More Courage for Innovation in the Returns Process

TR
18th Sep 2024
3 minutes, 17 seconds
The annual Trusted Returns Report reveals that customers want more convenience and transparency from online retailers

Online shopping has made ordering products easier than ever before. However, this convenience brings new challenges for online retailers. With fast deliveries, simplified ordering, and social media commerce, consumers are more likely to add items to their carts and make spontaneous purchases. But not all of these products are ultimately kept. The result: countless orders are returned to retailers.

Each year, Trusted Returns conducts a study to explore how returns can be managed not only efficiently but also in line with the diverse needs of customers. This provides valuable insights into online shopper behavior—even after the purchase. This year’s survey was conducted in collaboration with market research firm OnePoll and involved 1,000 participants in Germany aged 18 and over.

The Trend Toward Online Shopping Continues

In 2024, the volume of online shopping continues to rise compared to 2023. This year, around 38% of respondents in Germany said they primarily shop online, compared to only 24% in 2023. Another third (33%) preferred brick-and-mortar stores this year, while last year more than half (55%) still shopped locally. In-store retail has steadily declined, which may be due to growing competition from online offers, changing consumer habits, or economic factors. Particularly notable: consumers aged 18–44 tend to shop more online—and consequently return items more frequently.

Progress in Sustainability

Over the past three years, survey results show a clear downward trend in emphasis on sustainable packaging. In 2022, 80% of respondents viewed reducing packaging waste as a key factor in making online commerce more sustainable. This dropped to 72% in 2023 and to 64% this year. This suggests that retailers have successfully implemented measures and worked on more sustainable packaging concepts. However, only about 45% of respondents trust the sustainability claims made by retailers—posing a challenge the industry must address.

Traceability and clear communication are therefore fundamental customer needs. This is also reflected in the fact that 56% of respondents say they want even more transparency in online shopping.

A well-coordinated balance between sustainability, trust, and transparency forms the basis of an effective and seamless return process for customers. Moreover, honest communication about the consequences of returns and the sustainable handling of them is crucial for a positive shopping experience.

Free Returns: Customers Lack Awareness

Online retail faces a complex tension between customer demand for free returns and calls for more transparency and sustainability. According to the survey, about 66% of respondents see free returns as a decisive factor in their purchase decision. Yet only 50% of them are aware that free returns typically lead to higher product prices.

Free returns cannot solve every problem. A comprehensive return strategy, including transparent product pricing, is essential. Another key issue: many customers prefer free returns simply because retailers fail to offer other options. Customers equate convenience with free returns, as no viable alternatives have been provided. For many, free returns are seen as a given. However, their actual preferences for solutions often look quite different.

It Doesn’t Always Have to Be a Return

67% of respondents reported that returns and refunds are often the only options offered by retailers. In other words, instead of tailored problem-solving, customers are often left with just the return and refund option. However, developing personalized return solutions tailored to individual needs can benefit retailers strategically. In fact, 60% of respondents said they are open to alternative solutions—an untapped opportunity.

By introducing personalized return options, retailers can increase customer satisfaction while also improving the efficiency of their returns management. These solutions give customers more flexibility and can simultaneously help optimize cost structures.

A positive side effect: fewer returns also mean reduced environmental impact. One thing is clear—online retailers are not only being called upon to offer more eco-friendly return options, but customers are also increasingly demanding more transparency. If set up effectively, returns processes can even enhance customer satisfaction and loyalty. That way, the hard-won customer remains loyal to the online shop—rather than being driven away by a negative return experience.