Problems with online returns

We identified four major problems that 'Buy Online, Return in Store' has brought to light in businesses: Lack of understanding of costs and losses in 'Buy Online, Return in Store' (Section 3.1) The growing complexity of systems and processes and the difficulties in achieving integration (Section 3.2).

1. What really happens when you return online purchases?
2. What percentage of online returns returned?
3. Do retailers lose money on returns?
4. Can you get in trouble for returns?
5. Do online returns get thrown out?
6. Do returns get thrown away?
7. Do returned items get resold?
8. Why do companies offer free returns?
9. How important is free returns?
10. How much do companies lose from returns?
11. What is return abuse?
12. How long can a refund legally take?
13. In what circumstances can you insist on a refund?

What really happens when you return online purchases?

The system varies from company to company, but typically a returned item may get shipped to a processing depot, where it is sorted and its condition assessed. From there, it may be sent back to the store or e-commerce warehouse to be restocked — or repaired and then sent back.

What percentage of online returns returned?

Why do people return items? Data suggests that 20% of online-bought products are returned, compared to just 9% of items bought in a brick-and-mortar store. Let's take a closer look at why that figure is so high.

Do retailers lose money on returns?

In a report focused on the losses due to returns, IHL Group estimated that worldwide, retailers lose more than $600 billion each year to sales returns.

Can you get in trouble for returns?

Generally, a consumer is safe from being arrested if they are honest with a store about the item they are returning. ... However, if a consumer lies about an item being worn, and the store can prove that the person is lying, then that could spell real trouble, and criminal charges, for the lying consumer.

Do online returns get thrown out?

'It's pretty staggering': Returned online purchases often sent to landfill, journalist's research reveals. From unopened shampoo to unworn clothes, perfectly good products end up in dumpsters and landfill sites.

Do returns get thrown away?

Joel Rampoldt, a managing director at the consulting firm AlixPartners, told me that most people in the industry believe that about 25 percent of returns are discarded, although the proportion varies widely depending on the product (clothing tends to be easier to resell than electronics that may contain user data, for ...

Do returned items get resold?

In order to return items to store shelves, they first need to be assessed and repackaged. Because of the cost that goes into that process, many retailers trash returned products, as doing so is generally cheaper than reselling them. ... All in all, a past survey found only 48% of returns can be resold at full price.

Why do companies offer free returns?

Easy and free returns attract (returning) customers

And it's not just that a good return process can help retailers with attracting new customers, it can also help them keep those customers with them. Because 78 percent of consumers in the UK say they would buy more with a retailer over time if there are free returns.

How important is free returns?

88% of consumers say free return shipping is an important factor in their purchase decisions; 81% are less likely to make repeat purchases at retail sites that charge them for return shipping; 41% are more likely to make an online purchase if the retailer offers free returns; and.

How much do companies lose from returns?

Many companies see customers' product returns as a major inconvenience and an eroder of profits. After all, product returns cost manufacturers and retailers more than $100 billion per year, or an average loss per company of about 3.8% in profit.

What is return abuse?

Refund abuse (aka. returns abuse) occurs when a customer uses the returns policy of a merchant so much that it becomes unprofitable. Customers may also abuse refunds by faking returns/receipts, or reselling merchandise.

How long can a refund legally take?

You can get a full refund within 30 days. This is a nice new addition to our statutory rights. The Consumer Rights Act 2015 changed our right to reject something faulty, and be entitled to a full refund in most cases, from a reasonable time to a fixed period (in most cases) of 30 days.

In what circumstances can you insist on a refund?

You must offer a refund to customers if they've told you within 14 days of receiving their goods that they want to cancel. They have another 14 days to return the goods once they've told you. You must refund the customer within 14 days of receiving the goods back. They do not have to provide a reason.