Aiming to reduce returns and increase profitability in e-commerce

Martine Carlson

Norwegian e-commerce has experienced steady growth in recent years, with total revenue reaching NOK 246 billion in 2024. However, the industry faces significant profitability challenges. Rising operating costs and tight margins are compounded by high return rates, especially in fashion and footwear, where more than 30% of products are returned. In addition, 70% of customers abandon their shopping carts. To counter these value leaks related to shipping, handling, lost sales, and environmental impact, Nudgelab has entered a strategic partnership with Behamics.

The Norwegian company Nudgelab, specialized in applied behavioral psychology, which also has a branch in Stockholm, is becoming the first strategic partner in the Nordics to the Swiss company Behamics, which offers automated, personalized nudging. The solution is designed to address e-commerce’s most costly problems: unnecessary returns and abandoned carts.

How AI-powered nudging works in e-commerce

Behamics has developed an AI platform that uses real-time personalized nudges to optimize the purchasing process. The platform analyzes customer behavior to identify the risk of mispurchases and support customers at critical decision moments. It provides e-commerce businesses with tools to reduce unnecessary returns and improve conversion rates.

It delivers targeted messages that help customers make better purchasing decisions – for example by indicating that “this item runs small” or by highlighting more sustainable delivery options. Results from previous customers show approximately 12% fewer returns and a 10% increase in average order value (AOV).

“We see enormous potential in Norwegian and Nordic e-commerce”

“For a long time, high return rates have been accepted as an unavoidable part of the game. They’re not,” says Martine Carlson, CEO of Nudgelab. “Many returns are driven by simple uncertainty that can be prevented at the moment of purchase. By combining behavioral psychology with personalized nudges, we can close this value gap. We give customers a better experience, improve profitability, and strengthen sustainability in the industry by reducing mispurchases.”

Behamics, originating from the University of St. Gallen in Switzerland, has already delivered strong results internationally and in the European market. The company views the Nordics – known for high digital maturity – as a key strategic region.

“The Nordic market is growing but faces the same challenges as the rest of Europe. Reducing unnecessary returns is both a cost-saving measure and a strategic competitive advantage,” says Thilo Pfrang, founder and CEO of Behamics. “We are focused on scaling through partnerships with behavioral psychology companies. Nudgelab, as a leading player in the Nordics, was a natural choice given their deep understanding of behavioral drivers in this market. Together, we aim to demonstrate how personalized and intelligent nudges can create significant value.”

The partnership means that Nudgelab will offer Behamics’ platform to Nordic e-commerce retailers, with advisors and offices in Oslo and Stockholm. On the client list of brands that have seen measurable impact and increased revenue you’ll find names such as Volvo.

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Martine Carlson

Martine Carlson

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Martine Carlson

Martine Carlson

From SalesForce to SalesChoice

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From SalesForce to SalesChoice