With holiday shopping season approaching, retailers are now determining which returns should incur fees and which should remain free. Data from IMRG reveals that 85.6% of 1,000 UK shoppers prioritize a retailer’s returns policy when selecting online purchases, shaping their buying decisions accordingly.
Shoppers still value free returns, with 48.3% rating them as very important and 37.4% as quite important. However, they draw distinctions between different kinds of returns, with 47.6% thinking a fee is fair for frequent returners and 26.2% for international orders.
A retailer’s returns policy can affect customer loyalty. A flat fee can be simple to explain and administer, but it treats different customers the same, which can put loyalty at risk. 26.3% of UK consumers actively avoid retailers that charge for returns, and 40.9% are less likely to shop with them.
A poor returns experience can also cost the next purchase, with 42.3% of consumers saying it would leave them much less inclined to shop with that retailer again, and 28.8% would stop altogether.
Flexible Return Policies
Rather than having one rule for every return, retailers can set different rules for situations shoppers already see differently. For example, faulty items should remain free, as required by the Consumer Rights Act.
Frequent returners can be charged consistently, with the rule needing reliable return history behind it. International returns can have a separate rate, as they cost more to process.
Exchanges can have the fee waived, as 1% of consumers would be likely or very likely to accept an exchange offered at the point of return instead of a refund. In-store returns can also be kept free where possible, with over 70% of consumers preferring to return online purchases in store.
Running several rules at once, particularly across markets, can be hard to do manually. The return flow needs to read the order and apply the right fee and window automatically to avoid support teams interpreting policy case by case.
Peak often means longer return windows, especially around gifting. Retailers should define the dates before the busiest orders start arriving and decide which order dates qualify for the extension.
The statutory minimum in the UK is 14 days to cancel a distance purchase and a further 14 days to send the item back. Anything longer is a commercial choice, and clear dates are easier to explain to shoppers and straightforward to switch off once peak is over.
According to Frida Wikingsson, Product Manager for nShift Returns, the key is to put the policy where shoppers will see it and to test the whole journey before peak to ensure a smooth returns process.
Streamlining Returns Process
At nShift, a rule engine was added to nShift Returns in September to help retailers set fees and return periods by order, market, and return flow. The portal applies the relevant rule when the customer registers the return, matching the operational policy with what the shopper was told before buying.
The Consumer Rights Act requires retailers to cover the reasonable cost of returning rejected faulty goods, so a fee should never be deducted from that refund.
Exchanges can help retailers keep sales, as 1% of consumers would accept an exchange instead of a refund. Fit is the most common return reason, at 57.6%.
Retailers should test the whole returns journey before peak trading. This includes writing down which returns are free, which carry a fee, and how long each window runs.
The journey should be tested from checkout through the returns page to the portal, to ensure the wording agrees at each point.
This helps to ensure a smooth returns process and reduces the risk of regulatory and commercial issues.
Peak Trading Considerations
Clear dates for return windows are also important, especially during peak trading.
Retailers should ensure that their policies comply with this requirement.
