The Power of Free Returns: Building Customer Loyalty (2024)

The research conducted by SAP Emarsys Customer Engagement surveyed over 2,000 shoppers in the United States and revealed compelling insights regarding the impact of free returns on customer loyalty. The study found that 88% of US consumers have stopped shopping with a retailer due to the introduction of a paid returns policy.

Furthermore, more than half (54%) of shoppers actively avoid retailers that charge for returns. The rate of returns continues to rise, with 84% of shoppers having returned items over the past 12 months. However, it is essential to note that not all returns are genuine.

The study discovered that nearly a quarter (23%) of consumers admit to “wardrobing,” a practice where shoppers purchase items to return them. This highlights the need for retailers to address the underlying causes of returns and not just manage the symptoms.

To combat the issue of excessive returns, many retailers have implemented returns fees. However, the research suggests that this approach can hurt customer loyalty. The study found that 49% of customers are less loyal to brands that charge for returns…