Retail returns policies are increasingly influencing conversions, retention and loyalty among digital shoppers, a new report from IMRG and nShift reveals.

As returns increasingly impact buying decisions further downstream than the checkout, original research of 1,000 consumers in the Ecommerce Returns Opportunity report reveals that 86% regard returns as a key factor when deciding whether to buy online.

Speed, channel & cost of returns impact conversions

Choice of speed, channel preferences and costs proved key considerations that shoppers now look for in returns policies, according to the report.

Almost half (47%) expect to be able to initiate a return within up to three minutes, while over seven in ten would choose to take back an item in-store rather than by post if the option was available. 

The research also found that shoppers distinguish between blanket returns fees and charges linked to specific circumstances.

While 22% believe charging for returns is never fair, 48% consider a fee fair for frequent returners. Charges for international returns and non-faulty items are also accepted by around one quarter of consumers. 

“It’s interesting to note that respondents are accepting of return costs aligning with past behaviour, which is the model ASOS have trialled” said Andy Mulcahy, Strategy & Insight Director at IMRG.

“Exactly how that attitude develops remains to be seen, but if that approach becomes normalised it may open up opportunities to do something similar in other areas of customer experience. Everything becoming more personalised feels like the direction of travel.” 

Returns experiences shape future sales & loyalty

The report also found that poor returns can have a significant impact on long-term loyalty.

42% are less inclined to shop with a brand following a negative returns experience, with 29% saying they would stop shopping with that retailer again altogether.

“A return begins before the parcel comes back,” Jurgen Leijdekker, CEO at nShift, commented. 

“Shoppers look at the policy before they buy, and the experience they receive afterward shapes whether they order again. Retailers need the promise at checkout to carry through into a fast, clear return flow.”

This means adopting a connected approach, with policies clearly published before checkout, applied consistently within the return flow and promises backed up by delivery and reserve logitsics performance.