Consumers halt online purchases over lack of free delivery options
- A survey indicates that over 40% of online shoppers in the UK abandon purchases due to lack of free delivery or returns.
- Younger consumers, especially those aged 18 to 24, are more likely to buy multiple items to decide which ones to keep.
- These trends suggest retailers must adapt their policies to retain customers while managing the costs associated with returns.
In the UK, a recent survey conducted between March 5 and March 11 revealed that over 40% of consumers have abandoned an online purchase because the retailer did not provide free delivery or returns. This survey, conducted by One Poll for KPMG, included a sample of 3,000 participants. The findings illustrate the growing demand for online retailers to offer free and convenient shipping options, highlighting a significant factor that influences the purchasing decisions of consumers. Additionally, 13% of respondents confessed to employing a strategy of buying multiple items to keep only those that fit properly or appeal to them the most while returning the others. The survey results also shed light on consumer purchasing habits regarding apparel and footwear. A notable 12% of consumers typically purchase multiple items simultaneously to evaluate which products they prefer, a behavior that escalates to 25% among younger consumers aged 18 to 24. Furthermore, 6% admitted to using an item and returning it “as new” after finishing with it. This trend poses challenges for retailers, who must navigate the balance between free return options and the costs associated with those practices, particularly concerning serial returners. KPMG's Linda Ellett, head of consumer, retail, and leisure for KPMG UK, emphasized the importance of these survey findings, suggesting that retailers face the dual challenge of responding to consumer demands while managing the financial implications of these return policies. Companies are increasingly leveraging purchasing data to discern between customers who genuinely intend to return items versus those who engage in unprofitable return behaviors. As technology evolves, including advancements in AI, retailers are expected to enhance their ability to identify and manage consumers who take advantage of free return policies. This evolution could help mitigate the costs associated with returns while simultaneously not discouraging genuine customers from returning products that do not fit or meet their expectations.