Your return policy could be costing you
So long, overnight shipping? As shipping and delivery costs rise, most consumers are choosing to wait longer for their packages to arrive. It’s a swift change in priorities from just three years ago. We’ll look into the how and why, along with the other half of the purchase journey: returns.
Plus, a sit-down interview with RJ Rousso of The Doggie Spaw, who pivoted from entertainment to pet services to fulfill his longtime passion for dog health and well-being.
From the latest in AI and store trends to more generational shopping disparity and retail spoofs, we're here to give you the 'SKUpe' on everything you need to know this week.
Pet project: From influencer marketing to well-being for dogs
After a long career in entertainment marketing, RJ Rousso pivoted to a new passion, opening The Doggie Spaw last month in Venice, Calif. The family-owned dog grooming, daycare and training space was inspired by his decades of involvement with local rescues, fostering and pet adoption. After losing clients and income during COVID, Rousso decided to build something meaningful—where pet parents can trust their dogs will receive expert care. "I decided that if I was going to dedicate 100+ hours a week to something, it had to be something I was truly passionate about," he says. Here, Rousso shares how he’s building customer loyalty and community in the pet care category. –Marcy Medina
What lessons from launching your business could help other retailers?
Marketing is essential, especially at the local level. Building trust within your community is what drives word-of-mouth referrals and long-term customer loyalty. For us, that means participating in local events, partnering with neighboring businesses and making The Doggie Spaw a trusted and recognized part of the community.
How do you build community in your store and neighborhood?
We support local rescues by offering them space in our store to display photos of adoptable dogs, as well as a dedicated retail section where they can sell merchandise. We also host adoption events and offer discounts on services for foster and newly adopted dogs. Building a sense of community is important to us—it’s about more than just running a business; it’s about making a positive impact.
What's one thing you're currently experimenting with in your store?
We’re experimenting with turning our space into an artistic hub, collaborating with local artists and photographers to showcase their work. It’s been exciting to merge the worlds of pet care and creative expression. We’ve already featured a husband-and-wife photography duo and a talented 15-year-old artist. We’re planning events where customers can experience art in an unexpected setting—a dog grooming space!
What has been the biggest factor in your success as a niche retailer?
Transparency with our customers has been key. If a dog struggles during grooming or has specific needs, we communicate that openly with pet parents, along with steps they can take at home to maintain their dog's health between visits. After every appointment, we send a breakdown of services performed and what to watch for, such as paw or ear issues. We also recommend the best brushes and maintenance techniques, even if it means fewer visits to us. Our customers appreciate this level of care and education, and in return, they continue to trust us with their furry family members.
How much does fast delivery matter? Less than you think
Two to three days is how long 90% of consumers are willing to wait for their deliveries, according to a new survey by McKinsey, a global management consulting firm known for its industry research and business insights. Wait, what happened to the mantra "next-day delivery is king"? Speed went from the No. 1 priority in 2022 to No. 5 in 2024. As shipping costs rise, more people are choosing to wait versus pay up for expedited delivery. So what’s more important than speed now? Cost, transparency, flexibility or ease of returns and choice of delivery location. What’s more, a FedEx survey found that 81% of shoppers are willing to add more items to their order to avoid delivery charges.
Why this matters: Instead of paying more for speed, invest in tracking, easy returns and reliable last-mile operations. Incentivize bundles to reduce the number of times someone has to place an order and pay for shipping. (RetailWire)
Your return policy is key for A+ post-purchase experience
A new FedEx and Morning Consult report shows that half of the 2,200 U.S. shoppers surveyed feel that return processes have become more user-friendly. Two-thirds will consider a retailer’s return policy when deciding whether to buy something. Offering in-store, home pickup and drop-off options is key for convenience and logistics. So too can allowing customers to initiate returns through an app or online portal. And it’s a good idea to incentivize exchanges or store credit vs. refunds.
Why this matters: 90% of shoppers still felt confident returning in-store, which is a chance to get a customer back in the door and reinforce a positive post-purchase sentiment, even if they are coming in to return something. You could offer them a discount on an exchange or even sell them an additional item they didn’t know they needed. Not that anyone wants to wait in a long line to make a return, but putting products within easy reach is a great strategy. (Customer Experience Dive)
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Human skills + AI = the future in marketing
LinkedIn's chief economist, Karin Kimbrough, recently shared insights and data on the platform about AI's impact on jobs—and the outlook isn't as grim as you might think. She points out that while the unknown may scare people, it's currently also transforming the way we do marketing, and bringing new job skills to the forefront. According to a LinkedIn study, over one-third of those who've adopted generative AI at work reported increased productivity and acceleration of content creation.
“The rise of AI is not about replacing humans; it's about enhancing the ability to create, connect and innovate. Marketers are uniquely positioned to lead this charge. As the age of AI continues to emerge, so too will the opportunities for creativity, empathy and human connection." –Karin Kimbrough, LinkedIn
Why this matters: Kimbrough, armed with data from LinkedIn's 1B users, acknowledges our fears of getting left behind in the age of AI but also highlights the payoff people are already seeing when they combine soft skills with hard skills. Combining the two will win. Read Kimbrough's full essay here.
The next retail disruptor: agentic AI
First off, agentic AI is AI that can perform more complex goal-oriented tasks, just like a human service agent. So beyond speeding up product search on your e-commerce site and automating inventory management, shipping and delivery and customer service, agentic AI can fill out websites, interact with forms, collect and submit information and make payments. Retail, specifically e-commerce, is poised to reap the benefits of this new technology. Think shopping bots that can compare prices across different retailers, and AI-powered agents that can help you dynamically price products and services by tracking the competition.
Why this matters: Yes, it’s still a ways off before large enterprises adopt this widely, and even longer before SMBs can take advantage of the technology. But having an eye on the future can help you build better systems and workflows in the present. Knowing which parts of your business can be automated will also highlight which parts need a true human touch. (Forbes)
What we are laughing at: Instagram comedians Vincent Marcus and Manon Mathews are back with more Erewhon shenanigans and we’re here for it. Pistachio milk and sea moss, please.
What we are taking notes on: Etsy CEO Josh Silverman warns of e-commerce becoming a “sea of sameness” and breaks down how the makers’ marketplace is looking to differentiate itself.
What we are following: Drugstore darling e.l.f.’s new telenovela-inspired campaign on Instagram and TikTok. Episodes one and two launched as the company prepares to expand in Mexico. Ay, caramba!
Thanks for reading this week's edition!
You can reach the newsletter team at theskupe@mynewsletter.co. We enjoy hearing from you.
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The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto
