RSS feed Get our RSS feed

News by Topic

BizReport : Ecommerce : January 06, 2020

Study: Bad return experience knocks off loyalty

A bad return experience might mean a customer simply doesn't return. That is a key takeaway from new ShipStation data. According to their new report nearly all (95%) consumer they polled said a bad returns experience would 'make them less likely' to return to a store.

by Kristina Knight

More than half of 2019 holiday shoppers (86%) say they'll make returns based on holiday gifting. What makes the ShipStation report even more important is this: about three-quarters (77%) of shoppers prefer too make returns in-store as opposed to return-shipping.

Other studies have found that consumers are more likely to make impulse buys when browsing store aisles and that while waiting in returns lines, consumers will also browse nearby areas. In fact, the ShipStation report finds nearly half (46%) of shoppers have ended up exchanging a returns item for a more expensive gift while in the stores.

As to why people are returning items, about half (55%) of those polled by ShipStation say they simply don't like the gift, 27% report returning a defective item and 22% say they return duplicated items.

According to data out from Splitit about half of shoppers have abandoned an online purchase because they feared a lengthy or difficult return

"Whether it's a fear of buyer's remorse or uncertainty about fit, our research shows that, today, returns are a top consideration for consumers even before their purchase is completed," said Brad Paterson, CEO of Splitit. "More than ever, we are seeing the importance of an easy return process to give consumers peace of mind and increase revenue, as returns are determining purchases long before a customer reaches checkout."

When it comes to the returns experience, consumers know what they want and what they want is fast and easy. Most (67%) say they'll make returns within a week of the holiday season ending, but they want at least a month to make and finish returns. Other interesting findings from the report include:

▪ 71% want a cash or credit refund for a returned item and 80% want at least store credit even when returning without a gift receipt
▪ Half say they expect a full refund even without a gift receipt and 59% report the ability to get a full refund is the 'most important returns factor'
▪ 78% want return shipping labels provided and for the shipping amount to simply be deducted from their refund
▪ 95% say a bad returns experience would keep them from buying from a store in the future

Making the returns process even more important for merchants is that the returns process can increase loyalty and drive customers to return to a store. More than 80% of those polled say they would return to a store again if the original returns process was fast and easy, 67% would increase their loyalty to a store if returns were free and 46% would increase their loyalty if stores provided returns labels in shipping boxes.

More ShipStation data can be found here.

Tags: customer returns, ecommerce, retail trends, return experience, ShipStation, Splitit

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.