Why Do Customers Return Products?
39% of consumers return one or more items every month, according to a survey. The reasons vary: 57% of shoppers returned their last product because of shipping and operational issues, and 64% returned products because they looked different from the picture or did not match the description. Whatever the reason, the retailer carries the cost.
For the software side of this topic, see returns analytics software.
A retailer that understands why customers return products can fix the causes and improve satisfaction. A flexible return policy also builds trust and gives customers the confidence to buy. This article sets out the main reasons customers return products so retailers can spot familiar problems and fix them.
Reasons Why Customers Return Purchased Products
Goods are returned at a high rate, especially goods bought online. There are seven main reasons. Sometimes the business is at fault and sometimes it can do nothing about the return, but understanding the reason helps in every case.
1. Product Doesn’t Meet Customer Expectations
One of the biggest reasons for returns is that the product does not meet the customer’s expectations. It shows up in several ways:
The product is not what was described on the platform
For instance, the listing promised an OLED TV and the product delivered was not one.
The product doesn’t look like it did on the platform
Product photos do not always show the product as it is. Customers buy expecting one thing and receive another. This is common with fashion products and some home appliances.
Product quality is lower than expected
Customers return low-quality products because they see them as a waste of money.
These problems are the business’s to fix. Use clear language and high-quality images in product descriptions, and apply quality control across the supply chain. (See strategies for addressing these causes.)
2. Wrong Size or Fit
Sizing is a major reason for returns, especially for fashion and for mechanical parts. It happens in two ways:
The customer ordered the wrong size
The customer misjudged the size or ordered from incorrect size information. They return the item as soon as they realize, usually to get the right fit.
Product sizing is inconsistent
This is common when buying across borders. U.S. and U.K. sizes differ, for example. Brands can avoid confusion by listing each measurement system and the standard used, so buyers receive the right size the first time.
3. Damaged or Defective Product
A damaged or defective product is a problem for both sides. The customer has to go through the returns process and then wait for a replacement. The business takes a loss unless insurance covers it. Replace the product as quickly as possible and offer store credit or a fast refund.
It happens in two ways:
Product arrived damaged
Damage usually happens in shipping, though sometimes the product leaves the factory that way, so it is not always the retailer’s fault. Either way, the product has to come back.
The product malfunctioned shortly after the purchase
The product works at first and then fails within the warranty period. For a first-time customer especially, this signals poor quality.
4. Change of Mind
Customers change their minds for reasons that often have nothing to do with the business or its service. This is one reason some retailers charge for return shipping.
Two common cases:
Changed circumstances
A customer buys a travel bag for a trip, and the trip is cancelled. The bag is no longer needed, so it goes back.
Found a better alternative
With so many options online, customers compare price and quality after buying, or hear about a better alternative from a friend. The result is a return or a cancelled order.
5. Poor Customer Service
Customer service matters most when the fault lies with the business or its supply chain. Customers who get poor service during delivery may return the product outright.
For instance:
Late deliveries
A late package can disrupt the customer’s plans, especially for time-sensitive products. By the time it arrives, the product may no longer be needed.
Lack of effective communication
When neither the automated updates nor the customer service team communicate clearly, customers feel uninformed and lose trust. A return is a way to take back control of the situation.
Payment-on-delivery challenges
Delivery problems hit harder when the customer pays on delivery. They have not paid yet, so declining the order is easy if they feel badly served.
6. Difficulty Using the Product
Some products are hard to use, which leads to frustration and returns. This is most common with new products and first-time buyers.
Examples include products that are complicated to set up, such as a baby crib, and products with unclear instructions, such as a DIY air compressor.
7. Misleading Advertisement
Customers feel misled when a product does not perform as advertised, whether the claim came from the retail listing or the manufacturer’s advertising. Sometimes the wrong idea comes from a friend or family member. Either way, the product comes back because it did not do what the customer expected.
Reduce Customer Returns and Increase Customer Loyalty With ReverseLogix
Returns are inevitable, but they can be managed well. The ReverseLogix returns management system applies your returns policy consistently, keeps customers informed at each step, flags suspected fraud and captures the reason for every return, so you can fix the causes and reduce returns over time. Get a demo today.
Frequently Asked Questions
Q1. What can businesses do to reduce product returns?
Businesses can reduce returns by providing accurate product descriptions and images, offering clear sizing guides, ensuring product quality, and improving their service and communication to encourage customers.
Q2. How do product returns impact businesses?
Product returns can be costly for businesses due to shipping, restocking, and potential losses from damaged or unsellable items. Too many can add pressure to the return process and negatively impact customer experience and brand reputation.
Q3. What are some tips for customers to avoid needing to return products?
Customers can reduce the likelihood of returns by carefully reading product descriptions and reviews, paying attention to sizing information, and considering their needs before purchasing.
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