Steve Madden, Orveon, Alo Yoga Tap Tech to Expedite Refunds and Incentivize Return Shoppers
Footwear brand Steve Madden, lifestyle brand Alo Yoga, and Orveon — home to bareMinerals, Laura Mercier, and Buxom — have partnered with a new platform that allows consumers to obtain expedited refunds and incentivizes them to use those funds to purchase more products.
These manufacturers are working with a new company called Reshop that allows consumers to obtain near-instantaneous refunds if they choose to add the funds to a virtual Reshop credit card — or they can instead have funds go directly to their bank account within a business day.
The card functions like a Visa gift card and can be used within Reshop’s app or anywhere that Visa cards are accepted online. Within the app, the company shows consumers tailored products and brands from over 1,400 partner companies in the U.S.
While the refund is instantaneous, consumers must send back their returned items within seven days to be eligible for the service.
"We're thrilled to partner with Reshop as we continually seek innovative ways to enhance our customers' shopping experience,” said Josh Krepon, president of U.S. DTC and global digital at Steven Madden. “Through this partnership, we will offer shoppers greater flexibility by receiving refunds immediately, ultimately improving the overall post-purchase experience for our customers.”
Returns and Refund Trends in CPG
CPGs continue to battle against the significant blow of online returns to their bottom line — the average return rate of online apparel orders in the U.S. is 24.4%, totaling $38 billion in returns for 2023, according to Coresight Research. However, the flip side of keeping consumers loyal to the brand after the returns process also presents a major challenge.
An easy return and refund process can resonate with consumers, helping to keep them interested in the brand. According to a study from Paypal and research firm TRC, almost two-thirds of shoppers would be much more likely to shop at an online store that offers free returns, with immediate refunds and no packaging required.
