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Stricter return policies may backfire on retailers, warns Locus

Stricter return policies may backfire on retailers, warns Locus

Retailers attempting to curb costs by imposing stricter return policies risk damaging their bottom line before a sale is even made. New research from logistics technology firm Locus indicates that instead of reducing return volumes, these measures are primarily driving customers to abandon carts or switch to more lenient competitors.

A survey of 2,000 UK shoppers reveals the depth of consumer resistance to tighter post-purchase rules. Nearly 60% of respondents stated they would be less likely to complete a purchase if faced with return fees, while 56% would simply move their business to a different retailer. Rather than forcing shoppers to keep products, the policies are creating a more cautious consumer base: 63% of shoppers report they would become more selective about their purchases to avoid the risk of a difficult return process.

Subhro Chakraborty, CRO at Locus, notes that retailers often view returns as an efficiency problem to be solved after the transaction. However, the data confirms that shoppers adjust their behavior far earlier in the buying journey. By introducing friction, brands risk slowing demand in sensitive categories like fashion, where inventory turnover and seasonal margins remain critical. The research highlights that retailers might better serve their interests by focusing on refund speed, with 67% of shoppers saying a fast reimbursement would encourage them to return to a brand.

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