What did holiday shopping look like this year? Well, we recently reported on how Mastercard — a company that just acquired Dynamic Yield from McDonald’s to personalize and contextualize offers to consumers — reports that retail sales overall were up 8.5% this holiday season (between Nov. 1 and Dec. 24). And online sales, said Mastercard, were up 11% compared to the same time last year.
Convenience Dominates Consumers’ Values
The online shopping surge has greater implications for the retail industry at large, mostly because retailers just have not perfected the digital-first experience. Convenience drives spend, and notable in Mastercard’s report, for instance, was that eCommerce sales were extremely popular with consumers this holiday season: eCommerce sales were over 20% of total retail sales compared to last year.
Yet sales represent just one piece of the holiday shopping experience. ’Tis the season for returns.
According to PYMNTS research, nearly two thirds (63%) of holiday shoppers will return at least one of their purchases and for a variety of reasons. The majority of returns are for the wrong fit, color or style — although in truth, it is really hard to know. Consumers often have a change of heart for a variety of reasons, and simply decide once they see an item that it no longer suits.
It’s also an opportunity to build a relationship with the customer — primarily because for consumers, it’s a generally cumbersome and frustrating process. Although most retailers have made return shipping easy with preprinted labels and convenient drop-off points, that’s just the starting point. Actually getting funds credited back to their account can be protracted. This year in particular, the time between the return shipment, receipt at the returns center, and refund can be as long as three weeks. That can put consumers who can’t do without those credits for that long at a financial disadvantage.
Consumers want retailers who are on their side and who have their best interests at heart. As PYMNTS reported, whether or not a merchant offers has an easy-to-understand return policy could compel over half of consumers — 55% — to make a switch over to this brand. And consumers want their shipping costs to be fair so they don’t feel taken advantage of. Interestingly, shipping costs deter nearly half — 48% — of consumers away from one company’s site to another when making a purchase.
Read more: Read More: 52 Mondays 2021
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More