What: Data has shown that customers are spending less online because funds take too long to process.

Why it is important: Poor return policies are a contributing factor for struggling customers to slash their spending, resulting in a loss of revenue and repeat business for retailers.

In a poll conducted by the banking platform Tink, 30% of UK consumers said they spend less online because refunds take too long and they’re worried about their bank balance. Additionally, 52% of respondents stated that they’re less likely to shop with a retailer if a refund takes a long time.

As retailers anticipate a difficult year, 54% state that they are or expect to be forced to stop offering free returns as a result of the economic climate. The cost of processing returns and length of time that it takes for a customer to get their money back are the top pain points for merchants.

36% of retailers believe that instant refunds would enhance the customer experience of returns while 32% feel they would ultimately reduce the returns cost to their business.

Refund delays mean consumers spend less overall