Intelligent SME.tech Issue 49 | Page 18

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TIGHTER RETURNS POLICIES THREATEN EUROPEAN CONSUMER SPENDING

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THE RETURNS PROCESS FROM THE RETAILER ’ S SIDE IS COSTLY , AND MANY ARE NOW TELLING CONSUMERS TO KEEP UNWANTED ITEMS TO AVOID THE EXPENSIVE AND LABOUR-INTENSIVE PROCESSES ASSOCIATED WITH REVERSE LOGISTICS .
LUE YONDER , A WORLD

B leader in digital supply chain transformation , has released the findings of its first European Consumer Retail Returns Survey , which examines how consumers across the continent are experiencing and reacting to increasingly stringent returns policies . Notably , the findings reveal the importance that most consumers place on returns policies , with 61 % of those surveyed acknowledging that a lenient returns policy significantly or moderately influences their buying decisions . A majority of respondents also stated that tighter returns policies deterred them from making purchases .

“ Retailers have long acknowledged that they needed to tackle returns to reduce costs ,” said Tim Robinson , Corporate Vice President , Returns , Blue Yonder . “ With tighter returns policies starting to deter consumers from making purchases , the challenge now for retailers is to strike a balance between protecting their margins and maintaining a customerfriendly returns experience .”
Tighter returns policies deter buyers
Of consumers who are aware of stricter returns policies , 52 % state that tighter returns policies are deterring them from making purchases . When asked about the tighter returns policies , 57 % of survey respondents felt restrictions on returns are either inconvenient or unfair , with only 27 % saying they were fair and understandable .
Returns frequency and common causes
Over half the survey group ( 60 %) reported making a return only once or twice a year or less . Other responses included 13 % who make a return every few months , 4 % once a month and 2 % every couple of weeks or more . One fifth ( 20 %) said they have never returned an item .
In addition , 51 % of respondents cite the most common reason for returns is incorrect sizing . Other reasons cited by respondents include item damage at 42 %, followed by receiving the wrong product ( 27 %) and changing one ’ s mind or disliking the item ( 19 %).
The cost of returns : who pays ?
The returns process from the retailer ’ s side is costly , and many are now telling consumers to keep unwanted items to avoid the expensive and labour-intensive processes associated with reverse logistics . Almost half of consumers surveyed ( 40 %) have been given this direction by a retailer . The top three categories this occurred in according to respondents were clothing
18 Intelligent SME . tech