E-commerce is changing the way consumers think about and buy products, with returns becoming more prevalent than ever before.
Returns on the Rise
Merchandise returns accounted for $743 billion in annual lost sales for U.S. retailers in 2023.[4]
These behaviors are the new normal, and online retailers have the difficult task of managing the cost and complexity of returns to make them work for both sides.
Transform Returns Into an Opportunity
A clear and friendly returns policy:
How to Make Returns Less Painful
The top reasons consumers say a return was inconvenient[6]—and what online retailers can do to make the experience better.
Too much time and effort
Strategy: Make returns simple
Give customers multiple ways to do a return, so they can pick what works for them. Streamlined self-service options, convenient drop-off locations, and package-less returns are good examples of customer-friendly choices.
Lack of communication
Strategy: Provide real-time updates
Allow customers to easily track their returns via email and SMS updates. This can also help reduce calls to customer service.
Waiting for a refund
Strategy: Optimize internal systems
Provide the customer with a quicker resolution, whether by offering a conditional credit or by making it easier for them to do an online exchange.
Paying for return shipping
Strategy: Find a way to offer a free option
Free returns up the customer experience and can even drive sales. Is there a way to reduce your outgoing shipping costs to offset the cost of providing free shipping?
No return label
Strategy: Explore print-on-demand options
Increasingly, consumers don’t have printers at home. Labels that can be printed at a shipping location using a QR Code®[7] can help with ease and convenience.
Key Takeaway
Returns have become a critical touchpoint in the customer journey. Consumers want the process to be hassle free, and feedback shows they may not shop with you again if it’s not.
For e-commerce retailers looking to connect with customers and cultivate trust, being aware of the return activities that consumers find most exasperating and working to remove any friction can go a long way toward securing brand loyalty.
Footnotes
keyboard_arrow_down- [1]“State of Returns: The End of One-Size-Fits-All Returns,” Narvar Inc., July 2022. arrow_right_alt
- [2]Ibid. arrow_right_alt
- [3]“Order Experience Index,” Pitney Bowes BOXpoll, 2022. arrow_right_alt
- [4]“Consumer Returns in the Retail Industry 2023,” National Retail Federation, Dec. 22, 2023. arrow_right_alt
- [5]“2023 Returns Insights and 2024 Forecast,” goTRG. arrow_right_alt
- [6]“Returns: a convenience wasteland?” Pitney Bowes BOXpoll, March 20, 2021. arrow_right_alt
- [7]QR Code is a registered trademark of DENSO WAVE INCORPORATED. arrow_right_alt