The stats are from MICROS 2014 Online Returns and Refunds Report, which analysed 217 retailers, 197 of which had both a store network and an ecommerce site.
Why are returns important?
A site’s returns policy is often a key factor in a customer’s decision to make a purchase, especially if they are harbouring doubts.
They may be concerned about the size, or it may be a gift for a friend or relative which they may not like.
In such cases, returns policies can be a deal breaker. For example, let’s compare and contrast these two approaches.
Take a look at this. Sports Direct may have an extensive network of stores (more than 470 in the UK), but don’t expect to be able to return purchases to any of them.
It’s more then just that. The returns process is quite off-putting. Customers need to print and fill out a returns form (why not send one with the delivery?) and then return goods at their own cost within seven days (if they want the original delivery charge refunded).
The wording isn’t great either. It comes across as very harsh.
If a full refund including original delivery costs is required then the entire order needs to be returned back to us within seven (7) working days. However you will be responsible for the cost of returning the goods to us. If a refund is payable to you we will process the refund as soon as possible, and, in any case within thirty (30) days.
The goods do not need to be in their original packaging however in a sellable condition, and at your own cost and risk.
You have a legal obligation to take reasonable care of the goods while they are in your possession. If you fail to comply with this obligation, we may have a right of action against you for compensation. This applies to all goods that are returned.
In short, it suggests that returning items to Sports Direct is going involve a fair amount of hassle. That could be enough to deter many people.
By contrast, TopShop makes a point of emphasising its easy returns policy, and offers in-store returns.
It also offers a variety of other options such as Collect + and doesn’t impose a seven day deadline like Sports Direct.
The result? People unsure of sizes and fit are more likely to shop here, knowing that returning items won’t be a major headache.
In addition, returns represent an opportunity to showcase your (hopefully) excellent customer service and provides an opportunity to cross-sell or up-sell when they come into a store for a return.
Which returns options are retailers offering?
53% of the 217 retailers offered a choice of methods for returning an unwanted item bought online.
86% allowed the customer to return by post, with 36% insisting on post returns. 41% allowed return to a retailer’s store, while 28% gave an option to return to a Collect+ outlet, up from 16% last year.
The Collect+ stats are interesting, as this allows online-only retailers to provide an offline returns option and match the multichannels.
When MICROS first carried out this study in 2007, 40% of retailers offered in-store returns. The fact that this has only shifted to 50% in the seven years since then suggests that many of these multichannels have work to do.
Customer experience is all important if retailers want to maximise customer retention, and allowing customers the convenience of returning unwanted items to stores is part of this.
It should be an absolute must for retailers as, though there may be organisational separation between stores and ecommerce channels, customers see brands as one.
They aren’t interested in any logistical complexities, they just want convenience.
For the brand refusing the return, it’s a missed opportunity to educate customers about a complex product, or to upsell or cross-sell while the customer is in the store.
Multichannel retailers shouldn’t risk losing future customers with painful returns policies. If you have a store network, let customers decide which channel they want to use to return goods.
This is an advantage that multichannel retailers have over most pure-plays, so why not make the most of it?