Photo: iStock
Should Buyer’s Remorse Be a Retail Concern?
A recent Google/Ipsos poll found two in five Americans (42%) have bought something on sale and later regretted it.
Among the reasons for regretting a purchase, the top were:
- Buying something they didn’t really need, 62%
- Impulse purchasing, 42%
- Having too much stuff already, 34%
- Finding it at a lower price, 19%
- Not doing proper research 17%
A survey last year of U.S. adults from deals website Slickdeals found a higher rate, 74%, have experienced buyer’s remorse after buying items online.
The top 10 common regrets were:
- Feeling like the purchased item was less valuable than expected, 39%
- Not using it as frequently as expected, 34%
- Having spent too much money in the first place, 32%
- Finding a better brand/version of the product, 32%
- Having to pay for return shipping, 31%
- Finding a promo code after the fact, 31%
- Finding the item on sale after the fact, 30%
- Missing the return window, 28%
- Not buying a protection/insurance plan, 26%
- Not getting a different size/color, 26%
The internet is full of advice on preventing buyer’s remorse, including waiting 24 to 72 hours before making an unplanned purchase. Other advice to consumers includes equating the price of an item to the work hours required to afford it, avoiding shopping apps, and deleting credit card information from your Amazon account to create some obstacles for a rash purchase.
“Retailers, both online and in brick and mortar, are really skilled,” Justin Pritchard, the owner of a Colorado-based retirement planning firm told The New York Times. “They make an Olympic sport out of making you want to buy things you don’t need.”
Retailers may also seek to help customers avoid buyer’s remorse, often called “post-purchase dissonance,” as it can have a significant negative impact on customer loyalty and retention. Advice to sellers includes providing extensive product details and education to instill confidence in purchases, setting expectations, providing timely responses, and having flexible return policies.
Discussion Questions
DISCUSSION QUESTIONS: Is buyer’s remorse a case of caveat emptor (“let the buyer beware”) in most situations or a fallout retailers need to minimize? What, if anything, should retailers do about buyer’s remorse?
Poll
Loading …BrainTrust
Buyer’s remorse should be a genuine concern for retailers. As the grip on the economy continues to affect shopper behavior, retailers and brands can ill afford to disappoint.
According to Numerator, the first day of Amazon Prime was an +8% GAIN YOY. The average spend per item was $33.56. More than half of Prime Day items (56%) have sold for less $20. I’ll be interested to see what the net-net result is following a wave of returned items purchased because they appeared a “good deal” only for customers to discover they don’t like or need the item.
The objective of retailers is to get shoppers to buy what they don’t need or don’t want and to pay more than is necessary. The most successful retailers are very good at this.
In the case of a item that is “on sale” the answer is NO.
In the case of an item that is not “on sale”, well most retailers take that back no questions asked.
The consumer is in charge of their wallet. Someone who purchases something should think about it before they buy it…I do not see what a retailer would do-ask “are you REALLY going to be happy with this?”
Sorry but people need to own their decisions.
I did not mean to put this in the reply field! Sorry Gene!
However I was going to comment that retailers who successfully get consumers to purchase what they do not need may be successful in the short run but not the long run.
Agreed that it damages the retailer’s brand when there’s buyers remorse, so they would do well to take measures to avoid it, with service and communication pre- and post-sale.
The practicality of dealing with buyers remorse lies in the product category that the retailer sells. If the product is not seasonal, can be repacked easily and costs above some threshold dollar value, it could be the retailers worry. “If we can accept the return and still make money, we should accept it.” On the other hand, low-value, or seasonal, or “open-box” items that cannot be resold as new, should become the problem of the purchaser.
Retailers, as in anyone selling a product or service, have acknowledge post purchase reinforcement issues for decades. Their focus is on maximizing shareholder wealth through increased profits and conversion. Their obligation is to the positive brand image and they should care about poor reviews. However, the consumers have the sole responsibility to manage their budgets and what they purchase. Displaced accountability is all too often today.
Unless retailers discover the secret to mind control there’s not much they can do about buyer’s remorse. People ALWAYS have a motivation to do precisely what they do. That motivation is rarely – if ever – understood by others, it’s barely understood by themselves. What changes is the influence of that motivation. So we can try to make a science of this if we want but we’re fooling ourselves.
There are just three brutal options:
1. Make all sales final which means you don’t care about anyone’s remorse.
2. Limited time returns – EG giving the customer 30 days to have the benefit of shopping therapy.
3. No questions asked return policy which recognizes we all have issues and make quirky decisions.
In the big push for increasing conversion rates, many retailers have started to include messaging that inspires a sense of urgency such as how many people have an item in their cart, or how many have been bought today, or ‘only 1 left’. However it’s important that these techniques, that can be great for social validation and conversions, don’t also lead to higher rates of returns – which we know retailers can’t afford. Retailers will need to analyze the data to ensure the tactics they use to boost conversion rates don’t also lead to increased returns.
To say that I find this ironic would be an understatement of epic proportions. We spend billions and billions and billions on advertising across every media known to mankind to get people to buy, buy and buy more. And then we want to wring our hands about buyers remorse…? Pretty ironic.
Buyer’s remorse is not new but there are practices that aggravate it. It is definitely triggered negatively in highly promotional environments if prices are continually yo-yo’d. In that case, buyer’s remorse can become loss of buyer. Otherwise, its part of the sport.
So let me get this straight: marketing encourages people to but things they don’t really need, and now we’re supposed to worry that people regret buying something they didn’t need??
Uhhhmmm.
Many sales people will tell you a good sales is one that truly satisfies the buyer’s needs, but I doubt that subtlety will make it thru to analysts and “investors” who can’t do much more than grunt out “increase sales comps”.
I am surprised it is that low. Hasn’t everyone had buyers remorse? Statistics like this need to be rooted in changes not absolutes. Furthermore, the exploding costs of returns appear to be more a consequence of growing eCommerce, where return rates are 5x higher. Should retailers focus more on stores? I would argue yes. That’s where profitable customer acquisition and loyalty is built, in part as a consequence of the returns problem.