Survey: Return policies have strong impact on purchase decisions
The adoption of stricter return policies by some retailers is turning off shoppers — particularly younger ones.
Of consumers who are aware of stricter returns policies, 69% state that the policies are deterring them from making purchases, which is up significantly from 59% in 2023, according to digital supply chain firm Blue Yonder’s 2024 Consumer Retail Returns Survey. Gen Z and millennial purchasing decisions were most impacted, with three-in-four younger consumers (Gen Z, 76%; millennials, 74%) stating that tighter returns policies held them back from making purchases.
When asked about the tighter returns policies, 51% of survey respondents felt restrictions on returns are either inconvenient or unfair, with 37% saying they were fair and understandable.
In other findings, 91% of those surveyed acknowledged that a lenient returns policy influences their buying decisions.
“We're seeing that tighter returns policies are starting to deter consumers from making purchases, particularly among the Gen Z and millennial generations," said Tim Robinson, corporate VP of returns at Blue Yonder. "Retailers have long acknowledged that they needed to tackle returns to reduce costs – the challenge now is to strike a balance between protecting their margins and maintaining a customer-friendly returns experience."
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Returns Frequency and Causes
Over half (56%) of those surveyed reported making a return only once or twice a year or less. Other responses included 22% making a return every few months, 6% once a month and 6% every couple of weeks or more. Only 10% said they have never returned an item. Of those respondents who hadn’t returned an item, Gen Z was the highest with 39% followed by Gen X at 27%, millennials at 22% and Baby Boomers at 13%.
Consistent with Blue Yonder’s survey from last year, 75% of respondents cite the most common reason for returns is incorrect sizing. Other reasons cited by respondents include item damage (68%), followed by changing one's mind or disliking the item (49%) and receiving the wrong product (47%).
When asked what factors would make them use a third-party returns service, more than six-in-10 (62%) consumers said lower or no shipping fees. Sixty percent cited the convenience of drop-off locations, 47% said faster refund processing, 39% cited assurance of hassle-free returns and 38% said reliable tracking and confirmation of returned items.
“Where the goal is to mitigate the cost of returns, retailers should be looking for ways to do more than tightening their policies to reduce returns rates,” added Robinson. “Gathering data and automating intelligent decision-making for every return will bring costs down through more efficient transportation and reduced waste without impacting the customer experience. That data is also incredibly valuable to reduce returns rates, helping retailers to see the patterns of which items are returned, by which customer segments, and why; and to act accordingly.”
The Blue Yonder Consumer Retail Returns Survey was fielded by a third-party provider July 12, 2024 and included more than 1,000 U.S. consumers.
