Why Retailers Need to Pay Attention to Their Return Policies

As the holiday season quickly approaches, the surge in online shopping is expected to continue. However, a recent report has shed light on a concerning issue that retailers must address, as some returns policies are resulting in shoppers abandoning their purchases and seeking alternatives.

According to a joint study conducted by post-purchase specialist Shipup and retail returns solutions company ZigZag Global, a staggering 93% of shoppers have encountered delivery delays, and 35% experience these delays regularly. This growing frustration with delayed deliveries is causing 53% of respondents to reconsider purchasing from a retailer if they are unhappy with the returns policy. Comparatively, a year ago, only 76% of shoppers checked the returns policy, but this number has now risen to 84%, indicating the increasing importance retailers must place on customer concerns.

Despite the anticipated growth in online shopping during the Christmas season, the report suggests that the numbers may not be as high as expected. The cost-of-living crisis is a significant factor for 35% of shoppers, making them more likely to return items. Furthermore, the preference for free returns remains strong among 82% of shoppers. However, interestingly, 61% of shoppers would still make a purchase even if the retailer charged for returns, showcasing the complexity of consumer behavior.

Contrary to popular belief, delivery speed does not solely determine shopper satisfaction. While 43% of shoppers prioritize quick delivery, a larger majority of 57% value an accurate delivery estimate even more. Effective communication also plays a crucial role in meeting customer expectations. Currently, only 25% of shoppers receive branded communications from retailers regarding their deliveries, with 23% hearing exclusively from the carriers themselves. This lack of communication can be perplexing, especially when customers have multiple deliveries from various couriers. A negative delivery experience can severely damage a retailer’s reputation, as 38% of shoppers stated they would not return to a retailer after such an experience, while 37% remained unsure.

Nevertheless, there is potential for retailers to redeem themselves. Shoppers are willing to give retailers another chance if they receive an apology and a discount (54%), or proactive customer service (43%). Additionally, tracking is crucial, with 80% of shoppers valuing proactive tracking alerts. Despite this, the report reveals that the updates provided by carriers often leave shoppers unsatisfied and confused, highlighting the need for improvements in this area.

The report also sheds light on shoppers’ preferences when it comes to returning items bought online. The most popular methods include returning to a post office (58%), collecting from home (48%), and returning to a convenience store (40%). However, there is a growing interest in returning items to the store (39%) and using locker returns (24%). Shoppers seek choice and flexibility when it comes to returns, emphasizing the importance of providing various options.

According to UK shoppers, a positive return experience should be free of charge (82%), offer a fast refund (72%), provide multiple return options (46%), and not require a printer (42%). Retailers must pay attention to these preferences to ensure customer satisfaction and foster loyalty. With the holiday season rapidly approaching, it is crucial for retailers to address these concerns and provide a seamless shopping experience from start to finish.

Useful Links:
1. Retail Dive – Why Retailers Need to Pay Attention to Their Return Policies
2. ZigZag Global – Returns Insights

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