ONLINE RETURNS & REFUNDS REPORT 2007
Snow Valley’s latest retail e-commerce report, Online Returns & Refunds 2007, has been released.
The report put 70 UK online retailers to the test, looking at all aspects of the returns and refunds process.
26% of the retailers assessed in the report enclosed no returns instructions at all with their order and only a third had a link on their home page containing the word ‘return’.
However, the report also found that once the goods had been sent back, 90% of the retailers were able to process the return and refund without further action from the customer. Half of the refunds were made within 2 working days.
Among the other findings:
- 41% of retailers paid the cost of returning the goods, with post-paid labels, freepost or couriers
- 17% refunded the original delivery charge
- 39% of the retailers with stores did not allow goods bought online to be returned to a shop
- 1 of the 14 store returns attempted was refused by shop staff
- Half of the retailers sent an e-mail or post notification that the refund had been made
- Clothing retailers were more likely to cover the cost of the return (69% did so), all provided returns information with the order, and 20% had a returns policy of 90 days or more
- 60% of retailers surveyed said that retailers £should actively promote a hassle-free returns policy"
- 40% said they "should not necessarily promote a hassle-free policy but they should have one"
- There had been an increase in online returns management systems, where the customer logs their return before sending the goods back. 6 retailers now have these in place.
- The report includes breakdowns by sector, size, and whether the retailer had a store network or a direct sales model.
Carlo Rimini, Managing Director of Snow Valley said, "Our research shows that there are 3 types of retailer when it comes to returns. There is a ‘hassle free and proud of it’ set like Boden that actively promote their returns policy to attract new customers. Then there are the retailers like Amazon that keep relatively quiet about returns but once the customer puts the wheels in motion they’re very efficient. And lastly, there’s a group that seems to actively try and make returns difficult for the customer."
"Poorly managed returns will undoubtedly impact customer satisfaction and loyalty – even if a retailer chooses not to promote ‘hassle-free returns’ they really must be geared up to deliver a dependable service. The fact that 11% of the retailers this year had customer-facing returns management systems in place, where the customer logs the return before sending the goods back, shows that retailers are focused on improving the processing of returns and refunds."
E-mail Sarah Clelland for your copy of the 30-page report.