Retailers risk losing half of shoppers because of delays with refunds and returns

A survey of 2,000 shoppers on behalf of retail logistics company Advanced Supply Chain, found that 53 percent of online shoppers would not spend again with a retailer if they were slow to refund their money after returning a product.

The new data shows shoppers expect their refund within 2-3 days of sending an item back, with a quarter (25 percent) believing that waiting up to one week for a refund is too long. A further 27 percent thought 10 days was too long for a refund, while 23 percent think waiting two weeks for their money back is unacceptable.

As well as shunning retailers, the survey reveals shoppers fed up with slow refunds won’t go quietly. Nearly a third (32 percent) said they’d tell family and friends not to shop with a retailer because of delays getting their money back, while 27 percent said they’d leave a negative review online. A fifth (20 percent) said they make an official complaint.

The findings could prove damaging for retailers, as returns becomes a natural part of online shopping. Data from ReBound Returns, which handles millions of customer returns globally, shows nearly half of shoppers now order multiple variations of the same product, so they can try them at home and keep the version they like best, with the alternatives being sent back. The company also revealed 43% of shoppers send an item back within 3 days and half expect to hear from a retailer as soon as a refund is processed.

The good news for retailers is that speedy refunds can encourage reshopping. The YouGov survey shows two thirds of shoppers (67 percent) would likely spend their refund with the same retailer, if they get their money back within 2-3 days of making a return.

Stuart Greenfield, Sales Director at Advanced Supply Chain (ASC), said: “An item being sent back isn’t the end of a shopper’s spending, it’s simply another part of the online shopping journey. Retailers can embrace this and influence reshopping by making returns fast and painless for consumers.

According to ASC, one of the biggest challenges slowing down returns and refunds is ‘returns fraud’ and ‘false returns’. Stuart continues: “Disingenuous shoppers and criminals attempt to exploit returns processes by sending back counterfeit products, substituting items for lower value goods and switching price tags on products. Extra inspections are put in place to verify genuine returns and to avoid refunds being wrongly paid. This is important, and refunds should only be paid after a return is verified, but there are ways to avoid extra quality control leading to lengthy refund delays. Investing in tech, data and processes can speed up inspections and keep shoppers updated about when they’ll get their money back.”

Data from ReBound Returns shows shoppers want to be kept updated about the status of returned items and refunds, by email, text messages and WhatsApp. The company also revealed the majority of shoppers (57 percent) want to resolve problems with returns via live online chats with customer service agents.

Mike Viscione, Sales and Partnerships Lead at ReBound Returns, said: “Shoppers are keen for their returns to be dealt with quickly and to be kept updated throughout the process. Delays are often caused by retailers wanting to handle customer returns in one, centralised distribution centre, which can add transportation mileage and time to processing. It’s much more effective to deal with returns locally, as close as possible to where shoppers have sent items back from, to enable returns to be quickly checked, verified and customers refunded within 3 days.

Early refunds not only boost customer satisfaction but can also strengthen loyalty and retention. They open the door for exchanges or follow up purchases, turning a return into a new sale.”

YouGov surveyed 2,009 UK consumers aged 18+ years during May 2025.