Majority of Shoppers Stay Loyal to Retailers That Offer Free Returns

Nearly three quarters of U.S. shoppers (72%) show greater loyalty to retailers that provide free returns, according to the latest research by SAP Emarsys Customer Engagement, which surveyed over 2,000 shoppers in the United States. 

The research found that 88% of U.S. consumers have stopped shopping with a retailer because the retailer introduced a paid returns policy, while over half (54%) actively avoid retailers that charge to return items.  

Data from SAP Emarsys, an SAP company, found the rate of returns continues to climb, with 86% of shoppers returning items over the last 12 months. 

One of the challenges for retailers is that the rise of online purchases has increased consumers engaging in “wardrobing,” or buying items with the intention of returning them, for example buying the same product in multiple sizes when unsure of the fit. 

To address this, many retailers have started charging a returns fee. However, the SAP Emarsys research suggests this is causing shoppers to switch, with 49% being less loyal to brands that charge for returns. 

Additionally, 54% of respondents say they prefer not to return items, and 60% want retailers to “get it right the first time,” indicating more than half of U.S. consumers do not want to deal with returns. 

“With brands losing money from returns, it is understandable that retailers have added returns fees, but it is imperative retailers don’t damage their customer experience in the process,” said Sara Richter, CMO at SAP Emarsys. “We need to fight the root cause of the problem, not just manage the symptoms. For me, that’s where personalization comes in.” 

The research backs up this view, with consumers saying that retailers could reduce their rate of returns by offering a more personalized product selection (26%) or providing more personalized marketing materials (24%). Nearly half of U.S. consumers (41%) would like to see more personalized recommendations and deals that make the online experience more like shopping in a store. 

SAP Emarsys Customer Engagement will be presenting the data, along with testimonies from customers such as Wella, FC Bayern and more, at ‘NRF 2024, in New York from January 14-16, 2024.

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• Source: https://www.supplychainbrain.com/articles/38807-majority-of-shoppers-stay-loyal-to-retailers-that-offer-free-returns