Customers hate it when they have to pay for product return

By: Trademagazin Date: 2023. 04. 20. 12:10

Customers are even ready to abandon their favorite brand if they have to pay for the return of the ordered product, according to the latest research by SAP Emarsys. Retailers are better off in the long run if they remove barriers to customers or lose their most loyal customers. According to experience, those who pay attention to this do not necessarily have to handle more return orders, but they do a lot to preserve customer loyalty. The SAP Emarsys survey can also provide important lessons for the Hungarian market.

Mature man delivering parcel with contactless payment, with bike, Quebec, Canada

The life cycle of products has become a significant challenge in terms of customer loyalty by 2023. According to research by SAP Emarsys, more than a quarter of British customers and roughly a third of Americans have turned away from a brand to which they were previously loyal due to the introduction of the return fee. 18 percent of Britons considered the move unfair, and 13 percent had already thrown out unnecessary goods because it was not reasonable to return them for extra money. The deadline is also a sensitive aspect: 40 percent of American customers left their previously favorite brand because the time available for returns was shortened. All of this poses a serious threat to customer loyalty.

With 23 percent of UK shoppers demanding changes to shipping and packaging practices, retailers are re-engineering. So far this year, 27 percent of British companies and 32 percent of their American counterparts have prioritized investing in the modernization of their delivery processes. The issue of sustainable packaging is also becoming increasingly important: every third brand emphasizes this as well.

All of this can provide remarkable lessons for the Hungarian market as well. It is worth paying attention to the mood changes of the Western European and overseas markets ahead of us in terms of development, since according to long-term experience, a similar change may occur in Hungarian customs over time. Even at home, consumers can easily turn away from webshops where the return of unwanted or defective goods is not free of charge. Since in Hungary, in a regional comparison, parcel sending and postal fees are quite high when measured in terms of purchasing power, it is even more important to consider whether the traders pass on the costs, as this can be of great importance in terms of consumer loyalty.