The North America returns management software market was valued at US$ 465.23 million in 2023 and is projected to reach US$ 948.30 million by 2031; it is estimated to register a CAGR of 9.3% from 2023 to 2031.
According to a blog by Mailmodo Technologies Inc., in 2022, category-wise return rates were as follows: Apparel (10.01%), Beauty (4.99%), Electronics (8.28%), Health and Wellness (4.20%), Jewelry (8.31%), and Sports & Outdoor (6.10%). According to a report released by the National Retail Federation and Appriss Retail, in 2022 consumers are expected to return over US$ 816 billion worth of retail merchandise purchased.
Managing product returns efficiently is crucial for maintaining customer satisfaction, reducing costs, and optimizing operations. Returns management software plays a pivotal role in addressing the challenges posed by increasing return rates. This specialized software helps businesses effectively manage the entire returns process, from initiating a return to final disposition. Automating and centralizing the returns process enables businesses to handle returns efficiently, reduce errors, and improve customer satisfaction.
The implementation of returns management software provides real-time visibility into the returns process, enabling companies to track and monitor returns at every stage. It also helps optimize inventory management by providing insights into product quality, return reasons, and customer feedback. This information enables businesses to identify trends, make informed decisions, and improve product quality.
Various companies are adopting returns management software to reduce return rates. For instance, in April 2021, Aviator Nation made the strategic decision to streamline its returns process by partnering with Loop, a leading returns management solution provider. Loop's Instant Exchange feature allows customers to exchange their purchased items quickly and easily for a different size, color, or style without the hassle of a traditional return process. Through this partnership, Aviator Nation was able to retain 64.6% of the revenue.
Additionally, as per Loop Returns, employing their return management software enables businesses and firms to reduce refunds by up to 30% and retain revenue of up to 50%. This enhances operational efficiency and allows for initiative-taking decision-making. Thus, increasing return rates drive the demand for returns management software, which, in turn, propels the markets.
Per the 2022 Consumer Returns in the Retail Industry report, which was conducted by the National Retail Federation and sponsored by Appriss Retail, returns accounted for US$ 816 billion in lost sales across the US retail marketplace. The report further states that consumers are expected to return more than US$ 816 billion worth of retail merchandise purchased in 2022, with the average rate of returns remaining flat at 16.5% compared to 16.6% in 2021. Returns management software offers streamlined processes, enabling companies to handle returns, track inventory, process refunds, and enhance customer satisfaction.
Businesses in North America operate in a complex regulatory environment, particularly in industries such as healthcare, electronics, and automotive. Returns management software assists organizations in adhering to industry-specific regulations and standards governing the handling, disposal, and documentation of returned products. By ensuring compliance, companies can mitigate legal risks and maintain a positive brand image.
Increase in Return Rates Fuels North America Returns Management Software Market
In recent years, businesses have witnessed a steady increase in return rates across various sectors. This can be attributed to changing consumer behavior, ease of online shopping, and rising customer expectations. Consumers now expect hassle-free return processes and seamless customer service. As a result, businesses are facing mounting pressure to streamline their returns management operations. As per industry reports from NRF and HubSpot in 2021, the average rate of product returns in the e-commerce sector was 18.1%.According to a blog by Mailmodo Technologies Inc., in 2022, category-wise return rates were as follows: Apparel (10.01%), Beauty (4.99%), Electronics (8.28%), Health and Wellness (4.20%), Jewelry (8.31%), and Sports & Outdoor (6.10%). According to a report released by the National Retail Federation and Appriss Retail, in 2022 consumers are expected to return over US$ 816 billion worth of retail merchandise purchased.
Managing product returns efficiently is crucial for maintaining customer satisfaction, reducing costs, and optimizing operations. Returns management software plays a pivotal role in addressing the challenges posed by increasing return rates. This specialized software helps businesses effectively manage the entire returns process, from initiating a return to final disposition. Automating and centralizing the returns process enables businesses to handle returns efficiently, reduce errors, and improve customer satisfaction.
The implementation of returns management software provides real-time visibility into the returns process, enabling companies to track and monitor returns at every stage. It also helps optimize inventory management by providing insights into product quality, return reasons, and customer feedback. This information enables businesses to identify trends, make informed decisions, and improve product quality.
Various companies are adopting returns management software to reduce return rates. For instance, in April 2021, Aviator Nation made the strategic decision to streamline its returns process by partnering with Loop, a leading returns management solution provider. Loop's Instant Exchange feature allows customers to exchange their purchased items quickly and easily for a different size, color, or style without the hassle of a traditional return process. Through this partnership, Aviator Nation was able to retain 64.6% of the revenue.
Additionally, as per Loop Returns, employing their return management software enables businesses and firms to reduce refunds by up to 30% and retain revenue of up to 50%. This enhances operational efficiency and allows for initiative-taking decision-making. Thus, increasing return rates drive the demand for returns management software, which, in turn, propels the markets.
North America Returns Management Software Market Overview
North America includes major economies such as the US, Canada, and Mexico. The North America returns management software market has been experiencing significant growth in recent years. This can be attributed to several key factors that are driving the adoption of these software solutions across various industries. The rapid expansion of the e-commerce industry in North America has created a pressing need for effective return management solutions. For instance, per the North American Industry Classification System, from January to July 2022, retail trade accounted for 93.8%. With online purchases on the rise, retailers and e-commerce platforms are facing the challenge of managing returns efficiently.Per the 2022 Consumer Returns in the Retail Industry report, which was conducted by the National Retail Federation and sponsored by Appriss Retail, returns accounted for US$ 816 billion in lost sales across the US retail marketplace. The report further states that consumers are expected to return more than US$ 816 billion worth of retail merchandise purchased in 2022, with the average rate of returns remaining flat at 16.5% compared to 16.6% in 2021. Returns management software offers streamlined processes, enabling companies to handle returns, track inventory, process refunds, and enhance customer satisfaction.
Businesses in North America operate in a complex regulatory environment, particularly in industries such as healthcare, electronics, and automotive. Returns management software assists organizations in adhering to industry-specific regulations and standards governing the handling, disposal, and documentation of returned products. By ensuring compliance, companies can mitigate legal risks and maintain a positive brand image.
North America Returns Management Software Market Segmentation
- The North America returns management software market is categorized into component, deployment, enterprise, and country.
- Based on component, the North America returns management software market is bifurcated into software and services. The software segment held a larger market share in 2023.
- In terms of deployment, the North America returns management software market is divided into cloud and on premises. The cloud segment held a larger market share in 2023.
- Based on enterprise, the North America returns management software market is bifurcated into large enterprises and SMEs. The large enterprise segment held a larger market share in 2023.
- By country, the North America returns management software market is segmented into the US, Canada, and Mexico. The US dominated the North America returns management software market share in 2023.
- ParcelLab; ReturnLogic; ReverseLogix; United Parcel Service of America, Inc; Loop Returns; Return Rabbit; SAP SE; and AfterShip are some of the leading companies operating in the North America returns management software market.
Market Highlights
- Based on component, the North America returns management software market is bifurcated into software and services. The software segment held 69.0% market share in 2023, amassing US$ 320.84 million. It is projected to garner US$ 670.79 million by 2031 to register 9.7% CAGR during 2023-2031.
- In terms of deployment, the North America returns management software market is divided into cloud and on premises. The cloud segment held 72.7% share of North America returns management software market in 2023, amassing US$ 338.41 million. It is projected to garner US$ 715.62 million by 2031 to expand at 9.8% CAGR from 2023 to 2031.
- The large enterprises segment held 62.0% share of North America returns management software market in 2023, amassing US$ 288.36 million. It is predicted to garner US$ 610.48 million by 2031 to expand at 9.8% CAGR between 2023 and 2031.
- This analysis states that the US captured 85.7% share of North America returns management software market in 2023. It was assessed at US$ 398.80 million in 2023 and is likely to hit US$ 828.98 million by 2031, registering a CAGR of 9.6% during 2023-2031.
- In August 2023, parcelLab, the premier global provider of post-purchase customer experience software, announced the launch of Retain. The new product provides the uncomplicated returns experience today's consumers expect while providing brands with the flexibility and customization options needed to reduce costs, recover more revenue, and make returns more sustainable.
- In January 2024, ReturnLogic, one of the leading providers of e-commerce infrastructure Software as a Service (SaaS), announced its integration with an open SaaS e-commerce platform, BigCommerce. This collaboration introduced a new era of intelligent, data-driven returns management for serious e-commerce brands.
Reasons to Buy
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the North America returns management software market.
- Highlights key business priorities in order to assist companies to realign their business strategies.
- The key findings and recommendations highlight crucial progressive industry trends in the North America returns management software market, thereby allowing players across the value chain to develop effective long-term strategies.
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
- Scrutinize in-depth North America market trends and outlook coupled with the factors driving the North America returns management software market, as well as those hindering it.
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing, and distribution.
Table of Contents
1. Introduction
2. Executive Summary
3. Research Methodology
4. North America Returns Management Software Market Landscape
5. North America Returns Management Software Market - Key Market Dynamics
6. Returns Management Software Market - North America Analysis
7. North America Returns Management Software Market Analysis - by Component
8. North America Returns Management Software Market Analysis - by Deployment
9. North America Returns Management Software Market Analysis - by Enterprise Size
10. North America Returns Management Software Market - Country Analysis
11. Competitive Landscape
12. Industry Landscape
13. Company Profiles
14. Appendix
List of Tables
List of Figures
Companies Mentioned
Some of the leading companies in the North America Returns Management Software market include:- ParcelLab
- ReturnLogic
- ReverseLogix
- United Parcel Service of America, Inc.
- Loop Returns
- Return Rabbit
- SAP SE
- AfterShip
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 87 |
Published | August 2024 |
Forecast Period | 2023 - 2031 |
Estimated Market Value ( USD | $ 465.23 Million |
Forecasted Market Value ( USD | $ 948.3 Million |
Compound Annual Growth Rate | 9.3% |
Regions Covered | North America |
No. of Companies Mentioned | 9 |