KPMG Research Shows Consumer Demand For Free Delivery & Returns

• 42% of consumers have stopped an online sale due to no free delivery or free returns option.
• 13% of consumers admit to buying but returning multiple items in one order to find what they want.

Over one in ten consumers report buying multiple items when shopping for clothing or shoes online in order to find the product they like or the right fit – and return the rest.

The finding comes from a KPMG in the UK survey of 3000 UK consumers, which highlights the importance of free delivery and free returns to online shoppers – but also the challenge posed to retailers from overuse of such schemes.

In recent years, serial returner cohorts have placed pressure on the cost of returns for some retailers and even led to resulting changes in postage policies. The KPMG research highlighted the scale of the issue for retailers from consumer online buying behaviour, with:

• 13% of people saying that when buying clothes or footwear online they generally buy multiple sizes in order to find what fits best and then return the rest.

• 12% reported generally buying multiple items in one order to see which products they like the most and then return the rest, with this practice rising to a quarter of those aged 18 to 24.

• 6% even said that they buy an item to use or wear and then return ‘as new’ once done.

But despite the challenge of over ordering for the retailer, the value of offering free delivery and returns options was also evident in the research, with:

• Four in ten consumers (42%) saying that no free delivery has otherwise stopped them from making an online purchase.
  
  
• 41% cited a minimum spend level to access free delivery also stopping them from buying.
  
  
• 41% of consumers saying that no free returns postage has stopped them buying online from a company.
  
  
• While 14% said no drop-off option or returns locker close to their home stopped them making an online purchase – rising to a quarter of those aged 18 to 24.

Reflecting upon the findings, Linda Ellett, Head of Consumer, Retail and Leisure for KPMG UK, said: “Free delivery or free and convenient returns options remain a key purchasing driver for many consumers shopping online. Companies are having to weigh these consumer demands up against the cost of such schemes, including due to a cohort of consumers that are repeat buying with no intention to keep all items – something that is clear in our research.

“Savvy retailers are increasingly utilising purchasing data to categorise customers into those making genuine returns choices versus the unprofitable serial returner cohort. And as technology, including AI, evolves further, the ability to target those taking advantage of free returns policies will improve. This will help retailers reduce the risk of losing those who could become a lifetime shopper and are just gradually becoming accustomed to the brand’s sizing and fit.”

About the polling

One Poll, a member of the British Polling Council, surveyed 3000 UK consumers online between March 5 and 11 for KPMG UK, asking:

Which, if any, of the following ever stop you from buying online from a company? (Select all that apply)

• 42% No free delivery.

• 41% Minimum spend level higher than you want, in order to get free delivery.

• 41% No free returns postage policy.

• 35% Product requires a subscription to be established in order to get best price.

• 29% Retailer requires you to download the app to purchase.

• 20% Retailer will only exchange in-store.

• 17% Retailer requesting sign-up on the basis of making purchasing quicker next time.

• 14% No drop-off or locker service used by the seller near to your home, should you need to return the product.

• 13% None of the above.

Which, if any, of the following generally describes you when buying clothes or footwear online? (Select all that apply)

• 35% I buy an item and only ever return it if it’s faulty.

• 33% I buy an item and only ever return it if the size isn’t right.

• 27% I buy an item but return it if the quality or look isn’t what you hoped for.

• 13% I buy multiple items in one order to find what size fits best and return the rest.

• 12% I buy multiple items in one order to see which you like most and return the rest.

• 6% I buy an item to use or wear and then return ‘as new’ once done.

Source : KPMG

Image : shutterstock / 1491472862 / New Africa

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