70% of UK Shoppers Say Retailers Enable Returns Abuse
Seven in ten U.K. consumers believe retailers make it easy to abuse flexible return policies, according to a new report released today by Forter, the Trust Platform for digital commerce.
The survey of 4,000 consumers was conducted in the U.K. and U.S. by The Harris Poll on behalf of Forter, and uncovered a widespread pattern of abuse, with 52% of U.K. consumers admitting they have deliberately abused online retail policies in the last 12 months. Over a quarter (29%) of shoppers who have taken advantage of companies’ policies when shopping online in the last 12 months admitted to doing so to avoid paying full price.
Common abuse tactics among consumers in the U.K. include:
- Abusing flexible return policies to try or use expensive items (31%).
- Deliberately over-purchasing to qualify for free shipping, intending to return extra items (22%).
- Creating their own unauthorised “try before you buy” service through bulk purchasing and free returns (21%).
- Creating multiple online accounts with the same retailer to receive promotions and perks (12%).
Retailers face a delicate balancing act of maintaining customer loyalty without exposing their business to additional risk. The research reveals that overly restrictive policies can have serious unintended consequences for the business as more consumers seek convenience and affordability.
Nearly half (49%) of U.K. consumers buy more from retailers with lenient return policies due to financial concerns. What’s more, 63% of U.K. consumers rely on retailers’ promotions and free perks more now than in the past. However, 18% have stopped shopping with a retailer altogether because they implemented stricter return policies.
“Policy abuse is costing retailers billions of dollars. Our report found that a one-size-fits-all approach to any policy – whether its returns, promotions or loyalty programs – will leave today’s retailers exposed,” said Ozge Ozcan, chief customer officer, Forter. “Instead, by knowing who they’re doing business with, retailers can strike the crucial balance between customer-friendly policies and protection against serial abuse.”
To read the report, visit the Forter Resource Center.