Retailers Reach the Point of No Returns Industry report
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Returns are breaking many smaller online businesses as the gap between retailer and customer expectation widens rapidly.
ParcelHero surveyed more than 1,000 businesses and interviewed hundreds of consumers to find out the impact of returns on retailers and shoppers. The shocking results reveal:
1. Should retailers foot the bill?
Half of all shoppers believe retailers should foot the bill for all returns, even if they have simply changed their minds about the purchase
2. The real losers
Smaller online retailers say they are losing money on all returned items and cannot afford to cover return postage
3. Christmas is the final straw
Christmas returns alone look set to be the final straw for over 200 online retailers as returns made up 47% of all ParcelHero shipments in the first days of the New Year
4. BUT... Returns give retailers the edge
Over half of all shoppers who responded had been forced to return an item because it was faulty. Small wonder that 83% revealed they would be far more likely to shop again with a store that has a good returns policy.
5. Emergency measures
Some smaller retailers say they are forced to video the packing of their items to reduce return claims.
6. Bad news for small businesses
Says Imogen Shurey, founder of Velvet Cave: ‘People are so used to being able to return things to big stores easily and often free of charge so it’s difficult to compete. For a company with a huge turnover the money lost doesn’t make an impact but too many returns could spell the end for a small business.’
7. The death of the High Street?
One fashion store department manager fears e-commerce, with its 14-day unwanted returns advantage, will one day kill off most High Street stores entirely: ‘Some days we only have click and collect customers. I believe that any high street stores that do not close down will just be for customer service and collections; kind of like Argos.’