a growing opportunity for retailers
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Magento Presents:Community Insights
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Returns HappenA Growing Opportunity for Retailers
Magento is proud to present ‘Community Insights’ to help merchants develop strategies and tactics to better serve their customers.
The Magento Partner Community is a trusted network of consulting and technology companies that help merchants grow their business, and create engaging customer experiences with the Magento Platform. These organizations provide valuable insights and practical takeaways from their real world experiences with merchants like you.
A M A R K E T R E S E A R C H S T U D Y B Y S U C H A R I T A
Returns Happen:
A Growing Opportunity for Retailers
About the Author
S U C H A R I T A K O D A L I
V P , P R I N C I P A L A N A L Y S T S E R V I N G E B U S I N E S S & C H A N N E L S T R A T E G Y P R O F E S S I O N A L S
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Sucharita serves digital business strategy professionals. She is an expert on eCommerce, omnichannel retail, consumer behavior, and trends in the online shopping space. She is also an authority on technology developments that affect the online commerce industry and vendors that facilitate online marketing and merchandising.
In her research, Sucharita covers such consumer-oriented topics as eCommerce forecasting and trends, merchandising best practices, conversion optimization, and social computing in the retail world. She has also authored "The State Of Retailing Online," a joint study conducted annually with the National Retail Federation.
Objectives & Methodology
O B J E C T I V E
Happy Returns collaborated with an independent 3rd party to evaluate consumer attitudes toward returns. Surveyed shoppers were recent online consumers who also bought fashion items (i.e. apparel, accessories, footwear, jewelry beauty) within the last 12 months.
The study was conducted through an online survey tool with a panel of US consumers. Specifically, the study sought to answer the following:
M E T H O D O L O G Y
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• How critical is the returns process to online shoppers today?• What do consumers want in an ideal returns experience and does
this vary by demographic segment?• How can retailers overcome friction in the returns experience?
The study was conducted over 10 days with 1,800 consumers.
Who Responded To The Survey
I N C O M E
A G E
12%No Response
32%Under $50k
31%$50 - $100k
25%Over 100k
18-29 30-44 45-59 60+
22% 32% 23% 23%
Nearly Always Sometimes Never
32%
32%
36% 30%22%21%
27%
Last 3 monthsBetween 3-12months
More than 12months
Never
M O B I L E D E V I C E S H O P P I N G F R E Q U E N C Y
R E C E N C Y O F L A S T R E T U R N O F A N O N L I N E P U R C H A S E
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Summary of Findings
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2 28% of shoppers said they shop less online than they would otherwise so they don’t have to deal with the hassle of returns
3 Consumers often don’t have access to printers to print out return labels and 51% of shoppers under 30 say they prefer to return items to stores
4Shoppers say the perfect returns experience doesn’t charge the shopper for the return, provides an immediate refund, allows a shopper to return in stores and does not require a receipt
556% of shoppers say they are much more likely to shop with a retailer online if that retailer allowed free returns with an immediate refund and didn’t require a return label to be printed
1 The majority of shoppers surveyed said that the returns process is the least favorite part of the online shopping journey
W H A T ’ S N E X T :
Friction in Returns from Online Shopping
Thriving Amid Fierce Retail Competition
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More Consumers Dislike Returns Than Any Other Part Of The Online Shopping Experience
Researching a purchase
Makinga purchase
Waiting for an order
Opening thepackage
Returning thepurchase
32% 4%
16% 3%
2% 15%
45% 5%
5% 73%
MOST Favorite Part
LEASTFavorite Part
% who say it’s their…
said they never purchased from the retailer again
39%
Shoppers React Differently When They Are Disappointed…
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37%
64%
I kept the item butnever used it
I returned the item
Thinking of a time when you’ve opened a package from an online order and you have been disappointed with the item(s) you received, in which of the
following ways did you respond? (Select all that apply.)
…but many churn away from a retailer entirely
62% of Consumers Don’t Have Access To Printers 24/7
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Printer at home and at work 38%
Printer atHome only 26%
Printer atWork only 21%
PrinterElsewhere 5%
No accessTo printer 9%
Regarding your access to a printer for printing return labels, which of the following best describes you? I have (a)…
Shoppers Under 30 Are Even More Aggravated By Printing…
10
…And Prefer To Return in Stores
51%
7%
41%
13%
I prefer to return items inphysical stores
I prefer to return items by mail
Shoppers under 30 All respondents
of shoppers under 30 find it a hassle to print out return labels for mailing back purchases
44%
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…Which Affects Pureplay Online Retailers More
11%11%
I do not shop at online-onlyretailers because it is difficult to
return packages to them
I only shop online at retailers thathave physical stores where I can
return packages
30% 28%
I'd go to a store more if I couldeasily return items I purchased
online there
I shop less online than I wouldotherwise because I don't like theprocess of mailing back a return
Percent of respondents agreeing with statement
Many Shoppers Avoid Shopping Online Because
Of Returns….
Percent of respondents agreeing with statement
W H A T ’ S N E X T :
Friction in Returns from Online Shopping
Thriving Amid Fierce Retail Competition
The Perfect Returns Experience Favors Store Returns
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The perfect returns experience would have the following characteristics (figures below reflect the percent of respondents who listed each at one of their Top 3 choices):
77%Have No Cost For The Return
38%Ability To Drop OffAt Local Store
42%Immediate Refund
37%Allow A Return Without A Receipt
A Flexible Store Returns Experience Can Help Acquire New Customers
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Imagine there is an online retailer that sells fashion products and offers a return option at a local store near you with the following characteristics:
• No cost to you for the return• An immediate refund on your
purchase when you return any item• No packaging required for the return• No printing of a label required for
the return
Somewhat More
MuchMore
NoChange
SomewhatLess
MuchLess
56%
29%
12%
1%
How would this return option affect your likelihood to shop at the retailer?
2%
A Flexible Store Returns Experience Can Help Retain Existing Customers
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Thinking back to a specific time when you decided not to purchase from a retailer again because you were disappointed when you opened the package, imagine if that retailer had offered a return option at a local store with the following characteristics:
• No cost to you for the return• An immediate refund on your
purchase when you return any item• No packaging required for the return• No printing of a label required for
the return
Somewhat More
MuchMore
NoChange
SomewhatLess
MuchLess
42%37%
17%
2% 2%
How would this return option affect your likelihood to shop at the retailer again?
Consumers Are Increasingly Likely To Shop On Amazon For Fashion
6% 23% 40% 31%
2% 14% 41% 43%
2% 7% 25% 66%
16
Weekly About Monthly Less Than Monthly Rarely Or Never
Which of the following best describes how often you generally purchase fashion products from the following types of retailers?
1<
Store dot-com
Other dot-com
This Promises To Grow As More Shoppers Will Shop Online In The Future
17
23%Much More
31%A Bit More
42%The Same
Do you think you will shop more or less online, in general, in the future?
3%A Bit Less
1%Much Less
All Things Being Equal, A Flexible Returns Offering Can Help A Retailer Compete With Amazon
18
34%At Amazon because
I am a member of Prime
12%At Amazon
For Another Reason
49%At Retailer B
5%Other
Consider the following scenario: Amazon and another online retailer, Retailer B, both sell the same fashion item you are considering purchasing. They both offer the product for the same price and both offer free shipping. Amazon does not offer
in-person or in-store refunds but Retailer B does offer in-person and in-store refunds.Which describes where you would most likely purchase the product?
Amazon Takes Steps To Enable In-Person Returns
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Retailers not on the Amazon network should take the necessary steps to remain competitive.
Amazon acquires Whole Foods and integrates amazon lockers as return points.
Amazon partners with Kohl’s to accept Amazon returns in 82 Kohl’s stores.
Happy Returns provides comprehensive return solutions for the world’s leading online and omni-channel retailers and their customers. With Happy Returns’ Full Stack Returns, retailers offer customers a best-in-class branded online return and exchange flow as well as the maximum flexibility for returning purchases. Shoppers enjoy multiple ways to return: in-person via Happy Returns’ nationwide network of 350+ Return Bar locations, through the retailers’ own stores, or by carrier. Happy Returns provides aggregated shipping and logistics across all channels with optimized disposition to destinations of the retailers’ choice; all with comprehensive reporting and analytics. The result is a world class experience for customers (NPS® of 95) with maximum value for retailers.
We make returns beautiful.
350NationwideLocations
63MetroAreas
95Lifetime
NPS
info@happyreturns.com
Get started with Magento (855) 733-5533
Schedule a Demo https://magento.com/schedule-a-demo
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