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VANCOUVER, BC / ACCESSWIRE / February 27, 2019 / When it comes to online shopping, the e-commerce giant Amazon is mostly everyone's go-to.
But let me ask this - have you ever returned a package? If you said yes, rest assured that you're not alone. According to the National Retail Federation[1], roughly 11% of Amazon sales are returned.
With over 300 million customers around the world[2], Amazon shipped 5 billion items worldwide in 2017.[3] Following the standard of 11% return-rate, that would mean approximately 550 million orders were returned. Alarmingly enough, the industry standard is significantly higher, with some return rates reaching up to 25 to 40% of sales.[4]
So, why are people returning so much?
Invesp reports that 45% of returns are due to the item looking different or the wrong product being received. Perhaps the photo was misleading, a different size was sent, or the product information was simply incorrect. These small errors add up to costly mistakes in the long-run.
This is what is becoming ticking time bomb of e-commerce, as many brands are beginning to find the rate of returns unsustainable.[5]
If you're like me, you might be wondering how these errors happen. To break it down simply, when a retailer is selling products online, they will often partner with a technology company that will manage the product's data, such as sizing, colouring, digital images and so on. There are hundreds of different variables a company may have to supply any retailer or e-commerce site.
Manufacturers or brands will use a Content Management System (CMS) to organize content (product information, digital assets/images, etc). The amount of information that retailers require can be extremely extensive; for example, listing every single nutritional ingredient when selling a food product online.
But here's the problem - the product information then needs to be sent to the retailer, distributor or e-commerce provider. This is where things get tricky. Imagine having tens of thousands of items you sell through thousands of retailers and each has their own code in how they want to receive the information. Sending this information physically - without the technology to do so - is a laborious, expensive process. Human error is bound to happen, as workers have to manually send this information.
Let's take Nike for example. Nike has thousands of products that are being sold through hundreds (if not thousands) of various channels, such as Amazon, Walmart, Dick's Sporting Goods and so on. Each one of those retailers have different ways of receiving and sending product information, including different languages and units of measurement, which makes the need for a technology partner crucial.
Here's where Venzee Technologies Inc. (TSX-V: VENZ) comes in. Instead of communicating the information to each end manually, which brings a multitude of issues and errors, Venzee has built an API to streamline content syndication by transforming and converting the data to meet the retailer's requirements significantly simplifying the process and eliminating manual entry. Venzee is automating the final push of product information to the end retailers like Amazon, Costco, Walmart, Wayfair, and so on.
Now, back to Amazon. The reason why I mentioned this company earlier is because it's one of the world's largest online retailers and has various reports on issues with the Company's return policy. Not only have various customers been banned from Amazon for making too many returns, sellers have also received bans for poor reviews due to incorrect product information. Returns hurt Amazon and the brands and manufacturers that sell products through their service, which ultimately creates a negative experience for the customer. This is bad for everyone.
If Amazon has problems with incorrect product information and content, imagine all the other online retailers that could benefit from Venzee's plug-in. To scale this down to the U.S. alone, 2018 brought in over $500 billion in e-commerce sales. Knowing the industry standard for returns, it's hard to ignore the massive potential in savings that Venzee's solution could provide.
If you're interested in learning more about the company, visit: www.venzee.com
[1] https://www.retailwire.com/discussion/amazon-bans-chronic-returners/
[3] https://www.theverge.com/2018/1/2/16841786/amazon-prime-2017-users-ship-five-billion
This article has been prepared by KIN Communications Inc. ("KIN"), on behalf of Venzee Technologies Inc. ("Venzee"). KIN has received payment for the publishing of this article from Venture Cap News ("VCN"). Venzee is a paid client of Stockpools, the owner of VCN. Statements and opinions expressed are the opinions of the author and not KIN, its directors or officers. Neither KIN, VCN nor the author of the article, own any securities of the companies set forth in this article.
The information provided in the article is for informational purposes only and is not a recommendation to buy or sell any security. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented in the article is his or her own responsibility. By opening this page, each reader accepts and agrees to VCN's terms of use and disclaimer as set forth here. KIN and VCN do not render general or specific investment advice, and this article is not a solicitation for investment.
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SOURCE: Venture Cap News