(This research is from an IMRG survey of 41 retail businesses in the UK)
In the latter half of 2022, 49% of retailers rated the importance of reducing returns as high or very high. Just 5% marked it as their lowest priority.
Some retailers have considered charging for returns (41%), but many are aware that it might affect their customer loyalty, where on a scale from 1 to 10 (1 being the least negative, and 10 being the worst possible outcome), the majority of retailers (34.15%) rated it 5 on the scale. In second place, 24.39% rated it 8.
It is no wonder then that most retailers have put their focus on clearer sizing charts and better product descriptions (74.36%) to reduce returns without limiting sales. Also, 33.33% are looking to promote exchanges, and of equal address, implement product videos. These are effective strategies that can protect margins without displacing the cost onto the customer.
Of those who do charge for returns, most common are clothing retailers, which is unsurprising given that they had the highest return rates of all retail categories surveyed. In comparison, home & garden and beauty are less likely to charge for returns, which could owe to the nature of their products.
To learn more about navigating returns: Download the free report
IMRG helps their members to understand and improve their online retail performance through a busy programme of performance benchmarking, data analysis, insight, best practice-sharing, and events. They have been tracking online sales since 2000 – and now measure over 120 individual metrics in a series of indexes, providing in-depth intelligence on online and mobile sales, delivery trends, marketing ROI, and channel performance.
Be sure to check out IMRG’s events page to stay abreast of key ecommerce insights and benefit from networking opportunities.
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