Rich Messaging Channels Emerge as Solution to £27 Billion Burden of Returns Faced by UK Retailers

Rich Communication Services (RCS) and WhatsApp mitigate pre-purchase uncertainty, boost post-purchase engagement and streamline returns

LONDON–(BUSINESS WIRE)–While UK retailers celebrated a festive spending spree in December, January ushers in a different, more costly reality – the burden of returns. Global cloud communications platform, Infobip, highlights Rich Communication Services (RCS) and WhatsApp, as crucial tools enabling retailers to combat this growing challenge, as data from Retail Economics predicts the cost of annual returns could exceed £27 billion for the UK retail sector.¹

Returns place a significant financial and operational strain on businesses, with serial and slow returners contributing disproportionately to return volumes. These behaviours, often driven by opportunistic tactics such as “buy-to-try” and “wardrobing,” exacerbated by delayed returns, erode profit margins and complicate inventory management.

Kim Johal, Retail Specialist at Infobip, said: “Each year we see retailers impacted by the burden of managing post-Christmas returns. At times, it can seem like an unavoidable aspect of online shopping, but there are ways of managing return levels and reducing their business impacts. By offering richer communications, including high-quality images, and facilitating two-way conversations, RCS and WhatsApp are helping retailers to address the leading causes of returns and streamline the returns process.”

Rich messaging channels can reduce the impact in the following ways:

1. Mitigating pre-purchase uncertainty: By delivering rich media content such as high-resolution images, 360-degree views, and interactive sizing tools directly within the messaging app, RCS and WhatsApp help customers make more informed decisions and reduce returns caused by mismatched expectations.
2. Enhancing post-purchase engagement: After a sale, rich messaging channels facilitate personalised communication of care instructions, usage tips, and styling advice. This proactive engagement can boost satisfaction and minimize returns stemming from perceived issues.
3. Streamlining the returns process: For unavoidable returns, RCS and WhatsApp offer a seamless, in-channel experience for initiating returns, generating digital labels, and providing real-time tracking updates. This user-friendly approach encourages timely returns, reducing inventory becoming outdated and processing costs.

Kim Johal continued: “RCS and WhatsApp are emerging as an indispensable components of an omnichannel communication strategy, empowering retailers to drive efficiency across marketing and customer service. This approach leverages new technologies that provide greater transparency and efficiency throughout the customer journey, crucial for improving margins and building trust with consumers.”

About Infobip

Infobip is a global cloud communications platform that enables businesses to build connected experiences across all stages of the customer journey. Accessed through a single platform, Infobip’s omnichannel engagement, identity, user authentication and contact centre solutions help businesses and partners overcome the complexity of consumer communications to grow business and increase loyalty. It offers natively built technology with the capacity to reach over seven billion mobile devices and ‘things’ in 6 continents connected to over 9,700+ connections of which 800+ are direct operator connections. Infobip was established in 2006 and is led by its co-founders, CEO Silvio Kutić and Izabel Jelenić.

Contacts

For more information, contact:
Highbury Communications
Sarah Penney

[email protected]

Infobip
Wendy Schellens

[email protected]