With January a bumper month for retail returns, survey results have been released showing one in three online shoppers aren’t happy with the process.
The national consumer research conducted late last year, commissioned by Australia’s largest transport and logistics insurance specialist, NTI, found 30 per cent (%) of online shoppers were dissatisfied with returns or refunds initiated when a package was lost or damaged.
NTI’s National Development Manager – Distribution, and Parcel Protect spokesperson, Bert Webster, said the start of the year is traditionally a busy time for retailers as shoppers return unwanted Christmas gifts or sales purchases.
“Returns, refunds, or replacements are also underway for packages which were damaged or lost during delivery. Our national consumer survey found around two-thirds of Australians have experienced this in the past (69%) with that number jumping to 79% of shoppers in the Millennial age group, so the problem is significant,” Mr Webster said.
“When this happens, it’s often up to the customer to chase a resolution. Our survey found resolution time is a key area of frustration – for more than a third (39%) of respondents, it took longer than a fortnight to resolve the issue, and more than 1 in 10 (11%) were still waiting for an outcome.”
Mr Webster said there was a lot of uncertainty around who to turn to when a package was lost or damaged.
“It can be annoying and upsetting when this happens. Not only do you want the item you’ve purchased, but there’s the financial implication too. The average value of the packages that our respondents had had damaged or lost was $110, this means purchasers are out of pocket until they obtain that resolution,” he said.
“Overwhelmingly, shoppers contacted the retailer to fix the problem (61%) but frustratingly, almost a quarter (22%) of shoppers who reached out to either the courier or the retailer were redirected and told to contact the other party.”
The research also shows the impact the returns and refunds process can have on the likelihood a buyer will return to an online store.
“There’s great opportunity for word-of-mouth recommendations for retailers who handle lost or damaged parcels well,” Mr Webster said.
“The research found 1 in 10 shoppers (10%) said they would recommend a retailer because of a positive returns and refunds experience. In the Gen Z age bracket, that jumps to 25% which from a business perspective, may represent a significant portion of your market or your potential market.”
The survey found more than three quarters of Australians (78%) would be more likely to buy from a retailer that includes shipping insurance to protect damaged, lost, or stolen goods.
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This media release contains general information only and does not take into account your objectives, financial situation or needs. You should obtain your own professional advice based on your personal circumstances. Our Parcel Protect products are subject to limits and exclusions. NTI is not responsible or liable for your use or reliance on the information in this media release.