Study: Multiple return options, faster refunds critical to online holiday sales
Flexible return policies around the holidays could be critical for retailers looking to grow sales and build loyalty with consumers.
Eighty-two percent of respondents said that having multiple return options makes them more likely to make an online purchase during the holidays, according to a new survey from post-purchase platform Navar and refund processor Reshop. This is compared to just 44% during non-holiday periods.
With consumers used to making returns, giving online shoppers more choice when ordering products makes it more likely that they will spend. More than three-quarters (78%) of consumers said it is valuable to have the ability to choose between receiving a refund, store credit, or an exchange when returning a product this holiday season.
Sixty percent of respondents said that having “return drop-off options” would increase their likelihood of buying from the same retailer again during the holiday season. This is an increase from 45% during non-holiday periods.
Speed is also important in a return policy, with 75% of respondents saying faster refunds make them more likely to shop again with a retailer. About half (49.5%) say they’d even be willing to pay a nominal fee to receive an instant refund.
In other findings, 83% of shoppers say they check a retailer’s return policy when doing their holiday shopping, with more than half (51%) saying they “always” do.
Many shoppers even admit that they are buying with the intention of returning. Nearly three-quarters (72%) of shoppers always (33%) or sometimes (39%) buy items online knowing they will make a return. Nearly four-in-10 (39%) consumers said they returned an online purchase at least once a month this year.
[READ MORE: Study: One-in-three online orders delivered late; shoppers want compensation]
To no surprise, customers like free shipping. Fifty-one percent of consumers said they are more likely to shop again with a retailer that doesn’t charge extra fees for shipping or returns. During the holiday season, this jumps to 66%. "Free returns" ranked as the second most important factor when deciding to buy online, behind only “free shipping”. Forty-two percent of all respondents placed it in their top three priorities.
“By providing various return options and flexible refund methods, retailers can turn a potential pain point into an opportunity for stronger customer engagement,” said Navar and Reshop. “This approach not only boosts loyalty and trust but also encourages repeat purchases — key differentiators in the competitive holiday market.”
The survey featured 1,190 shoppers from across the United States who shop online at least once a month and return an online purchase “at least occasionally.”
