What is your percent of returns? - YouLookFab Forum

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What is your percent of returns?

Thistle

Veteran

Just wondering what percent of items you keep?

Do you find you return more when you buy off line?

Shopping

41 replies

Latest reply was from Sylvie

Anonymous

I think is close to 90%, in all seriousness. I am very, very picky with what I keep and usually leave things out on a holding zone for days, and try on at different times to confirm that I like the item and that it fits properly.

ETA: I should add that I mostly shop online, especially for bottoms, as I wear tall sizes and also for shoes, since my size is usually sold out wherever I go. I see the ordering / returning as an extension of the fitting room experience. I usually keep whatever I buy at the store, or I had a chance to try at a store.

Atlantia

Veteran

I probably return 99% of what I buy. I shop exclusively online, so its par for the course.

Anonymous

I shop probably 60% online but only return 20% of those purchases.

I think canadians have less deals on shipping so sometimes it's not worth it to me if I 'maybe' like something

Jjsloane

Veteran

I probably return 50%. Sometimes it's online that doesn't work, sometimes I just change my mind when I get home and sometimes it doesn't work with a coordinating item I had in mind. I do not shop unknown brands or sites I cannot return in store for free (with the exception of 6pm.com).

Gaylene

Veteran

OK, I realize my behavior is a product of my age and the fact that I live outside of the US but I can't quite wrap my head around thinking of returning as a usual practice. I buy online, too, but I'm usually very careful when I choose items because of the costs incurred when I return things. As well, most of the shops that I regularly buy from are smaller boutiques and chains and most would only provide a refund if the item was returned within a few days. I'm VERY picky, so I take my time before handing over my cash; if I'm not sure, I'll choose to think it over before I buy it. I have, rarely, taken something home on approval, but always return it the next day if it doesn't work out. I can't imagine returning anything after a week went by, unless it was defective.

I'd say my return rate is less than 5% for everything combined. I think I'm going to feel lonely on the bench so I'm going to have a chocolate chip cookie to console myself.

Laurinda

Veteran

Ca. 60% for internet orders, 10% for brick & mortar purchases.

Louise

Veteran

My online returns are sky high. In the last month I've ordered 10 things online and they've all gone back. Bricks and mortar store purchase returns are much lower because you get to try on in store but I often take things home to decide then return if I change my mind. I'd rather buy and return that not buy and miss out if I decide to buy and it's not left in my size x

Keix

Veteran

My overall return rate is around 50%, but I'd like to make it lower. I am guilty of making impulse buys when I shop in-person, and unlike with online purchases I'm not as discriminating about return policies.

Krista

Veteran

Pre-YLF almost zero because I hated facing the questioning on why it didn't suit me. I'm also a terrible procrastinator, so sometimes I'd miss the return timeline entirely.

Since I've joined YLF, I'd say I'm up to about 50 percent. Angie has taught me to be picky, and I'm not complaining. I've also started adding "return clothes" to my weekly to-do list and it seems to be working

Parsley

Veteran

I don't return too many things that I buy in a brick and mortar store, but my online return percentage is sky-high. Maybe 80-90%.

I've been working on making myself return more than I used to, because I used to keep things that weren't perfect and that I never would have bought if I'd tried them on in the store. That resulted in way too many closet orphans. Now I'm trying to be ruthless and only keep the real winners.

For that reason I try to only buy if there's free shipping and preferably free returns, or if I can return to a local store.

DonnaF

Veteran

Online shopping return rate: 80-90%, esp. since I try to order two sizes. B&M return rate: At least 25% return rate since purchases may not play well with the clothing I thought they would. This morning I was particularly disappointed with a beautiful silk Equipment blouse I thrifted which is past the return date. I swear, it fit at the store, but I must have been wearing a different bra since I saw a gap when I viewed it from the side. If we ever have a YLF get-together in the Bay Area, I have something nice to swap!

jenanded

Veteran

This makes me feel better... I return an enormous amount too - both online and bricks and mortar. Yes I am very picky about what gets to stay in my tiny wardrobe and I can't bear to have things I dont wear. As cost is high to return things I might buy in the USA I do consign those things as it is more expensive to return than to keep. In Australia I have often bought something online which I have tried on in store, have taken time to think about and then just ordered rather than having to get back to the shops...Great post thank you!

missvee

Veteran

I shop mostly in brick and mortar stores, so returns are maybe 30 percent. Mostly items that I haven't taken the time to try on in the store. Online purchases, probably 50 percent, because I will order 2 sizes if I'm not sure. We don't have a lot of free returns in Canada, so I'm a bit more cautious before ordering, but a small shipping cost is often worth it because it saves me running around looking for things.

Thistle

Veteran

My DD is just over a year old, so almost all of my shopping in online. I have also really branched out on retailers and brands, and this has proven very trickier as I relearn my size for each of them. I have learned all brands run different, and even then certain styles just have to be tried on. This has made my return rate soar to 90% or so. And, I avoid retailers without free shipping and free returns or being able to return to the store.

I have to say it is great tom know I am not alone. I was almost afraid Nordies wouldn't let me order from them anymore!

Galena - I really think your low return rate is great! You know yourself, your style, and are ruthless buying. You deserve your chocolate chip cookie! I hope to get there one day.

Raisin

Veteran

Yah as Canadians we definitely don't get that he returns free usually. I almost never return anything. I returned a pair of shorts recently and I think that's honestly the first thing I've returned in years. That was because they cost a lot and I got the wrong size...cost me $28 to return. I never return to stores, I don't often buy and if I do I usually love it.

Gaylene

Veteran

Just a bit of history that I think is interesting regarding customer service and returns:

I remember going to a marketing conference in the late seventies and talking to a Nordstrom executive about his company's (then) unique policy of giving customers full refunds, without questions, for anything that they brought back to the store--even to the point of taking back merchandise that Nordstrom didn't even originally sell or items that clearly had been worn. Their aim was to create a loyal, picky customer who wouldn't shop anywhere else because they would never get that level of service from another store. Nordstrom's success, of course, led other stores to more or less try to copy the Nordstrom model. In Canada, Eatons had a similar (although not quite as generous) approach to customer satisfaction. It is interesting to note, though, that this approach didn't serve Eatons as well because the 100+ year old company eventually went bankrupt.

From a business perspective, I wonder how long companies will be able to maintain this service model, especially if the economy does not regain the momentum it had in the last decade. The costs of having a large part of your inventory unavailable for sales and absorbing the costs of refunding items at a much later date has to have some effect on profitability, doesn't it? Maybe some of you are much wiser than I am as to how sustainable this approach could be over a period of time.

Laura (rhubarbgirl)

(website)

Veteran

I wonder about that too, Gaylene. I think it may work for Nordstrom because their prices are higher and they do really have a lot of loyal customers because of their business model (and of course they're not a public company so their financials aren't as driven by quarterly returns and stockholders). What I wonder about is the places like Kohl's that now will take anything back, even without a receipt - I see people taking advantages of the policy all the time, and I have to wonder if that's sustainable for a discount marketer already working on narrow profit margins.

Back to the original question! I used to return maybe 10%, but since YLF I am more likely to return, probably 25% b&m and 40-60% online. I need to get better about the b&m returns, actually - I tend to go shopping when I'm bored or unhappy and buy something I"m not sure about. I mean, it's good that I can return it, but not buying it in the first place would probably be healthier (and waste less time and gas)!

Laurinda

Veteran

Dayton's department store (based in Minneapolis) had a liberal return policy for anything ever bought there -- or possibly not -- similar to Nordstrom. [Dayton's merged to become Dayton-Hudson, then was bought by Marshall Field's, then was bought by Macy's. Minnesotans still mourn the loss, I have no love for Macy's. I bet many other folks who lost *their* hometown department stores feel the same way.]

Dayton's bargain basement spun-off what was to become mega-chain Target, and Target also had easy returns until just the last few years when they started a 90-day limit. It does take my opinion of 'Tarzhay' down a notch, I am less likely to shop there over any other discounter.

bj1111

Veteran

i buy a lot, i return a lot. hate buying nonreturnable. occasionally,i've bought the same item twice only to return twice. it looks so good in the store!

Anonymous

Gaylene, I can only answer you from a cost / financial accounting standpoint. A business model generally considers an ample markup, in order to create a cushion against returns and allowances and inventory shrinkage. From the cost accounting standpoint, a cost per unit is calculated by adding cost of material, labor and overhead. once that CPU is calculated, then a markup is determined. Taking the only clothing retailer I worked for as example, the markup was 220% of that cost per unit. That is to give you some idea as to what kind of cushion is built in. The cost plus the 220% was the price they were willing to sell the item to a third party for.

Switching over to the financial accounting side: Sales revenues get adjusted by: Returns and allowances, shrinkage to determine a profit margin. That profit margin must be generous, if we take into consideration that cost per unit markup. Nordstrom might be publicly traded. You might be able to get their financials - you can google for their 10K- if you are interested in looking in more detail.

I know Nordstrom might not manufacture much, I am not sure, but I am sure they have quite an established trade presence and are a powerful buyer. The pricing offered to them must, in all likelihood, include a cushion designed to allow for their generous policy. It must work for them considering the return policy has been in existence since the 70's, as you describe.

I particularly don't see anything wrong with returning an item. I am bringing it back to the store new and within the established return period.

Anonymous

Here is their last quartely statement. 10Q. (10K is annual).
http://quote.morningstar.com/s.....84e6ffca1d

They had 156 million net earnings last quarter, ending July 12, 2012.

Gaylene

Veteran

Thanks for the explanation, Zap. I had thought that a retail market up of 90-100% was probably the norm, but I didn't realize that it could go as high as 220%. And obviously Nordstrom's decision to create a specific kind of customer was successful. And, for what it's worth, I can't see an online store which restricted returns to be very successful.

But I do wonder how this strategy is going to work out if the current economic conditions persist. Are consumers becoming conditioned to only buying items that are heavily discounted? Does a lagging economy means that more people will be drawn to shop at discount stores with their lower markup?

I've got to admit that the percentage of items that people are reporting they return has startled me, especially those bought at a B&M store. No wonder so many Canadian companies are getting worried about Nordstrom's expansion into Canada. Returning might become much more popular than it is now.

Makrame

Veteran

Gaylene and Zap, this is a fascinating discussion of return policies and profits (I have long wondered whether retailers like Nordstrom are losing money because of the generous return policies). I would say that Nordstrom's online ordering system seems to be designed to reduce some of the losses. I noticed that many items that I have on my wish list go out of stock and then reappear, presumably after customers return them. That always makes me feel good since it looks like they are still able to re-sell items.

Anonymous

Well, are items really being discounted or are they price inflated at their initial offering? It makes you wonder. I often think items are priced higher than what the retailer hopes to sell them for. Also, they often earmark loss leaders, to get people at the door.

A large portion of operating expenses go toward market analysis and consumer behavior analysis. I expect that the industry will adapt to those changes in consumer behavior, and economic conditions, if and when they occur.

I think the main aspect we all debate about when this conversation comes up, is the ethical aspect of that cycle of buying and returning, but can these companies survive long term? I believe so.

To me, the biggest impact is in terms of the local economies, with the outsourcing of jobs overseas, in order to cut costs. which is such a vicious cycle. It is also hard or a smaller retailer to compete, this is probably why the Canadian companies might be concerned with the expansion.

I also think we are not really a representation of typical consumer behavior. Most people buy and don't bother to return.

Laura (rhubarbgirl)

(website)

Veteran

"Are consumers becoming conditioned to only buying items that are heavily discounted? "

Yes, I think so, definitely. Weren't we talking about something similar here recently, about European models of purchasing vs. American ones? I'm not finding it in a quick search but as much as I like deals sometimes I do feel like I'm being played by the psychology of it all.

Zap, that's a great point that the members of YLF are probably more apt to return than the average person. My DH used to buy clothes without trying them on and take off the tags before he even tried them to make sure they fit. Such a dude. :/

Suz

(website)

Veteran

Very interesting discussion. Small Canadian retailers have good reason to fear Nordstrom's expansion; customers like me who live in cities without a lot of brick and mortar options are going to be FLOCKING to an online merchandiser with generous return policies. Whatever my ethical qualms (and I have some) I will be so happy to have a few more options.

As things stand, my B&M returns are almost nil; I am very picky and slow to buy in person and typically only put money out after considerable deliberation and multiple try-ons. Having said that, I returned a coat last year to the Bay TWICE. However, that was because each one I tried was flawed. I bought the first one in store (just missed the flaw until I got it home); I bought the second one online (since they did not have my size in the store any more.) So these were "exchanges" rather than true returns, and eventually I got the same coat without flaws. Incidentally, compared to US retailers, the Bay's website was INFURIATING, as was their phone customer service, and this only made me want to shop at Nordstrom's the more. As a form loyal employee of Simpson's (before it was owned by Sears) I hate to admit that. But what can I say? If the attention to the customer isn't there, then they'll lose customers.

My online returns are much higher. Probably about 60%. I try not to order unless I know there is a good chance of an item's working out, but you can't always be sure. I also order for my mother and daughter (more than I order for myself) and the returns I do for them pushes up my overall return rate.

Anonymous

This is a huge sidetrack and I might put some of you to sleep with this one, but I actually read the 10-Q I linked to above. I found this portion quite interesting, Nordie's discussion of the Anniversary Sale and their projections in terms of online sales and store expansion.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
(Continued) (Dollar and share amounts in millions except per share and per square foot amounts)

OVERVIEW
We continued to drive strong sales momentum through the first half of 2012 across all channels. We have achieved eleven consecutive quarters of total company same-store sales increases, reflecting our ongoing efforts to improve the customer experience across all channels and aggressively pursue opportunities to grow and evolve with the customer.
During the second quarter we began our Anniversary Sale, which historically has generated significant volume for us. This year the event started one week later in July relative to last year, shifting one week of the event into the fiscal third quarter. While the overall event exceeded our expectations through the end of July, the event shift drove unfavorable comparisons against the second quarter of last year, but we expect favorable comparisons in the third quarter.
Online shopping was available for the first time during the nine-day Early Access period prior to the start of the Anniversary Sale for our Fashion Rewards customers. Fashion Rewards plays an important part in building customer loyalty as our Fashion Rewards members shop more frequently and spend more with us on average than non-members. With the launch of our enhanced program earlier this year, we have been pleased with the initial response, as reflected by increases in new accounts, rewards spend and Nordstrom card penetration compared with last year.
Allowing our Fashion Rewards customers the opportunity to pre-shop the Anniversary Sale online builds on the enhancements we made to our Fashion Rewards program earlier this year and reflects our ongoing efforts to improve the online experience. We continue to invest in improving the customer experience in that channel, including expanding merchandise selection, adding functionality to our website, providing richer mobile content and imagery for products and expediting the check-out and delivery process. These investments helped drive the 40% second quarter sales growth in our Direct channel and our total company same-store sales increase of 4.5%.
We also continue to grow through new stores and other initiatives. During the first half of the year, we opened one Nordstrom full-line store and six Nordstrom Rack stores, and relocated one Nordstrom Rack store. We also announced our plans to open our first full-line store in New York City. Given the strong performance of the Nordstrom Rack business and availability of quality locations, we are accelerating the expansion of this business, with plans to have over 230 Rack stores by the end of 2016. At the same time, our core store business remains strong and we are delivering a more technology-enabled experience in our stores with better tools to take care of the customer.
Strategic partnerships also help us build capabilities and add to the customer experience. In the past, we've made acquisitions of Jeffrey and HauteLook and established partnerships, such as with kidswear brand Peek...Aren't You Curious. More recently, we invested in Bonobos, a fast-growing online men's clothing retailer, and announced our U.S. exclusive partnership this fall with Topshop and Topman, internationally renowned brands with trend-leading fashion at affordable prices. All of these partnerships contribute to our efforts to increase our relevance with more customers, offer a more compelling experience and ultimately enable sustainable growth.
Our credit business contributes to an improved customer experience and increased retail sales as our Nordstrom credit and debit card products are designed to strengthen customer relationships and build loyalty through the Fashion Rewards program. During the second quarter, our credit metrics continued to improve, with decreased delinquency and write-off trends compared with the same period in 2011.
We remain focused on enhancing the customer experience as a means of delivering strong growth and gaining greater market share. We are moving fast as we accelerate our growth, supported by the increased level of investments we are making. Our overall goals to achieve high single-digit total sales growth and mid-teens Return on Invested Capital ("ROIC") remain unchanged, as these measures correlate strongly with shareholder return. In the first half of 2012, we performed better than planned and are on track to achieve these long-term financial goals. Even with the additional investments, we expect 2012 to produce the highest earnings before interest and income taxes ("EBIT") dollar results in our history.

lyn*

(website)

Veteran

Usually; I order from the UK and it's very expensive to return things, so I usually give them away - so I suppose my return rate is quite low!

CocoLion

(website)

Veteran

This kind of stuff fascinates me. Thanks Zap for all of the Nordstrom info.

Because it's easy to review account history, I decided to take a hard look at my own behavior. At Shopbop I returned 47% of my purchases. Among the ones I kept, I am highly satisfied with all but one item which broke. So I would say I have a high level of satisfaction with my purchases from them.

I checked my Nordstrom on-line purchases and they are also right around there; at 47% also! I have been mostly or highly satisfied with 70% of my kept purchases. The other 30% of the things I kept I feel just "meh" about and am passing them on.

I believe my B&M returns could be as high as 50% as well. I am almost always pressed for time when I retail shop. And I admit I am seduced by the retail experience; when I get home I realize what I got isn't as great as I thought.

I would love to lower my return rate for the reason that it is time consuming for myself as well as the store.

There is one other on-line retailer I have started to frequent and with whom I am quite pleased. That is Revolveclothing.com. I have purchased 7 items from them and only returned 2 of them -- that's the lowest return rate so far.

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