A MARKET RESEARCH STUDY BY SUCHARITA KODALI - Magento · 15 Imagine there is an online retailer that sells fashion products and offers a return option at a local store near you with

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A M A R K E T R E S E A R C H S T U D Y B Y S U C H A R I T A K O D A L I

Returns Happen:

A Growing Opportunity for Retailers

Objectives & Methodology

O B J E C T I V E

Happy Returns collaborated with an independent 3rd party to evaluate consumer attitudes toward returns. Surveyed shoppers were recent online consumers who also bought fashion items (i.e. apparel, accessories, footwear, jewelry beauty) within the last 12 months.

The study was conducted through an online survey tool with a panel of US consumers. Specifically, the study sought to answer the following:

M E T H O D O L O G Y

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• How critical is the returns process to online shoppers today?• What do consumers want in an ideal returns experience and does

this vary by demographic segment?• How can retailers overcome friction in the returns experience?

The study was conducted over 10 days with 1,800 consumers.

Who Responded To The Survey

I N C O M E

A G E

12%No Response

32%Under $50k

31%$50 - $100k

25%Over 100k

18-29 30-44 45-59 60+

22% 32% 23% 23%

Nearly Always Sometimes Never

32%

32%

36% 30%22%21%

27%

Last 3 monthsBetween 3-12months

More than 12months

Never

M O B I L E D E V I C E S H O P P I N G F R E Q U E N C Y

R E C E N C Y O F L A S T R E T U R N O F A N O N L I N E P U R C H A S E

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Summary of Findings

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2 28% of shoppers said they shop less online than they would otherwise so they don’t have to deal with the hassle of returns

3 Consumers often don’t have access to printers to print out return labels and 51% of shoppers under 30 say they prefer to return items to stores

4Shoppers say the perfect returns experience doesn’t charge the shopper for the return, provides an immediate refund, allows a shopper to return in stores and does not require a receipt

556% of shoppers say they are much more likely to shop with a retailer online if that retailer allowed free returns with an immediate refund and didn’t require a return label to be printed

1 The majority of shoppers surveyed said that the returns process is the least favorite part of the online shopping journey

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W H A T ’ S N E X T :

Friction in Returns from Online Shopping

Thriving Amid Fierce Retail Competition

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More Consumers Dislike Returns Than Any Other Part Of The Online Shopping Experience

Researching a purchase

Makinga purchase

Waiting for an order

Opening thepackage

Returning thepurchase

32% 4%

16% 3%

2% 15%

45% 5%

5% 73%

MOST Favorite Part

LEASTFavorite Part

% who say it’s their…

said they never purchased from the retailer again

39%

Shoppers React Differently When They Are Disappointed…

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37%

64%

I kept the item butnever used it

I returned the item

Thinking of a time when you’ve opened a package from an online order and you have been disappointed with the item(s) you received, in which of the

following ways did you respond? (Select all that apply.)

…but many churn away from a retailer entirely

62% of Consumers Don’t Have Access To Printers 24/7

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Printer at home and at work 38%

Printer atHome only 26%

Printer atWork only 21%

PrinterElsewhere 5%

No accessTo printer 9%

Regarding your access to a printer for printing return labels, which of the following best describes you? I have (a)…

Shoppers Under 30 Are Even More Aggravated By Printing…

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…And Prefer To Return in Stores

51%

7%

41%

13%

I prefer to return items inphysical stores

I prefer to return items by mail

Shoppers under 30 All respondents

of shoppers under 30 find it a hassle to print out return labels for mailing back purchases

44%

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…Which Affects Pureplay Online Retailers More

11%11%

I do not shop at online-onlyretailers because it is difficult to

return packages to them

I only shop online at retailers thathave physical stores where I can

return packages

30% 28%

I'd go to a store more if I couldeasily return items I purchased

online there

I shop less online than I wouldotherwise because I don't like theprocess of mailing back a return

Percent of respondents agreeing with statement

Many Shoppers Avoid Shopping Online Because

Of Returns….

Percent of respondents agreeing with statement

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W H A T ’ S N E X T :

Friction in Returns from Online Shopping

Thriving Amid Fierce Retail Competition

The Perfect Returns Experience Favors Store Returns

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The perfect returns experience would have the following characteristics (figures below reflect the percent of respondents who listed each at one of their Top 3 choices):

77%Have No Cost For The Return

38%Ability To Drop OffAt Local Store

42%Immediate Refund

37%Allow A Return Without A Receipt

A Flexible Store Returns Experience Can Help Acquire New Customers

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Imagine there is an online retailer that sells fashion products and offers a return option at a local store near you with the following characteristics:

• No cost to you for the return• An immediate refund on your

purchase when you return any item• No packaging required for the return• No printing of a label required for

the return

Somewhat More

MuchMore

NoChange

SomewhatLess

MuchLess

56%

29%

12%

1%

How would this return option affect your likelihood to shop at the retailer?

2%

A Flexible Store Returns Experience Can Help Retain Existing Customers

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Thinking back to a specific time when you decided not to purchase from a retailer again because you were disappointed when you opened the package, imagine if that retailer had offered a return option at a local store with the following characteristics:

• No cost to you for the return• An immediate refund on your

purchase when you return any item• No packaging required for the return• No printing of a label required for

the return

Somewhat More

MuchMore

NoChange

SomewhatLess

MuchLess

42%37%

17%

2% 2%

How would this return option affect your likelihood to shop at the retailer again?

Consumers Are Increasingly Likely To Shop On Amazon For Fashion

6% 23% 40% 31%

2% 14% 41% 43%

2% 7% 25% 66%

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Weekly About Monthly Less Than Monthly Rarely Or Never

Which of the following best describes how often you generally purchase fashion products from the following types of retailers?

1<

Store dot-com

Other dot-com

This Promises To Grow As More Shoppers Will Shop Online In The Future

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23%Much More

31%A Bit More

42%The Same

Do you think you will shop more or less online, in general, in the future?

3%A Bit Less

1%Much Less

All Things Being Equal, A Flexible Returns Offering Can Help A Retailer Compete With Amazon

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34%At Amazon because

I am a member of Prime

12%At Amazon

For Another Reason

49%At Retailer B

5%Other

Consider the following scenario: Amazon and another online retailer, Retailer B, both sell the same fashion item you are considering purchasing. They both offer the product for the same price and both offer free shipping. Amazon does not offer

in-person or in-store refunds but Retailer B does offer in-person and in-store refunds.Which describes where you would most likely purchase the product?

Amazon Returns Accepted at All Kohl's Stores

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Retailers not on the Amazon network should take the necessary steps to remain competitive.

August 2017: Amazon acquires Whole Foods and integrates amazon lockers as return points.

October 2017: Amazon partners with Kohl’s to accept Amazon returns in select Kohl’s stores.

April 2019: Expansion of Amazon returns to all 1,150 Kohl’s stores.

Happy Returns provides comprehensive return solutions for the world’s leading online and omni-channel retailers and their customers. With Happy Returns’ Full Stack Returns, retailers offer customers a best-in-class branded online return and exchange flow as well as the maximum flexibility for returning purchases. Shoppers enjoy multiple ways to return: in-person via Happy Returns’ nationwide network of 350+ Return Bar locations, through the retailers’ own stores, or by carrier. Happy Returns provides aggregated shipping and logistics across all channels with optimized disposition to destinations of the retailers’ choice; all with comprehensive reporting and analytics. The result is a world class experience for customers (NPS® of 95) with maximum value for retailers.

We make returns beautiful.

400NationwideLocations

72MetroAreas

95Lifetime

NPS

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[email protected]