Narvar Study Finds Nearly Two-Thirds of Customers Bend the Rules When It Comes to Returns

Consumer Survey Shows It’s Crucial for Brands to Personalize the Returns Experience to Prevent Shoppers from Exploiting Policy Loopholes

Retailers can prevent 85% of instances of consumers bending the rules or exploiting loopholes in returns policies by making the returns experience more convenient and personal, according to a new study of US and UK consumers conducted by post-purchase leader Narvar. The study also revealed that only 35% of consumers currently abide by all return policy rules, leaving nearly two-thirds engaging in some level of deceptive behavior when it comes to returns.

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Narvar’s recent study was designed to determine the scale of problematic behavior related to product returns as well as identify customer motivations and deterrents to help retailers curb it. Narvar’s research revealed there are four key behavioral archetypes with regard to product returns:

• Policy Abiding: Some 35% of customers do the right thing every time with returns, even if a return is necessary due to a retailer’s mistake or is a hassle for the customer.
• Rule Bending: Meanwhile, 60% of consumers will bend the rules out of convenience or won’t bother to report a mistake in their favor, such as when they receive an extra item or state they didn’t receive their purchased item but find it later and don’t correct the record. Most consumers justify this behavior as simply part of retailers’ cost of doing business, but 85% of rule-bending activity is preventable by making the returns and reporting process much easier and more convenient for consumers.
• Policy Abusing: One quarter (25%) of customers intentionally take advantage of returns policies for monetary gain, such as by falsely claiming an item they damaged themselves was delivered that way, falsely claiming an item is missing or damaged, or intentionally shipping back an incorrect item. Almost 30% of consumers who admit to this intentional behavior unfortunately engage in it more than once or twice, and most justify their actions by demonizing the business.
• Wardrobing: Fully 25% of consumers buy items with the intention of using them only once or twice and then returning them for a full refund. Men are more frequent perpetrators of wardrobing than women. To reduce wardrobing, retailers can steer customers toward legitimate rental options and clearly communicate that those who engage in the behavior may be blacklisted, which repeat offenders cite as their main concern.

“By understanding the different types of problematic behavior associated with returns—and their deterrents—retailers can more easily solve the biggest pain points in their current returns processes and personalize the experience to curb further issues,” said Anisa Kumar, Chief Customer Officer at Narvar. “By adding some additional checkpoints to the process, personalizing the experience, and offering the right loyalty incentives, retailers can prevent a significant amount of revenue loss associated with returns.”

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Additional findings from the study include:

• Nearly 40% of consumers surveyed say that if returns weren’t such a hassle (e.g., if home pickup were offered), they would be more likely to do the right thing.
• Nearly 60% of those who bend the rules feel it’s easier to take advantage of loopholes in returns policies online.
• Rule bending is more prevalent in the US, but UK consumers are more vengeful, with 31% of UK shoppers surveyed citing a retailer’s poor service as justification for their actions versus only 23% of US shoppers.
• Nearly 60% of those who exploit retailers’ returns policies are in the UK, but the ones who engage in abusive behavior in the US are more active.