Voxware has released research highlighting why consumers return items purchased online or by phone and how the returns process affects their future intentions to shop with retailers. The results of the third biennial report, which surveyed more than 500 consumers, demonstrate the increased importance of the returns process in consumer purchasing decisions as well as the impact that shipping incorrect orders has on consumer loyalty. Highlights from the survey include:
- 8% agree that how well an online retailer handles returns influences whether they will decide to order items from them again in the future.
- 2% prefer to return items purchased online or by phone with a prepaid mailing label and 44.9% prefer in-store returns.
- 0% stated that a retailer has sent them an incorrect item for a second time after returning an item that was sent in error.
- 3% of those who received an incorrect order twice said they are unlikely to shop with that retailer again for future purchases.
- 4% expect retailers to replace item(s) shipped in error with the correct item(s) in 2 days or less.
- 7% expect compensation (such as a discount, coupon, or credit) from the retailer when they receive the wrong item or when an item arrives late.
- 5% are likely or very likely to share their negative experiences about a product and/or retailer online if a delivery is late or the wrong item is received.
“Companies that want to achieve greater brand loyalty must understand the importance of both inbound and outbound distribution operations in the customer decision-making process,” said Keith Phillips, president and CEO, Voxware. “Unfortunately, despite the overwhelming evidence that the returns process affects future buying decisions, this research exposes the gaps many companies still have in their distribution operations. By failing to close these gaps with technology that delivers essential supply chain information exactly when and where it is needed, companies will continue to disappoint customers with late and incorrect orders.”
Consumers consider returns process when making purchasing decisions
One of the most striking findings from this research is that 96.8% of consumers agreed that how well an online retailer handles returns influences whether they will order items from that retailer in the future. This finding cements the fact that, regardless of brand recognition or reputation, nearly all consumers consider what will happen if they need to return an item before they even complete a purchase.
Unfortunately, the survey found that many consumers still suffer from outbound distribution operations processes that lead to an abundance of retailer errors:
- 2% noted that 10% or more of the items they return are because of retailer error.
- 4% stated they had received an item that was correct but was the incorrect size or colour.
- 5% stated they had received the incorrect item altogether.
- 0% specified they return items received from large retailers more frequently compared to purchases from small retailers.