experience. Certain compromises, such as offering options for free exchanges, in-store credit, free in-store returns, or implementing returnless refunds can help balance these risks. Providing multiple return options allows for a relatively seamless and hassle-free consumer experience.” When paid returns are implemented thoughtfully, return fees can balance financial sustainability for brands with a positive shopping experience for customers, creating a win-win for both retailers and shoppers. ENCOURAGING INFORMED PURCHASING DECISIONS Helping consumers make better, more successful purchases the first time around is one critical way to cut down on returns. However, growth in online shopping has also led to a rise in over-purchasing. This has largely been driven by a practice called “bracketing,” which occurs when consumers, for example,
“There was a big expectation of free returns for a while but that has changed,” Davis adds. “More than half of retailers now charge for returns with an average return cost of about $7. Customers seem to be responding well because returns are not letting up.” Customers expect to pay a fee to return an order, and it does not play a role in their decision to make another purchase in the future, according to Loop research. “In fact, 70% of consumers are willing to pay a fee for more convenient, premium return experiences,” Kelly says. “The biggest factor is keeping the cost in line with what the average postage cost would be and not inflating it further.” For paid returns to be effective, retailers must be thoughtful about the customer experience. “It’s no secret that shoppers want reasonable, convenient return options or they may not go through with a purchase,” Kelly says. “This is why brands need to ensure that charging for returns doesn’t create a poor shopping
purchase an item in multiple sizes with a plan to return the ones that do not fit. “To avoid this, brands can provide more detailed product descriptions and sizing charts,” Kelly says. “These simple tools help customers better assess the quality and fit of a product to make more confident purchasing decisions. “We’ve also seen brands invest more in either technology or people to help coach customers through the fit/sizing process so they get it right the first time,” she adds. In addition, brands can help reduce over-purchasing and encourage responsible purchasing behavior by more effectively showcasing their policies and return windows. “Clearly sharing these details can reduce impulse buying and buyer’s remorse, which tend to drive higher return rates,” Kelly says. “According to Loop data, one in four people admit that they made impulse purchases that they later regretted.” Investing in better upfront information for customers can be well worth it.
Providing accurate and detailed product information, descriptions, and sizing details goes a long way toward driving down return rates. These tools enable customers to make more confident purchasing decisions, helping to reduce over-purchasing and improve the customer experience.
36 Inbound Logistics • February 2025
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