With the exception of shipping and handling fees, concerns about returns are the top inhibitor to online purchases, according to new findings of Jupiter Research. Yet many online retailers still don’t view the handling of returns as an opportunity to differentiate themselves and drive online sales.
Retailers that have convenient returns options should promote them aggressively rather than bury returns policies in remote parts of the site, according to Jupiter. A significant number of the 30 online retailers reviewed by Jupiter did have fairly convenient returns policies for merchandise purchased online, but didn’t capitalize on this advantage by promoting it. Of those reviewed, 57% accepted returns of goods purchased online in their stores. Two retailers that didn’t have stores paid postage on returned items. “Taking these two groups together, two-thirds of online retailers surveyed accept returns in a manner that is at least as easy as returning an item bought in a store,” says Jupiter analyst Ken Cassar.
Jupiter notes that stores that don’t accept returns of online purchases and those that accept them but don’t promote it cite concerns about attracting the attention of state and local taxing bodies which could eventually force them to charge tax on Internet sales. However, Cassar says that Jupiter's research has shown that the presence of sales tax doesn’t affect consumers' choice of merchants–-and that state and local taxes on Internet purchases are inevitable in any case.
At the same time retailers adopt and promote convenient returns policy for online purchases, they should be taking steps on their web sites to cut down on the rate of return, such as maintaining sizing consistency over time for apparel retailers, and offering more advanced product-rendering tools such as 3-D and zoom. “The benefits of easy returns options, primarily improved customer retention rates and secondarily improved conversion rates, will outweigh the costs associated with their return rates,” Cassar says.
Back...
