Turns out that returning online shoppers garner a big chunk of sales for retailers. They also spend more money.
Stitch Labs, an online inventory control solution, crunched online shopping data from its pool of 2,400 online retailers — including Amazon and Shopify — and found that return customers, on average, account for 23 percent of total revenues.
The company analyzed more than 22 million orders done by more than 20 million “unique customers” and “excluded any retailers, which were inactive at any point through 2014 and 2015 [defined as having fewer than 15 sales in any given month].”
The percentage for online sellers of apparel and accessories was the highest of the industry segments studied with 29.2 percent of total sales due to return consumers. The company said new customers in the analysis were “defined as those who made only one order with a particular Stitch retailer while return customers were “defined as those who made multiple orders with a single retailer.”
The retail industry segment with the lowest percent of online sales due to return shoppers was the consumer electronics sector with 11.9 percent.
The researchers said that over the course of a year, “the average return customer spends 122 percent more than the average new customer.” The firm said the average return customer spent $86.16, accumulatively, which is “more than double the $38.81 spent by new customers.”
Stitch said the variances over 12 months were greatest with health and personal care and home goods. With personal care, return shoppers spent 152 percent more than a new customer over the course of a year while home goods retailers spent 139 percent more over 12 months.
The analysis also showed that on a typical order, “the average return customer spends 15 percent more than new customers.” For typical orders, the highest spend rates between returning shoppers and new shoppers were also with these two categories. Returning shoppers in the health and personal-care segment spent 29 percent more than new ones while home goods saw return consumers spending 29 percent more.
Aside from Amazon and Shopify, Stitch counts eBay, Etsy, Magento and WooCommerce, among others, as users of its online inventory solutions.