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Product Bundling: Why It’s A Bundle Of Joy

Customer Experience

Product Bundling: Why It’s A Bundle Of Joy

Learn what product bundling is and explore its various types. Discover how businesses can implement this strategy effectively and leverage PIM to enhance efficiency, boost revenue, and drive growth.

You’ve seen it everywhere—your favorite fast-food combo meal, a skincare set promising the perfect routine, or a “buy more, save more” deal that’s too good to resist. There’s something about getting multiple products together that feels like a better deal, a smarter buy, and an easier choice. The name of this approach? Product bundling.

Whether it’s about convenience, savings, or just the thrill of a great offer, businesses have long used this strategy to keep customers coming back for more. But what makes this approach so effective, and how can brands best leverage it? Let’s dive in.

What is Product Bundling?

Ever find yourself leaving a store with an overflowing shopping bag, wondering how you ended up with so much more than you planned? That’s the magic of product bundling! 

A retail strategy that’s been around for decades, bundling involves combining products or services into one sales unit. It can take many forms, from same-product bundles like a shampoo and conditioner duo to hardware and service bundling, like a gaming console with extra accessories or even a tasty meal deal!

No matter the approach, product bundling is a smart way to boost value for customers while increasing sales for businesses — and the numbers back it up. In fact, companies that implement product bundling strategies see an average 30% growth in revenue, making it a great deal for both shoppers and sellers. 

Types and Examples of Product Bundling

When it comes to product bundling, there are different types that businesses employ:

1. Pure bundles

A pure bundle is a package where the individual products can’t be bought separately; they only come as part of the set. This approach increases perceived value and encourages customers to purchase the full bundle if there is a particular product they’re after.

Example: A software suite like Microsoft Office 365, which includes Word, Excel, and PowerPoint, is only available as a bundle rather than individual software purchases.

2. New product bundles

New product bundles introduce a fresh release alongside an existing, well-loved product to encourage adoption. This helps new items gain traction by leveraging the popularity of proven bestsellers!

Example: A beauty company offering a discount on its newest moisturizer with a purchase of one of its most popular exfoliators.

3. Mix-and-match bundles

These bundles allow customers to personalize their selections from a set of related products, creating a more customized shopping experience, which can be great for boosting sales and customer satisfaction.

Example: Build-A-Bear allows customers to mix and match different stuffed animals, outfits, and accessories to create a fully customized bundle, making each purchase unique.

4. Cross-sell bundles

Cross-sell bundling combines complementary products that naturally go together, encouraging customers to buy related items they may not have considered.

Example: A gaming console bundle that includes the console, an extra controller, and a popular game, encouraging customers to purchase everything they need for the ultimate experience!

5. Gifting bundles

Designed for special occasions like holidays and celebrations, gifting bundles combine multiple thematically linked items for an effortless, ready-to-gift experience. They encourage shoppers to spend more in exchange for greater savings. 

Example: A holiday skincare gift set that includes a cleanser, moisturizer, and serum, neatly packaged as a ready-to-gift item. For instance, Lush offers beautifully wrapped gift sets featuring bath bombs, soaps, and skincare products—making them easy, gift-ready purchases for special occasions.

6. Inventory clearance bundles

Retailers often use these bundles to move excess stock by pairing slower-selling items with popular ones, helping reduce overstock while still providing value to customers.
Example: A fashion retailer bundling last season’s jeans with a trendy new-season top, making it an appealing deal while selling old stock and ensuring it doesn’t go directly into a landfill.

7. Buy-one-get-one bundles

Buy One, Get One (BOGO) bundles offer an extra product at no additional cost, either as a freebie or at a discount. This strategy drives impulse purchases and increases sales.
Example: A fragrance company offering a deal to receive a free candle upon purchasing recently released body wash; Bath & Body Works is notorious for their BOGO deals and bundle deals.

Meet with an Akeneo Expert Today to Start Your PX Journey

Why Product Bundling is Essential in Marketing

In a competitive market, businesses need strategies that increase sales, enhance customer value, and boost brand loyalty — and product bundling does just that.

A good example of this is the notable brand Sony, whose strategic use of product bundling has significantly impacted its sales performance. During a major summer promotion in 2023, Sony offered PlayStation 5 consoles bundled with popular exclusive games at discounted prices. This initiative led to a notable resurgence of these titles in the UK sales charts, with several PlayStation exclusives re-entering the top 10. The success of this bundling strategy not only raised game sales but also increased the adoption rate of the PS5 console, proving that the right bundle can be a true game-changer!

Additionally, in the second fiscal quarter of 2024, Sony reported selling approximately 77.7 million games for PlayStation 4 and PlayStation 5, which was a significant increase from 53.6 million units in the previous quarter. Although other elements also likely contributed to this growth, strategic bundling was a key factor in the increase in sales.

Advantages of Product Bundling

Besides giving customers the enjoyment of a sweet deal, product bundling is also the gift that keeps on giving. Like any marketing tactic, bundling comes with both advantages and challenges, and recognizing both sides allows businesses to implement bundling strategies more strategically.

  • Increases sales: As I mentioned before, bundling complementary products together, often at a perceived discount, encourages customers to purchase more and spend more money (which is the main goal for every business!).
  • Elevates customer value & convenience: Bundled products simplify the buying process, making it easier for customers to find what they need while feeling like they’re getting a better deal, which can lead to higher satisfaction and loyalty.
  • Moves inventory faster: Struggling to sell certain products? Bundling can help clear out slow-moving inventory, reducing waste and improving profitability. It also boosts product appeal and accelerates inventory clearance, freeing up valuable storage space.
  • Reduces costs for marketing and distribution: Selling multiple products in a single package reduces the cost of marketing and shipping each item individually. Instead of promoting multiple products separately, businesses can advertise a single, compelling offer!
  • Improves customer experience: A happy customer equals a happy business, and product bundling can bring just that. Well-designed bundles make shopping more convenient, personalized, and rewarding. Customers appreciate curated selections that help them discover new products and provide more value in a single purchase.

In short, product bundling is a win-win strategy that makes customers feel like they’re getting a steal while your business enjoys bigger sales and smoother operations!

How To Properly Sell Product Bundles

So how do you successfully execute this strategy?

Throwing random products together and calling it a bundle won’t cut it — successful product bundling requires strategy. The goal is to create bundles that offer real value, make shopping easier, and encourage customers to buy more without feeling pressured. Here’s how to do it right:

1. Bundle complementary products

Ensure the items naturally go together, like a laptop and a wireless mouse, or shampoo and conditioner. The bundle should enhance the customer’s experience, not feel like a forced pairing.

2. Offer a clear value proposition

Customers should instantly see the benefit of the bundle, whether it’s cost savings, convenience, or an exclusive deal they can’t resist.

3. Keep your pricing pretty

The discounted price should be attractive enough to encourage buying but not so steep that it hurts profitability. A small perceived saving can make a big difference! Studies suggest that consumers are more likely to purchase bundles when they perceive a discount, even if the actual savings are minimal.  

4. Give customers flexibility 

Mix-and-match options or customizable bundles increase engagement and let customers feel in control of their purchase.

5. Market the bundles effectively

Highlight bundles on your website, through email campaigns, and in-store promotions. Product Information Management (PIM) solutions can be a big help here, as they can help enrich and optimize the products’ data with descriptive titles and high-quality images to perfectly showcase the bundle. You can even use urgency tactics like limited-time offers to drive conversions!

6 . Test and optimize

Track sales data and customer feedback to see which bundles perform best, then adjust based on demand.

Wrapping Up Product Bundling

Product bundling isn’t just about moving more product at all costs; it’s about crafting the ultimate shopping experience and providing thoughtful, curated, and personalized options for consumers. When bundles are thoughtfully designed, they boost value, simplify purchasing decisions, and drive sales without feeling forced.

Whether you’re pairing complementary products or creating irresistible deals, the key is to make bundling feel like a no-brainer. Because let’s face it — who doesn’t love getting more for less?

Are you ready to take the next step?

Our Akeneo Experts are here to answer all the questions you might have about our products and help you to move forward on your PX journey.

Venus Kamara, Content Marketing Intern

Akeneo

The Dirty Business of Greenwashing

Sustainability

The Dirty Business of Greenwashing

Uncover the deceptive tactics of greenwashing and how companies manipulate sustainability claims to appear more eco-friendly than they truly are. Learn how to spot misleading marketing and the ways businesses can be transparent.

That moment when a friend says they’re on the way but you know they haven’t even left. Or when a child claims they’ve eaten their vegetables, but you find them hidden under the table. 

Nobody likes being lied to — it feels deceitful, unfair, and leaves you questioning trust. Now imagine this on a larger scale: companies making promises about sustainability and eco-friendliness that they never intend to keep. 

This is the essence of greenwashing, a practice where businesses exaggerate or fabricate their environmental efforts to win over eco-conscious consumers. But what exactly is greenwashing, and how can you spot it? Let’s break it down.

What is Greenwashing?

Greenwashing occurs when a company makes false or exaggerated claims about its environmental efforts to appear more sustainable than it truly is. It was first coined in the 1980s by environmentalist Jay Westerveld after visiting a hotel that urged guests to reuse towels in order to save the environment, when it was likely to just reduce laundry costs. 

Greenwashing practices exploit the rising demand for eco-friendly products and services, misleading conscious consumers into thinking they are supporting truly sustainable brands.

A recent study showed that younger generations are 27% more inclined to make a purchase when they believe a brand genuinely cares about its impact on people and the planet. So you can imagine their frustration when they discover the opposite. While it may create the short-term illusion of sustainability, greenwashing chips away at consumer trust, weakens genuine efforts to address environmental impacts and challenges, and can even contribute to further environmental harm by stirring attention away from real, practical solutions.

Examples Of Greenwashing

Volkswagen

Volkswagen’s infamous Dieselgate scandal is one of the most well-known examples of greenwashing. A discovery in 2015 by the U.S. Environmental Protection Agency (EPA) revealed that Volkswagen had installed software in its diesel vehicles to cheat emissions tests. This software could detect when a car was undergoing emissions testing and adjust engine performance to produce lower levels of pollutants. 

So, while testing emissions looked impressively low, their diesel vehicles were actually emitting nitrogen oxide levels up to 40 times higher than the legal limit, completely derailing Volkswagen’s carefully curated narrative of environmental responsibility, and the fallout was severe, with Volkswagen admitting to the deception, facing $30 billion in fines and settlements, and losing public trust. 

H&M

While not the only fast-fashion brand to be caught in the greenwashing firestorm, H&M has made a few efforts to appear sustainable despite generating approximately 3 billion garments annually.

In 2021, they launched “Looop Island” within the popular game Animal Crossing: New Horizons, aiming to promote their in-store recycling machine, the Looop, and emphasize their commitment to sustainability. This initiative featured a virtual space where players could recycle outfits, but critics of this campaign were quick to point out that while the virtual island encouraged recycling, it distracted from the brand’s excessive environmental footprint driven by high production volumes. They claimed that such digital initiatives, though creative, failed to address the fundamental issues of overproduction and waste generated by the company’s fast fashion model.

Microsoft

Microsoft has long positioned itself as a leader in sustainability, pledging to achieve carbon neutrality by 2030 and reduce its environmental footprint. However, the company’s actions often fall short of its rhetoric. According to the non-profit organization, As You Sow, Microsoft has marketed its AI and cloud computing services as tools for maximizing fossil fuel extraction, which has led to accusations of hypocrisy as it appears to contradict Microsoft’s public stance on climate change.

Adding to these concerns, Microsoft’s 2023 Environmental Sustainability Report revealed a nearly 30% increase in CO₂ emissions since 2020, a direct setback to its sustainability goals. These inconsistencies paint a troubling picture of a company that promotes itself as environmentally conscious while contributing significantly to carbon emissions and enabling the expansion of fossil fuel industries.

Avoid Greenwashing: How to Build Sustainable Strategies

Why Is Greenwashing Bad? 

I have a feeling you might already know the answer to this!

As we mentioned before, greenwashing misleads consumers; it deceives individuals who aim to make environmentally responsible choices by having them support companies falsely claiming those beliefs. 

57% of customers struggle to tell whether a business’ products are ethical, and 88% of Gen Z consumers say they don’t trust brands’ environmental, social, and governance (ESG) claims. This deception births skepticism and frustration among customers, compelling them to lose hope in the company at fault and water down trust in truly green brands, which often hinders a business’s success as 54% of consumers say they would boycott companies caught greenwashing.

Trust is one of the most valuable assets a brand can have, especially in today’s market where consumers have, quite literally, thousands of options and are more informed than ever before. They have access to a wealth of information, can easily compare products, and are quick to share their experiences — positive or negative — on any number of social media sites or review platforms. Negative reviews, social media outrage, and bad press can snowball into a much larger reputational crisis, damaging the brand’s image well beyond the initial issue.

And restoring consumer trust after an incident of greenwashing requires more than just issuing apologies or making surface-level changes. It often takes years of genuine, transparent efforts to win back a customer base, and even then, some consumers may never return. 

The cost of ignoring sustainability goes beyond immediate environmental consequences; businesses that fail to prioritize sustainable strategies risk damaging their reputations in an era where consumers, investors, and regulators increasingly prioritize ethical and environmentally conscious practices. Data-driven strategies enable businesses to optimize processes, reduce waste, and design products with sustainability at their core.

Camille Fant Director of Corporate Social Responsibility

Akeneo

How Can You Spot Greenwashing?

To avoid being misled, here are some tell-tale signs of greenwashing and examples of companies doing it right:

1. Using vague words with no legal definitions

Greenwashing:  Brands that use terms like “natural,” “green,” or “eco-friendly” without explaining why their product is sustainable. If there’s no certification, data, specific details, or explanation, it’s likely just marketing fluff.

Sustainable: Patagonia provides detailed information about its materials, supply chain, and fair trade practices rather than using empty sustainability claims.

2. Pretty packaging with not-so-pretty practices

Greenwashing:  Utilizing excessive nature imagery such as trees, leaves, or vines on packaging that isn’t actually recyclable or sourced ethically.

Sustainable: Kuyichi, a Dutch denim company, has opted to use recyclable and FSC®-certified paper mailers sturdy enough to be reusable to ship their denim products around the world.

3. Selective sustainability

Greenwashing: When a company highlights one green aspect of a product (for example, organic cotton) while ignoring other major environmental issues ( excessive water consumption needed to produce organic cotton).

Sustainable:Veja, a sustainable sneaker brand, breaks down the full environmental impact of its shoes, including materials, production, and fair wages. Instead of focusing on one aspect, the brand shows all of them—highlighting their fight to reduce waste.

4. Misleading labels and certifications

Greenwashing: If a product has a “certification” you’ve never heard of (or one that isn’t verified by a third party), it may be a fake eco-label designed to mislead consumers.

Sustainable: Look for real certifications like Fair Trade or GOTS (Global Organic Textile Standard), or check if the business is a certified B Corporation, like Back Market.

5. More talk, less action

Greenwashing: If a brand talks about sustainability but doesn’t back it up with actual policies, reports, or tangible actions, they might be all marketing, no mission.

Sustainable: Companies like Unilever publish detailed sustainability reports that outline measurable progress toward reducing their environmental footprint.

How Should Businesses Address Greenwashing?

While it’s great that customers are learning to spot the smoke and mirrors, greenwashing still thrives thanks to the companies that keep fanning the flames. Businesses must shift from performative sustainability to genuine, transparent, and accountable environmental efforts. And by integrating a Product Information Management (PIM) system, they can ensure that their claims are backed by accurate data, turning intentions into real impact.  Here’s how:

1. Provide clear and honest communication

Using vague descriptors like “eco-friendly” or “natural” without further detail is a common greenwashing tactic. Instead of using these noncommittal phrases, specify precisely what makes your product sustainable, whether it’s the materials used, ethical sourcing practices, or energy-efficient manufacturing processes. Be honest about areas where your company is still working toward sustainability improvements — consumers value transparency over perfection.

2. Utilize certifications and third-party verifications

Backing up sustainability claims with well-known certifications can provide the credence and reliability that your consumers are looking for. A PIM solution can store and manage sustainability certifications and third-party verifications, ensuring that only verified, compliant products are labeled as environmentally friendly, which can help you avoid false claims and provide transparency across marketplaces and retailers.

3. Encourage transparency throughout your entire supply chain

Sustainability initiatives shouldn’t be contained to just your individual business unit; they extend to your suppliers and partners. A truly sustainable company requires visibility and traceability across every supply chain stage, from raw material extraction to finished product distribution.

Of course, you should prioritize working with partners and suppliers who meet strict environmental and ethical standards, but some suppliers may have opaque practices, and small suppliers may lack the resources for full certification.

Utilizing technology like PIM solutions and supply chain management tools to track the environmental impact of each step can give you a more transparent view of your product’s journey, even if your suppliers aren’t as mature. This investment not only helps reduce the risk of greenwashing but also provides a clear “sustainability roadmap” you can share with consumers.

4. Establish a process for continual assessment and improvement

Sustainability is a journey, not a destination. Consumer expectations and regulations are always evolving, so companies must be prepared to adapt their practices, update their goals, and continuously improve their environmental impact. Establish a roadmap with specific, measurable, and time-bound sustainability goals, and make sure you’re tracking your progress using tools that measure sustainability metrics like water usage, waste production, and carbon emissions.

Conduct regular internal and third-party audits to verify your claims, and involve stakeholders, including customers and employees, in setting and achieving these goals. Publicly communicate your progress, and don’t shy away from discussing obstacles. Being transparent about challenges, limitations, and adjustments demonstrates a genuine commitment to sustainability. Consumers respect brands that take the time to do it right over those that try to cut corners for the sake of appearances.

Paving the Path for Greener Pastures

While greenwashing remains a challenge, its growing exposure is pushing companies toward greater transparency and accountability. Consumers are becoming more informed, demanding real action instead of empty promises. Businesses that embrace honest sustainability practices, backed by clear data and certifications, will not only build trust but also drive real environmental impact.

The good news? As awareness grows, greenwashing becomes harder to hide, which paves the way for a future where sustainability isn’t just a marketing tactic, but a true commitment to the planet.

Avoiding Greenwashing

Discover how to avoid the pitfalls of greenwashing and build genuinely sustainable strategies that foster trust, align with regulations, and drive long-term business growth.

Venus Kamara, Content Marketing Intern

Akeneo

Akeneo Earns Top Recognition in Industry Analyst Reports

Akeneo News

Akeneo Earns Top Recognition in Industry Analyst Reports

The latest analyst reports from IDC and Gartner are out, and Akeneo has been recognized as a leader in a number of different ways! From our AI-powered innovations to seamless product activation capabilities, these reports highlight why Akeneo stands out in the industry. Whether you’re exploring a PIM solution or looking to future-proof your product experience strategy, these insights offer valuable takeaways.

Akeneo has been making headlines recently, and we couldn’t be more excited to share why! IDC and Gartner, two global analyst firms, have already released a few of their 2025 reports that highlight the ever-growing importance of Product Information Management (PIM) and its role in delivering seamless commerce experiences, and Akeneo has been featured in multiple assessments!

So, what exactly did these analysts have to say about Akeneo? Let’s dive into the key takeaways from each report and what they mean for businesses looking to optimize their product information strategy.

1. IDC’s 2024-2025 IDC MarketScape Worldwide Product Information Management for Commerce Vendor Assessment

The IDC MarketScape report is a major benchmark for evaluating vendors in the PIM space. This year’s assessment included 19 vendors and focused on the criteria most relevant to digital commerce use cases. To be considered, vendors had to meet strict qualifications, such as having at least 20 active customers, syndicating product data across five or more major commerce channels, and qualifying as a cloud-enabled PIM solution.

Akeneo was named as a leader in this assessment, and here’s why:

  • Open-source accessibility: Akeneo offers an open-source application, allowing businesses to try the platform for free before committing
  • Comprehensive product activation and syndication: Akeneo Activation enables businesses to efficiently manage and distribute product data across multiple channels
  • Ease of use and customer support: Akeneo was recognized for its user-friendly interface and strong customer support, making PIM adoption smoother and more efficient for businesses of all sizes

For businesses navigating an increasingly complex digital commerce landscape, this recognition solidifies Akeneo’s reputation as a trusted partner in delivering best-in-class PIM solutions.

Want to learn more? Read the full IDC MarketScape report.

2. IDC TechScape: Frictionless CX-Enabling Technologies in Retail, 2025

In another important recognition, Akeneo was featured in IDC’s TechScape for Frictionless CX-Enabling Technologies in Retail. This report identifies the key technologies retailers should consider to deliver seamless, engaging, and friction-free customer experiences.

Akeneo was highlighted for its innovative use of AI and Generative AI to enhance digital content management. Specifically, IDC recognized Akeneo’s ability to:

  • Organize and optimize digital content (including product descriptions, marketing materials, and advertising needs) using AI
  • Streamline visual content to ensure the most effective product communication across digital channels

This recognition underscores Akeneo’s leadership in leveraging AI-powered solutions to help retailers improve product experiences and meet evolving consumer expectations. As brands strive to deliver more engaging and consistent omnichannel experiences, having a PIM solution that integrates AI capabilities is a game-changer.

Check out the full IDC TechScape report to learn more.

The recognition of Akeneo as a leader within these two reports exemplifies our continued commitment to our customers to provide the most innovative, future-proof offering on the market.We are very proud of our team’s dedication and appreciative of the trust that our customers place in our products and services, to not only meet the needs of evolving customer demands but continue moving the needle when it comes to next-level product experience innovation.

Romain Fouache CEO

Akeneo

3. Gartner’s Market Guide for Product Information Management Solutions

Gartner’s Market Guide for PIM Solutions is an essential resource for data and analytics leaders exploring how PIM can optimize their product information processes. This year’s guide evaluates 20 vendors and provides key insights for businesses selecting a PIM solution that meets both current and future needs.

Akeneo received high marks for several reasons, including:

  • End-to-end product lifecycle support: Akeneo’s platform supports every stage of product information management, from creation to activation
  • Robust product activation features: With over 160 integrations, Akeneo seamlessly connects with digital commerce platforms, content translation tools, and other essential applications
  • Advanced AI and GenAI capabilities: Akeneo is at the forefront of AI-driven PIM, helping businesses enhance their product experience management (PXM) strategies with intelligent automation and enrichment tools

This positive evaluation reaffirms Akeneo’s commitment to innovation and our ability to help businesses manage, optimize, and distribute product information effectively.

Want to explore the latest PIM trends? Read Gartner’s Market Guide.

Future-Proofed Product Experiences, Backed By Analysts

Being recognized by IDC and Gartner is an incredible honor, but what does this mean for businesses like yours?

  • If you’re evaluating PIM solutions, these reports offer third-party validation of Akeneo’s capabilities and leadership in the industry.
  • If you’re an existing Akeneo user, this recognition reaffirms that you’re using a platform that’s continuously innovating and leading the way in PIM and PXM.
  • If you’re looking to future-proof your business, Akeneo’s emphasis on AI, product activation, and seamless integrations ensures you’ll be equipped to meet the evolving demands of modern commerce.

These analyst reports highlight that businesses that invest in strong PIM solutions are better positioned to deliver outstanding customer experiences, drive conversions, and scale efficiently. As digital commerce becomes increasingly complex, having a PIM solution that evolves with your needs is essential. Akeneo is proud to be recognized as a leader in this space, and we’re excited to continue innovating to help businesses like yours succeed.

Ready to take your product experience to the next level? Let’s talk!

Are you ready to take the next step?

Our Akeneo Experts are here to answer all the questions you might have about our products and help you to move forward on your PX journey.

Casey Paxton, Content Marketing Manager

Akeneo

The Green Blueprint: How Three Businesses Champion Sustainability with Transparency

Sustainability

The Green Blueprint: How Three Businesses Champion Sustainability with Transparency

With greenwashing at an all-time high and consumer trust at an all-time low, discover how real-life businesses across different industries are proving that real sustainability isn’t just about marketing; it’s about data, transparency, and long-term impact.

From Volkswagen purposefully installing software to lower nitrogen oxides emissions only when the vehicle was undergoing testing to FIFA drastically underreporting carbon emissions in order to appear ‘carbon neutral’ to Shein inviting influencers to tour a fake warehouse to try counteracting claims of poor working conditions, it can be hard to know which businesses to trust.

As sustainability has become a priority for consumers, some companies have scrambled to showcase environmental efforts, sometimes without taking the time to make the efforts genuine or effective. This has led to an overwhelming sense of distrust about corporate environmental practices, particularly within younger generations; in fact, 88% of Gen Z consumers say they don’t trust brands’ environmental, social, and governance (ESG) claims

So, in a world of skepticism and mistrust, how can a business implement genuine, sustainable initiatives and communicate these efforts honestly to consumers without sacrificing their bottom line? Let’s take a look at a few companies that have managed to do so.

Fashion

Asket

The global fashion industry accounts for 10% of global carbon emissions, and 92 million tonnes of textiles waste is produced every single year. This throwaway culture is only getting worse; the number of times a garment is worn before being discarded has declined by 36% in 15 years. Swedish clothing brand Asket has been on a mission to change that since its conception in 2015.

Asket’s business model rejects the traditional fast fashion calendar; instead of churning out seasonal collections, it offers a single, permanent collection of timeless, essential garments, minimizing waste and encouraging consumers to purchase high-quality, long-lasting clothing.

By calculating carbon emissions for their core products and expanding this analysis across their entire collection, Asket meticulously evaluates the environmental impact at each stage of a product’s lifecycle, including raw material extraction, processing, production, assembly, distribution, and end-of-life outcomes. This data-driven approach allows Asket to make precise adjustments during the design phase, such as substituting or eliminating components with an outsized environmental footprint, and empowers Asket customers to make informed, sustainable choices. 

The company also actively reduces waste through initiatives like the Asket ReStore, an in-person resale and repair outlet that refurbishes and sells previously owned Asket garments, ensuring that clothing stays in circulation and avoids landfills or incineration.

What truly sets Asket apart is its radical transparency. For every garment, Asket provides detailed disclosures about its supply chain, environmental footprint, and cost structure. Consumers can access information on the factories and facilities involved in production, including details about average wages, working conditions, and shift lengths. By shedding light on these often-hidden aspects of the fashion industry, Asket fosters accountability and empowers consumers to make informed choices.

Asket’s philosophy, “The Pursuit of Less,” reflects a holistic approach to sustainability. By focusing on longevity, reducing resource extraction, and emphasizing the value of human labor, Asket demonstrates what genuine, impactful sustainability looks like in the fashion industry.

Automotive

Toyota

Toyota has long demonstrated a genuine commitment to sustainability. As early as 1992, Toyota introduced the Toyota Earth Charter, a foundational document outlining its environmental values.

Then, in 1997, Toyota became the first automaker to successfully mass-produce a hybrid-electric vehicle that combined a traditional internal combustion engine with an electric motor with the launch of the Toyota Prius. At a time when fuel efficiency and environmental impact were growing concerns, this product launch positioned the company as a pioneer in green technology long before competitors caught on.

Building on the Toyota Earth Charter, the company went on to launch the Toyota Environmental Challenge 2050, a comprehensive set of long-term global initiatives and specific benchmarks aimed at achieving carbon neutrality, reducing waste, and fostering a harmonious relationship between society and nature. While achieving full carbon neutrality by 2050 is ambitious, Toyota has already taken measurable steps in the right direction.

The company funds projects by The Nature Conservancy, including the restoration of the Colorado River Delta, and works with The Pollinator to restore pollinator-friendly land. Toyota also actively reduces resource consumption in its supply chain; in 2021, it reported reusing, recycling, or repurposing 93% of its waste.

Toyota also designs vehicles with recyclability in mind, ensuring that components like hybrid powertrains can be reconditioned and reused. Its European parts remanufacturing program takes back used parts, refurbishes them, and makes them available to customers at competitive prices. By reducing reliance on raw materials and incorporating recycled components, Toyota minimizes its ecological footprint throughout a vehicle’s lifecycle.

Avoid Greenwashing: How to Build Sustainable Strategies

Technology

Back Market

The technology industry has a shockingly profound effect on the environment. E-waste is one of the fastest growing solid waste streams in the world, and in 2022, reached 62 million metric tons with less than a quarter of it being properly recycled.

Back Market, a leading marketplace for verified refurbished technology, tackles this problem head-on by doing away with the resource-intensive production of new electronics.

Manufacturing a single smartphone, for instance, generates an average of 87 kilograms of CO₂ emissions and requires 381 kilograms of raw materials. In contrast, refurbishing a smartphone dramatically reduces these figures, emitting just 7 kilograms of CO₂ and using 92% fewer raw materials.

By extending the lifecycle of electronic devices, Back Market significantly reduces environmental harm. In 2023 alone, the company prevented 1 million tons of CO₂ emissions from entering the atmosphere.

Back Market’s model also minimizes e-waste, one of the fastest-growing and most harmful waste streams globally. By refurbishing and reselling electronics, the company offers consumers high-quality, sustainable alternatives to buying new devices.

Back Market’s commitment to sustainability is reinforced by its status as a certified B Corporation. This designation, awarded by the non-profit B Lab, is given to companies meeting high standards of social and environmental performance, accountability, and transparency. B Corporations (or B Corps) must balance profit with purpose, considering the impact of their decisions on workers, customers, communities, and the environment. For Back Market, being a B Corp reflects its dedication to promoting a circular economy while fostering trust and accountability.

The Data-Driven Path to Real Sustainability

Sustainability claims are only as strong as the data that supports them. Without accurate, organized, and accessible data, brands struggle to substantiate their environmental claims, ensure responsible sourcing, or meet growing regulatory requirements. Transparent, well-structured product information enables companies to track the lifecycle of their materials, measure the environmental impact of their supply chains, and identify areas for improvement.

Companies can’t make informed decisions on where to cut excess waste, how to optimize logistics, or which areas of their supply chain need the most improvement if they aren’t monitoring, collecting, and managing all of that data. Historically, this has been a very manual, time-intensive process, but with the rise of artificial intelligence and automation, businesses can now analyze sustainability data at scale, predicting trends and implementing proactive strategies to drive further improvements.

Greenwashing has been a persistent issue across all industries as consumers have become more knowledgeable and scrutinous over time, and some businesses rush to meet these new expectations by cutting corners and exaggerating claims. In fact, 58% of C-suite executives admitted that their companies were guilty of greenwashing.

Without solid data to back up sustainability claims and initiatives, businesses risk losing consumer trust at a time when loyalty is the highest currency. By leveraging centralized product information management (PIM) systems, brands can ensure that sustainability data is not only accurate but also easily communicated across marketing, packaging, and compliance materials.

When sustainability becomes a business imperative, data is the backbone that allows brands to prove, improve, and communicate their environmental efforts effectively. Gathering and analyzing data from your supply chain, manufacturing processes, and product lifecycle enables you to create a clear, evidence-based picture of your sustainability efforts, which is crucial to building trust with consumers, stakeholders, and regulators.

Avoiding Greenwashing

Discover how to avoid the pitfalls of greenwashing and build genuinely sustainable strategies that foster trust, align with regulations, and drive long-term business growth.

Casey Paxton, Content Marketing Manager

Akeneo

Sow PIM, Reap Growth: Sustainable Marketing Initiatives

Sustainability

Sow PIM, Reap Growth: Sustainable Marketing Initiatives

Dive into the heart of sustainable marketing: what it means, why it matters, and how leveraging the right data and the right technology can streamline sustainability efforts, ensuring increased sales, enriched data, and an enhanced customer experience.

It’s time to face the truth: the effects of reckless consumerism are far-reaching and detrimental, and consumers and businesses alike are starting to take notice.

From embracing hybrid shopping journeys like BOPIS that reduce the reliance on online product shipping to giving products and materials a new life through digital second-hand marketplaces, many companies are redefining their brand identities, resonating with eco-conscious audiences, and showcasing genuine commitments to sustainability. 

This is where sustainable marketing takes root and begins to grow! But what does it truly mean to embrace sustainability in marketing, and why is it an essential component when creating a successful business strategy?

Let’s understand more of the meaning behind sustainable marketing, its importance in the current business landscape, and how to plant a seed of change within consumers who are more environmentally aware than ever before. 

What is Sustainable Marketing?

Sustainable marketing is the practice of promoting products or services in a way that highlights their environmental, social, and ethical benefits — going beyond simply advertising “green” products like recycled water bottles or compostable dinnerware. The eco-friendly strategy is about adopting and focusing on sustainable initiatives in every aspect of your business, from supply chain management and production processes to packaging and distribution, and then effectively communicating these initiatives to consumers.

Sustainable marketing also doubles as a teaching tool, raising awareness amongst consumers about a particular social and environmental issue through blogs, events, community discussions, and more. With extra information in their pockets, consumers make more informed purchasing decisions that align with their values.

However, this strategic approach isn’t just about promoting eco-friendly products, it’s also about integrating sustainability principles into your marketing strategy. For example, a business could prioritize responsible advertising practices — instead of printing ads, they could opt for online marketing which reduces paper waste. After all, how could they warn about the dangers of deforestation while printing thousands of flyers? 

Ultimately, sustainable marketing is about recognizing the gravity of your business practices and their environmental impact on the world around you.

 

Avoid Greenwashing: How to Build Sustainable Strategies

Why is Sustainable Marketing Important?

That’s a good question!

Like many things, when it comes to sustainability, customers are speaking with their money. It’s clear that more and more consumers base their purchasing decisions on the values and practices of the brands they support. In fact, a recent study found that 80% of consumers would be willing to pay an average premium of 9.7% for sustainable brands. And this sentiment is only growing stronger; in younger generations, it’s even more evident, with 75% of Gen Z valuing sustainability with every purchase they make.

But the importance of sustainability and how it translates into marketing extends beyond just meeting consumer demand. Companies that adopt sustainable practices can also see benefits like cost savings, improved efficiency, and reduced risk — all stemming from supply chain disruptions (remember the pandemic?) or social issues. Using sustainable marketing to promote transparency and ethical practices can help businesses build trust with their customers and improve the customer experience. Plus, it can foster stronger brand loyalty and better customer retention!

If you’re a business that loves growth, this shift in demand for sustainable products and services is a market opportunity you don’t want to miss. Studies show that 62% of consumers are willing to change their purchasing habits to help reduce environmental impact, meaning that sustainable marketing could be the catalyst that causes buyers to choose your brand over your competitors. Utilize it correctly, and you could expand your market share while creating meaningful value for your customers, your brand, and the planet!

How PIM Supports Sustainable Marketing

Sustainable marketing is a game-changer, but the harsh truth is that it’s time-consuming and complex to do correctly. Effectively communicating sustainable initiatives often involves finding, storing, and distributing product information, supply chain data, regulatory compliance certificates or third-party reports, and more across all of your channels in a way that is cohesive and digestible by the average person. To communicate your commitment to sustainability effectively without doubling the work of your team, it’s crucial to have a single, well-organized source of information, which is where a Product Information Management (PIM) solution comes into play.

PIM systems enable you to easily store, manage, and distribute up-to-date product information across all of your sales channels, making sure your customers have access to all of the details they need to make informed, sustainable choices.

For example, with a PIM system, you can easily create a comprehensive list of all the materials used to create all of your products, along with where and how these products have been manufactured and how they can be properly disposed of when the product has reached its end-of-life, all in one place. With a PIM system, you can track and document sustainability attributes, such as recycled materials, carbon footprint, or certifications, making it easier to communicate these details to consumers.

A PIM solution can also help future-proof your brand. As your business grows and your product offerings expand, it becomes harder to juggle all of the sustainable attributes for each product without a PIM system, meaning inaccuracies and inefficiencies could run rampant. With the right tools, you can ensure your customers are aware of your brand’s sustainable and ethical practices at every stage.

It’s more than just a tool to help you manage your product sustainability data — PIM makes it easier for customers to find your products by improving filtering capabilities on your website. With a PIM solution in place, you can easily create and manage product attributes related to sustainability, such as eco-friendly materials, fair labor practices, or carbon footprint. Your customers can then easily filter and find products that align with their values — thus, creating an overall better shopping experience and therefore, (say it with me now) increases the likelihood of a purchase!

Painting The Town Green

In an eco-conscious world, sustainable marketing offers businesses the opportunity to easily connect with customers who value transparency and environmental responsibility. By following a green-driven strategy, companies can display how focused and meticulous they are with their ethical choices, letting consumers know their contribution to a cleaner earth.

By leveraging a robust PIM system, businesses can also centralize their product data, ensuring accuracy across channels while amplifying their sustainable initiatives. Together, sustainable marketing and PIM work harmoniously, creating a powerful synergy – pne that not only drives growth but also enhances brand reputation while strengthening customer trust and loyalty.    

Is your brand all in on sustainability? Get in touch and we’ll show you how Akeneo can help you shout it from the rooftops. 

Avoiding Greenwashing

Discover how to avoid the pitfalls of greenwashing and build genuinely sustainable strategies that foster trust, align with regulations, and drive long-term business growth.

Venus Kamara, Content Marketing Intern

Akeneo

The Proactive Approach to Regulations Compliance

Regulation Compliance

The Proactive Approach to Regulations Compliance

Staying ahead of sustainability regulations may seem like a daunting task, but it can be a golden opportunity for businesses to lead in transparency, accountability, and innovation. Discover the actionable steps you can take for proactive compliance, including how to leverage the right data and tech to meet evolving standards.

Think about the last time you prepared for something big – maybe training for a marathon or planning a family vacation. You knew that the better prepared you were, the smoother things would go. You checked the weather, mapped out your route, packed what you’d need, and even accounted for traffic or missed turns when calculating your schedule. 

Now, imagine you skipped all that prep and tried to wing it instead. Not so smooth, right?

The same goes for businesses facing the wave of sustainability regulations. With new rules emerging around the globe, proactive preparation is key to avoiding last-minute scrambles or costly mistakes. But for businesses, staying ahead of this wave is a complex challenge. Predicting when and where new regulations will emerge, as well as understanding who will be affected, is no easy task.

ESG-related regulations have skyrocketed by 155% over the last decade, and show no signs of slowing down. By planning ahead and getting their sustainability house in order, businesses can stay ahead of the game, avoid the pitfalls, and turn compliance into a competitive edge.

Why are sustainable regulations important?

The unfortunate truth is that, for decades, companies have operated without significant accountability for their environmental impact. Greenwashing, making misleading claims about sustainability, has been rampant, and in fact, a 2022 survey of CEOs and C-suite leaders revealed that 58% admitted their companies were guilty of greenwashing.

Why is this the case? Historically speaking, there has been a lack of enforcement; in the United States, the Federal Trade Commission has taken on fewer than 100 cases of greenwashing over the past thirty years. 

Beyond misleading claims, the environmental cost of unchecked business practices is staggering, with the global fashion industry alone accounting for 10% of all carbon emissions in the world, and product shipping and returns take credit for over a third (37%) of total greenhouse gas emissions.

It’s becoming clear to us all that our current methods of production, distribution, and consumption are unsustainable, and the tides are turning; a combination of consumer pressure and upcoming regulations is setting a new standard for corporate accountability.

Examples of Upcoming or Existing Regulations

The wave of sustainability regulations is global, multifaceted, and everchanging, but we do have some insight on a few key regulations that have already been implemented or are expected to come to fruition in the coming years.

1. Corporate Sustainability Reporting Directive (CSRD)

As part of the European Green Deal, the Corporate Sustainability Reporting Directive (CSRD) is a European Union initiative aimed at enhancing transparency and accountability in corporate sustainability practices. This piece of legislation significantly expands the scope of the existing Non-Financial Reporting Directive (NFRD), requiring companies to disclose detailed information about their environmental, social, and governance performance. 

The CSRD introduces more rigorous reporting standards aligned with the European Sustainability Reporting Standards (ESRS) and ensures these disclosures are independently audited to enhance credibility. The goal is to provide investors, consumers, and other stakeholders with consistent, reliable information required to properly assess a company’s sustainability efforts and impact.

The directive will affect a wide range of industries, particularly large companies in the EU that meet at least two of the following criteria: over 250 employees, a net turnover exceeding €40 million, or total assets above €20 million. Small and medium-sized enterprises listed on EU-regulated markets will also be required to report, though they will benefit from simplified standards. 

Non-EU companies with significant operations in the EU (net turnover of more than €150 million in the region) will also fall under its scope. The CSRD will be implemented in phases, with the first group of large companies expected to report on the 2024 financial year by 2025. SMEs and non-EU companies will have later deadlines, providing a transitional period to adapt to the new requirements.

2. Digital Product Passports

Digital Product Passports (DPP) were unveiled in the same act as the CSRD, and requires businesses to provide a digital record of product data, supply chain information, and purchase or repair history to all members of the value chain, from manufacturers to suppliers to consumers.

The DPP legislation aims to create a standardized framework for tracking and sharing essential product information throughout its entire lifecycle, ensuring that products are designed, manufactured, used, and disposed of in an environmentally responsible manner while empowering consumers and businesses alike to make informed decisions.

DPPs will need to provide digital, accessible information about a product’s components, materials, environmental impact, reparability, and recyclability via QR codes or other digital methods, creating transparency for stakeholders across the supply chain, from manufacturers to end-users and recyclers. Key industries impacted by the initial launch of this legislation include electronics, batteries, textiles, and construction materials, with plans to expand to other sectors over time.

The proposed timeline indicates that pilot projects and implementation frameworks are being developed now, with legislation rolling out in stages, with certain industries having to be compliant by 2026. 

3. The Sustainable Finance Disclosure Regulation (SFDR) 

The Sustainable Finance Disclosure Regulation (SFDR) is another EU regulation designed to improve transparency, this time with a focus on the financial sector. Also part of the European Green Deal, the SFDR aims to combat greenwashing while guiding investors toward more sustainable options. The SFDR requires financial market participants and financial advisors to disclose detailed information about how they incorporate environmental, social, and governance factors into their investment decisions and advice.

The regulation applies to a wide range of entities, including asset managers, insurers, pension funds, and investment advisors operating in the EU, and introduces a classification system for financial products. Firms must disclose sustainability risks at the entity and product levels, provide periodic updates, and report on the principal adverse impacts (PAI) of their investments on ESG factors.

The SFDR has been implemented in phases. Initial disclosure requirements began in March 2021, followed by enhanced obligations, such as reporting detailed PAIs and taxonomy-aligned investments, from 2022 onwards. This regulation helps create a consistent framework for ESG reporting, enabling investors to assess the true sustainability of financial products and aligning capital flows with the EU’s sustainability goals.

Avoid Greenwashing: How to Build Sustainable Strategies

4. The EU Taxonomy

The EU Taxonomy is a classification system established to define what constitutes environmentally sustainable economic activities. It’s a cornerstone of the EU’s sustainability initiatives, like CSRD and SFDR that we mentioned earlier, and is designed to provide a clear and science-based framework for identifying activities that contribute to the EU’s environmental objectives, including climate change mitigation and adaptation, sustainable use of water and marine resources, transition to a circular economy, pollution prevention, and biodiversity protection.

The taxonomy sets technical screening criteria to determine whether an economic activity significantly contributes to these objectives while ensuring it does no significant harm to others, and is in the process of being implemented in phases. The criteria for climate change mitigation and adaptation were adopted first, with reporting requirements beginning in 2022. Criteria for the remaining objectives are being finalized, with full implementation expected by the end of 2025.

5. The German Supply Chain Due Diligence Act (the LkSG)

The German Supply Chain Due Diligence Act (better known as LkSG in Germany) is a law designed to ensure companies operate responsibly within their supply chains, focusing on human rights and environmental protection. Implemented in 2023, the act mandates that companies identify, prevent, and address risks related to human rights violations and environmental harm across their direct and indirect supply chains and establish robust risk management systems to identify issues such as child labor, forced labor, workplace safety violations, discrimination, and environmental degradation. These companies are also required to conduct regular risk analyses, implement preventive measures through supplier contracts and training, take corrective actions when violations occur, and provide annual compliance reports.

Initially, the law applied to companies with 3,000 or more employees in Germany, but in 2024, it expanded to include those with 1,000 or more employees. Foreign companies with significant operations in Germany are also subject to the LkSG, and non-compliance can lead to fines of up to €8 million or 2% of a company’s global revenue, exclusion from public contracts, and reputational damage.

How to Proactively Prepare for Regulations Compliance 

When it comes to navigating sustainability regulations, data is your most powerful ally. Without accurate, comprehensive data, it’s impossible to align with regulations or build trust with stakeholders.

Don’t believe me? Let’s take a look at how businesses can use data to proactively prepare for compliance and turn regulatory challenges into opportunities.

1. Collect and analyze data

The first step in preparing for compliance is gathering reliable data from across your operations, including information on your supply chain, manufacturing processes, product lifecycle, and distribution networks.

Why is this important? Regulations like the CSRD and DPP require businesses to provide detailed disclosures about their social and environmental impact; having this data on hand ensures you can comply without delays or inaccuracies.

Tracking metrics such as carbon emissions, use of recycled materials, or ethical sourcing practices gives you the right foundation to evaluate your sustainability performance and address any gaps before any penalties kick in, empowering you to build credibility with regulators and consumers by backing your claims with hard evidence.

2. Manage and enrich data

Collecting raw data is only the first step – it then needs to be organized, enriched, and optimized in order to be truly actionable and impactful. A Product Information Management (PIM) system is a vital tool for achieving this, centralizing all your product data into a single source of truth, ensuring it is accurate, consistent, and accessible. When it comes to sustainability compliance, businesses can utilize PIM systems to:

  • Track sustainability attributes like recycled content, certifications, and carbon footprints
  • Maintain up-to-date records that align with evolving regulations
  • Easily share product data with stakeholders and auditors in the required formats

3. Onboard supplier data

A significant portion of sustainability regulations focuses on supply chain transparency. Gathering data directly from your suppliers is crucial for compliance, but it can be challenging without the right tools. Supplier data onboarding platforms simplify this process by automating the collection of sustainability-related information, ensuring that data is accurate, consistent, complete, and compelling.

This level of visibility helps businesses comply with regulations that mandate companies to monitor and address risks in their supply chains, and allows them to identify and collaborate with suppliers that align with sustainability goals, strengthening relationships while ensuring compliance.

4. Leverage AI technology

Artificial intelligence is a game-changer when it comes to managing and leveraging sustainability data as AI-powered tools can enhance your compliance efforts in several ways:

  • Data cleansing: AI solutions can automate the identification of errors, inconsistencies, or duplicate entries, ensuring your sustainability data is trustworthy and clean
  • Data enrichment: AI solutions can help to identify and add verified sustainability details to product descriptions or product detail pages, making them both compelling and regulation-compliant
  • Data analysis: AI solutions can sift through vast datasets to uncover inefficiencies in record time, helping organizations to highlight areas of non-compliance or identify opportunities to improve your environmental footprint

For businesses looking to stay ahead of regulations, AI offers the speed and precision needed to handle complex data demands effectively.

5. Ensure seamless technology integration

The final piece of the puzzle is ensuring that all your data tools, including PIM systems, supplier platforms, AI tools, and more, work together seamlessly. Disconnected systems lead to silos, making it harder to track and act on sustainability insights.

Integration ensures that data flows smoothly across your entire organization and supply chain, creating a unified view of your compliance efforts. This interconnected ecosystem eliminates gaps and redundancies, allowing teams to collaborate effectively and make data-driven decisions with confidence.

From Compliance to Competitive Advantage

While the challenge of compliance may seem daunting, proactive preparation is key. For businesses willing to take the lead, the rewards of proactive compliance go far beyond avoiding penalties as these organizations will be able to position themselves as leaders in a new era of transparency and accountability, earning trust and driving long-term success.

When businesses invest in the right tools and processes, compliance stops being a burden and becomes a driver of innovation, efficiency, and trust. By proactively preparing today, businesses can not only meet tomorrow’s regulatory requirements but also strengthen their market position and build lasting relationships with customers and partners.

Avoiding Greenwashing

Discover how to avoid the pitfalls of greenwashing and build genuinely sustainable strategies that foster trust, align with regulations, and drive long-term business growth.

Casey Paxton, Content Marketing Manager

Akeneo

Run That Back – What is Reverse Logistics?

Sustainability

Run That Back – What is Reverse Logistics?

Discover how reverse logistics enables businesses to support a circular economy by repairing and recycling products, promoting sustainability, generating revenue, enhancing customer experiences, and boosting brand reputation.

When customers purchase a product, they envision enjoying it to its fullest potential – it’s only natural. Leaving the store or clicking “buy now,” they feel confident and satisfied with their choice, which is why it’s such a disappointment when unexpected issues arise, leaving them with little option but to seek returns or repairs; an inconvenience no one plans for.

But what if returns and repairs weren’t just about fixing problems? What if these moments became opportunities to reduce waste and create a positive environmental impact? By giving products a second life through refurbishment or recycling, we can divert materials away from landfills, mitigating their contribution to environmental harm.

This is where reverse logistics comes in – a sustainable process that transforms the way we think about returns and repairs. 

So what exactly is reverse logistics, and how does it work? Let’s dive in.

What is Reverse Logistics?

Well, you know how a product has to go through a supply chain to be created? Traveling directly from a manufacturer before it reaches a customer? Well, scratch that. Reverse logistics does the exact opposite — completely reversing that flow, and sending the product back the other way!  

When a consumer returns their purchase for a replacement, refurbishment, repair, or disposal, reverse logistics kicks in. It sets off a series of events in motion, taking the product from the point of usage (the customer) to where it originated (such as the distributor or manufacturer). Through this process, the product can either have its value restored for it to be reused or be responsibly disposed of, ensuring that the item has no negative environmental impact.

Reverse logistics is an essential aspect of supply chain management, especially as consumer demand for simple return processes and eCommerce continues to expand.

How Does Reverse Logistics Work?

The reverse supply chain can successfully be achieved through the following five steps:

  1. Manage returns: As I stated before, the procedure begins with a customer’s return. This triggers the start of a business’ return process and reverse logistics – this includes identifying the product’s quality, arranging return shipments, authorizing refunds, and replacing defective goods.
  2. Sort out returns: The returned items are then brought to the manufacturer’s or retailer’s location where they’re carefully inspected. Soon afterward, they’re assigned a return category that determines whether they should be resold as new, resold as a return, repaired, recycled, refurbished, or disposed of.
  3. Designate returns: Repairable or refurbishable products are directed to their respective departments. This also extends to goods that are either resold or discarded.  
  4. Repair, refurbish, or resell returns: Items that can be repaired are then promptly fixed and placed back into a business’ inventory. The same applies to those that can be refurbished. However, parts or components that can’t be repaired are sold to support the development of new products. 
  5. Recycle or dispose of remaining returns: Irreparable or non-reusable products are either recycled or sent to disposal in a landfill.

Avoid Greenwashing: How to Build Sustainable Strategies

The 9 Types of Reverse Logistics and Their Benefits 

Reverse logistics is as essential to businesses as water is to fish! Just like how a fish depends on an ocean to survive, businesses depend on reverse logistics to manage their flow of returns and materials, preserving value while upholding environmental responsibility. But reverse logistics isn’t a one-size-fits-all concept – it encompasses a variety of processes, each serving a unique purpose and offering distinct benefits.

Let’s take a look at the nine main types of reverse logistics and highlight the advantages they bring to businesses, customers, and the environment.

1. Returns Management

The most common type of reverse logistics focuses on handling standard customer returns caused by defects, incorrect orders, and dissatisfaction. By instilling an optimized return flow and a well-structured reverse logistics process, retailers can recover up to 50% of the profit they lose due to returns. Each retailer has their own type they utilize, such as return policies, try-before-you-buy, free returns, etc. However, these approaches lose their impact if they aren’t seamless and simple for customers, 92% of whom are more likely to repurchase from retailers with a hassle-free returns process.

2. Return Policy And Procedure (RPP)

A return policy and procedure are a set of rules created by retailers to guide employees and customers in returning, refunding, or exchanging items they no longer want. Before making an online purchase, 96% of consumers review a retailer’s return policy. Return policies should be transparent, leaving no room for confusion; as a result, if implemented correctly, these policies boost customer confidence and loyalty, driving a positive experience!

3. Remanufacturing Or Refurbishment

This form of reverse logistics involves goods being remanufactured, refurbished, or reconditioned. By doing so, businesses can recover a product’s value while using 50–80% less energy compared to manufacturing a new one, ultimately reducing environmental impact. 

4. Packaging Management

Instead of constantly purchasing new packaging and repetitively discarding old ones, retailers have the option to reuse packaging material. For example, Coca-Cola introduced reusable glass bottles in 2018, encouraging consumers to return empty bottles to retailers for reuse within the brand’s system. This approach effectively minimizes waste and ensures product disposal is done correctly. 

5. Unsold Goods

This process focuses on sending back unsold goods from customers, retailers, or warehouses to the manufacturers. Returns like these result from low sales, outdated inventory, or a rejected delivery. Through this, unsold goods are efficiently repurposed in a cost-effective manner, reducing expenses for businesses.

6. Delivery Failure

Products, for whatever reason, may not be delivered to their intended destination. In such cases, products are returned to the manufacturers or shipped back to consumers, the latter boosting customer loyalty. 

7. End-of-life

The term End-of-life (EOL) refers to when a product is no longer supported, manufactured, or sold by a company. Businesses can communicate with their customers about their product’s obsolete state instead of complete, utter silence, reducing the chance of a negative reaction. With in-house collection programs, manufacturers can also directly manage the return of end-of-life products, ensuring effective retrieval and processing

8. Rental and Leasing

Products under lease or rental contracts must be returned to the owning company, who then re-markets or redeploys them, which is a great way to reduce ownership of rarely used products.

9. Repairs and maintenance

This process involves customers sending back products (for example, a laptop or a phone) for warranty or repair needs if problems arise. Businesses sometimes offer previously damaged products to new customers after they’re repaired. 

These different types of reverse logistics provide businesses with a range of options to handle their product returns or refurbishments, enabling them to customize solutions to their unique needs and goals and offering a way to breathe life back into old products rather than dooming them to waste, which highlights how necessary a well-structured returns process is.

Moving Forward with Reverse Logistics

When it comes to reverse logistics, the only way is forward! By implementing a well-structured reverse logistics process, businesses can turn moments of disappointment into opportunities for innovation and environmental stewardship.

As customers demand greater accountability and convenience, reverse logistics will continue to play a pivotal role in shaping modern supply chains. By investing in these strategies, businesses can position themselves as leaders in sustainability, customer experience, and operational efficiency, proving that returns don’t have to be the end of the line; they can be the start of something better.

Avoiding Greenwashing

Discover how to avoid the pitfalls of greenwashing and build genuinely sustainable strategies that foster trust, align with regulations, and drive long-term business growth.

Venus Kamara, Content Marketing Intern

Akeneo

Thinking Outside the Stack: The Case for Composable Commerce and PIM

Composable Commerce

Thinking Outside the Stack: The Case for Composable Commerce and PIM

In a world where consumer behavior evolves at lightning speed, traditional, one-size-fits-all tech solutions often don’t cut it anymore. Discover how composable PIM solutions can empower businesses to build tailored, modular digital ecosystems that grow and adapt as their needs change.

As businesses become more integrated, digitally-dependent and customer-focused, the demand for agile, up-to-date and enhanced product data grows. 

Traditional, monolithic tech stacks, while sturdy and reliable, often lack the flexibility to adapt quickly to changing business needs or evolving customer expectations. Composable commerce offers an alternative here, providing a modular, customizable approach to building digital ecosystems. 

But let’s not get ahead of ourselves; let’s first take a look at what composable commerce is, then we can dive into how a composable PIM solution can revolutionize the customer experience. 

What is Composable Commerce?

You know when you walk into a sandwich shop and they have two options: you can order one of the pre-made sandwiches they have listed on the menu, like a classic Turkey sub or a BLT, or you can create a sandwich from scratch, where you can pick and choose every single ingredient that goes in.

Traditional, monolithic tech stacks are a bit like the off-the-menu sandwich options: they’re pre-designed, convenient, and come with everything you need in one package. But just like that Turkey sub, they might not cater to your exact preferences; maybe you want extra avocado, no mayo, or a specific type of bread that isn’t part of the pre-set recipe. You’ll either have to compromise or go through a lengthy customization process.

While monolithic tech stacks are reliable and can handle a range of needs, they’re not always flexible or adaptable when your business requirements evolve. Need to integrate a new tool or scale up quickly? That’s like asking the sandwich shop to bake a new type of bread just for you – it’s going to be a slow, costly, and often frustrating process.

Composable commerce, on the other hand, is the build-your-own-sandwich option. You’re in control of every layer, choosing the bread, protein, toppings, and sauces to create something perfectly suited to your taste. In the world of composable tech stacks, this means picking and integrating the exact components your business needs, whether it’s a better search tool, enhanced localization features, or an OMS that offers real-time inventory updates. It’s the ultimate customization experience, giving you the power to adapt and innovate without being tied to a rigid framework.

Composable commerce is a modern approach to digital infrastructure that allows businesses to pick and choose modular components, or “building blocks,” to create a system that fits their unique needs. This flexibility has become vital in an era where consumer behavior is unpredictable, and agility is key to staying competitive.

What is a Composable PIM?

A composable PIM simply refers to one of the ingredients of a composable tech stack – it is a Product Information Management (PIM) solution that is able to be easily integrated into a tech store with other composable components.

A few key features of a composable PIM are:

  • Modular design: The solution can be added, removed, or replaced in an eCommerce tech stack based on a business’s needs. For example, businesses can integrate capabilities like translation, analytics, or syndication without overhauling the entire system.
  • API-driven: In order to integrate efficiently, composable PIM solutions use APIs (Application Programming Interfaces) to seamlessly connect with other tools and systems within a tech ecosystem, such as ERP (Enterprise Resource Planning), eCommerce platforms, or CMS (Content Management Systems).
  • Scalability: Businesses can start small and scale the PIM capabilities as they grow or as their needs evolve, making it cost-effective and adaptable to change.
  • Flexibility and customization: Unlike traditional PIM systems, a composable approach lets companies customize the solution to their specific workflows and industry requirements.
  • Future-ready: As new technologies and business needs arise, composable PIM systems are agile enough to incorporate these advancements without a complete overhaul.

Benefits of a Composable PIM

A composable PIM offers significant benefits, particularly for businesses looking to stay agile and competitive in today’s fast-paced market.

1. Faster time-to-market

The modular nature of a composable PIM solution allows companies to implement and integrate specific functionalities quickly without disrupting existing workflows. This agility is especially crucial for businesses managing large product catalogs or frequent product launches. Plus, the flexibility and scalability of a composable PIM ensure that organizations can adapt to changing business needs over time; companies can start with essential components and scale up as they grow or when new challenges, like expanding into global markets or meeting evolving regulatory requirements, arise.

2. Reduced reliance on one single vendor

With a composable approach, businesses can select best-of-breed solutions from different vendors, tailoring their PIM to fit their unique needs rather than being confined to a single, monolithic system. This also helps lower the total cost of ownership (TCO), as organizations only pay for the components they actually use, avoiding the expense of unused features. Plus, by enabling seamless integration with other systems, such as eCommerce platforms, DAM solutions, and ERP systems, a composable PIM supports a cohesive tech ecosystem, enhancing overall operational efficiency.

3. Improved customer experience

By having a more reliable system that can improve the chances that product information is accurate, enriched, and aligned with customer preferences, composable PIM solutions help to drive better engagement and trust. The adaptability aspect also positions businesses to respond proactively to new customer demands or market trends, ensuring they stay ahead of the competition. In essence, a composable PIM empowers organizations to manage product data more strategically, delivering tailored, future-ready solutions that align with both short- and long-term goals, which leads us nicely to our next point.

Driving Operational Efficiencies with Composable Commerce

Building Better Customer Experiences Through Composable PIM

A composable PIM solution is instrumental in delivering tailored product experiences across every stage of the customer journey by ensuring that product information is accurate, enriched, and highly adaptable to different touchpoints. 

At the awareness stage, it enables businesses to provide detailed, compelling product data to all digital channels, from social media to your own eCommerce site to third-party marketplaces like Amazon, helping attract potential customers with clear and consistent messaging. During the consideration phase, a composable PIM ensures that customers can easily access rich, localized, and contextually relevant product details, whether they’re browsing an eCommerce site or visiting a physical store, helping to build trust and confidence in purchasing decisions.

When it comes to the purchase stage, seamless integrations with eCommerce platforms allow for real-time updates to product data, such as availability, pricing, or specifications, ensuring that customers have the most current information. And for the post-purchase experience, a composable PIM supports enhanced customer service by providing accurate product manuals, usage instructions, or warranty details, reducing frustration and improving satisfaction. 

Plus, by leveraging analytics tools integrated into a composable PIM, businesses can gather customer feedback and preferences to continuously refine their product experiences, personalizing recommendations and content for future interactions. This ability to tailor product information at every stage ensures a cohesive and satisfying customer journey, fostering loyalty and long-term relationships.

How AI Plays a Role

I know, I know; you’re tired of hearing about how AI is revolutionizing this, reshaping that, and automating those. But the truth is, product data management is actually one of the areas that AI can actually shine the brightest; let me explain, and I’ll do my best to keep the buzzwords to a minimum.

At its core, AI automates labor-intensive processes, such as categorizing products, enriching data, and generating product descriptions, which drastically reduces the time and effort required for manual updates. For instance, AI-powered tools can analyze large datasets to identify patterns, inconsistencies, or missing information, ensuring that product data is always complete, accurate, and up-to-date.

AI also enables advanced personalization within composable PIMs, making it easier to tailor product experiences to specific customer segments or markets. By leveraging machine learning and natural language processing (NLP), businesses can automatically translate product data into multiple languages or adjust descriptions to align with cultural nuances, improving localization efforts. Plus, AI-driven analytics can provide insights into customer behavior and preferences, allowing businesses to dynamically optimize product information for better engagement and conversions.

AI can also enhance the interoperability of a composable PIM by integrating with other systems in the tech stack, such as eCommerce platforms, MDMs, ERPs, or supply chain tools, to provide real-time insights and updates. For example, AI can predict stock shortages or recommend pricing adjustments based on market trends, ensuring that product data reflects current conditions. These capabilities not only improve the overall customer experience but also empower businesses to make smarter, data-driven decisions.

In short, AI amplifies the potential of composable PIMs by automating routine tasks, enabling intelligent personalization, and delivering actionable insights, creating a more dynamic, efficient, and customer-centric approach to product information management.

The Future of Composable Commerce & PIM

As businesses face increasing complexity in consumer behavior and global competition, the modular, API-driven nature of composable solutions will only grow in importance. These systems aren’t just a short-term, Band–Aid solution to today’s challenges, but can really set a business up for success in the future, regardless of what comes their way. The ability to integrate best-of-breed tools, scale seamlessly, and personalize customer experiences will define the leaders in this new era of commerce.

So, if you’re tired of feeling stuck with “good enough” solutions and ready to build something that’s actually tailored to your needs, it’s time to think composable. The tools are here, the potential is huge, and the future? It’s yours to customize.

Driving Efficiency with Composable Commerce

Discover how OMS, PIM, POS, iPaaS, and Delivery redefine agility, scalability, and customer experiences.

Casey Paxton, Content Marketing Manager

Akeneo

The Environmental Impact of Returns

Sustainability

The Environmental Impact of Returns

Online returns may feel like a simple convenience, but their environmental costs are detrimental, ranging from carbon emissions equivalent to millions of cars to billions of pounds of waste filling landfills each year. Discover the ecological impact of returns, along with four actionable strategies designed to help retailers reduce returns, minimize waste, and create a more sustainable future without compromising customer satisfaction.

The convenience of online shopping has transformed retail, giving consumers access to a world of products at their fingertips. Yet, this convenience has come with a hidden cost: the environmental toll of online returns. 

In 2022 alone, emissions from return shipping totaled a staggering 24 million metric tons of CO2. The fashion industry, fueled by the rise of fast fashion from companies like Shein and H&M, boasts the highest rate of returns, with up to 40% of products being returned; these returns, in the United States alone, generated carbon emissions equivalent to those produced from 3 million cars.

Returns, while seemingly a simple customer convenience, represent a significant environmental and logistical challenge. Let’s take a closer look at the environmental impact of returns and a few actionable strategies that organizations like yours can utilize to mitigate their effect on both the environment and your business.

What is the Environmental Impact of Returns?

From increased transportation emissions to excess packaging waste and mountains of discarded products, returns create a ripple effect of ecological harm. Each return carries a hidden toll on the planet, driving up greenhouse gas emissions, overwhelming recycling systems, and filling landfills with perfectly functional goods.

1. Increased transportation emissions

Imagine you’re shopping online. There’s a jacket you want to buy, but you can’t tell if a medium or a large will fit you better. So, you decide to just order both to your house, try them on, and return the one that doesn’t fit.  Both jackets travel from a warehouse or fulfillment center to a consumer’s home, only to have one immediately returned and shipped back to the warehouse, where it likely gets immediately sent to a landfill after being returned. Best case scenario, the returned jacket is sent to a clearance or refurbishment center, accumulating emissions at every step.

The point is, returns don’t just double the journey of products; they exponentially increase their carbon footprint. Shipping and returns collectively account for 37% of total greenhouse gas emissions in the retail industry, and returns alone add an additional 30% to the carbon emissions of the initial delivery. Every returned item represents additional trucks on the road, planes in the sky, emissions in the atmosphere, and unfortunately a spot in a landfill, even if it’s perfectly functional, which leads us to our next point.

 

Every returned product tells a story of wasted resources. But the root cause is often preventable: inaccurate or incomplete product information that leads to mismatched customer expectations.

Fred de Gombert, President

Akeneo

2. Unusable products sit in landfills

Not all returned products are refurbished and restocked. Many are discarded due to damage, contamination, or simply logistical or financial challenges; in 2022 alone, 9.5 billion pounds of returns were sent directly to landfills.

When customers return items, especially in industries like fashion and consumer electronics, the products are not always in resalable condition. Even if the items are unused or in near-perfect condition, restocking them can be expensive and labor-intensive; companies must inspect, repackage, and repair the goods, which requires resources many businesses aren’t equipped to handle efficiently, which is why, in the United States, one in four returned goods ends up in a landfill, and the amount of returned goods in landfills nearly doubled between 2019 and 2022, reaching 4.3 billion tons. 

Fast fashion and low-cost consumer goods exacerbate the problem because the cost of returning and restocking these items often exceeds their resale value. For many companies, it is cheaper and faster to discard returned products rather than reintegrating them into their supply chains, leading to significant waste.

Another factor is the lack of infrastructure for sustainable return management. Many companies lack robust systems to facilitate the reuse, recycling, or donation of returned items. Instead, returned products are often categorized as unsellable due to cosmetic imperfections, damaged packaging, or limited shelf life, even if they are still functional. In some cases, the complexity of sorting and redistributing returned goods for resale or recycling is compounded by regional restrictions or limited access to recycling facilities.

3. Excess packaging

Returns often generate even more packaging waste than the original purchase, and that’s particularly true when it comes to online returns; online shopping can produce up to 4.8 times more packaging waste than traditional brick-and-mortar stores. 

When a product is returned, it typically cannot be shipped in its original packaging alone due to the wear and tear it may have experienced during its initial journey, or simply because the customer threw out the original packaging. Companies often use additional materials like bubble wrap, packing peanuts, and oversized boxes to ensure the product arrives undamaged, especially if it will be resold or refurbished. This creates a surplus of packaging material, much of which is not recyclable or is improperly disposed of. 

Again, the complexity of reverse logistics exacerbates the issue. Items may travel long distances between customers, warehouses, and resellers, requiring multiple layers of protective packaging at each step of the journey. In many cases, the returned item might be repackaged several times before it reaches its final destination, whether that’s restocking, recycling, or disposal. Not to mention the widespread use of non-recyclable or difficult-to-recycle materials, such as plastic wraps, laminated labels, or mixed-material packaging, that further diminishes the chances of proper recycling and contributes to landfill overflow, generating waste and increasing the carbon footprint at every stage of the return process.

Avoid Greenwashing: How to Build Sustainable Strategies

The Paradox of Returns

The environmental impact of returns presents a frustrating paradox.

On the one hand, consumers demand free and easy return options, with 40% ranking a smooth return process as one of the top two services a retailer should provide. On the other hand, the cost of offering these services is steep — not just financially but also environmentally, as we covered earlier.

 A simple solution is to start charging for returns to discourage this behavior, but retailers who charge for returns risk alienating customers as 63% of shoppers express negative feelings toward companies that impose return fees. 

This dichotomy forces businesses to walk a fine line between satisfying customer demands and maintaining sustainability commitments.

4 Strategies for Reducing Returns

Retailers can’t eliminate returns entirely, but they can reduce their frequency and mitigate their environmental impact through smarter practices. Let’s take a look at four actionable strategies to do so.

1. Provide in-depth, accurate sizing information

When product descriptions include accurate measurements, high-quality images, videos, and information about materials, care instructions, or compatibility, customers can better assess whether the product suits their needs before buying. Detailed size guides, for example, can reduce returns in the fashion industry where sizing is the number one reason for product returns.

By addressing common questions and potential concerns upfront, customers are less likely to experience “buyer’s remorse” if they know exactly what to expect from their purchase. Regularly updated information is particularly crucial for products with frequent changes, such as tech gadgets or seasonal items. 

When customers receive a product that matches their expectations set by the provided information, they are more likely to keep the item and be satisfied with their purchase. Including user reviews and ratings alongside product information allows potential buyers to learn from others’ experiences, making them less likely to order items that may not meet their specific requirements. In the long run, accurate and thorough product information not only lowers return rates but also enhances customer satisfaction and loyalty.

2. Offer hybrid experiences, like in-person drop-off points or refurbishment centers

Online shoppers are more than three times more likely to return items than in-store shoppers, often because they cannot evaluate products as thoroughly as they would in person. By integrating physical touchpoints like drop-off locations, retailers can simplify the return process for customers while reducing the need for additional packaging and shipping resources. These local drop-off points also enable retailers to consolidate returns, reducing the carbon footprint of transporting individual items back to centralized warehouses.

Refurbishment centers can also amplify these benefits by giving returned items a second life. Instead of automatically discarding products, retailers can assess, repair, and prepare them for resale or donation, thus minimizing waste. These centers also allow for faster processing of returns, enabling retailers to resell items sooner, often at a reduced cost that appeals to price-conscious shoppers. 

Combining online convenience with in-person solutions creates a more sustainable approach to managing returns, cutting down on waste and emissions while fostering a positive customer experience. Hybrid models ultimately provide a win-win solution, addressing both customer expectations and environmental concerns.

3. Partner with sustainable reverse logistics organizations

Don’t want to try tackling sustainable reverse logistics on your own? You’re not alone.

There are many organizations, Happy Returns for example, that specialize in reducing waste by implementing efficient systems for refurbishing, recycling, or reselling items, ensuring that fewer products end up in landfills. They often use advanced technologies like AI and machine learning to analyze return patterns, streamline sorting processes, and identify the most sustainable outcomes for returned goods. By collaborating with such partners, retailers can reduce the carbon footprint associated with reverse logistics, as these organizations often consolidate shipments and utilize eco-friendly transportation methods, without having to develop their own methods and processes from scratch.

Sustainable reverse logistics organizations can also help retailers implement circular economy practices, where products and materials are reused or recycled rather than discarded. For example, they can facilitate the donation of unsellable but functional items to charities or the repurposing of materials from damaged products, not only minimizing waste but also enhancing a retailer’s reputation by demonstrating a commitment to sustainability. 

These partnerships also allow businesses to focus on their core operations while ensuring that returns are managed responsibly, meeting both environmental goals and consumer expectations for ethical practices. In the long term, this approach can reduce costs associated with waste management and improve customer loyalty by aligning with the growing demand for environmentally conscious business practices.

4. Ensure product information is localized and translated to reduce the risk of customer confusion

When product descriptions, specifications, and usage instructions are translated into the local language, shoppers are more likely to understand the product’s features and limitations, reducing misunderstandings or incorrect expectations. Providing sizing charts in local standards or using familiar terms for materials or functionality helps shoppers make better-informed decisions, decreasing the chances of disappointment when the product arrives.

Adapting measurements, currencies, and terminology to match the norms and preferences of the target market builds trust and confidence with customers, leading to fewer impulsive or uncertain purchases that are more likely to be returned. Clear, culturally appropriate communication reassures shoppers that the product will meet their expectations and is suited to their environment or lifestyle. Electronics with instructions tailored to regional power standards or apparel with locally relevant styling tips are less likely to result in confusion or dissatisfaction. 

By removing barriers to understanding and aligning product details with customer expectations, retailers can create a more seamless shopping experience, reducing the need for returns and fostering greater customer satisfaction and loyalty.

Mitigating Returns to Help Your Planet & Profits

The environmental impact of returns is undeniable, from the emissions generated by transportation to the waste created by excess packaging and discarded goods. While consumer expectations for easy returns pose a challenge, businesses have the tools to mitigate their environmental footprint.

By offering accurate sizing information, embracing hybrid shopping experiences, partnering with sustainable logistics organizations, and ensuring precise product information, retailers can significantly reduce the volume and impact of returns.

Every return avoided is a step toward a more sustainable retail industry. By prioritizing these strategies, businesses can balance customer satisfaction with environmental stewardship — proving that convenience and sustainability can coexist.

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Discover how to avoid the pitfalls of greenwashing and build genuinely sustainable strategies that foster trust, align with regulations, and drive long-term business growth.

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Akeneo

What Is BOPIS and Why Is It Important?

Customer Experience

What Is BOPIS and Why Is It Important?

Discover the meaning of BOPIS and how to execute it effectively. By integrating hybrid shopping into your business, you can bring together the best of both digital convenience and in-store experiences, creating a seamless journey for your customers while ultimately driving sales.

Two of the best things in the world combined are like a shortcut to happiness. Think sunshine and a much-needed vacation at the beach. Or a nice glass of cold milk with warm, gooey chocolate chip cookies! And, of course, a fast, efficient digital site paired with a well-structured physical store.

Customers love the convenience of online shopping — placing orders with a click and having them shipped anywhere they choose. But, even with the implementation of AR/VR, digital shopping can’t always replicate the tactile experience of physically interacting with a product in-store. This is why 75% of customers cite inconsistent sizing as the main reason for returning items — a problem that could be avoided through in-person shopping. However, shopping in physical stores comes with its own set of challenges, lacking the ease of access and convenience offered by its digital counterpart. 

Despite their shortcomings, these two shopping methods are at their best when combined — eliminating their individual problems when together. This is where BOPIS shines.

What is BOPIS? 

The quirky acronym stands for ‘Buy Online, Pickup In-Store’, a shopping model where customers can purchase products from eCommerce sites and collect them from a store location once their order is ready. It strays away from the fuss you’d get with traditional online shopping, such as shipping costs, delayed deliveries, unmet expectations of bought goods, and other upsetting issues. 

It’s a well-known fact that retailers and brands need to connect with their customers. That’s why BOPIS stands out as an ideal shopping model for building and fostering these relationships. It bridges the gap between digital and in-store retail, seamlessly filling the in-between with hybrid shopping which is a convenient option for shoppers.

How does BOPIS work?

Flexibility and accessibility — two words that every customer wants to hear. They derive from the click-and-collect model, enabling customers to fulfill their orders on their terms and ensuring their purchases and returns are finalized efficiently, ultimately enhancing the customer experience.

But how does it all work? Well, it’s quite simple really.

BOPIS is carried out in three key stages. Let’s go through them:

1. The customer buys a product online through a website, mobile app, or a social media shop: After adding their shopping to the cart, they can select an in-store pickup location on the checkout page (and might even have the option to select a time). With real-time local inventory updates, businesses can display if a product is in stock or out of stock, providing customers with a product’s availability status.

2. The business fulfills the order: Next, is the in-between stage of ordering and receiving the product — the processing of an order. There are two order fulfillment scenarios when ordering through BOPIS:

    • Pickup In-Store: After purchasing a product, the order can be shown to be in stock in a store. If it is, a store associate will be notified through an app to locate, pick, and pack an order from the in-store inventory for a customer. As soon as it’s prepared, the shopper notifies the customer that it’s ready to be picked up, via an email, or a text message. 
    • Ship to Store: After purchasing a product, the order can be shown to be out-of-stock at a store. If it is, a store associate can initiate a store transfer or order the same product from another store, warehouse facility, or distribution center. Once it arrives, the consumer is notified that their order is ready to be taken.

3. The customer picks up the order: Now the customer can collect their order! They’re informed of where to go which, like I mentioned before, can be from a store, or from a designated pick-up location. Some organizations even offer curbside pickup which allows the order to be given to the customer whilst they’re in a car — shown to be a convenient option for those who drive. 

To ensure BOPIS is implemented effectively, customers should receive a clear explanation of how it works, aligned with the specific requirements it might have with the company they’re shopping from. A company that does this well is Macy’s as they provide and clarify information on their customer service page on how their consumers should carry out BOPIS and curbside pickup when using their website and physical store.

 

3 Trends for the 2024 Holiday Shopping Season

Why is BOPIS important?

Okay, so now you know what BOPIS is, but you’re probably wondering what it has me so fired up about. Well, there’s more to the word than just how funny it sounds.

BOPIS consistently proves to be highly beneficial for retailers and consumers. Online shopping often requires customers to cover shipping fees for their orders. However, this can be costly for businesses, as they must also handle the expense of moving goods from a distribution center. By eliminating the need for delivery, BOPIS not only helps reduce these costs but also spares customers from paying shipping fees. This is why 48% of US consumers prefer the hybrid shopping model!

It’s clear that eCommerce sites have grown popular for their convenience, often discouraging people from stepping into ‘brick-and-mortar’ locations. BOPIS requires customers to visit physical stores to collect their orders, enabling them to browse around and make additional purchases. As a result, it boosts in-store sales and strengthens customer retention — such as 47% of online shoppers stating that they buy more products while picking up their orders.

With these advantages and more, BOPIS is clearly a win-win solution—allowing businesses to keep their customers satisfied, boost revenue, and minimize unnecessary costs!

How to Implement BOPIS

So how do you exactly make sure you ‘win’ with this hybrid shopping model? Here are some ways to implement a good BOPIS strategy:

1. Utilize Product Information Management (PIM) technology

When it comes to hybrid shopping journeys like BOPIS, having access to reliable, up-to-date product data is paramount for your business to succeed. PIM solutions centralize product data, serving as a single source of truth, and allow brands to manage and distribute product data consistently across all channels, whether that be on a website, a mobile application, a social media store, or in a physical location. With it, brands and retailers can efficiently manage and optimize their omnichannel offerings, ensuring customers receive accurate product information across both online and offline channels.

2. Facilitate real-time communication of crucial data between teams

BOPIS relies on real-time visibility, making a robust inventory management system essential. Implementing such a system ensures products are available for pickup, avoiding false expectations for customers and preventing businesses from customer alienation.

3. Designate pickup areas

To facilitate a swift order collection, you must establish a clear and convenient pickup area within your store or designated location. It should be close enough to the inventory to allow products to be quickly retrieved and handed off to customers by employees.

4. Provide extensive support throughout the entire customer journey

This goes beyond a simple social media campaign to advertise the business (though that’s always a plus). It’s about guiding the customer through every step of their journey, from the moment the order is placed to when it’s received—keeping them informed at every stage. Providing clear and necessary updates leaves out gaps for mistakes, ensuring a smooth experience!

The Future of Hybrid Shopping

BOPIS thrives in a time where it fits perfectly more than ever. In the post-COVID-19 era, consumer shopping behaviors have evolved to embrace both physical and online experiences. The growing preference for hybrid shopping allows customers to conveniently place orders wherever they are and carry out in-store interactions when collecting them. 

With BOPIS, your business can showcase its flexibility by seamlessly blending online and offline channels, giving customers access to the best of both worlds. Ultimately, it enhances customer satisfaction and loyalty by consistently meeting your consumers where they are, providing convenience, efficiency, and a shopping experience aligned with their preferences.

2024 Holiday Shopping Season Guide

From omnichannel optimization to sustainability-driven purchases, discover how to maximize holiday sales and minimize the dreaded post-holiday return season.

Venus Kamara, Content Marketing Intern

Akeneo