As the e-tail world surpasses the $1 trillion annual marker, with experts saying that breaching the $2 trillion annual maker is only just a few years away, consumers are demanding more from the stores they do business with. At the forefront of things that consumers expect is a simple and hassle-free policy for online retail returns. Stores that offer this key amenity are raking in the cash, whereas stores that do not are losing sales and customers daily. Wonder why? We’ll break it down for you in this article.
Smart online retailers have embraced the return policy, realizing that it’s conducive to more sales, improved consumer confidence and loyalty and better long term retention. When you think about it... this makes perfect sense. Consumers have choices when it comes to where they will shop. And they often compare shopping online to the experience locally, where they can see and touch things; and where stores like Target or Best Buy let them make a return without any trouble or red tape. That’s the experience consumers expect when shopping online these days.
Complimentary Returns Improve Profits
One of the reasons why free returns make you more money is due to consumer confidence and loyalty increasing as a direct result. A number of studies have actually been conducted regarding this, and the results have been surprising, indeed. Let’s take a closer look.
In a study that spanned over 48 months and followed two very large online retailers, it was found that free return shipping and no restocking fees dramatically increased sales. Sales increases ranged from $600-$2,400 per consumer in just two years. That amounts to a staggering increase of about 300% or more just from altering the returns policy in favor of the consumer.
Easy Returns Make Consumers Buy More Often
In another related study it was found that consumers were outright loyal to brands that offered easy returns, and that they were more likely to tell others as well as shop there again in the future. When hassle-free returns are offered, studies have found that an amazing 92% of consumers would be more likely to shop at your store again in the future and even recommend it another consumer, like friends or family. Whereas when inconvenient returns are offered, a staggering 82% of consumers are likely to not visit your store again and go somewhere else, telling of what sort of impact a returns policy has on customer habits..
You Are The Cause of Most Returns
While you may not want to hear this, you are actually the reason why most returns are made. How can this be, you may be wondering. This is not the way it really is! Indeed, it is! Here’s how this all breaks down so you can better understand what actually causes returns in the first place.
- 65% of returns are due to retailer error, not consumer fault.
- 23% of online returns are because the consumer received the wrong product.
- 22% of online returns are due to the product being substantially different in appearance than was advertised online.
- 20% of online returns are due to the consumer receiving a damaged or a defective item.
Bad Returns Policies Scare Shoppers Away
What you state in your online product returns policy is crucial. If you think that most people skip it and don’t read it, think again. In a recent study, it found that well over 60% of people will take the time to read your online product returns policy, and are prone to shopping somewhere else if they don’t like what they read.
This makes sense. That’s because over 80% of people want returns to be easy or they won’t shop at your store. And about 79% of them want return shipping to be a free amenity. If you don’t feature these two staples, customers will easily find a store that does, and in just a few clicks of their mouse, too.
You Can Automate the Returns Process
he truth is that you can make returns easy. Whether you are selling clothing or TVs or even trinkets, there’s automated solutions for everything, even smartphone returns software, one of the most returned electronic devices that is sold online.
If you are interested in taking your returns policy to the next level, we’ve got you covered. That’s because powerful retail returns software like ReadyReturns automates the entire process for consumers. It sets up in just minutes without any programming necessary. Consumers just return to your site, fill out a form and generate a return shipping label. Once the package drops in the mail, ReadyReturns keeps you updated with tracking and analytics.