Refunds & Returns Insights: Every eCommerce Business Should See

Refunds & Returns Insights: Every eCommerce Business Should See

Take a look at these customer insights that showcase just how important quick and easy returns can be for your business.

Promoting or encouraging refunds is usually viewed as a big no no when it comes to marketing your brand online. Traditionally refunds and returns are the side of business that no one wants to talk about. However, in todays highly competitive eCommerce market, a customer-centric returns portal could be the reason why a customer decides to follow through with a purchase from your online store.
So before you neglect to educate your customers on your returns process or try to hide your refund policy in the T&C’s all together, take a look at these customer insights we’ve pulled from multiple sources that showcase just how important quick and easy returns can be for your business.
A photo of a quote statistic that says t costs as much as 5x more to obtain a new customer than to deal with unhappy customers. Source: Invespcro

Key insights:
It costs as much as 5x more to obtain a new customer than to deal with unhappy customers. Source: Invespcro
According to UPS, a website’s return and exchange policy gets viewed by 68% of shoppers. Source: Salecycle
Close to 70% of customers will check a returns policy prior to checking out. Source: Retail Customer Experience
33% of repeat consumers would choose to abandon a retailer if they had a “difficult” returns experience. Source: McKinsey Returns Management Survey
86% of survey respondents agree that a lenient returns policy is critical to increasing revenue and share of wallet. Source: McKinsey Returns Management Survey
According to a 2020 report on returns from Narvar, the level of convenience and transparency in the returns experience is critical to consumer retention. Source: State of Returns Narvar Report
66% of first-time consumers who had an “easy” or “very easy” returns experience would shop at a retailer again. Source: Internet Retailing
33% of repeat consumers would choose to abandon a retailer if they had a “difficult” returns experience. Source: McKinsey Returns Management Survey
89% of businesses, "see customer experience as a key factor in driving customer loyalty and retention." Source: Invespcro
A stock photo of two hands holding a brown package box
These insights show us just how important it is to provide multiple return options for your online customers, along with up-front and transparent communication on your returns process. Your eCommerce brand can have the best online shopping experience but if your returns policy is not clear, concise and lenient to the customer, there’s a much lower chance of that browser converting into a long-term customer.
Refunds and returns are a necessary evil for every eCommerce business. They may they seem like an inconvenient cost, but in reality they serve as a key factor to building brand loyalty and customer confidence. Start your returns revolution today!
Speak to the team at Refundid to see how we can turn your refunds into recycled revenue.

Insights

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Immediate exchanges give customers a smoother experience, build loyalty, and even help reduce returns. By making it quick and easy to swap items, you turn a potential frustration into a positive moment for your customer.

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Slow refunds hurt loyalty. Fast refunds set you apart. With Refundid, you can offer instant refunds and see customers repurchase up to three times faster. The key is a simple, quick, transparent process — and here’s how to make it happen.

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Compare Shopify’s native returns with a full returns app. See where Shopify’s tool works, where it falls short, and when brands should upgrade to Refundid.

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Refundid makes money through retailer fees, with optional subscriptions and small penalties that encourage good return behaviour, always free for customers who play by the rules.

Refundid iPhone with all the BNPL apps installed

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In 2025 integrating a returns portal streamlines operations, keeps data accurate, and delivers a seamless returns experience with Refundid’s integrations.

How to Do Shopify Returns in 2025 (Without Overengineering)

Shopify returns in 2025 don’t need to be complicated. Start small with Shopify’s free Self-Serve Returns, then upgrade to a full returns platform when your volume and customer needs demand it. Here’s how to keep things simple until you’re ready to scale.

Refundid | ReturnGO Integration

Partnership Announcement: ReturnGO partners can now offer their customers the option of receiving an instant refund with Refundid.

Ecommerce returns best practices for 2023

Having a solid returns policy is essential to maintaining a good reputation, growing brand loyalty and increasing repurchase rates.

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Learn how you can maximise retention, loyalty, and active customer numbers through your returns policy

Refunds & Returns Insights: Every eCommerce Business Should See

Refunds & Returns Insights: Every eCommerce Business Should See

Take a look at these customer insights that showcase just how important quick and easy returns can be for your business.

Promoting or encouraging refunds is usually viewed as a big no no when it comes to marketing your brand online. Traditionally refunds and returns are the side of business that no one wants to talk about. However, in todays highly competitive eCommerce market, a customer-centric returns portal could be the reason why a customer decides to follow through with a purchase from your online store.
So before you neglect to educate your customers on your returns process or try to hide your refund policy in the T&C’s all together, take a look at these customer insights we’ve pulled from multiple sources that showcase just how important quick and easy returns can be for your business.
A photo of a quote statistic that says t costs as much as 5x more to obtain a new customer than to deal with unhappy customers. Source: Invespcro

Key insights:
It costs as much as 5x more to obtain a new customer than to deal with unhappy customers. Source: Invespcro
According to UPS, a website’s return and exchange policy gets viewed by 68% of shoppers. Source: Salecycle
Close to 70% of customers will check a returns policy prior to checking out. Source: Retail Customer Experience
33% of repeat consumers would choose to abandon a retailer if they had a “difficult” returns experience. Source: McKinsey Returns Management Survey
86% of survey respondents agree that a lenient returns policy is critical to increasing revenue and share of wallet. Source: McKinsey Returns Management Survey
According to a 2020 report on returns from Narvar, the level of convenience and transparency in the returns experience is critical to consumer retention. Source: State of Returns Narvar Report
66% of first-time consumers who had an “easy” or “very easy” returns experience would shop at a retailer again. Source: Internet Retailing
33% of repeat consumers would choose to abandon a retailer if they had a “difficult” returns experience. Source: McKinsey Returns Management Survey
89% of businesses, "see customer experience as a key factor in driving customer loyalty and retention." Source: Invespcro
A stock photo of two hands holding a brown package box
These insights show us just how important it is to provide multiple return options for your online customers, along with up-front and transparent communication on your returns process. Your eCommerce brand can have the best online shopping experience but if your returns policy is not clear, concise and lenient to the customer, there’s a much lower chance of that browser converting into a long-term customer.
Refunds and returns are a necessary evil for every eCommerce business. They may they seem like an inconvenient cost, but in reality they serve as a key factor to building brand loyalty and customer confidence. Start your returns revolution today!
Speak to the team at Refundid to see how we can turn your refunds into recycled revenue.

Insights

You might also like

How to offer immediate product exchanges to customers

Immediate exchanges give customers a smoother experience, build loyalty, and even help reduce returns. By making it quick and easy to swap items, you turn a potential frustration into a positive moment for your customer.

Best way to process quick refunds for customers

Slow refunds hurt loyalty. Fast refunds set you apart. With Refundid, you can offer instant refunds and see customers repurchase up to three times faster. The key is a simple, quick, transparent process — and here’s how to make it happen.

Best returns management system for Australian e-commerce

We’ve rounded up the best product returns management software to help you streamline your returns process, cut friction, and keep more customers coming back.

Compare e-commerce return integrations for Australian businesses

We break down how four major ecommerce platforms — Shopify, BigCommerce, WooCommerce and Magento — compare on returns, so you know exactly what you’re getting before choosing the best platform for your store.

Top 6 Shopify Returns Apps in 2025

In this guide, we’re taking a look at the top 6 Shopify returns apps in 2025. We’ll break down what makes each one unique, who they’re best for, and how they can help your store save time, reduce headaches, and even boost revenue.

Shopify Returns App vs Shopify Native Returns: What Growing Brands Need to Know

Compare Shopify’s native returns with a full returns app. See where Shopify’s tool works, where it falls short, and when brands should upgrade to Refundid.

How Does Refundid Make Money?

Refundid makes money through retailer fees, with optional subscriptions and small penalties that encourage good return behaviour, always free for customers who play by the rules.

Refundid iPhone with all the BNPL apps installed

How does Refundid work with BNPL?

Refundid can be used even if you purchased with a "Buy Now Pay Later" service like Afterpay, Zip and Klarna. Find out how.

Refundid Featured on Channel 7 Sunrise | Ilan Kessler on Instant Refunds

Refundid was featured on Channel 7’s Sunrise, where Co-Founder & CTO Ilan Kessler shared how instant refunds are transforming the way Australians shop and return online orders.

How to Integrate a Returns Portal and Why It Matters in 2025

In 2025 integrating a returns portal streamlines operations, keeps data accurate, and delivers a seamless returns experience with Refundid’s integrations.

How to Do Shopify Returns in 2025 (Without Overengineering)

Shopify returns in 2025 don’t need to be complicated. Start small with Shopify’s free Self-Serve Returns, then upgrade to a full returns platform when your volume and customer needs demand it. Here’s how to keep things simple until you’re ready to scale.

Refundid | ReturnGO Integration

Partnership Announcement: ReturnGO partners can now offer their customers the option of receiving an instant refund with Refundid.

Ecommerce returns best practices for 2023

Having a solid returns policy is essential to maintaining a good reputation, growing brand loyalty and increasing repurchase rates.

VRG GRL: Returns, Refunds and Refundid

Welcome to our second Refundid partnered Q&A series with VRG GRL's Co-CEO Cale Suesskow.

Refunds & Returns Insights: Every eCommerce Business Should See

Take a look at these customer insights that showcase just how important quick and easy returns can be for your business.

Case Study: Culture Kings

Learn how instant refunds helped boost Culture King's sales and performance metrics

Meet Refundid's CEO & Co-founder, Brad Karney

Brad is an avid Liverpool F.C. supporter and ecommerce enthusiast, before co-founding Refundid he was… can you guess?

5 Brands with Superior Customer-Centric Returns Policies

Customer service is king! Customers expect world-class customer service throughout the entire order life cycle when shopping online.

Maximising Retention, Loyalty, and Active Customer Numbers Through Returns

Learn how you can maximise retention, loyalty, and active customer numbers through your returns policy