Is Your Returns Policy Losing You Sales?

According to a recent study, even though online retailers with generous return policies will benefit from increased sales and loyalty, most online retailers don’t agree!

A recent study examined the effects of a retailer’s return policies on online sales. The study was undertaken for UPS by Forrester Consulting.

Findings included:

81% of online purchasers agreed they would be more likely to purchase from an online retailers who made it easy to return products, and said they are more loyal to online retailers with generous return policies such as free shipping and the ability to return for any reason.

73% said they would be less likely to repeat purchase from an online retailer where the returns process is a hassle.

However, the study also found most online retailers did not see the value in having a hassle-free returns policy.

Only a few online retailers that took part in the study believed their returns policy had an impact on their sales or customer loyalty. Instead, many retailers believed their best efforts would be to focus on initiatives to help avoid returns altogether.

Based on the findings, Forrester surmised “Return policies are a bigger factor in consumers’ online buying decisions than most retailers realise. Businesses who make it easier and less expensive for customers to return their products derive an advantage over competitors, and are likely to, in the long term, see increases in sales, customer loyalty and incremental revenue.”

Just like physical retail sales, online sales also soar during the holiday season.

With Christmas decorations popping up already, now is the time to review your returns policies. A generous returns policy becomes even more important to give gift buyers the confidence to purchase from you.

The most successful online retailers create a customer-centric online shopping experience.

If you’re tough enough to handle the criticism, and want to gain a significant competitive edge, commission a website audit from Exceed Online.

Are you listening to your customers? Or are you putting barriers up, preventing your website visitors convert into customers? Reduce the barriers now and see the benefits this holiday season.