Revenue Leakage In Retail

In an age when data breaches and cyber theft are prolific the temptation for retailers to erect barriers between themselves and customers is understandable.

Revenue leakage in retail. However forward thinking merchants can turn this challenge into an opportunity ahead of the mandatory 14 march 2021 enforcement deadline in the uk and 31 december 2020 in most of europe. This regulation has the potential to cause further revenue leakage in the shopping journey due to lost conversions from additional friction and step ups during the online checkout process. So to combat this retailers must consider strategies to avoid revenue leakage while meeting consumers expectations. A 2018 report download required by the national retail federation found that retailers estimate an average of 11 of their annual sales will be returned with an average 8 of returns determined.

The majority of large retailers refer to it as acceptable cost of trading. Revenue is the movement of assets into a company. Revenue leakage defined revenue leakage is the unnoticed or unintended loss of revenue from your company. While leaks can come from both the revenue and the expenditure side most commonly revenue leakage refers simply to not billing or under billing your customer for products and services provided.

Remove fear from your retail equation most sales lost through unnecessary friction in the shopper journey are within the retailer s control and there are steps they can take to optimise their sales funnel.