Difficult returns leads to brand abandonment - study

New research from Manhattan Associates indicates that a difficult returns process leads to brand abandonment, with 40% of shoppers ceasing to purchase from a brand following a negative return experience.

The study points out that beyond direct brand abandonment, 31% of customers are likely to share their negative returns experiences with friends and family. Additionally, 15% might use social media platforms to express their dissatisfaction, potentially harming a brand's reputation more broadly. Significant issues include long refund wait times, affecting 39% of respondents, and confusing return instructions, troubling 33% of shoppers.

The research identifies generational discrepancies in return behaviours. Younger shoppers, aged 18-34, are more inclined to return items, particularly electronics and video games, in comparison to older shoppers aged 65 and over. Despite these differences, clothing returns remain consistently high across all age groups, highlighting common issues related to sizing and fit.

Cost remains a decisive factor influencing return behaviour. The study reveals that 38% of consumers will look for alternative brands if returns incur a fee, demonstrating notable price sensitivity. The possibility of a return fee leads 45% of shoppers to make more cautious purchasing decisions. Older shoppers, in particular, are more deterred by return costs than younger consumers, posing a challenge for retailers who must balance their returns policies accordingly.

Craig Summers, Vice President Northern Europe & MEA at Manhattan Associates, commented on the findings: "Efficient returns management is vital during and following peak holiday season as businesses balance the need for streamlined processes with maintaining customer satisfaction." He further added, "A seamless and customer-centric return experience is essential for building trust and fostering long-term relationships. Investing in solutions that enable robust reverse logistics and AI-powered customer service, coupled with clear communication is crucial for retailers looking to navigate this challenge."

He also emphasized the importance of the emotional aspects of returns: "There's more to returns than software and pound signs though. Retailers need to also consider the emotional aspect of returns. Customers often feel awkward or disappointed when returning gifts, and a smooth, empathetic process can make all the difference in maintaining loyalty and a positive brand experience."

In-store returns are preferred by 54% of shoppers, favoured for their immediacy and personal interaction. This preference puts pressure on retailers to streamline their in-store returns processes, ensuring smooth transactions with adequately trained staff and clear procedures in place to prevent potential reputational damage from poor customer experiences.

Manhattan Associates is a global technology specialist in supply chain and omnichannel commerce. The company is focused on uniting information across the enterprise, converging front-end sales with back-end supply chain execution. Manhattan Associates designs, builds and delivers edge cloud and on-premises solutions for omnichannel marketplace experiences.