European consumers are paying attention to returns policies when making purchasing decisions, with 61 percent stating that a lenient returns policy influences their buying choices. On the other hand, 52 percent of consumers are deterred by stricter returns policies. According to a survey by Blue Yonder, 57 percent of respondents find restrictions on returns inconvenient or unfair.
Tim Robinson, corporate vice president at Blue Yonder, highlighted the challenge for retailers to balance cost reduction with a customer-friendly returns experience. The survey revealed that 60 percent of respondents only make returns once or twice a year, with sizing issues being the most common reason for returns at 51 percent.
Retailers are starting to encourage consumers to keep unwanted items to avoid costly returns processes. This strategy is particularly prevalent in clothing and accessories, electronics, and home and kitchen categories. Offering discounts or incentives for future purchases can also persuade customers to keep items instead of returning them, with 47 percent of respondents likely to do so.
When it comes to using third-party returns services, consumers are looking for lower or no shipping fees, convenience of drop-off locations, faster refund processing, hassle-free returns, and reliable tracking and confirmation of returned items. Retailers are advised to explore strategies beyond tightening returns policies to reduce return rates and mitigate costs.
