Easy and instant returns are integral to the success of online retailers. Happy Returns, an in-store return center for online purchases, recently conducted a survey of online shoppers, and 73% of shoppers selected returns as their least favorite part of online shopping. The survey found that 28% of consumers shop less online than they otherwise would because they don't want to hassle with returns and 85% of shoppers are more likely to shop if the retailer offers and easy returns experience.

“We started the business a couple of years ago recognizing that this was a problem, and the results of the study have validated what we have been saying for a couple of years now,” David Sobie, CEO and Co-Founder of Happy Returns, tells GlobeSt.com. “It is important in terms of where people shop and if they will ever shop with a retailer again. Some of the stats that we uncovered in doing this research really speak to that. There is a whole segment of customers that people who don't have an optimized return process are missing.”

The ideal returns experience is defined as having no cost, immediate refunds, the ability to drop returns to a local store and allowing returns without a receipt. A majority of millennials—a major consumer of online goods—prefers returning goods purchased online in a physical store. While in-store returns are more convenient for shoppers, mail-in returns present other challenges, aside from wait time. The survey found that 44% of shoppers under age 30 find it a hassle to print return labels and 62% of shoppers don't have 24/7 access to a printer.

Returns were the biggest challenge for online shoppers. The second biggest challenge was delivery time, but only 15% of shoppers surveyed selected “waiting” to receive items has their least favorite part of online shopping. “When you think about all of the time and energy that has gone into trying to solve the delivery problem, it is pretty remarkable that returns are so much more of a pain than the delivery process,” adds Sobie. “This gives us more conviction around what we are doing.”

The results of the survey have helped to drive interest in the Happy Returns platform. After revealing the results last month at a private dinner, Happy Returns signed online retailer Koio Collective. “The common response was that all of this makes sense, and I know this as a consumer, but I never thought about it,” says Sobie. Returns are an afterthought, and there isn't one person in the organization that thinks about returns. There is really an ah-ha moment from retailers.”

Many brick-and-mortar retailers have created an omni-channel experience to serve shoppers needs, but Happy Returns provides an easy returns solution for online-only retailers. “We are creating the omni-channel returns experience that customers want but that retailers that sell only online can't create,” says Sobie. “We feel great about the recent partnerships because we think that is the market waking up to this challenge.”

Instant Insights /

Return Biggest Challenge for Online Shopping

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