Latest news with #LouKeyes
Yahoo
9 hours ago
- Business
- Yahoo
Free returns are often a deal breaker for consumers
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. E-commerce retailers with generous return policies have greater brand loyalty than those with stingier ones, according to a Rithum survey of 6,000 consumers released last month. Nearly 9 in 10 consumers expect free returns as standard, while 2 in 5 consider a retailer's return policy before making a purchase. About half of consumers — 47% — have stopped shopping at a retailer due to an unfavorable return policy. Returns are essential to e-commerce, with 3 in 5 consumers making one in the past 12 months. 'Returns are no longer a post-purchase afterthought — they're shaping buying decisions,' Rithum CEO Lou Keyes said in a prepared statement. 'For brands and retailers, the return experience has become a critical business lever, not just a logistical function.' In fact, 84% of consumers are satisfied with the return policies of their most frequented retailers. Rithum concludes that 'this high satisfaction likely reflects consumer self-selection — shoppers are avoiding anywhere with less favorable return policies.' Shoppers in the United States and Canada have higher expectations than those in other markets, with about 2 in 5 consumers saying that a 30-day return window is reasonable. Returns, however, cost retailers a lot of money. In 2024, U.S. retailers paid an estimated $890 billion for returns, accounting for 17% of total sales, according to the National Retail Federation. 'These returns create an expense iceberg for retailers and brands — where the lost sale is just the tip, and hidden costs like shipping fees, manual labor, and thinning margins erode profits beneath the surface,' according to Rithum. The fashion industry experiences more returns than any other, with over two-thirds of consumers returning clothing or footwear in the past year. More than one-third of consumers admit to buying multiple items to try on and return. That figure rises to 50% for shoppers under age 35. With deliberate overbuying so widespread, nearly 9 in 10 merchants try to avoid returns through return policy changes like restocking fees, shortened return windows and store-credit-only refunds, according to a 2024 Blue Yonder survey. However, apparel shoppers are buying more than they need because they don't trust product descriptions. Poor fit is the main reason that 3 in 5 consumers return items, according to Rithum. Another one-third of consumers have returned items because they didn't match their online description or images. Better size and fit recommendations, as well as more detailed product descriptions, could help reduce returns, according to Rithum. 'As consumers look to get more for their money, they want to trust that they'll get what they paid for,' Rithum CMO Suzin Wold said in a news release. 'When product content and return policies don't match the actual experience, it breaks that trust. Today's shoppers expect accurate, detailed listings — and anything less risks both returns and lost loyalty.' Electronics, home goods, toys, books and hobby items also have high return rates. 'These purchases tend to be more discretionary, gift or taste-driven, where returns stem less from defects and more from preferences,' according to Rithum. However, despite the high cost and complexity associated with returns, 'return policies are one of the few factors that retailers and brands can fully control,' according to Rithum. 'Returns aren't going away — but they don't have to be a revenue drain. By proactively addressing the root causes of returns and rethinking your policies with new consumer expectations in mind, you can better protect margins, boost customer satisfaction, and even stand out in a crowded market,' the survey says. Recommended Reading Foot Locker simplifies loyalty program, adds cash back
National Post
15-05-2025
- Business
- National Post
Rithum's 2025 Global Returns & Profit Impact Report Uncovers Consumer Expectations and Strategic Opportunities for Retailers and Brands Struggling with Returns Management
Article content Returns are shaping purchasing decisions – Rithum's new data reveals 47% of consumers have stopped shopping with a retailer over a return policy, and 88% now expect free returns, highlighting opportunity for loyalty and long-term profitability Article content Article content ATLANTA — Rithum, a leading global commerce solutions provider, today released its 2025 Global Returns & Profit Impact Report, which uncovers how return policies are increasingly shaping purchasing decisions. With insights broken down across countries, product categories, consumer age groups, and more, the report highlights what brands and retailers can do to reclaim margin in a return-heavy economy. Article content Returns have become deeply ingrained in the online shopping journey with 60% of global consumers making a return in the past 12 months and apparel and electronics leading all categories. Yet returns are not merely reactive: 36% of consumers globally admit to overbuying with the intention to return, signaling a shift toward strategic return behaviors. Article content 'Returns are no longer a post-purchase afterthought – they're shaping buying decisions,' said Lou Keyes, CEO at Rithum. 'For brands and retailers, the return experience has become a critical business lever, not just a logistical function. The businesses that adapt can turn them from a cost center into a competitive advantage.' Article content This report surveyed more than 6,000 global consumers across the U.S., Canada, U.K., France, and Germany. Some key insights shaping returns in 2025 include: Article content Online product presentation makes or breaks post-purchase satisfaction. As digital shopping becomes more visual and distributed across platforms, inaccurate product listings fuel returns. Article content 61% of consumers cite poor fit as the main reason for returning items 33% returned products that didn't match their online description or images Half of shoppers rely heavily on customer reviews when buying clothing or shoes Article content Return policies are deal breakers – and brand loyalty hinges on them. Consumers are increasingly using return policies as a deciding factor in where they shop. Article content 88% expect free returns as a standard offering 41% say they consider return policies before making a purchase 47% have stopped shopping at a retailer because of an unfavorable return policy Article content Return behavior varies by region, underscoring the need for localized strategies. With return rates differing by as much as 20 percentage points between countries, brands can't afford a one-size-fits-all approach. Article content 57% of German consumers and 64% of French consumers consider a return window of 14 days or less to be reasonable, compared to much longer expectations in North America Over 60% of fashion items are refunded in parts of Europe, where shoppers frequently order multiple sizes or colors with the intention of returning 54% of electronics are returned in Germany and 51% in the U.K., while beauty and personal care returns are more frequent in North America Article content The fashion industry continues to lead in return volume – and intentional overbuying is widespread. The apparel sector experiences the highest return volume, with many shoppers bracketing purchases. Article content 68% of consumers returned clothing or footwear in the past year 36% admitted to 'bracketing': intentionally buying multiples to try on at home and return 50% of shoppers under 35 say they commonly buy more items than they need with the intent to return Article content 'As consumers look to get more for their money, they want to trust that they'll get what they paid for,' said Suzin Wold, CMO at Rithum. 'When product content and return policies don't match the actual experience, it breaks that trust. Today's shoppers expect accurate, detailed listings – and anything less risks both returns and lost loyalty.' Article content Rithum empowers brands and retailers to turn returns from a margin drain into a business advantage. With solutions that support accurate product listings, AI-driven categorization, SKU-level profitability insights, and localized return policy management, Rithum helps retailers get ahead of returns before they happen. Article content Rithum (formerly CommerceHub and ChannelAdvisor) is one of the industry's most influential and trusted commerce networks, helping brands, retailers, and suppliers work together to deliver third-party (3P) commerce experiences. The Rithum platform helps brands and retailers accelerate growth, optimize operations across channels, scale product offerings and enhance margins. Using its commerce, marketing, delivery and discovery solutions, Rithum customers create optimized consumer shopping journeys from beginning to end. More than 40,000 global brands trust Rithum to grow their business across hundreds of channels, representing over $50 billion in annual GMV. Rithum processes an average of 2.4 billion transactions every day for retailers like Best Buy, Adidas, The Home Depot, and more. Article content Article content Article content Article content Article content Article content
