This week, e-commerce challenges are in the spotlight.
Returns Remain Painful for Retailers
Retailers’ efforts to strengthen their returns policy are harming consumer purchasing decisions, according to the latest retail returns survey from Blue Yonder. The supply chain management solutions provider found that of the 1,000-plus consumers polled who said they were aware of stricter return policies, “69 percent state that tighter return policies are deterring them from making purchases, which is up significantly from the 59 percent in 2023.”
By generational cohort, Gen Z and Millennials are likely to defer from purchases given return policies. And 91 percent of all respondents said “that a lenient return policy influences their decisioning habits when shopping at retailers.” The researchers also found that when asked about the tighter returns policies, 51 percent of those polled “felt restrictions on returns are either inconvenient or unfair, with 37 percent saying they were fair and understandable.”
Given more stringent return policies, shoppers are also returning purchases less frequently. Fifty-six percent of respondents said they tend to make a product return once or twice each year (or even less), compared to 61 percent in the prior survey last year. “Comparatively, 34 percent of consumers polled said they are making “more frequent returns (every few months or more), which is the same as in 2023.”
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Other key findings include that 55 percent of those polled said they “are very or somewhat concerned about the environmental impacts when returning items.” The researchers also learned that shoppers would take additional steps if they knew their return products were headed for a landfill. Of those polled, 36 percent said they would seek “an alternative, eco-friendly disposal method” while 35 percent said they’d attempt to resell the item. Just 27 percent said they would continue with the return process as planned.
Shopping Streaming Events
During the recent MTV Video Music Awards (VMAs), Shopsense AI rolled out Shopsense AI Lens, which is “an embedded, cutting-edge product recognition technology.” The tech allowed VMA audiences across Paramount’s global network to shop products “at the moment of inspiration on streaming and broadcast content.” This is first time the VMA the entire VMA broadcast was shoppable, “from the red carpet to the stage, at shop.mtvVMAs.com,” the company said.
The new feature lets viewers shop for their favorite TV shows and live events — directly from their second screen. “It creates seamless shopping experiences curated specifically for individual shows for broadcasters across linear, streaming and their owned and operated content properties,” the company said, adding that Shopsense’s proprietary, newly launched AI-powered Lens “activates viewers to snap what their favorite artists are wearing and then shop the looks they love in an AI-curated digital store.”
John Halley, president of Paramount Advertising, said MTV “is home to some of the biggest moments in music and pop culture and has been at the forefront of innovation, pushing boundaries to connect in new and exciting ways. Shopsense is creating a truly immersive and interactive experience that seamlessly blends entertainment and commerce. We can’t wait to see how our fans embrace this new way to engage with the VMAs and look forward to extending the Shopsense AI Lens to additional Paramount content in the coming weeks and months.”
Glenn Fishback, co-founder and CEO of Shopsense AI, described the launch of Shopsesne AI as a cultural milestone. “Content creators want to get closer to the point of purchase, and Shopsense AI has quickly become the new commerce engine for broadcasters,” Fishback said. “I can’t think of a better cultural moment for us to launch the new Shopsense AI Lens than at the VMAs, a powerhouse phenomenon of music and fashion that perfectly aligns with our vision of transforming the way viewers interact with content.”
Retailers Not Making the Grade with Product Discovery
Similar to other consumer studies published recently, researchers at Constructor found a startling number of shoppers dissatisfied with their online experience. In their report, 42 percent of those polled “give product discovery experiences on retail websites a ‘C’ grade or below.”
The findings reveal if retailers “are making the grade” when it comes to online search and product discovery. The results show that retailers may need to stay late for extra help.
Some of the key findings include that 68 percent of those polled “think the search function on retail websites needs an upgrade,” the report’s authors said, adding that this was “felt more strongly in the U.S. (71 percent) than U.K. (61 percent). The search challenges included too much scrolling, needing to reformulate search queries, and a lack of irrelevant results.
Other struggles include not knowing who is shopping despite prior visits and engagement. The report found that 44 percent of respondents “say that when they shop with their favorite retailer online, the site treats them like a total stranger — with generic recommendations and a total lack of personalization across the buyer journey.” There’s also little joy in shopping, the report noted.
“Less than 1 in 3 shoppers (32 percent) say finding products online is ‘enjoyable’ — highlighting an opportunity for retailers to create experiences that drive deeper engagement,” the report’s authors said. And there are consequences for a poor shopping experience.
“Poor product discovery experiences often breed poor results,” the report’s authors said, noting that online shoppers say “when they can’t find what they want, they’re more likely to leave the retail site (52 percent) and take their wallets elsewhere — buying the item(s) from a different retailer (48 percent) such as Amazon (38 percent) or through Google (27 percent).” Ouch. But if they could have a good experience, those polled said they’d shop more at that retailer, choose that retailer first for their shopping needs and leave a positive review.
“Good product discovery experiences literally pay off,” said Nate Roy, strategic director of e-commerce innovation, Constructor. “The bar for a good digital experience continues to rise, and successful retailers work to meet and exceed shopper expectations. As technology and cost barriers drop, it’s even easier for retailers to make incremental changes that measurably improve both the shopper experience and business results.”
Antigua “Tees Up Innovation” with PTC’s FlexPLM Solution
Antigua Apparel has tapped PTC and its FlexPLM solution to manage its product development process for their golf and sports-licensed apparel business.
Antigua is a legacy men’s and women’s apparel golf brand. The brand was founded in 1979 and soon launched its sports licensing business featuring golf-inspired products decorated with professional sports team logos. “Today, Antigua continues to be a top manufacturer in both golf and sports licensing, but with more comprehensive men’s and women’s collections,” the company said, adding that its apparel offerings are “trend-driven and crafted with superior fabrications —allowing its consumers to look, feel and perform their best on and off the golf course.”
PTC said Antigua will harness the power of its FlexPLM “to equip its design, development, and quality teams with a user-friendly platform that centralizes data, streamlines product development, and enhances daily efficiency and collaboration.”
The company said FlexPLM will also play a key role in managing the development and collections for Antigua’s sports licensed division, which is vast and includes a diverse portfolio of licenses such as the “NFL, MLB, NBA, NHL, MLS, NWSL, U.S. Soccer, top international soccer teams, MiLB, WNBA, NBA G-League, PBR Teams, NASCAR, and over 400 colleges and universities,” PTC said in a statement.
Teaming up with PTC will create improved efficiencies for Antigua — which is essential as the brand continues to grow.
Reid Harper, director of product development/design/tech design for Antigua, said as the business evolves and grows, “we’ve realized that our current processes are too manual, with data scattered across spreadsheets, emails, and multiple databases, leading to inefficiencies and duplication. That’s why we’re excited to partner with PTC to implement a best-in-class, end-to-end PLM solution. This will centralize our critical data, improve decision-making, and revolutionize our product development process.”
Kyle Marden, vice president of the retail business unit at PTC, said the company looks forward to partnering with Antigua “to drive their next phase of growth, supporting both their golf product development and sports licensing initiatives. Our goal is to equip their teams with the most advanced tools to fuel innovation and success.”
