Here are some statistics that we found concerning return policies:
- Returns are common: According to a survey by the National Retail Federation, about 10% of all retail purchases are returned. This means that for every $1,000 in sales, a business can expect to receive $100 in returns.
- Easy returns increase sales: A survey by UPS found that 88% of customers are more likely to shop with a retailer that offers hassle-free returns. In fact, 67% of customers check a retailer’s return policy before making a purchase.
- Returns are costly: A report by Invesp found that returns cost US retailers $400 billion annually. This includes the cost of processing returns, restocking items, and lost revenue due to returned items being sold at a discount.
- Free returns are expected: According to a survey by Return Magic, 96% of customers expect free returns. In fact, 49% of customers say they would not shop with a retailer that does not offer free returns.
- Returns impact customer loyalty: A report by Narvar found that 95% of customers are more likely to shop with a retailer again if the returns process is easy and hassle-free. On the other hand, a difficult or inconvenient returns process can lead to a loss of customer loyalty.
- Returns can provide valuable insights: A report by Brightpearl found that 86% of retailers use returns data to improve their business operations. Returns can provide insights into customer preferences, inventory management, and product quality.