Why more leading brands are embracing change of mind policies

Convenience, choice, comparability, and necessity – these are only some of the reasons why online shopping has taken off. The global COVID-19 pandemic about four years ago served as a catalyst, accelerating technological advancements and affordability, and propelling online shopping from a mere convenience to an essential part of daily life.

Nonetheless, despite its advancements, online shopping still has some way to go before reaching the heights of a great experience. For shoppers, some of the most frequent concerns when it comes to shopping online are in areas such as speed of delivery and fulfilment, transaction safety, and more recently, ease of return policies.

According to a recent survey by YouGov, which canvassed consumers across 17 international markets, 83% of respondents across all markets consider it important to have an easy return process when purchasing a product.

More than two in five consumers (43%) say the ease of returning products is very important to them during the purchase process, while 40% of consumers across all markets say it is fairly important. As for Asia, 82% of Singaporeans say an easy returns policy is important to them, with 86% in Indonesia agreeing.

The pain points around return policies have not gone unnoticed by eCommerce players. Leading regional marketplace Shopee took a bold move to improve the online shopping landscape by allowing buyers to shop with peace of mind, knowing that if their purchase isn’t exactly what they want, they can return it hassle-free with its 15-day free returns initiative.

The move allowed customers who changed their mind about a purchase to return items for free and receive a full refund, no questions asked, as long as terms and conditions are followed. To take advantage of the new feature, customers simply have to:

1. Check eligibility: Before making a purchase, verify that the item is eligible for return.
   
   
2. Raise a return/refund request: If a return needs to be made, customers simply go to their order history, select the item, and choose “return/refund” with “change of mind” as the reason.
   
   
3. Ship the item back: Customers can self-arrange returns through a courier of their choice with shipping fees reimbursed, enjoy the added convenience of scheduling a doorstep pickup, or opt to drop off the items at designated locations.

It paired the initiative with data-driven tech improvements to make the overall return-refund process highly predictive and efficient. As a result, in the second quarter, more than half of its return and refund cases in Asia were resolved within one day. Making the process fuss-free also ensured that buyers were completing their purchases, driving up user stickiness and repurchase frequency.

Speaking about the new initiative, Huiyan Pan, regional marketing lead at Shopee, shared that the enhanced change of mind (CoM) policy, launched in March 2024, reflected the company’s commitment to providing the highest standards of service quality and delivering an exceptional customer experience on Shopee.

“When customers know they can return items without hassle, they're more likely to make purchases, even if uncertain about the product. By making returns easier and more flexible, we create a positive online buying experience that encourages repeat purchases,” Pan said.

Why it benefits merchants as well

While at first glance the move may seem daunting to merchant partners, in reality it helps to underscore Shopee’s commitment to customer happiness, which will then ensure peace of mind, return customers, and drive higher transaction volumes.

Additionally, as part of Shopee’s stringent processes to ensure fairness, sellers also retain the right to reject change of mind return requests if the products show signs of use, damage, or if they fall under non-eligible categories. The requests are first screened and checked by Shopee or the sellers themselves, with eligible cases approved for refund and ineligible cases rejected.

Not only that, but sellers can also raise a dispute if they find that the returned item is damaged or unsuitable for resale. This is to ensure a fair and consistent approach to returns, safeguarding the integrity of the shopping experience for both sellers and consumers.

In fact, in Malaysia, this ease of transaction and peace of mind, led to an over 10% increase in average basket size among buyers who raised change of mind return requests compared to before the feature was launched.

Across the border in Singapore, with the enhancements made, the buyer customer satisfaction score increased by 13% within a short period of three months. The time taken for return and refund requests to be resolved in Singapore was also reduced by 35%, indicating that the updated policy indeed streamlined the return process, making it more efficient and responsive to customer needs.

Explaining the benefits for merchants further, Pan shared the CoM policy goes a long way in building trust and brand confidence, empowering businesses to unlock long-term growth opportunities.

“Today's tech-savvy shoppers seek convenience, flexibility, and a seamless experience when purchasing online. Through initiatives such as the CoM policy, we aim to meet these evolving needs and continuously enhance the online shopping experience on our platform,” Pan said.

Providing a great customer experience

Worldwide retail eCommerce sales currently make up a fifth (20.1%) of total retail sales this year, totalling $6.334 trillion, as per an eMarketer forecast. Excelling in this space means endless opportunities for merchants to open doors to new customers.

Shopee, which is committed to empowering small and medium-sized business owners, has been swiftly ramping up its services to help merchants and customers to have frictionless experiences. It has added aspects such as the on time guarantee to ensure reliability across all the markets it has a presence in. In Singapore it has an option for next day delivery, while customers in Malaysia, Indonesia, Vietnam and Thailand can also enjoy instant delivery.

Beyond fast delivery, eCommerce players must also ensure they are prompt and responsive to a customer’s queries. They must also remember to optimise their shopfront for ease of use, speed, and mobile compatibility. Last, but not least, they need to simplify the return and exchange process to build trust and reduce the perceived risk of purchasing.

“Only by prioritising an exceptional customer service can eCommerce platforms foster a cycle of success that starts with consumer satisfaction. This strategy enhances customer loyalty and ensures sustained, and ultimately, limitless growth potential for sellers and brands using the platform,” Pan said.