Convenience is a principal driver of shopper satisfaction. Retailers that make things fast and easy for customers are more likely to thrive. Those that don’t may find shoppers simply don’t come back. Payments have a major role to play in making the shopping experience convenient.
One-click payments, alternative payment methods, instant transfers, and buy now, pay later have all become expected norms. If retailers don’t offer them, they risk missing out on shoppers who’d rather shop with businesses that do.
Refunds are commonly overlooked, with the process left painfully manual for shoppers and retailers alike. Returns and refunds, therefore, are a big part of today’s retail picture.
A new Worldpay report, in partnership with Visa, revealed that 55% of shoppers have returned a product purchased online. And, as predictions show that by 2030 global e-commerce will exceed $10 trillion, the number of returns and refunds a business will have to handle will only grow.
Faster refunds should be reframed not as a retail afterthought, but as a core strategy that can fuel success and give retailers a competitive edge.
Meeting shoppers’ expectations
For retailers, managing returns across multiple jurisdictions while maintaining consistent customer experience standards has become a critical differentiator in an increasingly competitive global marketplace. In short: if the process is slow and frustrating, it can turn shoppers away and damage a retailer’s reputation and effectiveness. Globally, research shows that 7.4% of e-commerce sales revenue is returned. This is expected to increase to 9% by 2029.
As with every element of the retail experience, shoppers expect maximum convenience throughout their retail journey. Today’s shoppers are looking for three things in particular:
- Speed: The ability to purchase an item with one click and be able to return it just as fast.
- Simplicity: No complex forms to fill in, no emailing customer service, and no searching for a returns button.
- Choice: There should be minimal barriers to the returns process, whether it’s taking an item to the most convenient store or being able to easily ship it back.
According to research, 52% of shoppers are more likely to shop with retailers offering 30-minute refunds. However, 41% of shoppers wait at least three days to receive their refund, creating friction that’s costing retailers more than they realize.
How retailers can save big
Complex refund processes aren’t just frustrating — they can be hidden profit killers. While retailers invest heavily in customer acquisition and conversion optimization, inefficient refunds can undo months of marketing efforts with a single negative experience. Retailers who optimize refunds and returns can cut costs, drive revenue, and build a competitive advantage.
A retailer with $50 million in annual revenue typically allocates 3% to 6% of revenue to customer support costs. That’s roughly $1.5 million to $3 million annually. If 30% of support queries relate to refunds, implementing automated and faster processes could eliminate a significant portion of these queries. This would translate to savings of up to $300,000 per year in customer support costs.
Many leading retailers are building strategic refund capabilities that set them apart. By preparing intelligently, designing for experience, offering choice, and moving quickly, retailers can solve rocky returns and increase customer satisfaction. These four pillars can therefore transform refunds into a profit driver.
The rise of the rapid refund
Faster and more flexible refunds will give retailers the upper hand. Efficient refunds aren’t just a benefit for shoppers — they’re a significant advantage for retailers, too. When shoppers get their money back quickly and easily, it can help retailers strengthen their reputation as trustworthy and reliable businesses that prioritize customer satisfaction.
This encourages shoppers to make purchases without fear of a slow and painful refund process. By cutting down on arduous manual processes, retailers will also have more time and resources to invest elsewhere. Reshaping refunds will provide retailers with access to the tools needed to build their business in a way that propels growth.
This post was created by Worldpay & Visa with Insider Studios.
