As retail returns reached $685 billion in 2024, having flexible returns and refund policies can not only drive conversions, but also bolster customer loyalty, according to a consumer survey conducted by Narvar and Reshop.
The survey was based on a poll of 1,190 shoppers. The report’s authors said retailers are expecting a 17 percent increase in return rates during the current, post-holiday season. The report noted that “nearly half of consumers plan to return unwanted holiday gifts within two weeks to a month of receiving them,” and said with returns often being a major pain point in the shopping experience, “how retailers manage this process can directly impact customer satisfaction and future sales.”
Narvar said in a statement that Reshop can help retailers “mitigate this challenge by offering immediate refunds to customers, which not only increases satisfaction, but drives repeat purchases.”
Of the consumers polled, 75 percent said that faster refunds increase their likeliness to shop at a retailer again. The report also revealed that 59 percent of respondents said they prefer multiple refund options “and are more likely to become repeat customers if given more flexibility.”
Digging deeper into the results showed that many consumers admit buying products with the intention of returning them. The poll found that 72 percent of shoppers always (33 percent) or sometimes (39 percent) buy items knowing that they will make a return. Twenty-one percent said they rarely do that.
Regarding the most returned items, apparel, footwear and accessories topped the list and were followed by consumer electronics. And when asked if they check return policies before hitting the “buy” button, 51 percent said “always.” The report’s authors said, “This makes it increasingly important for brands to focus on their post-purchase experience to win and keep customers.”
The survey results reiterated prior consumer polls showing the importance of various options. The poll showed that 78 percent of respondents “say it’s valuable to have the ability to choose between receiving a refund, store credit, or an exchange when returning a product this holiday,” the report’s authors said, adding that 77 percent of shoppers polled “say they prefer having multiple refund options when they make a return.”
The poll also showed that 66 percent of shoppers say they’re more likely to shop again with a brand or retailer that offers free returns, “emphasizing the importance of no-cost returns in converting customers.” The reported noted free returns “can be tricky to navigate for high-growth brands looking to protect their bottom line.”
“A great way to provide an exceptional customer experience without breaking the bank is to offer free returns exclusively as a perk for loyalty members,” the report stated. “Free returns are a powerful incentive to join a loyalty program, and it will ultimately drive more revenue for brands, since 79 percent of consumers say loyalty programs influence them to purchase from a brand more frequently.”
