their order, we tend to think that's the end of the delivery experience. Well, we must not neglect the potential returns! 

Returns management is the underestimated step in logistics and yet can become your ally in acquisition and retention. 

39% of Internet users check return policies before placing an order. Your return policy has the power to convince your potential customers to validate their carts!

The primary goal of the return policy is to improve the customer experience, which will boost your e-commerce sales. A satisfied customer is a customer who reorders. 

You can improve your return policy on several levels:

• Make it as clear and precise as possible for your customers
• Create a page detailing all the steps involved in a return 
• Design a packaging that facilitates returns 

A good return experience will keep your customers and improve your brand image. It is possible to make your return policy the most profitable operation of your year 2021.

‍

4. Insurance for your packages:

Once your orders are prepared, they will be delivered to your customers by the carriers. Many external elements can hinder the journey of these packages. Thisis when the following questions arise: 

• What happens if my packages are lost or damaged?
• Do I need to take out Ad valorem insurance for my products?
• How does carrier compensation work?
• What are the carriers' refund conditions? What about ad valorem insurance?

The idea of wanting to take out additional insurance in case of loss or theft of packages is sometimes a common misconception. But in reality, it is occasionally more profitable to lose products than to insure them. It is essential to understand how carrier compensation works and the conditions of Ad Valorem insurance. 

‍

5. Tracking email:

Once your customers have ordered one of your products, they will be waiting impatiently for their package to arrive. If they don't hear from you or the carrier, they will try to find out where it is by contacting your customer service department with emails, calls, or even messages on your networks.  

The personalized follow-up email allows you to inform your customers of the status of their orders in real-time (being prepared, sent, being delivered) while using it as a marketing and sales tool.

Areal Swiss Army knife, the follow-up email is at the same time informative, reassuring, and commercial.

• Informative: it gives information on the status of your customer's order
• Reassuring: the presence of your brand image (logo, color, tone) will relieve your customer service of worried emails and improve the customer experience (which is synonymous with retention)
• Commercial: you can add products in these emails that complement your customer's order or new product lines to push customers to recommend you to others.

It is your ally in converting your customers. We give you all the keys to create the perfect follow-up email to boost your sales in our article. 

‍

6. Conclusions:

The primary goal of improving the delivery experience is to boost your e-commerce sales. The role of logistics is sometimes underestimated, and yet barcodes, carriers, insurance of your products, and tracking emails will make the difference with your customers compared to your competitors.

It's up to you!

Once your orders are paid and prepared, they will be delivered to your customers by carriers. There are many of them, and each one has its own characteristics: DHL, Colissimo, Mondial Relay... But sometimes your parcels can get lost or damaged in the transport process. 

At that moment, many questions arise: What will happen? Will I be compensated? Do I need to take out additional insurance?

In this article, we will see what options are available to you in the event that a carrier loses or damages one of your packages.

‍

1. How do carrier offsets work?

‍

Conditions:

‍

From the moment the package is picked up from the warehouse until it is dropped off at your customer's home, it is the carriers' responsibility. That is to say, if something happens to your package, a system of compensation is set up. 

Transport indemnities are governed by international conventions such as those of Montreal for air transport or Geneva for road transport. There are many of them in order to protect both the carriers and the final customers.

More simply, these texts require carriers to compensate their customers if the package does not arrive or arrives damaged. And these compensations are calculated on the weight of the package and not on its value. 

‍

In France, the decrees impose the following indemnities:

• For parcels of less than 3 tons: maximum 33€/kg without exceeding 1,000€ per parcel;
• For packages over 3 tons: maximum 20€/kg without exceeding 3,200€ per package. 

‍

Limitations:

‍

1. The law: 

‍

Although carriers are obliged to compensate their customers, there are limits to such compensation, as the laws are mostly in favor of the carriers.

While respecting the maximum amounts imposed by the decrees and conventions, carriers are free to set compensation as they wish. For example, the limit for packages under 3 tons is 33€/kg. Let's compare the compensation policy of 3 different carriers:

• La Poste compensates its customers up to 23€/kilo with a 690€ maximum for parcels under 30kg 
• Mondial Relay compensates its customers with a flat rate of 25€ per package
• Relais colis, like Mondial Relay, compensates its customers at a flat rate of 20€ per parcel

‍

The amount of compensation varies from one carrier to another. 

‍

2. The exemptions: 

‍

‍

The compensation policies, like any other policy, include exemptions; that is to say that there are situations that mean the customer will not be compensated.Here are the 3 conditions: 

‍

• Force Majeure: i.e., if one or more unforeseeable events occur (weather, political events...) 
• Defects specific to the goods transported: this mainly concerns sensitive goods (food, cosmetics, etc.), which may be altered by storage conditions prior to transport
• The fault of the shipper: the package is damaged due to a problem related to the shipment (packaging problem, bad packing...)
• Unexplained disappearance: the package is marked as delivered and the customer claims not to have received it.

To be noted: In case of gross negligence of the carrier, the shipper may benefit from a de-capping of liability. 

Bigblue tips: Suggest delivery against signature 

‍

Delivery against signature is a solution that ensures that the package will be given only in exchange for your customer's signature. This delivery option will provide additional security for your packages. 

‍

2. Ad Valorem insurance:

‍

What is Ad Valorem insurance?

‍

‍

“Ad Valorem" insurance, which means "according to value," is an insurance policy for the transport of goods. 

Unlike carrier's compensations, it covers the transported goods on the basis of the real value declared by the shipper (or "loader") at the departure of the goods. This means that if your product is worth 50€, it will be reimbursed for 50€. 

Ad Valorem insurance is not mandatory and can be taken out for all means of transport (land, sea, air, or river) with the transport companies or your logistics provider.

‍

Why should you buy it?

‍

We have seen above that the carriers compensate the loss of parcels according to the weight of the parcel and that the Ad Valorem insurance allows you to insure your product at its real value. It seems that this insurance is essential for your e-commerce. But it is not necessarily profitable after a quick calculation. 

Let's take 2 different situations to better understand.  

‍

Example 1: 

‍

‍

Let's take an e-merchant who sells an expensive but very light product like a watch.The information is as follows:

• The value of this watch is 199€
• The weight of the package is 200g 
• His carrier compensates lost or stolen packages at 25€/kg
• The value of the Ad Valorem insurance is 2€.

‍

Let's say he makes 500 orders in a month and that 2% (i.e., 10) of the packages are lost or damaged: 

• If the Ad Valorem insurance is not subscribed: the carrier will compensate the e-merchant up to 50€ (for all the lost goods) 
• If the Ad Valorem insurance is subscribed: the e-merchant will pay 2€ more per order, i.e., 1000€ of insurance but will be completely refunded for the 1,990€ of missing goods.

‍

In this case, the Ad Valorem insurance is beneficial for your finances 

‍

Example 2: 

‍

‍

Let's take an e-merchant who sells a light and inexpensive product like jeans. The information is as follows: 

• The value of the product is 35€.
• The weight of the package is 1kg
• His carrier also compensates for lost or damaged packages at 25€/kg
• The value of the Ad Valorem insurance is 2€.

‍

Let's say he makes 500 orders in a month and that 2% (i.e., 10) of the packages are lost or damaged:

• If the Ad Valorem insurance is not subscribed: the carrier will compensate the e-merchant up to 250€ (for all the lost goods) 
• If the Ad Valorem insurance is subscribed: the e-merchant will pay 2€ more per order, i.e., 1,000€ of insurance for a refund of 350€ for this 2% of loss.

‍

Without insurance, the e-merchant would have been reimbursed €250, and with the insurance in addition to the loss of his goods, the insurance would have cost him more than the final reimbursement. 

‍

Please note: the price of the Ad Valorem insurance per order is not fixed and depends on your carrier, destination, and the price of your cart.

‍

So or a low-value package, it's not really cost-effective to insure each of your shipped packages at X price.

It is up to you to make a quick calculation between the amount paid to the insurance and the loss in value of some of your products.

‍

3. In brief …

‍

Losing a parcel because of a carrier can be a real loss of profit for your e-commerce and is what can push you to think that it is necessary to take out Ad Valorem insurance. 

It is important to make the calculation between the value of your product, the weight, and the cost of the insurance for it. It is very often more profitable to count on the indemnities of the carriers than on a complete refund of the value of your product.