Consumer preferences on online retail continue to change, but most shoppers have become more inclined to buy from the same e-commerce company if they offer free merchandise returns.
A new study claims that most online shoppers won’t transact with an online retailer who charges fees on returned products. Retail companies that plan to delve into e-commerce also have a higher chance of gaining loyal customers when they provide an option for in-store product exchanges.
What Retailers Can Do
Retailers can consult a return management company like ReverseLogix. Doing so will be essential in striking a balance between meeting customer demands and preventing significant losses from returned goods.
Each age demographic also has different priorities in making purchasing decisions. For instance, Gen Z shoppers favor same-day delivery, while millennials prioritize free shipping. If it comes down to free shipping and same-day delivery, most people will likely choose the former. As the holiday season looms, you should expect an increase in product returns, particularly during January.
Online sales for Cyber Monday will reach almost $7 billion in 2018, while Black Friday will generate $5 billion of e-commerce transactions. Amazon will still account for a majority of sales, mostly because of its international reach.
This has encouraged companies to consider the advantages of expanding their market presence beyond the U.S. There are certain factors to consider before doing so, and these include cultural differences in shopping. Ask yourself if the cost of providing free returns will be a worthwhile investment.
E-commerce will only continue to grow, especially now that the holidays are approaching. Thus, it’s crucial for retailers to prepare a strategy for handling returned shipments with the right technology. Otherwise, they risk losing potential clients to their competitors.