STUDY by parcelLab: Consumers Across the Board Will Stop Shopping From Brands with Poor Returns Processes

parcelLab and YouGov’s survey of US consumers provides actionable insights for retailers

Online returns have become a “make or break” factor in consumers’ buying decisions, according to a recent report by parcelLab, the leading Post-Purchase Experience (PPX) Management platform. The State of Online Order Returns in 2022 found that 62% of shoppers will stop purchasing from a brand after a poor returns experience.

The research was conducted in partnership with YouGov and involved a survey of 1,320 consumers in the United States. The study showed that most shoppers are unwilling to pay for returns. Results indicate that 53% of customers believe the retailer should cover the cost of returns, and 58% would rather return products in-store to avoid fees.

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Unfortunately, less than half of the top brands in the United States enable customers to return orders for free. parcelLab’s analysis of the top 200 US retailers indicated that 51% of brands don’t offer free returns.

The study also found that majority of shoppers (55%) check a retailer’s return policy before purchasing. Of those customers, 92% said that the brand’s return policy sways their buying decisions either some or all of the time.

“Poor returns experiences are costing brands their customers. And in today’s hypercompetitive landscape, retailers cannot afford to alienate shoppers,” says Tobias Buxhoidt, Founder and CEO of parcelLab.

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He continues, “The good news is there are tools available to help businesses meet the expectations of modern consumers.”

According to Buxhoidt, while brands cannot always control the rising costs of goods and services, they can find ways to streamline their existing practices to save time and money. One way to do this is to implement a returns management platform to centralize all order data and communications.

“Having a returns hub makes it easy for consumers to initiate and track returns, which helps brands reduce inefficiencies and increase customer satisfaction. Over the long term, this can ultimately lead to repeat business and a healthier bottom line,” Buxhoidt adds.