Online Returns Still Too Difficult, Per Retale Study

Returns have become a major financial thorn in the side of retailers trying to streamline ecommerce services, costing millions -- but gift-giving isn't a perfect science.

Retale, a location-based mobile platform connecting shoppers with local retailers, released results Wednesday from a commissioned study examining the likelihood of consumers returning and exchanging gifts received during the recent holiday season.

Nearly one-quarter of survey participants receiving holiday gifts this season said they are likely to return or exchange at least one of the presents they received this holiday season. Some 30% of males expressed a greater interest in returning or exchanging gifts, compared with 20% of females.

The study focuses on several areas related to returns and exchanges, including in-store versus online, overall convenience, and barriers to entry. Some 70% of survey participants said they prefer to return or exchange gifts in-store, while only 9% prefer to do so online. Twenty percent of those surveyed had no specific venue preference. In-store returns and exchanges were eight times more preferred than online due to perceived convenience.

Pat Dermody, Retale president, acknowledges that retailers continue to improve at allowing customers to buy online and return in a physical store, making it easier for consumers -- but obstacles remain.

During the 2014 holiday season, consumers spent $53.3 billion online from desktop computers, up 15% compared with the same days in 2013, according to comScore. 

Ironically, a National Retail Federation survey done in December 2013 found that shoppers who later made a return spent 67% more on their original sale and had 50% more items in their basket than shoppers who did not make returns. Having a better return experience can strengthen the relationship with the store, brand and consumer.

Of the 500 consumers participating in Retale's survey between Jan. 1 and 6, 2015, 32% said they spent more on gifts this year compared with last. Forty six percent said they spent the same amount, and 22% scaled back and spent less.

Among the 32% who spent more, 44% cited better deals; 31% felt more confident about the economy and their financial situation; 24% said they found themselves buying more online from a PC or mobile device; and 19% said cheaper gas prices put more money in their pocket.

When survey participants were asked to rate conveniences for in-store and online returns and exchanges, 62% find in-store more convenient, compared with 21% inconvenient. Some 45% of survey participants said online returns and exchanges are convenient, compared with 38% inconvenient. While many stores do accept in-store returns for online purchases, some still don't. About 85% of those surveyed said major retailers should allow in-store returns and exchange of gifts that were purchased online.

Keeping track of any necessary receipts at 34%, shipping and handling at 26%, confusing return policies at 20%, and any required, additional costs at 16% were the biggest challenges in returning or exchanging gifts received this holiday season, regardless of venue, per the survey.

Gift cards once again made a splash with gift-givers and receivers. Among those participating in the survey, 64% received a gift card. Within that group, 92% said that they were pleased with the gift.

When asked where they were most likely to use their gift cards, 76% said that they preferred in-store, while only 24% said they would use their cards online -- 17% via desktop and 7% via mobile device.

4 comments about "Online Returns Still Too Difficult, Per Retale Study".
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  1. Erik Brannon from Apollo Interactive, Inc., January 7, 2015 at 6 p.m.

    Misspelling of Retail in article headline. Really?

  2. Larry steven Londre from Londre Marketing Consultants, LLC and USC, January 7, 2015 at 6:27 p.m.

    Don't you want to say "Retail" study in the headline?

  3. Laurie Sullivan from lauriesullivan, January 7, 2015 at 6:41 p.m.

    Hi Erik and Larry, thanks for bringing that up, but if you read the article you'll find Retale is the name of the company conducting the study.

  4. Carri Bugbee from Big Deal Digital, February 3, 2015 at 1:54 a.m.

    I'd love to see a link to the study.

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