CrossView Study Finds Retailers’ Return Policies Often Unclear, Inconsistent

- December 15, 2010




CrossView Study Finds Retailers’ Return Policies Often Unclear, Inconsistent

Santa Clara, CA – CrossView, a premier provider of cross-channel commerce solutions, today announced the results of a study of some of the country’s largest retailers’ return policies. The study evaluated 88 U.S. retailers -- including Best Buy, Target, Sears and J.Crew – and found significant variations.

Key findings include:

  • Over half do not include their return policy on the home page.

  • Of those retailers surveyed, 51% did not link to their return policies from their home page. “The fact that so many are overlooking such a fundamental usability issue and forcing customers to go digging for this information on their own is problematic, and may have a detrimental effect on retention,” notes Jason Goldberg, vice president, Strategy & Customer Experience, CrossView.

  • 65% require a receipt for returns. “This has obvious fraud-prevention implications, but during a season where many purchases are gifts, retailers should investigate other verification options."

  • One-quarter does not allow cross-channel returns. “Cross-channel customers have been proven time and again to be the retailer’s most profitable shoppers. Consumers form a relationship with an entire brand, not the individual channels, and so when they are confronted with seemingly arbitrary unfriendly policies, they punish the entire brand not just the particular channel. Fortunately, there are technology solutions available that deliver a more cohesive experience across channels.”

Among the retailers who did not allow multiple channel returns:

Adidas, American Apparel, Anne Klein, Barney’s New York, Donna Karan, Ed Hardy, Etienne Aigner, Forever 21, Fossil, Guess, Lego, LuLuLemon Athletica, Maidenform, Modell’s Sporting Goods, Oakley, Orscheln, PetSmart, Skechers, Steve Madden, Under Armour, and Victoria’s Secret.

According to Goldberg: “This study illustrates that while retailers have a handle on the overall importance of consumer-friendly policies, there are some glaring deficiencies – particularly in the holiday season when returns are incredibly important to the customer experience. Retailers need to be aware that their return policy will have profound effect on overall purchase decisions.”

Adds Goldberg: “An estimated $43 billion worth of merchandise was returned during last year’s holiday season alone, so clearly this is a common part of the customer experience. As such, gaps like the ones uncovered can be harmful to customer satisfaction and retention rates. Frustrations around returns can impact brand loyalty immediately and cause long-term damage.”

Goldberg also notes that this year’s unprecedented Black Friday and Cyber Monday sales figures – over $1 billion on Cyber Monday alone, a 16% increase from a year ago – mean the stakes are even higher for retailers when it comes to returns. “The sheer amount of merchandise purchased this year is going to exacerbate what is already a pressing customer service dilemma for retailers, because returns will also likely reach record numbers. Getting this aspect of a customer’s experience right has arguably never been as important as it is now.”


About CrossView:
CrossView is a premier provider of cross-channel commerce solutions and services that enable a smarter, more personalized shopping experience. Our software unifies the Web, stores, call centers, mobile devices, and other channels on a single, flexible platform. Advanced analytics integrated across the platform deliver intelligence and visibility into buying behaviors across all sales channels. To learn more about CrossView, visit www.crossview.com.