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
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
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 addres...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
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, ...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
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, Lee...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.