Welcome!

News Feed Item

Survey Finds 81% of Online Shoppers Not Likely to Purchase Again From Retailers Who Charge for Return Shipping

Actual Multi-Year Spending Data Reveals that Offering Free Return Shipping Substantially Increases Consumer Spending with Retailers

PHILADELPHIA, Dec. 14, 2012 /PRNewswire/ -- A new survey of online shoppers revealed consumers have higher expectations of online shopping than ever before. ShopRunner, which brings together a network of retailers to deliver powerful shopping services, conducted the survey to understand today's online shopping drivers and found that consumers are not concerned solely about free shipping on purchases, but free return shipping is increasingly at the forefront of their needs.

(Logo: http://photos.prnewswire.com/prnh/20120628/LA31865LOGO)

The survey, commissioned by ShopRunner and conducted online by Harris Interactive, polled 3,036 adults in the United States ages 18 or over in December 2012 (2,839 of which indicated they shop online).  The results revealed negative economic consequences for retailers not offering free return shipping with 81% of online shoppers saying they are not likely to make additional purchases from websites that charge shipping on returns and 69% feeling that returning items purchased online is a complicated process.

This follows on the findings of a compelling recent September 2012 study from Washington and Lee University1, which contrasted the effect of paid or free return shipping on consumer behavior. Researchers tracked actual consumer spending over the course of four years and found that retailers' return shipping policies greatly affected customer spending and loyalty. Customers paying for their own returns universally decreased their spending, between 75% and 100% at that retailer by the end of two years after the return. In contrast, customers who received free return shipping universally increased their spending with that retailer between 158% and 457%.

Aside from consumer demands around returns, with the increasing prevalence of mobile devices, the ShopRunner survey also found that 67% of online shoppers would purchase more online from their mobile device or computer if they could use the same secure, easy check-out procedure across all websites.

With respect to choosing to buy online versus in retail stores, these shoppers showed that they value fast delivery and 77% would spend more online and less in stores if free 1-2 day shipping was offered.  Additionally, having more faster free shipping options would drive 65% of shoppers to procrastinate and put off making purchases longer than usual.

"These results demonstrate a huge opportunity for retailers to increase sales by meeting the increasing consumer demands for online shopping including free and easy returns, fast delivery, and streamlined checkout," said Fiona Dias, chief strategy officer of ShopRunner. "The bar has been raised by competitors, but it is challenging for most retailers to cost-effectively offer these shopping benefits on their own. With ShopRunner's unique network solution, participating retailers can offer compelling shopping services in an economically viable way and profitably grow their businesses."

With its expanding suite of services, ShopRunner helps retailers address online shopping pain points by leveraging the power of a cooperative network of 70 retailers.  Recently, ShopRunner has expanded its online shopping services beyond its initial offering of fast, free unlimited 2-day shipping. ReturnRunner offers consumers free return shipping and a simple way to return products using consumers' own mailboxes. Additional services include PayRunner, a fast and secure two click checkout process, and ShopRunner PickupPoints which gives consumers the option of picking up online purchases at nearby convenient retail locations.

For complete survey results and methodology, including weighting variables, please contact [email protected].

Survey Methodology
This survey was conducted online within the United States by Harris Interactive on behalf of ShopRunner from December 7-11, 2012 among 3,036 adults ages 18 and older. This online survey is not based on a probability sample and, therefore, no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact [email protected].

About Harris Interactive
Harris Interactive is one of the world's leading market research firms, leveraging research, technology, and business acumen to transform relevant insight into actionable foresight. Known widely for the Harris Poll® and for pioneering innovative research methodologies, Harris offers proprietary solutions in the areas of market and customer insight, corporate brand and reputation strategy, and marketing, advertising, public relations and communications research. Harris possesses expertise in a wide range of industries including health care, technology, public affairs, energy, telecommunications, financial services, insurance, media, retail, restaurant, and consumer package goods. Additionally, Harris has a portfolio of multi-client offerings that complement our custom solutions while maximizing our client's research investment. Serving clients in more than 196 countries and territories through our North American and European offices, Harris specializes in delivering research solutions that help us - and our clients—stay ahead of what's next. For more information, please visit www.harrisinteractive.com.

About ShopRunner
ShopRunner brings together a network of retailers to deliver powerful shopping services for its members. The first and only company to unite America's most sought-after retailers in such a mutually beneficial ecosystem, the ShopRunner network enables retailers to offer more deeply integrated shopping services than they could on their own.  As a result, ShopRunner members shop easily and often across ShopRunner's network of retail websites and stores, saving time and money with unlimited free two-day shipping, free and easy returns, as well as quick and simple checkout through PayRunner. Soon, members will also have the option of receiving their package at thousands of nearby ShopRunner PickupPoint™ locations. By making shopping easier, ShopRunner's 70 retailers including Toys"R"Us, American Eagle Outfitters, PetSmart, GNC and Sports Authority are better positioned to compete in today's marketplace. 

1 Amanda B. Bower and James G. Maxham III, Washington and Lee University, "Return Shipping Policies of Online Retailers: Normative Assumptions and the Long-Term Consequences of Fee and Free Returns," Journal of Marketing, September 1, 2012

Contact: Miranda Coykendall
Schwartz MSL
(415) 512-0770
[email protected]

SOURCE ShopRunner

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
"We do one of the best file systems in the world. We learned how to deal with Big Data many years ago and we implemented this knowledge into our software," explained Jakub Ratajczak, Business Development Manager at MooseFS, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addresse...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Machine learning provides predictive models which a business can apply in countless ways to better understand its customers and operations. Since machine learning was first developed with flat, tabular data in mind, it is still not widely understood: when does it make sense to use graph databases and machine learning in combination? This talk tackles the question from two ends: classifying predictive analytics methods and assessing graph database attributes. It also examines the ongoing lifecycl...
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.