New research indicates that returns policies are playing a growing role in where British consumers choose to shop and where they stop shopping.
Conducted by e-commerce operations platform Loop, the study covered more than 1,000 UK consumers and 200 UK retail decision-makers.
It found that 55% of shoppers have either dropped a purchase or ended their relationship with a retailer because of that retailer’s returns approach.
The findings are published in Loop’s report ‘The Returns Revenue Gap’, which examines the post-purchase experience across returns, exchanges, tracking, refunds and communication, and their role in long-term loyalty.
The report also points to rising returns fraud. According to the research, 31% of consumers said they have given an inaccurate reason for a return at least occasionally, while 26% said they have sent back a different item from the one originally purchased.
Among retailers, 58% said false damage or missing-goods claims are among the most common forms of fraud they encounter.
Another 41% said they regularly deal with returns where the item received is different from, or more damaged than, the one sold.
Manual reviews remain the most widely used safeguard, cited by 56% of retailers, compared with 16% using AI or machine learning.
The study also found that 32% of shoppers knowingly order multiple sizes or colours intending to return some items.
On the retail side, 76% said the returns experience affects customer loyalty.
At the same time, 68% said stricter policies could drive shoppers to rivals, while 66% said they are worried about backlash on social media or review sites.
However, just 6% identified customer churn as one of their main post-purchase concerns, which the report says indicates a continued focus on operational cost rather than retention.
The research also found that 61% of consumers always or often check a retailer’s returns policy before buying online while 92% say return fees affect their broader online shopping behaviour.
It also found that 24% would pay for returns if it delivered a more premium experience.
Loop CEO Hannah Bravo said: "Shoppers are judging brands on what happens after the sale, and that judgment turns into action. Looking at the data, shoppers are saying that a bad returns policy has made them walk away from a brand, whereas many retailers still aren’t recognising or acknowledging this risk.”
