A recent study on the returns process on Chinese e-commerce platforms, based on an analysis of 56,000 transactions and 100,000 products, reveals significant differences between Chinese and European platforms. The results may surprise consumers and have implications for the entire online shopping market. The conclusions from the analysis can be a valuable source of information for those interested in current internet trading trends.
Why is the return process important?
Data from the When U Buy app show that the return rate on Chinese platforms is incredibly varied. For example, local and European platforms like Allegro record a 3% return rate, H&M 8%, and Lidl as high as 37%. On the other hand, Aliexpress, Shein, and Temu have a return rate close to 0%. What does this mean for consumers? A variety of return policies, such as different time frames, return shipping costs, or the complexity of the process itself, can be a real challenge.
Our study, based on an analysis of 56,000 transactions and 100,000 products, reveals fascinating differences in the level of returns on Chinese and Polish shopping platforms. Our experience suggests that the return process on Chinese shopping platforms can be extremely varied and depends on the specific platform. That’s why we decided to test it ourselves. We bought similar products on three popular platforms: Temu, Shein, and Aliexpress, and analyzed the return process.
Shein: Fast, but not for free
–Delivery time: The package arrived in 4 days, much faster than the estimated delivery time of 11-12 days.
–Return process: The return was reported and dispatched the day after delivery.
–Money back: Funds returned to the account 4 days after the shipment of the return, much faster than the declared 9-24 working days.
–Challenge for customers: Shein does not refund shipping costs for low-value orders, which may surprise buyers. Despite this, the return process was simple and convenient.
AliExpress: Hidden options and complex instructions
–Delivery time: The order arrived in 6 days.
–Return process: The return was reported a day after receiving the shipment and dispatched by another carrier.
–Money back: Full refund received two days after dispatch of the return shipment, even though the expected time was 3-14 business days.
–Challenges for customers:
-On mobile devices, the “return commodity” button is invisible in the vertical mobile view, making it difficult to start the return process.
-AliExpress’s preferred return form is a shopping voucher, not the original method of payment, which can deter customers from making returns.
-Return instructions are more complex, which may be burdensome for less advanced users.
Temu: Simple process, but need to justify the return
–Delivery time: The order arrived in 7 days.
–Return process: The return was reported and dispatched the same day, 3 days after receiving the shipment.
–Money back: Funds were returned immediately on the day of the return, although the platform predicted a return time of 1-7 days.
–Challenges for customers: Temu requires customers to state the reason for the return, which could be an additional hurdle compared to other platforms.
Varied approach to customer service and its consequences
Research into return processes on Chinese shopping platforms reveals significant differences in customer service approach. Shein, AliExpress, and Temu offer diverse return policies that can affect customers’ purchase decisions. Knowing these differences and being able to navigate within them becomes crucial for consumers who want to maximize their benefits and avoid return-related surprises in terms of costs or time.
Significance of research findings for the e-commerce market
The results of our research provide valuable insights into return management practices on Chinese e-commerce platforms. They point to significant differences in the approach to returns between Chinese and European e-commerce platforms, which can impact customer satisfaction and the operational efficiency of these companies. Chinese platforms, such as Temu, Shein, or AliExpress, often offer a fast return process, but require additional steps, such as stating the reason for the return or choosing a specific form of compensation.
For e-commerce companies and financial institutions dealing with online payments, our research underscores the need to adjust operational and marketing strategies to better meet customer needs and expectations. Companies that can effectively simplify the return process and predict consumer challenges may gain a competitive advantage in the rapidly evolving e-commerce market.
The future of returns in online trade
Research on return practices on various shopping platforms suggests a need for greater transparency and standardization of processes, which could lead to increased customer satisfaction and improvements in the entire supply chain. It’s also worth noting that platforms with low return rates, such as Chinese e-shops, may offer more attractive price conditions, but at the same time impose additional obligations related to the return process on consumers. On European platforms, this process is much more transparent, which encourages a higher level of customer satisfaction and higher return rates.
In the future, we can expect more automation and personalization in return handling, which will allow for even better tuning to customer expectations. Collected data, such as those from the When U Buy app, will be key to further improving these processes and may become the foundation of new operational strategies in online trading.
Source: https://managerplus.pl/proces-zwrotow-na-chinskich-platformach-zakupowych-analiza-roznic-miedzy-aliexpress-shein-i-temu-a-europejskimi-serwisami-44815
