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Online shoppers are returning products in droves because of this one reason

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One of the greatest hurdles to online shopping is that customers cannot actually see the product in person before they buy it.

This fact places tremendous pressure on the retailer to completely and accurately describe the product so that the shopper knows what he or she is getting. But these descriptions often vary across different channels, so a user might read three separate descriptions on a manufacturer's website, third-party sellers' sites, and the actual product box.

This lack of consistency is having a detrimental effect, as 42% of U.S. consumers have returned something they have purchased online, according to a Shotfarm report.

This problem is most pronounced among online apparel retailers, as 25% of U.S. consumers have returned an item in the last year because the product information provided did not match what they purchased. For comparison, just 9% did the same with consumer electronics, and 7% did so for household goods.

Perhaps more damaging is the fact that inaccurate product descriptions turn off consumers from ever shopping with a retailer again. In fact, 87% of consumers are unlikely to ever buy from a retailer if they buy an item that did not have a correct product description.

Most of the time, consumers reported that the manufacturer's website had the most accurate product descriptions. So when a retailer ultimately posts the descriptions, they can alter them somewhat. To prevent this, retailers and third-party sites could simply duplicate the manufacturer's description, which would have the added benefit of reducing employees' workload because they would not have to write and post their own descriptions for each product.

This is not the only problem retailers are facing, as the quality of customer service consumers experience through all channels (email, phone, etc.) can significantly impact a retailer's bottom line. In fact, 66% of US consumers are willing to spend more money with a company that provides them with excellent customer service, according to Microsoft, while 60% of consumers say they have not completed an intended purchase due to a poor customer service experience.

As consumers increasingly buy products online that they haven't seen in person — leaving room for purchasing errors and buyer's remorse — it's now more important than ever to provide customers with positive customer service experiences.

Nancee Halpin, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on customer service that looks at why customer service matters, which stalwart channels are still top performers, and which new channels have the most potential. It also takes a look at why luxury retailers, or even just retailers with high-income consumers, need to be especially attuned to providing solid customer service help.

Here are some key takeaways from the report:

Even a single negative customer service experience can deter potential customers from spending money with a company. 60% of US consumers have not completed an intended purchase based on a poor customer service experience. That translates into an estimated $83 billion in lost sales for US retailers.
Negative customer service experiences loom larger than positive ones. It takes 12 positive customer experiences to negate the poor impression left behind from one unresolved, bad experience.
Lack of effective customer service on social media seems to be spilling over into users' willingness to interact with brands at all on the channel. Just over half of consumers plan on either not contacting or reducing their contact with brands through social media this year.
Providing the best-quality customer service is especially important to luxury retailers, whose customers expect a personalized experience to enhance the exclusivity that comes with luxury retail. Nearly half of all luxury consumers demand an apology, refund, or incentives following a poor customer service experience.
Traditional channels like phone and email are still preferred by consumers, but new technologies — like messaging apps and live chat — are beginning to take off.

In full, the report:

Examines why customer service matters more for e-commerce retailers.
Explains the consequences of both positive and negative customer service experiences for retailers.
Compares various channels for customer service and discusses which ones perform best.
Assesses the future of customer service for a digitally native consumer audience.
Discusses which retailers and industries are affected most by customer service experiences.

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