News • 20.01.2020

Online return process is key to customer experience

Survey reveals 52 percent of consumers have abandoned an online purchase out of fear of a difficult return process

A man carrying a lot of packages
Source: PantherMedia / Brock Jones

A recent survey by leading monthly installment payment solution Splitit highlights the growing importance of consumer returns within the ecommerce industry. The Splitit survey revealed that a good return policy is not only key to overall customer experience, but directly affects web conversion and, ultimately, a retailer's bottom line. 

Online return rates are expected to dramatically increase as the holiday season marches on and gifts are returned or exchanged. In 2018, roughly $400 billion worth of returns were made throughout the year in the U.S., with 25 percent of those returns made at Christmas time. American consumers were expected to return over one million packages to e-commerce retailers every day in December 2019. This trend is estimated to peak on January 2nd with roughly 1.9 million returns projected on what UPS has dubbed "National Returns Day."

The Splitit survey revealed that nearly 60 percent of consumers have returned an online purchase, with 38 percent having returned up to 10 percent of all online purchases they have made. Twelve percent of respondents returned a purchase within the past month, 11 percent within the last six months, and 18 percent did so within the last year. Splitit also discovered that 48 percent of respondents have purchased multiple variations of an item with the intention of returning one or more items, the process known as "bracketing." 

Impact on web conversion

More importantly for merchants, the survey demonstrates that a retailer's return policy weighs heavily on web conversion, with returns top of mind for consumers when deciding whether to make a purchase. The survey found that a staggering 52 percent of consumers have abandoned an online purchase out of fear of a difficult return process. This number increases to 67 percent for millennial respondents (ages 25-34), highlighting the heightened importance of a smooth return process for those who grew up accustomed to online shopping. And with 10 percent of consumers dissatisfied in some way with their last return experience, the survey results serve as a warning to retailers that returns are high stakes – with customer experience and overall sales at risk.

"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."

Top qualities consumers look for in a return policy:

  • 20 percent of respondents said a return shipping fee would make them less likely to purchase from a given retailer. 
  • 39 percent of respondents ranked "free shipping" as the overall most important feature of a good return policy. 
  • 30 percent of respondents ranked "no questions asked" as the most important feature of a good return policy.

The survey, conducted in November 2019, was jointly carried out with Google Consumer Surveys based on a representative sample of more than 500 respondents from the United States, aged 18-65+.

Quelle: Splitit

related articles:

popular articles:

Thumbnail-Photo: Perfect Corp. and Warner Bros. partner for interactive AR movie try-on...
13.06.2023   #Tech in Retail #app

Perfect Corp. and Warner Bros. partner for interactive AR movie try-on experience

YouCam Apps launches an exclusive collection of AR movie effects for Warner Bros. The Flash

Perfect Corp., the leading AI & AR beauty and fashion tech solutions provider and developer of the YouCam Suite of Apps, has launched an interactive augmented reality (AR) movie experience for Warner Bros. Pictures’ upcoming film The Flash. ...

Thumbnail-Photo: Scary and clever - marketing for Halloween
20.09.2023   #brick and mortar retail #online marketing

Scary and clever - marketing for Halloween

How do you make the most of 31 October for your business?

Small means, big effect: On Halloween, you can get in touch with your customers in a playful and not too serious way....

Thumbnail-Photo: Automation: Is this the future of shopping?
06.06.2023   #brick and mortar retail #food retail

Automation: Is this the future of shopping?

On the shortcomings and advantages of autonomous store concepts

Grocery shopping and self-service – the Blockstore Group combines the necessary with the pleasant and helps retailers implement autonomous and automated store concepts. In particular, the Finnish start-up helps to install a suitable ...

Thumbnail-Photo: Social Commerce: Community sells?
04.10.2023   #online trading #sustainability

Social Commerce: Community sells?

Why the community approach is replacing fast delivery among customer demands and what that means for you.

For a long time it was said that fast or even "same day delivery is the key". For Fabian Mischler, this is no longer the only key to satisfied customers. In an interview, the CEO of the social commerce platform ooblee told us why community ...

Thumbnail-Photo: LVMH and Epic Games announce strategic partnership...
22.06.2023   #e-commerce #digitization

LVMH and Epic Games announce strategic partnership

Companies aim to transform Maisons’ creative pipeline and customer experiences

At the Viva Technology show, LVMH announced a partnership with Epic Games, creator of Fortnite and Unreal Engine, to transform the Group’s creative pipeline and bring customers new types of immersive products discovery experiences. This ...

Thumbnail-Photo: Beyond the Green Buzz: How to become truly sustainable in retail...
09.08.2023   #retail #sustainability

Beyond the Green Buzz: How to become truly sustainable in retail

Branding, sourcing, and ethics – Insider insights for retailers

Sustainability is today's corporate catchphrase. Yet, discerning genuine efforts from mere claims can be challenging. But how can consumers be sure that sellers genuinely walk the talk? Enter El Green Mall ...

Thumbnail-Photo: New GS1 Germany requirements in force for better data quality...
12.06.2023   #online trading #digitization

New GS1 Germany requirements in force for better data quality

Brands facing new challenges to providing product content to German retailers through the GDSN

GS1 Germany released two new requirements impacting brands selling food/beverage (and food-adjacent) products to the German market aiming at increasing product data quality passing through the Global Data Synchronization Network (GDSN). ...

Thumbnail-Photo: Be different – be successful
24.08.2023   #brick and mortar retail #customer satisfaction

Be different – be successful

10 examples of how retailers can differentiate themselves in the market with unique shopping experiences

The grey blob – no one wants to be part of it. Small and medium-sized retailers in particular need unique selling propositions to be able to assert themselves against the competition from companies worth billions. But what can ...

Thumbnail-Photo: Grove Co. announces new retail partnerships with Kroger, Costco and...
08.06.2023   #retail #sustainability

Grove Co. announces new retail partnerships with Kroger, Costco and Hannaford

Leading sustainable consumer products company increases in-store presence at 450 additional brick & mortar locations

Grove Collaborative Holdings, Inc. (NYSE: GROV) (“Grove” or “the Company”), a leading sustainable consumer products company and Certified B Corp, today announced another significant retail expansion for Grove Co., its ...

Thumbnail-Photo: 5 tips for successful TikTok marketing for your online store...
06.09.2023   #online trading #marketing

5 tips for successful TikTok marketing for your online store

How to gain loyal fans for your brand

TikTok is the Wild West of social media: Everything is moving at lightning speed and you only have a blink of an eye to captivate users. If you spend a lot of time on TikTok, you'll know right away...