The National Retail Federation says return policies are essential for local and national retailers as online shopping continues to grow.
SPOKANE, Wash. — The National Retail Federation (NRF) reports that return policies are an essential part of establishing relationships with customers, but with the growth of online shopping, the report also describes that return policies can make or break both large and small retailers.
“Having a bad experience making a return can have a major impact on that brand,” said Mark Johnson with the Washington Retail Association
The NRF says more than half of Gen Z consumers engage in what’s known as “bracketing,” which is when consumers buy multiple items at a time with the intent to return some items.
Johnson says the nation will likely see $890 billion in returns from 2024 and Washington state will likely see just under $18 billion.
“In order to stay competitive, you have to be nimble, you have to be flexible, you have to meet the consumer where they want to be met,” said Johnson.
In Spokane, many shoppers seem to prefer online shopping.
“I really like shopping online, it’s a great deal and you do not have to get out of your house. If the return policy is not good, I will probably not shop at the store again,” said Lily Chapman, a local shopper.
A few local shoppers say the perks of online are search engine optimization and the ease of use.
“I feel like it’s a 75 to 25, with 75 being online. In Lewiston there’s a lot less stores, so in college I have no options to shop,” said Kayleigh Philippi, another local shopper. “I am returning stuff all the time, when a store has a better return policy, I am more likely to go there.”
“I usually can’t find everything that I want to find from a manufacturer from a store, so I am usually going online,” said Jordan Bailey, a local shopper.
But, there are some people who still prefer to shop in-person.
“Trying things on, especially coming from a small town to here, its way more convenient to try things on and if I need to return it, its just a 10-minute drive,” said Henry Dingman.
Businesses are also learning to balance in-person shopping experiences rather than planning for large numbers of returns.
Owner of Coeur d’Alene “Mix It Up” Beth Rich says her store does not follow the NRF trend.
“We quite honestly hang our reputation on not only the quality of our merchandise and the variety, but also the customer service of our store,” said Rich.
So, while there are some outliers like Mix It Up, experts say the pandemic forced many retailers to innovate and create online presences to avoid going out of business.
The NRF expects around two thirds of retailers to upgrade their return capabilities in 2025 to match demand.
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