US' online shopping returns significantly higher than in-store: Survey

Article From：fibre2fashion

 

 

Online transactions in the US have an average return rate of 15.2 per cent. This rate is notably three times higher than the 5 per cent return rate observed for in-store purchases, according to the Consumer Returns Survey conducted by the International Council of Shopping Centers (ICSC). This means that for every $100 spent online, approximately $15 is returned, compared to just $5 for every $100 spent in store.

 

Notably, apparel retailers face a higher rate of returns, with 22 per cent of products bought online being returned, more than threefold the rate for in-store purchases at 6.2 per cent. A staggering 87 per cent of consumers admitted to overbuying apparel online with the intention of trying items at home and returning those they do not want, as per the survey.

 

The survey pinpointed the most common reasons for online returns, including damaged items (52 per cent), items not fitting (50 per cent), items not meeting expectations (42 per cent), and receiving the wrong items (37 per cent).

 

Across all retail categories studied, online returns outpaced in-store returns, with the gap most pronounced among discount department stores—where only 6.2 per cent of in-store purchases were returned compared to 33.2 per cent of online purchases.

 

The survey also revealed the significant influence of return policies on consumer shopping decisions, with 82 per cent of respondents indicating that return policies affect their choice to purchase from a retailer. The potential for changing online return policies poses a challenge for retailers; nearly three-fourths (71 per cent) of consumers said they would likely cease shopping online with a company that charges a fee for return shipping, and 60 per cent said they would likely stop shopping online with retailers that shortened the free return window.

 

In response to the costs associated with returns, retailers are exploring new strategies, such as ‘keep it’ policies, where 60 per cent of consumers reported being told to keep the goods and receiving a full refund for their online purchase. Despite the risk of stricter online return policies deterring consumers from shopping online, these measures could inadvertently drive more in-store visits. According to the survey, 79 per cent of consumers would be more inclined to visit a retailer’s store to make a return if charged for returning items purchased online, and 77 per cent would visit a store to make purchases if faced with online return charges.

 

“We have known for some time the value of brick-and-mortar to a retailer’s strategy. Our latest findings further prove this by showing that the return rate for in-store purchases is three times less than the return rate for online purchases. Additionally, consumers are becoming more mindful of changing return policies that result in fees and shortened return windows,” said Tom McGee, president & CEO, ICSC.