What if purchase returns would have the same simple experience independent of the store you buy from? Yes, we made it. Only a few taps and a return is reported, the merchant is notified so they can rebalance their stock and the customer's invoice is paused so they don't need to pay for something they are not keeping.
-17% Return errands
+3% Conversion rate
40k Returns reported monthly in the app.
Most of the time people report a return and after they forget how to do it. We created a simple step by step instructions with everything they need. Another common pain is that they don't know when the item has returned. So we created an integration with the store that once the return has been registered we notify the customer and update his invoice.
Merchants reported an average of 30% return errands from all purchases in a year. Before all these returns were handled by the merchant or our customer service agents, which generated thousands of dollars in costs for our merchants. After launching returns on the Klarna app, this number dropped to 13%. Therefore reducing operational costs for our merchants radically.
Returns reported monthly in the app
On average 40k returns are reported, from 20 million purchases a month. The general feedback from users was that the feature made their lifes much easier since they can manage all their purchases in one place. We are also working on features that will reduce the number of returns by helping users to choose products that are the right fit for them.
Klarna has a great track record of creating products that positively impact conversion for new merchants who choose to integrate. The post-purchase experience (deliveries and returns) helps to build trust with our merchant’s consumers, resulting in more confidence to buy. Increasing the conversion rate with 2-3% with an estimated AOV of $128 would result somewhere around 78-117 mkr per day.