LOS ANGELES—Clothing designer Tradesy and retail start-up Happy Returns have concluded the pilot test-run of their in-person returns bar for online shoppers, and are hailing it a major success. The pilot run took place over the last six-months in malls across the country, providing a simple option for online customers to return goods in person. The Return Bar had enormous customer support, and will now be expanded this year. To find our more about the program, how it fits the new retail consumer and the company's expansion plans, we sat down with Happy Returns for an exclusive interview.
GlobeSt.com: How did the result of the six-month pilot program match your expectations?
The Tradesy pilot exceeded our expectations in two key ways. First, we were surprised by how quickly Happy Returns captured a significant share of Tradesy's returns. Within three months of launching the pilot program at the initial location in Santa Monica, CA, nearly 50% of Tradesy's customers within the 5-mile trade area of the Return Bar chose the in-person return option.
Second, we were delighted by the high customer satisfaction scores we received. While we expected to improve the shopper returns experience, and live up to the brand promise of calling the company Happy Returns, we were thrilled to see net promoter scores in the 90s. More generally, the pilot with Tradesy confirmed many of our core hypotheses, specifically the online shopper preference for returning in person and our ability to save retailers money on the cost of returns by aggregating returns for shipment.
GlobeSt.com: Why has the service been so successful?
Happy Returns has been successful because we are tackling a real pain point for shoppers, returning products purchased online. Returning products to a Happy Returns Return Bar in person and receiving an immediate refund eliminates the hassle and wait of the current return by mail process. As our survey data shows, retailers like Tradesy that solve this pain point can expect to be rewarded with more shopper loyalty. In a survey conducted by Tradesy, 71% of respondents reported they were More Likely or Much More Likely to shop with Tradesy as a result of having the option to return in-person via Happy Returns.
GlobeSt.com: Where do you go from here?
2017 will be about expanding our business in two key dimensions. First, we will be expanding the Return Bar network to more cities, growing from 5 cities today to 12 by yearend. In addition to expanding our city footprint, we also will be adding more locations in large cities like Los Angeles where we plan to grow from 2 locations to 7 locations. Second, we will be adding more retailers to the platform. Our service becomes more valuable for shoppers with each retailer we add, so a key focus for us will be adding retailers to the network.
GlobeSt.com: How is this indicative of the direction retail is heading? Any trends that are highlighted by this service and the success you have had?
Happy Returns is at the forefront of several large trends in retail. First, as more shopping moves online, returns will only increase, given the higher return rates of online shopping related to the limitations of confirming sizing and style.
Second, shopper expectations around returns have changed. With the ubiquity of shopping online, the “living room has become the fitting room.” Shoppers now expect retailers to bear the cost for returns, the same way there is no charge to try on an item in a physical store.
Finally, serving the cost of these returns is already significant, and it is getting more expensive as shipping rates rise and retailers adjust to new dimensional shipping rates. Happy Returns is a lower cost solution than returns by mail for retailers to meet these changing customer expectations.
LOS ANGELES—Clothing designer Tradesy and retail start-up Happy Returns have concluded the pilot test-run of their in-person returns bar for online shoppers, and are hailing it a major success. The pilot run took place over the last six-months in malls across the country, providing a simple option for online customers to return goods in person. The Return Bar had enormous customer support, and will now be expanded this year. To find our more about the program, how it fits the new retail consumer and the company's expansion plans, we sat down with Happy Returns for an exclusive interview.
GlobeSt.com: How did the result of the six-month pilot program match your expectations?
The Tradesy pilot exceeded our expectations in two key ways. First, we were surprised by how quickly Happy Returns captured a significant share of Tradesy's returns. Within three months of launching the pilot program at the initial location in Santa Monica, CA, nearly 50% of Tradesy's customers within the 5-mile trade area of the Return Bar chose the in-person return option.
Second, we were delighted by the high customer satisfaction scores we received. While we expected to improve the shopper returns experience, and live up to the brand promise of calling the company Happy Returns, we were thrilled to see net promoter scores in the 90s. More generally, the pilot with Tradesy confirmed many of our core hypotheses, specifically the online shopper preference for returning in person and our ability to save retailers money on the cost of returns by aggregating returns for shipment.
GlobeSt.com: Why has the service been so successful?
Happy Returns has been successful because we are tackling a real pain point for shoppers, returning products purchased online. Returning products to a Happy Returns Return Bar in person and receiving an immediate refund eliminates the hassle and wait of the current return by mail process. As our survey data shows, retailers like Tradesy that solve this pain point can expect to be rewarded with more shopper loyalty. In a survey conducted by Tradesy, 71% of respondents reported they were More Likely or Much More Likely to shop with Tradesy as a result of having the option to return in-person via Happy Returns.
GlobeSt.com: Where do you go from here?
2017 will be about expanding our business in two key dimensions. First, we will be expanding the Return Bar network to more cities, growing from 5 cities today to 12 by yearend. In addition to expanding our city footprint, we also will be adding more locations in large cities like Los Angeles where we plan to grow from 2 locations to 7 locations. Second, we will be adding more retailers to the platform. Our service becomes more valuable for shoppers with each retailer we add, so a key focus for us will be adding retailers to the network.
GlobeSt.com: How is this indicative of the direction retail is heading? Any trends that are highlighted by this service and the success you have had?
Happy Returns is at the forefront of several large trends in retail. First, as more shopping moves online, returns will only increase, given the higher return rates of online shopping related to the limitations of confirming sizing and style.
Second, shopper expectations around returns have changed. With the ubiquity of shopping online, the “living room has become the fitting room.” Shoppers now expect retailers to bear the cost for returns, the same way there is no charge to try on an item in a physical store.
Finally, serving the cost of these returns is already significant, and it is getting more expensive as shipping rates rise and retailers adjust to new dimensional shipping rates. Happy Returns is a lower cost solution than returns by mail for retailers to meet these changing customer expectations.
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