Core Insights - The article emphasizes the importance of post-purchase experience for Chinese brands to expand their business in Western markets, highlighting that Western consumers prioritize after-sales services and return policies [2][3]. Group 1: Consumer Behavior - 74% of consumers are unwilling to purchase products without a return option, indicating that return flexibility significantly impacts conversion rates [5]. - The average retailer loses 20% to 25% of their revenue due to returns, which translates to approximately $1 trillion globally by 2025 [3]. - The average brand incurs a direct loss of 17% in revenue due to refunds, along with an additional 8% in operational costs related to managing returns [3]. Group 2: Market Trends - Seel's analysis shows a 30% increase in average refunds and returns per merchant in the first three quarters of last year compared to the previous year, with a further 16% increase during the holiday shopping period [4]. - Factors contributing to this increase include heightened consumer anxiety due to economic recession, tighter budgets, and the normalization of "try before you buy" among Generation Z consumers [4]. Group 3: Brand Strategy - Brands are increasingly focusing on real user experiences post-technology deployment, moving beyond just showcasing technology at events like CES [4]. - The article notes that the challenge for brands is not just completing sales but ensuring consumer confidence and satisfaction after the purchase [4]. - Chinese brands excel in product innovation and price competition, but they need to meet Western consumers' high expectations for post-purchase experience predictability and accountability [4]. Group 4: Cross-Border Considerations - Compliance has become a critical consideration for cross-border sellers, with certifications like system and organization controls and data protection regulations being essential for engaging with Western consumers [5]. - Brands lacking clear and frictionless return options are predicted to struggle in competitiveness by the end of the year, emphasizing the growing importance of third-party platforms in cross-border trade [5].

Core Insights - The article emphasizes the importance of post-purchase experience for Chinese brands aiming to expand in Western markets, highlighting that consumer loyalty is built through effective handling of returns and customer service [3][4]. Group 1: Consumer Expectations - Western consumers prioritize post-purchase experiences, including clear return policies and responsive customer service, which significantly influence their purchasing decisions [3][4]. - 74% of consumers are unwilling to buy products that do not offer return options, indicating that return flexibility is crucial for conversion rates [5][6]. Group 2: Financial Implications - Retailers lose 20% to 25% of their revenue due to returns, which translates to approximately $1 trillion globally in 2025 [4]. - Brands typically incur a direct loss of 17% in revenue from refunds, along with an additional 8% in operational costs related to managing returns [4]. Group 3: Market Trends - There has been a 30% increase in average refunds and returns per merchant in the first three quarters of the previous year, with a further 16% increase during the holiday shopping period [4][5]. - Factors contributing to this trend include economic recession, increased consumer anxiety, tighter budgets, and the normalization of "try before you buy" among Gen Z consumers [4]. Group 4: Competitive Landscape - Brands must adapt to the differing expectations of Western consumers regarding post-purchase experiences, as traditional price competition is less effective on mature platforms like Amazon [6][7]. - The lack of clear and frictionless return options will hinder brands' competitiveness by the end of the year, emphasizing the growing importance of third-party platforms in cross-border trade [7].

Core Insights - Chinese brands excel in product innovation, rapid iteration, and price competition, while Western consumers have high expectations for post-purchase experience and accountability [1][2] Group 1: Consumer Expectations - Western consumers prioritize post-purchase experience, with 74% unwilling to buy products without return options, indicating that return flexibility significantly impacts conversion rates [3] - Consumers expect a seamless experience similar to Amazon Prime, including quick refunds and responsive customer service [1][2] - Generation Z has higher standards and is less likely to return to a brand after a poor experience [1] Group 2: Financial Implications - Returns cost retailers 20% to 25% of their revenue, equating to approximately $1 trillion globally by 2025 [2] - Brands lose an average of 17% of revenue directly due to refunds, plus an additional 8% in operational costs related to managing returns [2] - Brands using the Seel platform saw a 16% increase in customer lifetime value and over 30% increase in repeat purchases [3] Group 3: Market Dynamics - The increase in returns is attributed to economic recession, heightened consumer anxiety, and the normalization of "try before you buy" among consumers, especially Generation Z [2] - Traditional price-competitive products perform better on established platforms like Amazon, while high-margin tech products may benefit from independent e-commerce sites [4] - Compliance with regulations such as GDPR and CCPA is crucial for cross-border sellers, especially those from China, to build trust with Western consumers [4] Group 4: Infrastructure and Support - Third-party platforms providing post-purchase protection are becoming essential for brands lacking internal capabilities [2][4] - Brands without clear and frictionless return options may struggle to compete by the end of the year [4]