As ecommerce continues to grow, so does the number of returns made by customers. Understanding the state of ecommerce returns is crucial for any business looking to maximize profits and minimize losses. In this blog post, we will explore some interesting statistics about ecommerce returns and provide tips for handling them efficiently and effectively.
The State of Ecommerce Returns
Ecommerce returns are a major cost for online retailers, with an estimated $550 billion spent on return deliveries in 2020 alone. This statistic is a stark reminder of the immense financial burden that ecommerce return deliveries are placing on businesses in the United States. Clothing has the highest return rate among all ecommerce verticals, with over 56% of total returns. Other industries have average rates between 20-30%.
Consumers often consider a retailer’s return policy before making purchases, as 92% will buy something again if it is easy to do so. Furthermore,…
41% of shoppers purchase items with the intent to return some or all of them – up to 10% according to one statistic – and 67% are considered “serial returners.” Free and easy returns can increase sales by 357%, but 27% abandon carts when they find that process unclear or complicated.
Looking ahead to 2023, ecommerce returns are expected to rise even futher, with most experts predicting that returns will double this year and beyond. This trend is expected to continue, with return volumes remaining higher than pre-pandemic levels through at least 2026.
Retail and e-commerce return volume combined is forecasted to reach $627.34 billion 2023, accounting for 8.5% of overall sales for the year. One of the major reasons for e-commerce returns is the disparity between the actual product and the images or descriptions provided in the online catalogues.
In fact, around 65% of the time, it is the merchants who are responsible for the returns, not the customers. Some key reasons for product returns from e-commerce websites include a disparity between the displayed and delivered product, delivery of wrong merchandise, and products failing to match expectations…
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