Delivery Matters

ReturnsUnderstanding online shopper returns behaviour in 2017

Contents 02 Introduction

03 Key trends

04 Top returns trends for 2017

05 Returns

Returns Matter

06 Returns are part and parcel of online shopping

07 Returns are important to shoppers

08 Free returns can affect retailer choice

09 Key reasons for difficult returns

10 Ease of return really matters

11 Who is more likely to make returns?

12 What’s on the return list?

13 Zooming in on clothing

14 Key reasons for returning clothes

15 Key reasons behind non-clothing returns

Return Methods

16 Make returns labels easily accessible

17 Resealable packaging makes returns easy

18 Why shoppers prefer to return via a Post Office® branch

19 The importance of tracking returns

20 Why are these tracking features important?

21 In summary

22 Returns must-do’s

23 Royal Mail services

24 Services to suit your customers 25 We can help your business deliver

Delivery Matters for returnsWelcome to Delivery Matters, now in its ninth year of providing the latest trends and insights in UK and international online shopping. An important part of that landscape is the returns process, so we’re taking a look at how expectations and preferences have changed in the two years since our last returns report.

Unsurprisingly, given its popularity among online shoppers, clothing is the most commonly returned category. We found that three in four returners who had bought clothing, returned an item within the last three months. The reasons for this are diverse, so we’ve taken a closer look on pages 13 and 14.

We also found that returners’ expectations are high, with shoppers wanting free returns on almost all online orders. 70% of shoppers told us they didn’t have to pay for their most recent online return, while 60% believe there shouldn’t be a minimum spend to be eligible for free returns. Essentially, free returns are becoming a natural expectation for many shoppers when they buy online.

An easy, hassle-free returns experience is also high on the list of shopper demands, with 88% of returners saying they’d be likely to shop again with a retailer that provided resealable packaging.

Convenience is important too, which is why the Post Office® remains by far the most preferred place to drop off returns, with Royal Mail being the preferred carrier. When it comes to repeat business, it’s interesting to note that when shoppers know a retailer uses Royal Mail or the Post Office®, they’re more likely to buy from them in the future.

As for the present, we hope you enjoy reading the latest returns insights and expectations we’ve learned from shoppers in 2017.

Nick Landon Managing Director of Royal Mail Parcels

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02

Introduction

This year’s report has two key findings for retailers:

Shoppers expect free returns

Clothes are the most purchased category, but also the most returned. 74% of respondents said they’d purchased clothes online, and of those 75% said they had recently returned an item of clothing. And with 70% of them not having to pay for their latest return, it’s no surprise that three in five expect no minimum spend to be eligible for free returns.

Shoppers expect simplicity

There’s now an unparalleled expectation of ease when it comes to returns. 81% say they prefer returns labels to be included with purchases, and nearly nine in ten would consider themselves likely to shop with a retailer again if resealable packaging was provided.

Top returns trends for 2017

Key trends

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63%3

Returns Matter

Return Methods

of those that have made a return

in the last three months found it ’easy’ to return

items bought online

is the average number of items

that returners have sent back in the last

three months

Did you know?Returners’ expectations are high. Shoppers are used to free returns and expect the returns process to be easy

The average returner in the UK has sent back three online purchases in the last three months. In a sign that retailers are beginning to tune in to customer expectations, more than half of returners tell us that they now consider the returns process is more straightforward.

Returns are part and parcel of online shopping

Returns Matter

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06

In 2018, most online shoppers expect free returns to be offered by retailers. So much so, that 47% say they wouldn’t shop with a retailer again if they charged for returns.

In addition, three in five shoppers expect to receive free returns regardless of the amount spent. Where this isn’t offered, a third of shoppers would switch to a different retailer who does offer free returns.

Attitudes towards free returns:

When it comes to returns, shoppers expect you to make things as easy and efficient for them as possible. They believe guidance on returns labels is important and the speed of refund after a return is key. They also expect to find returns information on the seller’s website.

Shoppers who return items believe it’s important to:

Free returns can affect retailer choice

Returns are important to shoppers

Returns MatterReturns Matter

60% 18% 13% 6% 2%

Always expect free returns

Expect to spend over £20

Expect to spend over £30

Expect to spend over £50

Expect to spend over £75

Did you know?

47% of shoppers would be unlikely to shop with a retailer again if it charged for returns

Expert adviceClear information and fast refunds are crucial to a positive returns experience, so it’s vital that retailers build these in to their returns process.

A helping handThe Royal Mail Returns portal allows you to offer online shoppers a full, clear and simple online returns experience. Retailers can choose when to refund their shoppers at any stage in the returns process

If a retailer only offered returns over a certain value, what would shoppers do?

said they would use a different

retailer

36%

said they would abandon the

order

11%

96%get notified of a refund upon

their item being returned

74%find returns

information on the retailer’s site

75%have guidance

about which returns label to use

75%get refunded quickly after

a return

71% find returns

information on the marketplace seller’s page

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Returns

Shoppers are most likely to cite shortage of time as the main barrier for returns. Some also struggle to negotiate the returns with the seller because of disagreements over the condition of goods, while others have difficulties in contacting the seller directly when they buy through an online marketplace.

Key reasons for difficult returnsReturns Matter

Expert adviceRetailers should be wary of causing unnecessary friction with customers wishing to make returns. Marketplace seller ratings could also suffer from negative customer reviews.

A helping handWith Royal Mail, shoppers have access to over 13,000 drop-off points for their returns at Post Office® branches and Royal Mail Customer Service Points.

We asked shoppers who had returned an item they bought online what they would do if they had a difficult return experience. The majority said they would take their custom elsewhere.

Ease of return really mattersReturns Matter

Expert adviceInvest in a good returns proposition and display a clear returns policy on your website to reassure prospective customers. Offer a free/prepaid returns service and ideally include a returns label with the item sent.

I do not have the time to package

and return items.

With sellers I doubt it will get there and I will get refunded.

There is no direct contact with the seller, I am waiting for eBay

to facilitate the return.

There was a disagreement over

the condition of goods returned.

of shoppers would be less likely to shop with a retailer

again following a difficult returns experience

60%

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Returns

Our research shows a pattern emerging when it comes to the frequency of returns. We see that it’s weighted towards younger shoppers, with males and urban dwellers also more likely to return items from an online marketplace.

Who is more likely to make returns?

Returns Matter

Young shoppers (18-34 years)

typically return more items than older shoppers (55+) and are more likely to have returned something from an online marketplace.

Males and urban dwellers

are also significantly more likely to have returned an item bought on an online marketplace.

Given its nature and how popular it is to buy online, it’s no surprise that clothing and footwear are the things that shoppers return most often. Electrical items are the most returned category after clothing and footwear.

Most commonly returned items:

What’s on the return list

75% 38% 37% 32% 27% 26%

Clothing Footwear Electrical goods

Accessories (e.g. handbags)

Computer/PC/Laptop/

Tablet

Sportswear/sports

equipment

Question: You said that you have returned an item that you ordered online in the last 3 months. Which items have you returned? Base: All respondents (1,320)

customers purchasing women’s

clothing returned an item within the last three months.

Returns Matter

3in4

#DeliveryMattersReturns

11 12

With clothing being the most popular category for shoppers to buy online, we decided to unpick it to take a closer look at what’s being returned.

Women’s clothing – returns

Dresses are the most commonly returned item, which is mainly driven by younger female shoppers.

• Dresses – 37%

• Crop tops/t-shirts – 22%• Trousers/jeans – 20%• Coats/jackets – 15%• Jumpers/cardigans – 12%• Shoes – 12%

Men’s clothing – returns

More than one in five shoppers have returned trousers/jeans and shirts. Younger shoppers are a lot more likely to return footwear they’ve bought online.

• Trousers/jeans – 28%• Shirts – 23%• Coats/jackets – 20%• T-shirts/polo shirts – 16%• Jumpers/cardigans – 15%• Shoes, boots and trainers – 13%

Zooming in on clothingReturns Matter

37%returned dresses

Most commonly returned items of women’s clothing:

We asked online shoppers who had recently returned an item of clothing why they did so. It’s clear that the item not fitting is the main issue. However, it’s interesting to note that one in ten say that they order more than one size and return the one that’s not needed.

Most common reason for returning clothes:

Key reasons for returning clothes

Returns Matter

Expert adviceWhile the high rate of clothing returns is to be expected given the challenge of getting the right fit, it’s also important to bear in mind that as the process becomes increasingly familiar, returns can be an upfront part of the purchasing process.

42% 32% 20% 20% 13% 11%

Item did not fit

Wrong size Not suitable for me

Not what I expected

Quality not adequate

Ordered more than one size

28%

returned trousers/jeans

Most commonly returned items of men’s clothing:

#DeliveryMattersReturns

13 14

Shoppers generally prefer to receive a returns label with their item, but only 42% are currently provided with one. Returners also like the option to receive a QR code by email, to enable them to print their label at a drop off point, but only 4% are currently offered this choice.

Preferred way to access a returns label:

Make returns labels easily accessible

Return Methods

A helping handWith Labels to Go, shoppers are sent a QR code to their mobile, they then just drop their parcel and print their label at one of 1,200 Royal Mail Customer Service Points nationwide. This service will be available soon in Post Office® branches.

For more information visit royalmail.com/labelstogo

Returners tell us that, when it comes to non-clothing categories, items that don’t meet expectations or are faulty are the most common reasons for sending them back. However, items arriving damaged is a significant issue – one in six have returned something for this reason.

Key reasons behind non-clothing returns

Returns Matter

Reasons for returning a non-clothing item: 23%

Item faulty

24%Not what I expected

15%Not as described

16%Wrong item sent

16%Item arrived damaged

returned an item because it arrived

damaged

16%

Expert adviceWhen you send an item, make sure you use robust packaging and a carrier with low damage rates.

61% 12% 9% 8% 6%42% 15% 18% 13% 4%

Used a return label sent with the original item

Received a return label

by email

Downloaded the return label from the

retailer’s website

Downloaded the return label from a delivery

company website

Received a QR code by email and

printed label at drop off point

Used last timePreferred method

#DeliveryMattersReturns

15 16

Online shoppers tell us that when it comes to returns, the Post Office® is their preferred and most commonly used method.

Online shoppers tell us that convenience is the main reason they prefer to return items via the Post Office® – with almost all saying they have one close to their home or work. Positive past experiences are cited as strong reasons for using the Post Office® again.

Return Methods within shoppers’ top three preferences:• 60% prefer the Post Office®

• 33% prefer the retailer’s physical store

• 31% prefer an alternative drop-off point/parcel shop

• 31% prefer a collection in the day.

Why shoppers prefer to return via a Post Office® branch

Return Methods

of online shoppers prefer to return items

via the Post Office®

60%

I have never experienced any problems using

this method

I trust the brand as it is established

It’s convenient and just around

the corner

It’s the nearest convenient returns place and is fairly

close to where I live

UK online shoppers tell us that resealable returns packaging is a popular option for them. In fact, nearly half say they’re extremely likely to shop again with a retailer who provides resealable packaging with the purchase.

Likelihood of shopping again with a retailer that provides resealable returns packaging:

Resealable packaging makes returns easy

Return Methods

Did you know?If retailers make the effort to include resealable packaging to help make the returns process easy, shoppers are highly likely to reward them with repeat business.

44%extremely likely

28%very likely

16%quite likely

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17 18

We asked online shoppers who make returns how important different tracking features are when they send an item back. The majority believe it’s important to be able to track the status of the item, receive proof of despatch and delivery and would like confirmation the item has been received.

Most important tracking features when returning an item:

The importance of tracking returns

Return Methods

81%want to receive

proof that the item has been posted

79%want to receive proof of delivery

70% want confirmation

the return is received

73%want to be able to track the status

of the item

For shoppers who told us these tracking features were important to them, we asked why. Their answers show they’re after reassurance and that they like to have proof of postage and delivery. This is so they know their items have been received and their refunds processed.

Key reasons why tracking features are important to shoppers:

Why are these tracking features important?

Return Methods

Tracking feature

Ability to track status of returned item

Proof that item has been posted

Proof that item has been delivered

Receiving an SMS/email confirming receipt of return

Key reason

49% – item is of high value and it reassures me

64% – so I have evidence that I returned my item

64% – I like to know my item has been received

54% – so I have evidence that I returned my item

Expert adviceShoppers appreciate reassurance when they return items, so it’s important for retailers to have methods in place to provide it.

#DeliveryMattersReturns

19 20

Make it free

Online shoppers have strong expectations of free returns – they now see them as a natural part of the delivery process. So retailers should build them in as standard to help create trust and repeat business.

Make it easy

Customers want a straightforward, hassle-free returns experience, so retailers need to be prepared to meet this expectation with a seamless returns process. It’s also important to bear in mind how much shoppers appreciate the reassurance and proof that tracking gives them when returning items.

Make it efficient

Retailers can offer a positive experience to their shoppers by managing returns more efficiently. Our Tracked Returns portal gives the opportunity to refund shoppers as soon as the item enters our pipeline, and helps to make stock work harder with up to date reporting.

Returns must-do’s

In summary

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Royal Mail Returns services

• Royal Mail Special Delivery Guaranteed Returns® provides a guaranteed next day service by 1pm for the return of urgent or valuable items. With full tracking, inclusive compensation and proof of delivery, plus a Saturday delivery option

• Royal Mail Tracked Returns® 24 and 48 make it easy for customers to return or exchange items with a delivery aim for the next working day or 2-3 days respectively

• Royal Mail Tracked Returns® offer up to £100 compensation as standard

• With 11,500 Post Office® branches and 1,200 Royal Mail Customer Service Points to choose from, it’s easy for customers to return their items with Royal Mail

• You can offer your customers free returns by including a unique barcoded returns label in every parcel, or let them print their own label from our online returns portal royalmail.com/returns

• The returns portal allows you to offer online shoppers a seamless online returns experience. They simply enter a few details about themselves and their return. We provide you with information about the return so you can manage shoppers’ refunds and your stock more efficiently

• Our new service, Labels to Go, allows shoppers to print their returns label at one of 1,200 Royal Mail Customer Service Points nationwide, dropping their item off at the same time royalmail.com/labelstogo

Services to suit your customers

About this research

Independently conducted by Trinity McQueen, this research was based on a sample group of 1,320 UK online marketplace shoppers who had returned an item purchased on the internet in the last three months.

They completed a 13-minute survey, optimised for mobile and tablet devices, between 3-10 May 2017. This research is representative of online shoppers that make returns in the UK.

Royal Mail services

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2017

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United Kingdom Online Marketplaces

Ireland USA Germany Australia FranceSweden

Canada

Italy

Russia

India

Japan

2016

2015Returns

China

We can help your business deliverThank you for reading Delivery Matters for Returns – we hope you found it useful. If you’d like to find out more about how we can help with your deliveries, get in touch with your Royal Mail account manager, or call us on 08457 950 950*.

If you’d like to find out more about our research, or download the rest of our series, visit royalmail.com/deliverymatters

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Royal Mail services

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