A new survey has revealed that over half of European shoppers are being deterred from making purchases due to increasingly restrictive returns policies. According to Blue Yonder‘s European Consumer Retail Returns Survey, 52% of consumers are rethinking purchases after becoming aware of stricter returns guidelines. This shift poses a significant challenge for retailers trying to balance cost control with customer satisfaction.
Tim Robinson, Blue Yonder’s Corporate Vice President of Returns, stated, “Retailers have long needed to reduce the financial burden of returns, but these findings suggest they must now rethink their approach to ensure customer retention.”
Consumers Value Flexibility in Returns
Lenient returns policies play a key role in driving purchasing decisions. The survey shows that 61% of shoppers consider a generous returns policy when deciding whether to buy. However, as retailers increasingly tighten their policies, 57% of respondents view such restrictions as inconvenient or unfair.
Despite the shift toward tighter rules, many consumers are selective about when and why they return products. The study shows that most people (60%) return items once or twice a year, with a fifth (20%) never returning products at all. The most common reasons for returns were incorrect sizing, cited by 51% of respondents, and item damage, reported by 42%. Others return items due to receiving the wrong product (27%) or changing their mind (19%).
Who Should Bear the Cost of Returns?
As returns become more expensive for retailers, some are asking consumers to keep unwanted items instead of sending them back. Nearly 40% of shoppers surveyed said they had been advised to do so, especially in categories like clothing, electronics, and home goods.
Retailers are also offering discounts or future incentives to persuade customers to keep unwanted items. The survey found that 47% of respondents would be more likely to hold onto a product if offered such incentives. However, when it comes to paying for returns, only 39% of consumers are willing to pay modest fees, while 27% would forgo returns entirely if asked to cover costs.
Third-Party Returns on the Rise
The survey shows increasing consumer interest in third-party returns services, such as local drop-off points or mail services. Among those surveyed, 40% said they would use a third-party provider if it meant lower or no shipping fees, while others valued the convenience of drop-off locations and faster refund processing.
Robinson added that retailers should do more than tighten their policies: “By gathering data and automating decision-making, retailers can reduce the costs of reverse logistics without compromising customer experience.”
Sustainability Concerns Impact Returns
Environmental concerns also play a role in consumer returns behaviour. The survey revealed that 53% of consumers are mindful of the environmental impact of returning items, with 34% stating they would try to resell products rather than returning them if they knew the item might end up in a landfill.
Conclusion
As the cost of returns continues to impact retail businesses, consumers remain cautious about their purchasing decisions. The findings suggest a careful balance must be struck between protecting profit margins and maintaining a customer-friendly experience. Retailers may need to innovate and embrace third-party services or incentives to keep customers satisfied while navigating the challenges posed by returns.