Online Purchases, Returns, and Customer Loyalty

  • 40% of consumers return online purchases at least once a month
  • 87% of shoppers make at least half of their purchases online
  • Total merchandise returns amounted to $743 billion last year
  • 60% prefer exchanges or store credit for convenient returns
  • Women are willing to wait 5-7 days for refunds with no fee
  • 82% of shoppers base purchase decisions on return policies
  • Online retail sales in the US predicted to grow 9.8% to $1.2 trillion this year
  • Amazon introduces new policy for some sellers’ refunds without returns

A recent report by Narvar reveals that nearly 40% of consumers return online purchases at least once a month. With 87% of shoppers making half or more of their purchases online, total merchandise returns amounted to $743 billion last year. Retailers must optimize the returns process to turn it into a growth opportunity and drive customer loyalty. According to ICSC, 82% of consumers choose where to buy based on return policies, with 8 in 10 preferring brick-and-mortar stores for returns. Amazon has introduced a new policy allowing some sellers to provide refunds without returning items.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the importance of returns in online shopping, citing statistics from reputable sources such as Narvar and National Retail Federation. It also discusses consumer preferences and how retailers are adapting their policies to accommodate the rise in online sales. The only potential issue is the mention of Amazon’s new policy without providing a source, but overall, it is an informative piece.
Noise Level: 3
Noise Justification: The article provides relevant information about the importance of returns in online shopping and how retailers can optimize this process to drive customer loyalty. It also mentions recent changes in return policies by major retailers like Amazon. However, it could benefit from more analysis or context on the long-term trends and consequences of these changes.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact of online shopping trends on retailers’ return policies, which can affect their financial performance.
Financial Rating Justification: The article talks about the increasing importance of optimizing returns processes for retailers due to the rise in online shopping and its impact on customer loyalty and overall financial performance. It also mentions changes in Amazon’s return policy, which could have an effect on other companies in the industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The article discusses online shopping trends, returns process, and retailer return policies, but none of these topics have significant negative impacts or consequences.

Image source: Bogdan Hoyaux / European Commission / https://audiovisual.ec.europa.eu/en/photo/P-059743~2F00-25

Reported publicly: www.retaildive.com