Key insights of the report include:
- What drives consumer decisions, behaviour and brand loyalty.
- Which return policies matter should for merchants and retailers?
- How are customer expectations evolving.
- The demographic differences when it comes to returns.
Trends from this report include:
77%
of European consumers consider return policies fairly or very important, when choosing a retailer
83%
of consumers find ease of gift return to be fairly important when it comes to purchasing an expensive gift
61%
of consumers are sure that shipping costs would make them less likely to shop at a retailer
Consumer views on return policy
Ecommerce return policies are a delicate balancing act for retailers. Offering easy, generous returns can delight customers but also lead to diminished margins and increased fraud. Conversely, stringent return policies can deter sales and alienate customers.
Return fraud trend
As eCommerce continues to grow, merchants can no longer view returns as just a cost of doing business. With global returns reaching £550 billion in 2023 and projected to hit £780 billion by the decade’s end, effective return management is crucial.
Returns cost retailers $700 billion globally in 2023 and are on course to cost them a cool $1 trillion by the end of the decade. And yet, crackdowns on returns have been met with disdain by consumers and merchants understand that online consumers have nearly limitless choice when it comes to where to shop.
How to develop customer loyalty with returns
One standout finding is that 77% of European consumers consider return policies important when choosing a retailer. Clearly, getting return policies right is essential for retaining customers and maintaining profitability.
In this comprehensive ebook, Signifyd explores consumer behaviour around returns, revealing what drives their decisions and how return policies influence their shopping habits. We commissioned a survey of 8,000 online shoppers each in France, Italy, Spain, and the UK to uncover key insights:
- Who returns purchases and gifts?
- How are customer expectations evolving?
- Which return policies matter?
