A new study has found 61% of shoppers across Europe acknowledge that a lenient returns policy influences their buying decisions.
Blue Yonder’s first European Consumer Retail Returns Survey examined how consumers across the continent are experiencing and reacting to increasingly stringent returns policies. The majority (52%) of respondents stated that tighter returns policies deterred them from making purchases.
When asked about the tighter returns policies, 57% of survey respondents felt restrictions on returns are either inconvenient or unfair, with only 27% saying they were understandable.
“Retailers have long acknowledged that they needed to tackle returns to reduce costs,” said Tim Robinson, corporate vice president, Returns, Blue Yonder.
“With tighter returns policies starting to deter consumers from making purchases, the challenge now for retailers is to strike a balance between protecting their margins and maintaining a customer-friendly returns experience.”
Over half the survey group (60%) reported making a return only once or twice a year or less. Other responses included 13% who make a return every few months, 4% once a month, and 2% every couple of weeks or more. One fifth (20%) said they have never returned an item.
In addition, 51% of respondents cite the most common reason for returns is incorrect sizing. Other reasons cited by respondents include item damage at 42%, followed by receiving the wrong product (27%) and changing one’s mind or disliking the item (19%).
The cost of returns: who pays?
The returns process from the retailer’s side is costly, and many are now telling consumers to keep unwanted items to avoid the expensive and labor-intensive processes associated with reverse logistics. Almost half of consumers surveyed (40%) have been given this direction by a retailer. The top three categories this occurred in according to respondents were clothing & accessories (34%), electronics (21%) and home & kitchen (18%).
Third-party returns
With convenience and cost a greater consideration than ever, consumers are showing clear interest in third-party returns services (such as a drop-off location, mailing service, etc.). When asked what factors would make them use a third-party returns service, 40% of consumers said lower or no shipping fees, 35% cited the convenience of drop-off locations, 31% said faster refund processing, 31% cited assurance of hassle-free returns, and 29% 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.”
Read more from Blue Yonder in a partner perspective in the DeliveryX Returns 2024 report.
Inside the report we use the results of our ConsumerX research to present how charging for returns has impacted customer loyalty.
With the balance of green initiatives, cost saving strategies and winning customer loyalty, retailers are spinning a lot of plates – and returns are something else to be managed. This report looks to showcase how the top retailers aren’t leaving returns out of their operational equations, and by handling returns with care are being seen as reliable and sustainable.
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