Although many online retailers remain focused on fulfilling an onslaught of orders just days before Christmas, some industry experts believe the worst is yet to come.
According to Computer Economics, a Carlsbad, Calif.-based research firm, the days following December 25, could spell disaster for some online retailers when returns begin to flood in. The problem, reports Computer Economics, is that a majority of online merchants have been too focused on selling products and not enough on building a strong customer service infrastructure.
"Some Web stores have been able to hold up through the holiday shopping season, but we anticipate that many of these sites will have problems when it comes time for returns," says Catherine Huneke, senior analyst for Computer Economics. "We've been watching major sites fall apart in the last few weeks as they receive orders and traffic they simply weren't prepared for. Expect even more sites to go up in flames in the weeks following Christmas."
And with more than 36 million orders forecast to be placed on the Web this holiday season, at least 5% of those orders are expected to be returned, reports (www.bizrate.com) BizRate.com, another online research firm. With the post-holiday return rush just around the corner, BizRate says the quality of return policies and customer support will become paramount in winning and losing customer loyalty. A recent BizRate survey shows that simply having a return policy is not enough. Online shoppers who responded to the survey indicate that an optimal online return policy would be a 100% money-back guarantee, followed by not being charged a fee to have the merchant restock the product.
In addition, certain attributes of return policies actually can drive customers away from making the initial purchase. The survey notes that 85% of the 9,800 online shoppers that responded, say the inability to receive credit on their credit or debit cards turns them away, as well as a time limit to return a product that is too short (68%).
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