Klarna research showcases normalisation and growth of returns

Klarna research showcases normalisation and growth of returns

84% of UK shoppers won’t come back to a brand if they have a poor returns experience, according to Klarna research across 2,000 people.

Three quarters say an easy process is an essential factor in their choice of retailer. 78% claim free returns mean they would buy more with a retailer over time. For 86%, this option will make them loyal and more likely to keep coming back to a brand. 84% want to be able to choose whether to return an item in-store or via post or pickup, and a third would be more likely to buy something online if they had the opportunity to pay for it after trying it at home.

“Many of our customers are frequent buyers and like to experiment with different looks and sizes at home, particularly with our new collections. So, as with all e-commerce fashion businesses, we’ve built returns into our core business model,” says Paul Masters, COO at InTheStyle.

“And to give our customers the flexibility and freedom to try pieces from our latest collections before committing to a purchase - just like you would in store - we introduced Pay later. Any concerns we had about the rise in returns this would create have been offset by an increase in purchase frequency, basket values and customer loyalty.”

The retailer has seen a 31% increase in average order value when shoppers use Pay later and a 47% increase in order frequency compared to other payment methods. “In a competitive market it’s not only helping us drive sales from our existing client base, it’s become a powerful acquisition tool for converting new shoppers,” Masters concludes.

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