Almost a third of UK consumers are spending less online because of the time it takes for retailers to process a refund, potentially hitting online specialists such as Asos and Boohoo as well as giants Next and M&S.
More than half of consumers stated that the time it takes to receive a refund makes them less likely to shop with a retailer, according to cost of living data from open bank platform Tink, cited on the InternetRetailing website.
This would suggest that online retailers may be missing out on vital revenues and potentially loyal customers.
Despite customers remaining cautious over the time it takes to process a refund, return rates continue to be a drag for pure online players.
Some 54% of online retailers said they are or are expected to be forced to stop offering free returns because of the economic climate.
ASOS still offers customers free returns, although boohoo deducts £1.99 per parcel from the refund amount on items being returned.
To aid the balance sheet, ASOS chief executive Jose Antonio Ramos Calamonte implemented a turnaround plan that targets better stock management and reducing costs.
European competitor Zalando, however, has taken a different approach, axing 5% of its workforce amid the macro-backdrop.
Retailers will be “looking at controlling the costs” according to Julie Palmer, a partner at restructuring firm Begbies Traynor (AIM:BEG), and cutting staff is one-way expenditure can be controlled.