Impact of Flexible Return Policy on Online e-Commerce Sales
To obtain insights on the impact of flexible return policy on online e-commerce sales.
Flexible Return Policy and eCommerce
- Free returns in ecommerce, has the ability to persuade customers to buy products.
- It gives customers the power to return things they have purchased should a problem develop or they have changed their mind.
- According to the Journal of Marketing, customers who receive free returns are more likely to increase their purchases between 58% and 357% over a two-year period.
- The absence of free returns has the ability to turn customers away and towards the competition.
- A company with a returns department therefore becomes more competitive, increases its efficiency, retains more customers and engenders growth for the company.
- It was found that 74% of customers see having a flexible return policy as being important in the buying process.
- The survey also found that only 42% of customers would be willing to buy from a retailer if they did not have an appealing return policy.
- Another factor that is important to customers, is the ability to buy online, return instore, 19.65%. This is especially true among certain demographics, namely Millennials, Gen Zs and Gen X.
- Customers find it important to be able to return items for free online, 14.1%.
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