No Easy Returns? No Sale, Say Online Consumers
Online shopping is more popular than ever. A whopping 87% of people now make at least half their purchases with the click of a button, a new study by Narvar found. Nearly half say they shop online every single week.
But all those online orders mean one thing - lots and lots of returns. Last year, shoppers sent back $743 billion worth of stuff they bought online, the National Retail Federation reports. That's more than the entire GDP of Switzerland!
For many consumers, returns are just a regular part of online shopping. Narvar discovered that 40% of online shoppers return something at least once a month. It's like a never-ending cycle of buying, trying, and sending back.
So what do shoppers really want when it comes to returns? Convenience is key. 60% said they'd gladly take store credit or do an exchange instead of a refund if it's quick and easy.
"The returns process is often overlooked, but it holds incredible potential for driving customer loyalty and lifetime value," said Amit Sharma, CEO of Narvar.
Men and women do have some different return preferences though. Most men (62%) just want immediate store credit with no fees. But half of women don't mind waiting a few days for their money back on their credit card, as long as there's no charge.
Returns can make or break where people choose to shop too. A recent ICSC study found that 82% of consumers pick retailers based on their return policies. And almost 8 out of 10 like to make returns in person at physical stores.
As online shopping continues to grow, figuring out seamless returns will be a must for retailers. Places like Amazon are already testing out new ideas, like letting some shoppers keep their items and still get a refund.