According to a new survey by e-commerce company ESW (formerly eShopWorld), millennial and Gen-Z consumers are less likely to return unwanted online purchases.
With vacation returns skyrocketing due to the worldwide explosion in e-commerce sales, 56% of Gen Z and Millennial consumers are most likely to choose unwanted items, according to Global Voices: Cross-Border Shopper Insights not to return ”survey by ESW. The survey of nearly 15,000 consumers found that Gen Z and Millennials find returns inconvenient, expensive and bad for the environment.
ESW’s study also found that Gen Z and Millennials make up 60% of cross-border shoppers. However, more than half of each of these two cohorts admitted shopping at international retailers who ultimately didn’t want them but didn’t want to return. Unclear return policies, no local collection points and insignificant item costs were cited as additional reasons for not returning items. Overall, the markets where consumers were most likely to avoid returns were China (67%), India (64%) and the United Arab Emirates (64%), according to ESW.
“Removing the friction that Gen Z and Millennials associate with returns will be a huge win for all direct-to-consumer brands as these young adults continue to drive e-commerce growth across all markets,” said Patrick Bousquet-Chavanne, The President and CEO of ESW for America in a statement.
Bousquet-Chavanne also mentioned that free returns, scheduled pickups, and easily accessible pickup locations will all help reduce onerous return requests. “Brands that transparently communicate their sustainable shipping options for both deliveries and returns are likely to create more loyal customer bases across generations,” added Bousquet-Chavanne.
That news comes after a December report by commercial real estate company CBRE and returns logistics company Optoro found that the average vacation return would cost retailers two-thirds of the original price of the item, given labor, transportation, and storage costs. CBRE estimates that Christmas purchases worth at least 30%, or $ 66.7 billion, will be returned.