Eight Facts About Ecommerce Returns You Need to Know in 2022

Returns are a normal part of the ecommerce process and to be expected. Customers are not always able to tell if a product will fit or work for them until it arrives leading to them needing to return their purchase.

Bracketing is a common occurrence especially with apparel. Customers will buy multiple of the same item in assorted colors and sizes to try on and then return those they do not want. This can create a logistical nightmare for online retailers that can easily cut into their profit margins.

Many companies have gotten creative to combat bracketing and to limit the amount of returns they receive through advancements such as virtual changing rooms using AR/VR technology.

In this article we will cover several vital facts on ecommerce returns that you need to know that will help you plan for a better returns experience for your customers.

1: The average online purchase return rate is 16.6% (CNBC, NRF)

While ecommerce return rates are on the rise at 16.6% in 2021, return rates for brick-and-mortar stores hovers around 8-10%.

As an ecommerce retailer, being knowledgeable about the merchandise you’re selling, aware of common defects or issues and understanding why customers may be returning your items can drastically help streamline the returns process.

When more returns are expected simply due to the channel you’re selling through it makes sense to be prepared.

2: Offering free returns can boost online sales a whopping 357% (CNBC)

Certainly, it’s not a feasible option for every ecommerce business, but data shows customers are willing to spend an astounding 357% more with the knowledge of free returns.

3: The ecommerce segment is forecasted to account for 24.5% of global retail sales by 2025 (Statista)

Online sales were steadily increasing year-over-year prior to the COVID-19 pandemic and the pandemic has only accelerated that growth.

4: Clothing has the highest return rate in ecommerce at 88% (Statista)

Apparel returns lead the industry. One of the main reasons is because shoppers can’t touch/feel the clothing or try it on before buying it. Another reason is due to the fact that sizes can vary between brands and countries/styles/cuts and different regions.

5: 58% of shoppers want a hassle-free “no questions asked” return policy (Invesp CRO)

Providing hassle-free returns instills trust and confidence in your ecommerce business which encourages buyers to spend more willingly knowing they can get their money back as easily as they spend it.

6: Over 60% of people will read a return policy before making a purchase (ReadyCloud Suite)

 A clear, concise and easy to understand return policy can prevent misunderstandings between customers and your business and help avoid unnecessary returns.

7: 10% of online buyers practice bracketing by deliberately over-purchasing items and returning those they do not want (Barclaycard Research)

Despite the advancements with virtual changing rooms customers still practice bracketing. Ensuring that your return process is as seamless and simple as possible will encourage customers to make a secondary purchase that can offset the cost of returns.

8: 62.58% of online customers expect retailers to allow for returns within 30 days of purchase (IMRG Report)

30 day returns in the world of ecommerce is standard and expected by most consumers as reported by IMRG. Staying relevant as an ecommerce business will require you to have a similar policy.