A recent report based on data from a Route survey found that return experiences are shaping customer loyalty and behaviors when shopping online.
It covers several important stats and figures about ecommerce returns, customer expectations, and more. Returns are no longer an afterthought, and brands that can simplify the experience are better positioned to retain customers and find success.
Returns Impact Where Customers Shop
Route recently released a new report that reveals how returns play a major role in customer confidence and have an impact on where they shop in the first place. The report is based on a survey of 1,000 U.S. shoppers who have made an online return within the last year.
One of the most interesting facts in the report is that 93% of consumers check out a retailer’s return policy at least occasionally before buying something online. This echoes previous data that found that ease of returns and refunds was one of the most important elements in online shopping for consumers.
There’s a slight generational difference when it comes to reviewing return policies. Gen Z is the most vigilant, as 34% in this generation always review return policies. Millennials are next at 27%, followed by baby boomers at 25%, and Gen X at 20%.
They’re Also a Factor in Customer Loyalty
Even after a customer decides to make a purchase, a company’s return policy plays an important part in retaining them. In fact, the report found that 97% of consumers agree that a positive return experience makes them more likely to shop with the retailer again. This includes 72% who strongly agree, showing the power of a good return experience for customer retention.
But when a return is denied, it generally leads to negative outcomes for a brand. According to the report, here’s a breakdown of how shoppers respond when they’re told an item isn’t eligible for a return or exchange:
- 43% simply keep the item, disengage from the brand, and avoid buying from them in the future.
- 39% contact customer support.
- 23% sell the item on their own, often through a resale marketplace.
- 21% dispute the charge with their credit card company or bank.
- 17% write a poor review.
As a result, it’s often in a company’s best interest to ensure its return policies are clear, straightforward, and easy to understand. If not, you may end up with poor reviews, an overwhelmed customer service team, or less repeat business than you’d like.
However, if your return policies are too lenient or easy to exploit, that can lead to other issues. Specifically, returns have a major financial impact on ecommerce brands, so make sure your return policy is clear and fair, without being too easy for bad actors to take advantage of.
Return Challenges That May Drive Shoppers Away
While some returns are quick and easy, consumers may often experience challenges when attempting to return products after buying them online. Most often, these stressors center around either money or time.
The top source of stress when it comes to returns is having to wait a long time for a refund (43% of respondents), followed closely by paying restocking fees or return shipping (34%).
Operational challenges are also common, as 33% of consumers feel stressed about finding packaging or printing labels, and 28% aren’t fond of having to reach out to support to initiate the return process.
There are also generational differences here, as older generations are more likely to get stressed by things like printing labels and finding packaging, while younger consumers are more worried about things like refund timing and the financial impact of returns.
When the survey asked why return challenges feel stressful, the consumers responded as follows:
- 28% don’t want to be stuck with something they won’t use.
- 27% need a refund or exchange quickly.
- 24% can’t afford to waste money.
- 20% don’t have time to waste on a complex return process.
What Consumers Expect From the Return Experience
The report also details customer expectations when it comes to the return experience. Specifically, the survey asked which return benefits would make them feel most confident purchasing from an online retailer:
- 57% said free return shipping.
- 46% said an instant refund when a return is started.
- 34% said multiple return options, such as mail, box-free, and in-store.
- 30% said no printing or package required.
- 26% said a longer return window of 60+ days.
- 26% said real-time updates about their return or exchange.
As a result, customers generally expect a return experience that’s free, fast, and flexible. For all generations, free return shipping and instant refunds are the top two priorities, but the preferences change slightly after that. For example, older generations tend to prioritize simplicity, while younger shoppers focus on flexibility.
Brands Can’t Treat Returns Like an Afterthought
These findings highlight the massive importance of a good return policy and show that brands can’t ignore returns and treat them like an afterthought. Returns are a major part of how many consumers decide where to buy from, and companies need to ensure their policies are in line with customer expectations.
If you have a policy that’s overly restrictive or confusing, it may drive people away, or stop them from continuing to be a customer after their initial purchase.
