Dive Brief:
- The vast majority of consumers — 93% — review a retailer’s return policy at least occasionally before making a purchase online, according to a survey of 1,000 U.S. shoppers released earlier this month by Route.
- Four out of five shoppers say that easy return options can affect whether they buy from a new brand. Nearly all — 97% — respondents say that a positive return experience makes them more likely to buy from a retailer in the future.
- Poor returns policies can harm customer relationships. When an item is ineligible for a return or exchange, 43% of shoppers say they will avoid shopping with the brand again, 39% say they will call customer support, and 17% will leave a poor review.
Dive Insight:
Generous returns policies can win over new shoppers — but the opposite can cost customers’ trust and money.
The top returns benefits for building confidence with consumers are free return shipping, instant refunds once a return is initiated, and multiple returns options such as choosing between using the mail or store, according to Route.
Conversely, a long wait for the returns was the top source of return stress, followed by when returns are accompanied by shipping or restocking fees.
“Companies that align their return experience with shopper expectations reinforce trust at a critical moment in the journey, strengthening loyalty while reducing avoidable service costs,” Route said in the report. “Those that fail to adapt risk quiet churn and negative brand impact.”
Restrictive returns policies can come with a cost. More than 2 in 5 consumers say they have avoided making a purchase from a fashion retailer because the returns process seemed too restrictive, costly or unclear, according to a survey of more than 2,100 consumers released earlier this month by Extend and GlobalData.
The survey estimates that returns friction cost the retail fashion $43.4 billion in sales over the past year. The losses were concentrated among Gen Z shoppers, who accounted for $13.1 billion in lost sales, and millennials, who accounted for $18.7 billion.
Other research has found a link between returns policies and brand choice as well. About two-thirds of consumers say that return policies “at least sometimes” impact their purchases, according to a January FedEx survey. The share rises to three-quarters among millennials and shoppers who have returned an item within the past year.
