In most cases, the returns process does not receive the same attention as sales, according to a 2011 Snow Valley report on returns and refunds. The possibility of returns and refunds and the methods proposed are key to customer loyalty.
A simple no-hassle returns policy can help to generate conversions. Customers who buy online are not able to see or touch the item before receiving it. Retailers must recognise that, while the costs of returns may erode margins, annoying customers with excessively complex return policies is the best way to deter them from future purchases.
Multichannel retailers have here an advantage over their "pure play" rivals because they can provide in-store returns, something that many customers will find more practical. However, only half of the retailers in the study offer returns and 52% of retailers surveyed still do not offer a choice of return method. For the customer it is nevertheless the same company. There are also potential benefits for retailers: as well as contributing to a positive image through friendly service, they can focus on the possibility of cross selling.
Finally, the study shows that 54% of retailers do not repay the shipping costs, something require of them by the law. However, this figure is falling compared to last year's results.
