Narvar Research Finds About 25% of Consumers Will Pay for Product Refunds in Successful Exchanges | So Good News
A new survey of buyers and sellers also reveals a growing need for take-home and other low-cost outlets to return.
NEW YORK, Oct. 31, 2022 /PRNewswire/ — About 25% of consumers are willing to pay for something like home delivery on their return, but less than half of retailers charge for any kind of shipping or returns. This means that retailers have a clear opportunity to keep customers happy by offering more options when it comes to returns, as well as faster returns. These are some of the findings in year 6 State of Returns consumer research report from Narvara pioneer in the after-sales experience for customers, is a company 2022 Returns Benchmark Report, which analyzes the published return policies of 200 retailers.
In 2021, the cost of products returned to retailers increased significantly $761 billion, a 78% increase from 2020. Although returns are an ongoing operational problem, they also provide retailers with an opportunity to reconnect with customers and build their trust and loyalty by giving them the opportunity to return. Narvar research has found that 96% of customers would buy again from a business that offers “very easy” or “easy” returns, indicating that retailers are smart to expand the return options they offer, customizing them to meet the different needs of first-time buyers, non-buyers and loyal VIPs. very much.
“Our research shows that consumers are undoubtedly benefiting from the generous return policies of retailers,” he said. Amit Sharma, CEO of Narvar. “Return windows are expanding, returns are happening faster, and technology is making returns easier than ever—improving customer satisfaction. There’s a huge opportunity here for retailers to increase loyalty and savings by offering unique and personalized return policies that meet different customer needs.”
Some key points from Narvar’s research include:
- Returns are everywhere and often: 26% of shoppers surveyed said they had returned more than four items in the past six months, with clothing and shoes accounting for 46% of recent returns.
- Customers are increasingly relying on third-party download sites: 37% of consumers surveyed returned their most recent online purchase by dropping it off at another location (eg, a UPS store). Third-party adoption has grown steadily for four years now, from 11% in 2019 to 19% in 2022, reflecting the need for consumers to have multiple options.
- Many buyers still ask for a refund instead of an exchange: 63% of respondents said they have requested a refund in the most recent return with a non-Amazon seller. This suggests that sellers have a greater opportunity to influence demand by turning these refund requests into exchanges, even if they are of a different price.
- Instant cashback and home delivery are some of the loyalty program’s most popular features: When asked what makes a VIP/loyalty program good, respondents cited instant cashback (77%) and home delivery (76%) as the top benefits. However, most customers are happy to accept store credit if it is paid immediately or if it offers additional value (such as an additional 10% cash back that you can spend at the store).
- Inadequacy is still the main reason for returns: For the sixth year in a row, “fitness and size” was the main reason for respondents (45%), among first-time buyers (22%) and loyal customers (78%). These trends show that retailers don’t need to increase their AR technology investments to fit or unlock the full value of what customers are offering.
- Bracketing is here to be: 63% of consumers surveyed admitted to bracketing, up from 55% in 2019. Most consumers (15%) say brackets are “the way they shop now.”
To learn more, read Narvar’s 2022 consumer survey, State of Returns: The End of One-Size-Fits-All Returnsand his 2022 Returns Benchmark Report.
About 2022 State of Returns report, Narvar conducted an online survey in July of 2,023 consumers aged 18-65 who had made at least one online purchase in the previous six months.
About to 2022 Returns Benchmark ReportNarvar analyzed the published return policies of 200 retailers in the August 2022 to create a baseline against which other retailers and online merchants can compare and contrast their return policies. The companies ranged from Fortune 500 retailers to D2C ecommerce brands.
Narvar pioneered the way brands engage with consumers beyond the “buy” button through brand order tracking, shipping information, returns, and exchanges. Today, Narvar’s Post-Purchase Platform powers 1,200+ of the world’s most popular brands, including Sephora, Patagonia, Levi’s, Sonos, Warby Parker, LVMH and L’Oréal, to provide transparency, build trust and increase customer value. Recognized by Fast Company multiple times as one of the most innovative companies, Narvar supports the everyday lives of consumers. For more information, visit Narvar.com.