Cracking Down on Over-Ordering and Abuse
- 26% of retailers have seen an increase in returned goods volume in the last two years
- 41% of businesses that tightened policies cite over-ordering as a reason
- 31% say customers use items and return them
- 14% of consumers penalized for returns behavior
- 29% shoppers prefer retailers with free returns
- 49% consider returns policy when choosing where to shop
- 46% concerned about environmental impact of over-ordering
- 11% reduced amount they order and return due to sustainability concerns
A new study by Barclaycard reveals that 26% of retailers have experienced a surge in returned goods over the past two years, prompting 20% to tighten their returns policies. Of these businesses, 41% cite customers ordering excessively with the intention of returning most items, while 31% say shoppers use and return products. Penalties for violating policy include warning emails and account deactivation. Millennials are disproportionately affected. Despite this, 29% prioritize free returns and 49% consider policies when shopping. However, sustainability concerns lead 46% to rethink over-ordering.
Factuality Level: 8
Factuality Justification: The article provides accurate information based on research from Barclaycard, includes relevant statistics and quotes from an expert, and presents a balanced view of both retailers’ concerns and consumers’ expectations and behavior. It also discusses the impact of sustainability issues.
Noise Level: 4
Noise Justification: The article provides relevant information about the increase in return rates and retailers’ responses to this issue, as well as consumer behavior and concerns about sustainability. It also includes insights from an expert. However, it could benefit from more analysis of long-term trends or possibilities and actionable solutions for businesses.
Financial Relevance: Yes
Financial Markets Impacted: Retailers
Financial Rating Justification: The article discusses the impact of return policies on retailers and consumer behavior, which can affect their financial performance and sales.
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 article, but it discusses the increasing trend of stricter returns policies in retailers and its impact on customers.
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