THOUGHT LEADERSHIP
W
ith online shopping nearly ubiquitous – 127 million Americans shopped online during Cyber Monday according to the National Retail Federation – the American public has found value in being able to turn on their electronic devices and shop. But despite the large number of people shopping online, there is still something that keeps people on the sideline: the dreaded return.
The idea of returning an item purchased online can be a real headache. And this headache does keep shoppers from purchasing under certain conditions. One of those conditions is if there is some risk the item may not “work.” This especially includes apparel, where the item might not fit correctly or the color is not what it was perceived to be on screen. This is one risk factor where brick and mortar stores have a decisive advantage – shopping in-store allows you to experience the product you want to buy with all your senses. While our ability to see and hear generally works through online media, there’s just no substitute for viewing the actual item up-close, handling it, and making a much more thorough purchase decision. The full shopping experience can be achieved at bricks-andmortar retail stores in a way that online simply cannot match. Online shopping can appeal to a buyer’s more rational side, including convenience and comparing prices, but in-store buying creates opportunities to tap into the emotions of the buyer more easily and effectively. Let’s face it, it’s a much different experience going into a Victoria’s Secret bricks-and-mortar store to buy a special gift for that special someone on Valentine’s Day than it is to simply go online, find, and order the item. The shopping experience just isn’t the same. And retailers who have learned to take that in-store shopping experience to a benefit-level for their guests can often win a sizeable share of wallet along with share of heart. Another condition which tends to keep shoppers on the sidelines when it comes to online, is those especially large or bulky items, which are a real hassle to return. Aside from price, there are really only three reasons people buy where they do. One is ease of shopping (convenience). The other two are relevant information (rational) and a pleasant
shopping experience (emotional). No one likes to have to go through the process of returning a purchased item. It takes more time, and it may totally negate the pleasant shopping experience that led to the purchase in the first place. So bricksand-mortar retailers still enjoy the advantage when it comes to handling returns more easily and conveniently for the shopper. That said, online retailers are working to make returns easier for shoppers, trying to eliminate this negative. These take the form of “satisfaction guaranteed” and “we pay shipping both ways.” Others allow you to purchase from the retailer’s website, and then make returns to their local brick-and-mortar location. Still, no amount of promise can completely offset the hassle of having to process a return. Shoppers who turn to online purchases to save time and money know that there’s no time for returns these days. For today’s shopper, purchasing online requires a level of trust. It’s easier to trust yourself in making a smart shopping decision when you can use all of your senses – instead of just sight and sound – to evaluate and make the purchase decision. And the satisfaction that you made the right decision to buy is strengthened when your head and heart are both saying “yes.” Trust in the product (or service) you are buying, trust in the person (or company) you are buying from, and trust in the ease of exercising a return if need be, all affect to that buying decision. While it’s true online shopping will continue to grow because of factors including price, availability, and convenience (there just isn’t time to drive to the location where you can buy in-person), we’ll continue to see bricks-and-mortar retailers leverage the enjoyment of the in-store shopping experience. Savvy brick-and-mortar retailers will continue to look for ways to provide this unique point-of-difference for shoppers. Savvy online retailers should continue to think about the process of returning items. Any way that a retailer can make the return less time consuming – and less painful – will go a long way to winning over the consumer’s mind, heart and wallet. **Roger L. Beahm is the RockTenn executive director of the Center for Retail Innovation at Wake Forest University School of Business and professor of practice in marketing.
SUMMER 2015
53