Narvar - ConsumerStudy2019 - State OfOnlineReturns - 2019

Consumer Report 2019
The State of
Online Returns:
A Global Study
Background and methodology
Narvar conducted its 3rd annual consumer The 2019 study aimed to uncover:
study of the state of online returns in the
summer of 2019. • The overall satisfaction of shoppers with
the returns process for online orders.
This study captured sentiments through
an online survey of 3,519 consumers • Drivers of delight and disappointment
between the ages of 19-65, across 5 when shoppers return orders.
markets. Each had returned at least one • Non-traditional opportunities for retailers
online purchase in the last year. to improve their online returns process.
• Trends in attitudes towards returns in the
US (n=1,001)
US, and differences in consumer behavior
in key markets around the world.
UK (n=1,009)
France (n=500)
Germany (n=503)
Australia (n=506)
© Narvar, Inc. The State of Online Returns in 2019: A Global Study 2

Demographics of respondents in each market
Shop online more Have Amazon Last return

Market Female Higher income
than weekly Prime membership was to Amazon
US 55% 52% 32% 73% 65%
UK 54% 24% 35% 64% 59%
France 53% 29% 27% 62% 63%
Germany 50% 41% 21% 65% 64%
Australia 55% 61% 27% 33% 26%

Executive summary
There is room for improvement in online returns. In-store returns are both an Some returns are unavoidable and
opportunity and a point of failure. are just the cost of doing business.
• While satisfaction with online returns was generally
high, a substantial portion of online shoppers • While the majority of returns go back in the mail, • A small percent of shoppers comprise a
across the 5 markets did not find the online returns a double-digit percent of returns go to stores or disproportionate percent of returns; many
process easy; these figures go up for returns of gifts. alternative locations. of these frequent returners tend to “bracket”
their purchases (buy multiple variations
• A double-digit percent of shoppers globally said • Shoppers find in-store returns convenient and
with the intent to return most of them),
that because of their negative experience with want more places to return their online purchases.
often in categories like apparel and footwear.
the returns process, they wouldn’t shop with that
• Many shoppers worry about their packages being
retailer again. • Customers say they often bracket because
lost in the mail or don’t like the time it takes to get
retailers don’t provide enough information
a refund when they mail back packages.
Friction in online returns holds back needed for the transaction.
ecommerce conversion rates. • Shoppers often switch retailers when they
return items because of poor service.
• Shoppers across the 5 markets all wanted free
shipping on returns.
Amazon provides lessons for other retailers
• There is a disconnect between what shoppers in their online returns process.
want and what they must do in the returns
• Satisfaction is generally high for returns to
process, particularly getting return authorizations,
Amazon despite customers having to jump through
printing return labels for packages, and getting
more hoops (e.g. printing return labels, getting
status updates on refunds.
return authorizations).
• Scheduling pickups and keeping shoppers informed
of their refund status keep satisfaction high.

Highlights by market
US UK France
• Heaviest online shoppers overall • Heaviest bracketing of purchases. • Highest level of dissatisfaction
and greatest Amazon Prime penetration. • Satisfaction most tied to dropping off with the online returns process.
• Greatest satisfaction with online the return at a convenient location. • Most likely to have purchased
returns overall. • Higher interest in drop-off locations near a luxury good online.
• Most likely to check refund status one’s home, drop boxes, and easy parking • Greatest interest in the environmental
after completing an online return. for returns. policies of online retailers.
Germany Australia
• Most likely to have an online return • Smallest Amazon Prime penetration.

picked up by a carrier. • Most likely to return to a store; also most likely
• Greatest number of shoppers who wanted to get a refund without sending back a return.
the return policy stated on a site’s homepage. • Most likely to churn from a retailer after
• Least likely to support a “no questions asked” a bad online return experience.
return policy.

01.
Room for Improvement
in Online Returns

01. Room for Improvement in Online Returns
Shoppers are mostly satisfied with the returns

process, but there is room for improvement.
60% of consumers globally said

their last return was “easy” or “very easy”
Difficult Okay Easy
US 7% 26% 67%
UK 7% 30% 63%
Germany 8% 33% 58%
Australia 13% 35% 52%
France 15% 36% 49%

Many returns are avoidable: They are due

to retailers’ content or other product issues.
My #1 reason for returning:
34%
The size, fit, or color was wrong
46% Key takeaway:
Ensure that photos
The item was damaged, 21% are accurate and use
broken, or no longer functional 15% on-figure or similar
images to help visualize
fit and scale. Consider
The product wasn’t as depicted in 14% analyzing return reasons
its description or product photo 12% to identify issues with
items (e.g. runs small
10% or large), and amend
I didn’t like it product detail pages
9%
to give consumers
more confidence in
9% their selections.
I changed my mind
7%
The package didn’t arrive in time 5%

for my needs or the package was late 3%
Returns to Amazon
I intended to return when I purchased (e.g. I bought 4%
multiple items knowing I would return some of them) 3% Returns to other retailers

Australians are most likely to churn after a bad return experience,

though a double-digit percent of shoppers everywhere churn.
I won’t shop with the retailer again based on my last returns experience.
23%
15%
17% global avg.
15%
13%
12%
UK US Germany France Australia

Churn is even higher for new customers because they

tend to have more difficult experiences with returns.
I would not shop at this retailer again: My last return was:
Key takeaway:
It is critical to
Repeat Difficult Okay Easy
simplify the returns
almost 4x higher
customers 6% 29% 66% experience, especially
for new customers for new customers.
31%
New Difficult Okay Easy

customers 20% 35% 45%
8%
Repeat customers New customers

Bad news for the holidays:

Satisfaction with gift returns is even worse.
My returns experience was easy or very easy.
67%
63%
57%
49% 58% 52% Key takeaway:
47%
Improving the returns
36% process for gift recipients
Shoppers say 35% 30% is an opportunity
gift returns are to capture them as
more difficult. new customers.
US UK France Germany Australia
Gift returns Non-gift returns

02.
Friction in the Online
Returns Process

02. Friction in the Online Returns Process
Return shipping fees and unclear

policies deter shoppers from purchasing.
Why I didn’t make a purchase:
Key takeaway:
Be sure return policies
don’t prevent the
sale in the first place.
Make sure the policy
is easy to find at key
decision points.
I had to pay for Restocking I couldn’t find the return

return shipping fees or exchange policy

Shoppers expect to see the return policy in many places.
Besides the usual support pages, it’s critical to surface

the returns policy in the customer purchase path:
on the product page and even the home page to ensure
it isn’t an obstacle to purchase.
53% 50% 50%
38% 35% 33% 37%
30% 32% 29% 32% 30% 32% 35% 30%
34%
30%
24% 26% 21% 27%
23% 25% 28%
20%
Homepage Product page Confirmation email Company FAQs Return policy page

There is a disconnect between what customers

want and what retailers make customers do.
16% of shoppers are frustrated

by needing to check on refund status... …but 53% check refund status daily.
40% of shoppers want

pre-printed return labels... …but 39% print their own return labels.
18% of shoppers say return authorizations

prevent them from buying... ...but 26% needed a return authorization.

Most shoppers exchange or replace the items they return.
62% 48% from the same retailer

replaced the item
they returned
Key takeaway:
Poor service can
make the difference
between earning an
exchange or losing the
14% from a different retailer
sale to a competitor.
Top reasons for switching retailers:

• Original retailer didn’t
did not replace the item 38% have item in stock (35%)
• Bad experience (28%)
• Price (27%)
• Original retailer couldn’t get
the item quickly enough (18%)
• Original retailer didn’t make
it easy to exchange (15%)

Customers are willing to make an

exchange instead of a return if it’s easy.
I would be happy to exchange an item purchased online instead of returning for a refund if:
I was given free shipping 50%

for an exchange
43% Key takeaway:
Not only can a
43% sale be saved by
I was able to exchange converting a potential
it for another item 37% return into an exchange,
but an easy exchange can
also boost satisfaction,
I was able to easily 40% especially with
exchange it for a different size repeat customers.
35%
I was able to complete the exchange 38%

online and have it shipped to me
33%
I was able to easily 29% Repeat Customers

exchange it for a different color
27% New Customers

Sustainability messaging is an opportunity for online retailers.
To help retailers reduce the environmental cost of returned items (wasted stock, fuel emissions etc.), I would:
Go in-store to return items 52% 46% 33% 35% 53%

Key takeaway:
Whether through
Wait for multiple items to be an operational change
32% 30% 22% 29% 24%
bundled in one shipment or simply a messaging
exercise, retailers
stand to benefit from
Order fewer duplicate items
19% 21% 19% 23% 17% sustainability initiatives
(e.g. same item in different sizes)
that align with increasing
customer emphasis.
Go to a central returns point
41% 39% 42% 39% 42%
(e.g. carrier location) to return items
Shop exclusively with retailers

28% 23% 22% 22% 30%
with good environmental practices
Keep items that I would

15% 14% 15% 18% 15%
otherwise have returned
Top choice for each geo

Here are the elements of a perfect return.
Reasons for satisfaction and dissatisfaction:
My refund The process was fast

took too long 28% 58% and/or easy
I was informed when my refund

I had to repackage the item 24% 34% was processed
Transparency and speed

I had to keep checking to see I was able to drop off my
of refund make the difference if my refund had gone through 24% 30% return at a convenient location
between delighted
and disappointed returners.*
I wasn’t able to I received updates on
track the package 13% 24% the status of my return
I had to wait in line 10%
Dissatisfaction Satisfaction
*Delighted returners rated their return in the top 2 boxes of 5 boxes; disappointed returners selected the bottom 2 boxes

03.
In-Store Returns Are
An Opportunity

03. In-Store Returns Are An Opportunity
A minority of returns of online purchases go to stores...

...and this number is declining.
For my last return of an online purchase, I…
Took package directly 36%

to a carrier to ship
Mail
Scheduled a carrier pickup 20%
Returned to a
16%
designated drop-off location
Store Returned in-store 10% compared to 17% in 2017.
Returned to a different
4%
designated retailer
Received a refund without

Other having to return the item
12%

However, shoppers think in-store returns are easier.
36% global avg.
Top reasons shoppers

prefer in-store returns: Australia 44% Key takeaway:
• Immediate refund Consider incorporating
key elements that
• Concern that return US 38% make in-store returns
will get lost in the mail appealing into the mailed
returns experience:
• Faster refunds earlier
UK 37% in the process
• Tracking to address
concerns about lost
France 34% return packages
Germany 26%

In-store returns often lead to incrementality.
31%
28%
27%
26% 26%
24% 24% Key takeaway:
22% 22% Retailers have an
20% opportunity to replicate
18% 18% some key in-store
16% elements when facilitating
15% 15%
13% 13% 13% online returns to
11% recapture the sale or
even generate
incremental revenue.
4%
I bought other items I was NOT I bought other items I was I bought a I made an exchange
planning to purchase planning to purchase replacement item (e.g. color, size)

Some shoppers are beginning to explore

convenient options like drop-off locations.
I dropped off the package at a designated location
(e.g. convenience store, pharmacy, click-and-collect point, Amazon Locker, etc.)
Used alternative location... ... because it was convenient.
16% global avg. 51% global avg. Key takeaway:

Adoption of
non-traditional returns
Australia 7% Australia 33% options is still nascent
in some markets, but
these are clearly an
emerging priority
US 13% US 52% for consumers.
UK 22% UK 60%
France 23% France 47%
Germany 12% Germany 35%

In general, shoppers want more options for returns.
A drop box like a post office box 21%
Drop-off at a convenient store location

(e.g. pharmacy, grocery store, convenience store, mall) 21%
Convenient drop-off lockers 17%
A person to accept my return 16%
Car trunk or at-home pick-up 11%
Self-service kiosk 11%

04.
Some Returns Are The Cost
of Doing Business Online

04. Some Returns Are The Cost of Doing Business Online
Many shoppers bracket their purchases,

treating home like a fitting room.
72%
56% Bracketing:
61% 58% global avg. Buying multiple versions
of an item, trying on at
48%
44% home, and returning
those that don’t work.
Key takeaway:
Bracketing is here to stay,
but some of these returns
could be mitigated by
providing better fit or
Germany UK France US Australia other accurate product
details up front.
15% globally say they only bracket when sizing or other options aren’t clear.

Younger generations globally bracket

more often than their older counterparts.
Gen Z Millennial
71% 67%
Gen X Baby Boomer

52% 36%
Bracketing: Buying multiple versions of an item, trying on at home, and returning those that don’t work.

Bracketing has increased over time.

US respondents who bracket at least some online purchases:
50%
40%
30%
20%
10%
0%
2017 2018 2019
Bracketing: Buying multiple versions of an item, trying on at home, and returning those that don’t work.
© Narvar, Inc. The State of Online Returns in 2019: A Global Study

Primary reasons for NOT bracketing are cost and sustainability.
Europeans don’t
order extra because
they find it wasteful.
44% 44%
41%
38%
33%
31%
30% 29%
27%
26% 25% 26%
21%
14%
12% 11%
6% 6% 7%
8%
It’s wasteful Financially this is not something I do Returns are a hassle I viewed the options at a physical
retail location before purchasing online

05.
Every Retailer Can
Learn from Amazon

05. Every Retailer Can Learn from Amazon
In general, shoppers find returning Amazon purchases easy...
61% Easy
58%
found Amazon found other retailer Easy
returns easy 32% returns easy
30%
Okay
29% Non-Amazon Okay
33%
Very easy
29% Very easy
Difficult
28%
Difficult
7% 7%
Very difficult Very difficult
3% 2%

…despite the fact that Amazon has

significant friction in its returns process.
30%
Needed to print a return label
46%
22%
Needed a return authorization
28%
8%
Needed to schedule a pickup
16%
11%
Needed to find a different box or envelope Non-Amazon returners
16%
Amazon returners

Satisfaction with Amazon returns remains high,

and the delta with other retailers is growing in the US.
returners Non-Amazon returners
4% decrease in
satisfaction
91% 90%
6% decrease in
85%
satisfaction 83%
75%
71%
66%
60%
Satisfied with their Would shop at Satisfied with their Would shop at
return experience Amazon again return experience that retailer again
2017 2019 2017 2019

Amazon returners care about trackability and ease.

Reasons for satisfaction and dissatisfaction:
I had to repackage the item, The process was

which was inconvenient 13% 40% fast and/or easy
Key takeaway:
The process took 12% I was informed when my Retailers should focus
longer than I expected 28% refund was processed
on parts of the return
experience that drive
satisfaction, namely
ease, proactive
I had to keep checking if my I was able to drop off my return communication about
11% 23%
refund had gone through at a convenient location the status of the return
and refund, and faster
refunds when possible.
My refund I received updates on

took too long 10% 21% the status on my return
I wasn’t able to
track the package 7%
Dissatisfied Satisfied

Takeaways for retailers.

• Content management and quality control are • Ensure the return experience is good for gift • Sustainability is becoming a higher priority
big opportunities for improvement. Ensure recipients. Peak season is a critical time for returns; for consumers. There is opportunity to improve
product descriptions and sizing information are bad experiences cause gift recipients and new sentiment for environmentally-conscious shoppers
accurate and audit your shipments and packaging customers to churn. via operational changes (e.g. offering the option
so items don’t arrive damaged. to consolidate orders into one shipment) and
• Message your return policy often—on your main
simple messaging updates (e.g. encouraging
• Don’t imitate everything about Amazon. homepage, in receipts, on email confirmations, and
in-store returns as a greener choice, improving
Shoppers don’t like printing out return labels on product detail pages.
product information to reduce bracketing due
or getting return authorizations, but they do like
• Some returns are just the cost of doing business. to fit or color uncertainty).
frequent status updates on their refunds.
Some types of returns, such as those due to
• The perfect return for online shoppers is free bracketing, can be mitigated by improving the
to the returner (including packaging, pre-paid accuracy of product information, especially
return label), flexible (long return window, regarding fit or color. Consider making store
many convenient drop-off locations, no receipts inventory visible online so shoppers can opt to
needed), and transparent (tracking information, inspect items in person or allowing shoppers to
refund updates). “subscribe” and control their shipments (e.g.
delivery frequency, in-store pick-up options).

Narvar is on a mission to
simplify the everyday lives
of consumers.
Narvar is an intelligent customer experience platform that helps commerce companies simplify
the everyday lives of consumers. Serving over 650 retailers globally including Sephora, Patagonia,
Levi’s, Bose, Warby Parker, Home Depot, LVMH, and L’Oréal, Narvar ensures every touchpoint
along the consumer purchase journey engages consumers and enables emotional connections—
from pre-purchase to in-store experiences and beyond. With customizable customer messaging
and tailored interfaces driven by unparalleled data intelligence, Narvar empowers commerce
brands to turn every touchpoint into an opportunity.
For more information, visit narvar.com

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Consumer Report 2019

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 2

Shop online more Have Amazon Last return

US 55% 52% 32% 73% 65%

UK 54% 24% 35% 64% 59%

France 53% 29% 27% 62% 63%

Germany 50% 41% 21% 65% 64%

Australia 55% 61% 27% 33% 26%

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 3

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 4

• Most likely to have an online return • Smallest Amazon Prime penetration.

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 5

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 6

Shoppers are mostly satisfied with the returns

60% of consumers globally said

Germany 8% 33% 58%

Australia 13% 35% 52%

France 15% 36% 49%

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 7

Many returns are avoidable: They are due

The package didn’t arrive in time 5%

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 8

Australians are most likely to churn after a bad return experience,

UK US Germany France Australia

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 9

Churn is even higher for new customers because they

I would not shop at this retailer again: My last return was:

New Difficult Okay Easy

Repeat customers New customers

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 10

Bad news for the holidays:

My returns experience was easy or very easy.

US UK France Germany Australia

Gift returns Non-gift returns

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 11

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 12

Return shipping fees and unclear

Why I didn’t make a purchase:

I had to pay for Restocking I couldn’t find the return

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 13

Shoppers expect to see the return policy in many places.

Besides the usual support pages, it’s critical to surface

US UK France Germany Australia

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 14

There is a disconnect between what customers

16% of shoppers are frustrated

40% of shoppers want

18% of shoppers say return authorizations

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 15

Most shoppers exchange or replace the items they return.

62% 48% from the same retailer

Top reasons for switching retailers:

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 16

Customers are willing to make an

I was given free shipping 50%

I was able to complete the exchange 38%

I was able to easily 29% Repeat Customers

© Narvar, Inc. The State of Online Returns in 2019: A Global Study 17

Sustainability messaging is an opportunity for online retailers.

US UK France Germany Australia

Go in-store to return items 52% 46% 33% 35% 53%

Shop exclusively with retailers

Keep items that I would