According to a recent study conducted by ESW, a cross-border shopping specialist based in Ireland, more than half of Generation Z and Millennial shoppers have no plans to return unwanted international e-commerce purchases. The study, which surveyed over 14,000 consumers across 14 countries, found that 56% of younger shoppers admitted to buying items from retailers outside their own countries and choosing not to return them, despite not wanting them.
The study identified several factors contributing to this trend. The inconvenience and expense of the return process were cited by 35% and 34% of respondents, respectively. Additionally, 20% of participants expressed concerns about the environmental impact of returns. Other reasons included the low cost of the unwanted items (28%), unclear returns policies (26%), and a lack of local collection points (21%). China, India, and the UAE were highlighted as the markets where consumers were most likely to avoid returns, with 67%, 64%, and 64% of respondents, respectively, choosing not to return unwanted items.
Interestingly, the study also revealed a gender disparity, with women being 13% less likely than men to return unwanted items. This is particularly significant considering that China and India are among the largest markets in the world, and women are typically more active fashion shoppers.
Although some businesses may initially perceive customers not returning items as a positive outcome, in the long run, it can have negative implications. Shoppers are less likely to return to businesses that do not offer seamless and cost-effective returns options. Patrick Bousquet-Chavanne, ESW’s CEO for the Americas, stressed the importance of addressing the issues associated with returns for Gen Z and Millennial shoppers. He emphasized that “eliminating the friction Gen Z and Millennials associate with returns will be a big win for all direct-to-consumer brands, as these young adults will continue to drive the growth in e-commerce in all markets.”
ESW’s research also revealed that over 30% of Gen Z and 37% of Millennial shoppers have made 11 or more cross-border purchases in the past year alone. As the e-commerce market continues to expand, it is crucial for businesses to prioritize efficient and customer-friendly returns processes to retain the loyalty of these influential consumer groups.
For more information on cross-border shopping and its impact on the younger generation, you can visit the following links:
1. Example Link 1
2. Example Link 2
