Ecom returns increase, Meta ads performance on iOS, and more | D2C Digest

Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing. 

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

📈 The trend of increasing ecommerce returns

The recent Whistl report highlights the ongoing growth of e-commerce returns, projecting that the reverse logistics market will expand by US$250 billion within the next five years, reaching a total value of US$954.5 billion.

This growth highlights the increasing expectations from consumers for hassle-free and cost-effective return processes, alongside the pressures e-commerce businesses face in streamlining their returns management to keep costs down and maintain profitability.

Key insights include the high rate of online returns in the UK, with clothing, shoes, and accessories being the most returned items.

The report points out that online returns are generally more costly than in-store returns by about £3 (US$3.79). It also highlights issues with false claims related to returns and deliveries, yet notes a growing confidence among consumers in returning online purchases. A significant expectation among UK shoppers is for free returns, alongside a readiness to pay more for environmentally sustainable products, indicating a broader consumer shift towards environmental responsibility.

🤔 Meta ads perform better on iOS?

The Pilothouse Meta team conducted a test to compare the efficiency of advertising on Android versus iOS platforms. Historically, their ad spending had favored Android, but through a segmented split test, they aimed to determine if iOS could offer better results.

Surprisingly, iOS emerged as the more efficient platform, leading the team to increase their advertising spend on this operating system.

The key takeaway for advertisers is to examine their own Meta ad account's Impression Device breakdown over the last 7 and 14 days.

This analysis will reveal whether ad spending is disproportionately skewed towards one platform and how the cost per acquisition (CPA) compares between Android and iOS.

🟢 Shopify will double the carbon removal funding for deliveries via the Planet app in April

You know, ecommerce often faces criticism for its environmental impact, yet Shopify is working to change that narrative.

In observance of Earth Month, Shopify is doubling its efforts toward sustainable commerce by enhancing its carbon removal initiatives.

Utilizing its engineering capabilities, Shopify aims to stimulate the carbon removal market through the Planet app, which offers merchants the ability to provide carbon-neutral shipping. For April, Shopify will match all carbon removal contributions made via the Planet app, amplifying the environmental impact.

Since its inception, the Planet app has neutralized emissions from over 25 million orders and removed 23,000 tons of carbon, with over $1 million directed towards carbon removal projects. This initiative aligns with consumer demand for sustainability, as a significant portion of shoppers prefer eco-friendly brands. Shopify's approach leverages commerce as a force for environmental change, emphasizing the company's commitment to tackling climate change and preserving the earth for future generations.

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