5 in 10 consumers abuse flexible return policies to try or wear items they couldn’t otherwise afford
A new report by Forter reveals that consumers are flouting retailers’ return policies more than ever before, with over half of Brits (52 per cent) admitting to deliberately abusing online retail policies in the last 12 months.
On top of this, 18 per cent say if a retailer doesn’t have a policy they can abuse, they will never buy from them again. In their eyes, retailers are now making it so easy to abuse the system and get free stuff!
The top ways customers are bending the rules include:
- 6 per cent deliberately send the wrong items back
- 22 per cent buy in bulk to avoid delivery costs
- 21 per cent create their own unauthorised “try before you buy” service through bulk purchasing and free returns
- 31 per cent abuse flexible return policies to try or wear expensive items they couldn’t otherwise afford
- 12 per cent create multiple online accounts with the same retailer to receive promotions and perks
Most alarmingly, seven in ten of the 2,000 UK and 2,000 US consumers surveyed believe it’s the retailers at fault for making it easy to abuse flexible return policies. Well over half (58 per cent) say retailers make it easy to open multiple accounts to take advantage of promotions. Identifying money as the key driver, over a quarter (29 per cent) of shoppers who have taken advantage of companies’ policies when shopping online in the last 12 months admitted to doing so to avoid paying full price.
The cost-of-living crisis has had a marked impact on shoppers’ relationships with retailers. Nearly half (49 per cent) of UK consumers buy more from retailers with lenient return policies due to financial concerns. A quarter (25 per cent) of those surveyed cited rising costs due to inflation as a motivator. What’s more, almost two-thirds (63 per cent) of UK consumers rely on retailers’ promotions and free perks more now than in the past.
Retailers face a delicate balancing act of maintaining customer loyalty without exposing their business to additional risk. The research reveals that overly restrictive policies can have serious unintended consequences for the business as more consumers seek convenience and affordability.
Doriel Abrahams, Principal Technologist at Forter, said: “Policy abuse is costing retailers billions of pounds. Our report found that a one-size-fits-all approach to any policy – whether it’s returns, promotions or loyalty programmes – will leave today’s retailers exposed. Instead, by knowing who they’re doing business with, retailers can strike the crucial balance between customer-friendly policies and protection against serial abuse.”
