Promoting or encouraging refunds is usually viewed as a big no no when it comes to marketing your brand online. Traditionally refunds and returns are the side of business that no one wants to talk about. However, in todays highly competitive eCommerce market, a customer-centric returns portal could be the reason why a customer decides to follow through with a purchase from your online store.

So before you neglect to educate your customers on your returns process or try to hide your refund policy in the T&C’s all together, take a look at these customer insights we’ve pulled from multiple sources that showcase just how important quick and easy returns can be for your business.

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Key insights:

It costs as much as 5x more to obtain a new customer than to deal with unhappy customers. Source: Invespcro

According to UPS, a website’s return and exchange policy gets viewed by 68% of shoppers. Source: Salecycle

Close to 70% of customers will check a returns policy prior to checking out. Source: Retail Customer Experience

33% of repeat consumers would choose to abandon a retailer if they had a “difficult” returns experience. Source: McKinsey Returns Management Survey

86% of survey respondents agree that a lenient returns policy is critical to increasing revenue and share of wallet. Source: McKinsey Returns Management Survey

According to a 2020 report on returns from Narvar, the level of convenience and transparency in the returns experience is critical to consumer retention. Source: State of Returns Narvar Report

66% of first-time consumers who had an “easy” or “very easy” returns experience would shop at a retailer again. Source: Internet Retailing

33% of repeat consumers would choose to abandon a retailer if they had a “difficult” returns experience. Source: McKinsey Returns Management Survey

89% of businesses, "see customer experience as a key factor in driving customer loyalty and retention." Source: Invespcro

These insights show us just how important it is to provide multiple return options for your online customers, along with up-front and transparent communication on your returns process. Your eCommerce brand can have the best online shopping experience but if your returns policy is not clear, concise and lenient to the customer, there’s a much lower chance of that browser converting into a long-term customer.

Refunds and returns are a necessary evil for every eCommerce business. They may they seem like an inconvenient cost, but in reality they serve as a key factor to building brand loyalty and customer confidence. Start your returns revolution today!

Speak to the team at Refundid to see how we can turn your refunds into recycled revenue.