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Retailers may have celebrated higher-than-projected sales for the holiday season, but consumers are likely cutting into those margins with returns.
According to Akeneo, 65 percent of consumers reported returning or exchanging a holiday season purchase. Six in 10 consumers reported that they return clothing more than any other category, and 58 percent cited sizing issues as the primary reason for returning items.
For many consumers, that’s simply because online shopping hasn’t satisfied their needs. Akeneo’s data further shows that 35 percent of consumers noted that “conflicting or lack of customer reviews” caused their reviews, and 34 percent of shoppers said deceptive images prompted them to return items. Three in 10 consumers noted inaccurate product information spurred a return from them.
But consumers said that, with stronger, more accurate information, they’d make fewer returns; in Akeneo’s survey, 62 percent of consumers said that more reliable product information would decrease how likely they were to return a product. Reducing returns may not be the only upside of providing cleaner product information; Lily AI data released this week also noted that two-thirds of consumers believe merchants’ product data makes online shopping more difficult.
Some companies have already started using artificial intelligence to create higher-quality product descriptions more akin to consumers’ natural language patterns.
Romain Fouache, CEO of Akeneo, said bridging existing gaps in the customer experience is critical for retention.
“Consumers expect detailed and accurate product information online, no matter where they are shopping. Brands that have invested in a strong product experience can reduce the amount of returns—positively impacting the bottom line while increasing customer loyalty and satisfaction by ensuring customers’ expectations are met,” he said in a statement. “Strategies that put the product experience at the crux of customer experience (CX) have enhanced customer satisfaction, sustainability efforts and boosted loyalty.”
Consumers continue to demand that convenience extends not only to the online shopping experience itself, but also through to the returns process, if necessary. Akeneo’s data shows that six in 10 consumers noted that, if a brand has a confusing or aggravating returns process, they would be at least “somewhat unlikely” to shop with that company in the future. Half of those same consumers said they’d be “very unlikely” to shop again.
Still, convenience may not be the only top-of-mind consideration for consumers. The survey showed that 65 percent of shoppers said they prefer to return items in store. Less than one-quarter of consumers said they have a preference for mailing items back. Akeneo posits that means consumers consider sustainability when returning items; nearly seven in 10 shoppers indicated that they have some awareness of the environmental impact returns have, and four in 10 consumers said they take those impacts into account when deciding whether to return or exchange an item.
Still, consumers’ behavior doesn’t always match up with their actions. Akeneo’s data shows that a larger proportion of Gen Z’ers and millennials are aware of the negative environmental implications associated with returns than their Boomer and Gen X’er counterparts. But despite that, Gen Z’ers and millennials engage in bracketing—or purchasing multiple sizes or colors of the same item and returning the unwanted units—than their older counterparts.
But, in their minds, consumers still care about making sustainability progress—44 percent of consumers said having peace of mind that their returns process is both sustainable and ethical influences their interest in shopping with a brand.
Fouache said, that data in mind, consumer sentiment indicates brands need to prioritize climate-related efforts.
“Sustainability continues to be top of mind for customers, and as brands continue to focus their efforts on improving their sustainability efforts, reducing the number of returns is essential,” he said.
