4. IKEA and Optoro
Returns are expected to
exceed $400B in 2020
A growing returns challenge
average return rate
for ecommerce
~11%
average return rate
across all categories
25+% 20212020 202220192018
$440
$421
$403
$386
$369
2017
$353
Source: Appris, UPS (2019,) NRF Study (2018), USPS (2018)
5. IKEA and Optoro
Inventory
Selection
Marketing
& Branding
Merchandising
& Curation
Easy Site
Experience
Packaging
& Fulfillment
PURCHASE
EXPERIENCE
CLV
RETURNS
EXPERIENC
E
Returns play a key role in the overall customer experience
89%
of customers check
a return policy before
making a purchase
more expensive to
acquire new customers
7x
6. IKEA and Optoro
Source: Narvar (2019)
of consumers say they’ll buy again if
they have a positive returns experience
95%
churn rate, with new customers
4x as likely to never shop again
15%
Returns experience is a make-or-break moment
7. IKEA and Optoro
$
$
average shipments
per item3-5
of customers switch
retailers when exchanging
due to slow fulfillment
and out of stocks
53%
Backend management impacts bottom line
Source: Optoro and Environmental Capital Group (2018), Narvar (2019)
13. IKEA and Optoro
IKEA Today
Evolving Consumer
Expectations
Growth Investments Unique Challenges Returns Focus
Iconic brand with over 75
years experience selling
through stores
Ecommerce increasingly
preferred channel of
consumers
IKEA making numerous
investments to respond to
evolving environment
Greater omni-channel
presence and customer
experience focus driving
increased complexity
Flexible returns policies
considered ‘table stakes’ by
consumers
Consumer expectations are evolving
14. IKEA and Optoro
The impact
of customers say that a negative
returns experience will deter
them from shopping at a retailer
or brand in the future.
89%
SOURCE: WBR, Optoro Research
15. IKEA and Optoro
Deploy a single platform for consistent decision
making across returns lifecycle & all nodes
IKEA’s returns objectives
Customer
Satisfaction
Sustain world-class
experience in shift
to ecom
Supply Chain
Efficiency
Improve returns
processing and reduce
operational costs
Increased
Profitability
Improve recovery
on returns
Visibility &
Analytics
Utilize data to gain
insight on returns
processes
Environmental
Impact
Improve sustainability
and reduce impact of
reverse operations
20. IKEA and Optoro
Stores
Customer Service
Centers
Distribution
Centers
Returns Portal Data Insights Recommerce
Phase 1 Phase 2
Phase 2 & 3 FY21+
IKEA US + Optoro Deployment
21. IKEA and Optoro
1. Design
Design for durability
and renewability
2. Sale / Lease / Share
Business models that extend
product lifetimes
3. Smart Disposition
Smarter collection and
redistribution of used
products to their next
best home
4. Recovery & Recycling
Products unfit for reuse
are broken down into
raw materials
IKEA
Circular
Flow
Powering Circularity Together
1
23
4