Consumers Hate Paying for Return Shipping – Report Shows It’s More Annoying Than Jury Duty and Visiting the DMV
Key Points
- A recent report indicates that nearly a third of consumers find paying for return shipping more annoying than jury duty or visiting the Department of Motor Vehicles.
- Here are reasons why return fees might be increasing.
While consumers enjoy online shopping, most are reluctant to pay for shipping. Paying for return shipping is particularly frustrating.
A GoDaddy survey in September of 1500 adults revealed that 77% of shoppers now check the return policy before purchasing. Nearly a third of consumers find paying for return shipping more annoying than jury duty or visiting the DMV.
Other reports also highlight the importance of return fees in winning customer satisfaction.
Data from Optoro, a returns solutions company, shows that retailers have become more proactive about charging return fees last year, with an average additional fee close to $7.
However, 37% of shoppers find paying for shipping during the return process most frustrating, and 62% say they would not shop with a brand if it charges for returns in the first place.
While restocking fees and shipping costs may help reduce returned inventory, “charging for returns will definitely suppress your sales,” said Amena Ali, CEO of Optoro.
This is especially evident during peak holiday shopping seasons.
“Businesses need to examine ways they might inadvertently be turning customers away,” said Amy Jennette, a trends expert at GoDaddy.
However, companies are doing everything possible to control returns.
A report from Happy Returns, a return management company, shows that last year 81% of US retailers implemented stricter return policies, including shorter return windows and fees for returns or restocking.
Other companies, such as Amazon and Target, simply tell shoppers to “keep it” and refund without reclaiming the product.
“Retailers must find ways to manage costs,” Ali said.
Why Returns Are a Big Issue
In 2023, return rates accounted for 15% of total US retail sales, equivalent to $743 billion in returned goods. In online sales, the rate is even higher at nearly 18%, with $247 billion worth of online purchases being returned, according to the latest data from the National Retail Federation.
With explosive growth in online shopping during and after the pandemic, consumers have become more familiar with their buying and return habits, leading more shoppers to order products they never intended to keep. According to Happy Returns, nearly two-thirds of consumers now purchase multiple sizes or colors, some of which are returned afterward, a practice known as “bracket shopping.”
But all this back-and-forth comes at a high cost.
In fact, the cost of processing one return averages 30% of the original price, Optoro also found. However, returns do not just affect retailers’ profits.
The Fate of Returned Products
“Returns usually don’t go back on shelves,” which poses a problem for retailers striving to improve sustainability, according to Spencer Kieboom, founder and CEO of Pollen Returns.
Also known as reverse logistics, returns require products to be sent through the supply chain in reverse to be repackaged, restocked, and resold – sometimes overseas.
This reorganization process is like “rewinding,” said Ali from Optoro.
Reintroducing these goods into circulation generates more carbon emissions, even if they can get there. In some cases, returned items are directly sent to landfills, with only 54% of packaging being recycled according to the US Environmental Protection Agency’s data.
Data from Optoro shows that last year returns generated 84 billion pounds of landfill waste.
Source: CNBC
