Online Shopping: The Pros and Cons of Returning Merchandise Online Versus in Store

The rise of online shopping has revolutionized the retail industry, making it easier than ever for shoppers to purchase products from the comfort of their own homes. However, it has also created a unique challenge for retailers: the issue of returns. As more and more shoppers turn to the internet to make their purchases, the number of returned items has also risen.

In fact, research conducted by 1Digital Agency shows that returns have grown exponentially in the last few years, with an estimated $369 billion in merchandise being returned in 2022 and $423 billion in 2023. This increase in returns has had a major impact on the bottom line of the retail industry, with some businesses facing significant losses due to the cost of processing returns. According to the research, the average cost of processing a return is around $8.50 per item, which can quickly add up for businesses that receive a large volume of returns. The issue of returns is even more pronounced in the online retail industry, where the cost of processing returns is even higher due to the added cost of shipping.

The question is, how can retailers minimize the cost of returns while still providing shoppers with the convenience of online shopping? The answer lies in understanding the pros and cons of returning merchandise online versus in store.

The Pros of Returning Merchandise Online

The biggest advantage of returning merchandise online is convenience. Shoppers don’t have to leave the house or take time off of work to return items, saving them valuable time and energy. Additionally, online returns are often processed much faster than in-store returns, allowing shoppers to get their money back quicker. Finally, online returns are often cheaper than in-store returns, as they don’t require the additional cost of shipping.

The Cons of Returning Merchandise Online

Despite the convenience of online returns, there are also some drawbacks. For starters, shoppers may have to pay a restocking fee for certain items, which can add up quickly. Additionally, it can be difficult to accurately assess the condition of an item when returning it online, as shoppers don’t have the opportunity to inspect the item in person. Finally, it can be difficult to get a refund in a timely manner, as online retailers often have long processing times for returns.

The Pros of Returning Merchandise In Store

Returning merchandise in store has some distinct advantages over online returns. For starters, shoppers can inspect the item in person before making a decision, which can help them make sure they’re getting the item they want. Additionally, shoppers can often get their money back faster when returning items in store, as the process is often much quicker than online returns. Finally, shoppers don’t have to pay any additional fees when returning items in store, making it a more cost-effective option.

The Cons of Returning Merchandise In Store

The primary downside of returning merchandise in store is the amount of time and energy it takes. Shoppers have to leave the house, wait in line, and sometimes fill out paperwork in order to return an item. Additionally, some stores may not accept returns at all, which can leave shoppers without any recourse. Finally, shoppers may be limited in their return options, as some stores may only offer store credit or exchange for returned items.

The Bottom Line

The issue of returns is a major challenge for the retail industry, as it can quickly add up to major losses for businesses. The key to minimizing the cost of returns is understanding the pros and cons of returning merchandise online versus in store. While online returns offer the convenience of shopping from home, they can also be more expensive and take longer to process.

On the other hand, returning merchandise in store can be more cost-effective and faster, but it also requires more effort from shoppers. Ultimately, the best way for retailers to minimize the cost of returns is to provide shoppers with both options so they can choose the one that works best for them.

Strategic eCommerce Consulting

Navigating these complex issues as an eCommerce merchant can seem difficult, especially if you are only just getting started in the world of online shopping. Rather than trying to figure things out on your own, we recommend speaking with an expert in order to come up with a customized and strategic business solution.

If this is something you are interested in, don’t hesitate to get in touch with us or explore our various support options, including our eCommerce consulting and marketing solutions. Whether it’s solving the online vs. in-store return conundrum or anything else, we’re here to help. Call us at 888-982-8269 to get started.