Understanding Consumer Returns Behavior
Consumers return many of the products they buy. One study by post-purchase platform company Navar found that 58% of consumers even intentionally buy more goods than they intend to keep.
Consumer returns behavior is a complex and ever-shifting puzzle that many retailers and consumer goods manufacturers need to tackle.
After all, understanding the psychology behind why customers make returns can help businesses better plan their strategies and operations to maximize profits. Diving into various elements of consumer behavior related to returns—such as impulse buying, need fulfillment, psychological triggers, and wider trends— can offer insights into how this behavior works…and allow you to get ahead of it.
In this blog post, we'll explore the facets of customer return behavior.
What Impacts a Consumer's Decision to Make a Return?
Returning an item can be a hassle for both the consumer and the retailer. So, what exactly influences a customer's decision to make a return?
For starters, the product's quality and functionality play a crucial role. A flawed or ineffective item is more likely to be sent back. Similarly, a misleading description or an inaccurate representation might also drive customers to return the product.
Beyond the product itself, external factors such as shipping fees and return policies can also impact a purchase decision. Some consumers may discover that they’ve spent too much while shopping, then return items to recoup their funds. Others, as we’ve learned, purchase items with the intent of returning them.
Ultimately, a customer's decision to make a return is a complex process that involves various factors and considerations. By understanding these factors, retailers can work to build trust and satisfaction with their customers.
Here’s a deep dive into the factors that lead to consumer returns, and what they mean for the seller.
Impulse Buying
We've all been there, walking through the grocery store and suddenly finding ourselves staring down an endless aisle of snacks and treats. The temptation to indulge in a bag of chips or a box of cookies can be overwhelming, leading us to make impulsive purchases we may regret later.
According to an article by Ombori, shoppers make at least one impulse purchase per week, adding up to $5,400 per year.
But why do we do it? Experts say it's all about the brain's reward system.
According to an article by Psychology Today, "The simplest explanation is that some people just derive an enormous amount of pleasure from acquiring something new. The act of buying is an act of empowerment that may be felt all too rarely in other aspects of life.”
When we see something appealing, our brains release dopamine, the feel-good chemical, which can override our rational thinking and lead us straight to the checkout. Impulse buying can provide a temporary mood boost, but if the buyer later regrets their purchase, they may decide to return it.
Impulse buying represents an important revenue stream for many brands, but it can also fuel higher levels of returns. Mitigating returns of impulse purchases often depends on product quality, but it can also be determined by marketing and merchandising strategies.
Need
Marketers often define "need” as a buyer’s recognition that they need to make a purchase to solve a problem.
In many cases, that need might be sincere. A consumer who goes grocery shopping regularly needs food so they can feed their families. Someone working on home improvement projects may need new tools to complete their work.
However, sometimes "need” manifests where it isn’t necessarily warranted. A shopper might decide that they "need” a new pair of jeans because their friend or a favorite influencer recommended them. If they later determine that they don’t like the jeans, this could lead to a return.
Societal Trends
Since society is constantly evolving, products that are popular at one point may no longer be popular at another point.
Ultimately, societal trends can affect why people return the things they buy. For example, if everyone else is buying something, people might want to buy it too. Eventually, something that once seemed trendy, popular, or even essential might lose its appeal.
There are several examples of societal trends leading to purchasing frenzies throughout retail history. In the 1990s, mass-produced "Beanie Babies” toys became extremely popular among adults, albeit temporarily. They eventually lost popularity, resulting in many of the toys being discarded or returned.
During the COVID-19 pandemic, many consumers began stockpiling necessities, such as medical products and household staples. While many of those purchases were likely used, some of them likely weren’t and were returned.
Dissatisfaction
Consumer dissatisfaction is perhaps the most common reason for returned items. When products don’t meet consumer expectations, they may return them to try to recoup their funds.
Products that have been damaged in transit, have defects, or don’t live up to standards are all good candidates for returns. Often, addressing this issue is the sole responsibility of the manufacturer, as defects typically start at the plant.
However, marketers and brand specialists can also play a role in setting expectations for customers.
Get a Better Handle on Consumer Returns Behavior
In conclusion, return behavior can be a difficult puzzle to solve for businesses. However, understanding it better is an achievable goal.
By reviewing data from the past, improving communication with consumers, offering flexible return policies, and investing in rigorous product testing, businesses can start to gain a complete picture of their customers and their motivations, then potentially reduce return volume.
If you’d like to learn more about consumer returns behavior, don’t miss Consumer Returns 2023. It’s happening from October 2nd to October 3rd at the Austin Marriott Downtown in Austin, Texas.
Download the agenda and register for the event today.