Study: Return policies key to online purchases, customer loyalty
Return policies can play a big role in whether consumers make online purchases — and with which retailer.
According to a survey of U.S. consumers who shop online and at least occasionally return purchases, "free returns" rank as the second most important factor when deciding to buy online, behind only “free shipping.” The study was conducted by Narvar and Reshop.
Also, 42% of all respondents placed free returns in their top three priorities and 51% said they’re more likely to shop again with a retailer that doesn’t charge extra fees for shipping or returns. More than eight-in-10 (82%) respondents said the availability of free returns makes them much more likely (44%) or more likely (38%) to make an online purchase. Fourteen percent said it makes no difference and 1% said they don’t pay any attention.
In addition, 47% of respondents said they avoid shopping with brands that charge for returns and 36% said they will only shop with brands that charge for returns if they are sure they will keep the item.
Forty-five percent of respondents said having “return drop-off options” would increase their likelihood of buying from the same retailer again, while 44% cited refund options (such as original form of payment, gift card, instant refund) and 32% mentioned an extended return window.
[READ MORE: Data: Nearly 40% of online shoppers make monthly returns]
When it comes to making returns, drop off at local carrier ranked as consumers' top preference (66% have used, 56% prefer), followed by drop off at convenient location such as a third-party store (63% have used, 54% prefer). Other options include in-store (64% have used, 49% prefer) and scheduled pick-up (40% have used, 42% prefer).
Return experiences that would prevent repeat purchases
- Having to pay return shipping and processing fees (56%)
- Waiting weeks for a refund (45%)
- Refunds only given in store credit/gift card (45%)
- Limited, inconvenient drop-off methods (44%)
- Very short return window (41%)
- Lack of packaging materials to send an order back (34%)
- Lack of printer access to print label (31%)
Other findings
- 83% of respondents said it’s important to them to have real-time updates on their refund status.
- 82% of respondents said that having access to real-time tracking of their return status was very important (52%) and somewhat important (30%) to them.
- Two-thirds of respondents said the option to receive an instant refund (getting money back before shipping back a return) influenced their decision to purchase from a brand .
- Close to half (49%) of respondents would be more likely to shop with a retailer that lets them extend their return window beyond the standard period.
- More than four-in-10 (43%) of respondents would be willing to do extra (pay a fee or become a member) to extend their return window.
Narvar and Reshop conducted a randomized survey of 1,190 shoppers from across the U.S. All of the participants included in the research are between 18-60 years old, shop online at least once per month and return an online purchase at least occasionally.
