The Growing Problem of Customer Returns

Published on
February 18, 2020

What happens to customer returns once it returns to the retailer? Why is the number of customer returns increasing?

It is well known that E-Commerce giants such as Amazon and Walmart are the gold standard when it comes to customer returns and a positive customer experience. With more relaxed return policies that often include free shipping and hassle-free returns, the growing problem of customer returns is only going to increase.

Based on a survey conducted by Invesprco, it is found that 30% of all products ordered through an online retailer are returned. Additionally, it also found that 92% of consumers are more likely to purchase an item through the same online retailer if their returns policy is clear and favorable.

This results in 5 billion pounds of waste and 15 million metric tons of carbon dioxide per year. The growing problem of customer returns has hit the fashion and clothing retailers the hardest, with returns rates being as high as 30% to 40%.

It was also found the #1 reason why customer returned their online order was because they received the wrong size, fit or color. This leads to a negative customer experience and often leads them to not purchasing from the same online retailer again. Fashion and clothing are often left no choice but to dump or incinerate the majority of their customer returns.