Buyer’s Remorse in eCommerce: What is it, Why it Happens, and How to Avoid it

Buyer’s remorse is frequently experienced after making a financially significant purchase. Most notable examples are when purchasing a property or a car. 

But do shoppers experience buyer’s remorse when buying less expensive items? The answer is yes, especially when purchasing online.

In this article we will go over why this is the case, what online retailers can do about it, and how measures against buyer’s remorse help them nurture long-term relationships with their customers.

Before we get to that though, let’s define buyer’s remorse first, in the context of eCommerce.

Buyer’s remorse is the feeling of regret or dissatisfaction that a person experiences after making a purchase. The more impulsive the purchasing decision was, the likelier it is that a sense of regret will occur.

It is deeply tied with various psychological aspects of buying, and with emotions and mental processes that happen while shoppers are browsing products online.

Why do shoppers experience buyer’s remorse in eCommerce?

Humans are diverse when it comes to thought processes leading to and after the purchase decision. There are multiple reasons why someone may feel a sense of regret after a purchase. Some of the most common reasons for experiencing buyer’s remorse include: 

• Overpaying;
• Rushed decisions;
• Not actually liking the product;
• Post-purchase product comparison.

Do note, this is not an exhaustive list and that everyone’s reasons may be different. With that in mind, let’s quickly take a look at each of these reasons up close.

Overpaying

This is probably the easiest cause of buyer’s remorse to understand. Shoppers may realize they went outside of their budget, that there was a better deal, or that the opportunity cost was too high (i.e. they could have purchased something more useful for the same amount of money).

Rushed decisions

When shoppers realize they could have given a purchasing decision some more thought, they may experience buyer’s remorse. A person may feel manipulated or even defeated when they realize they have been influenced by a psychological pricing strategy. This is why it’s crucial for online retailers to be careful when implementing these strategies and tactics.

Not liking the product or product not matching the description

Having a change of heart towards the product is one thing. And, by the way, it is a perfectly valid reason for feeling buyer’s remorse.

However, a more problematic scenario is when the product doesn’t actually match the description and the images on the product page. Numerous cases have been documented online, including dresses, but also costumes, and even food items.

Similarly to this, the product may closely or exactly match the description, but the customer may have just made a mistake. This is especially common when talking footwear (e.g. choosing a wrong shoe size), or home appliances (e.g. when the dimensions of an item won’t allow it to fit in someone’s home).

Post-purchase product comparison

This potential cause of buyer’s remorse connects all of the previously mentioned ones. A shopper may find a better deal after the purchase, find out that a special promotion is starting at that point, or find a more suitable product for them at the same or similar price. 

However, some customers may feel restless because of other psychological reasons. When buying an item from a category they aren’t familiar with or something expensive, it is normal to feel a sense of doubt after the purchase. This is not necessary a cause of immediate concern, and in some cases the decision simply needs to sink in.

There are cases though, where customers may find an objectively better offer after the purchase. This is a valid cause for feeling regret and we will get to how to prevent and address this and other type of buyer’s remorse later on in the article.

Why should online retailers care about buyer’s remorse?

If your customers experience buyer’s remorse, it can impact your business both in the short and long term. The most common effects on online retailers due to their customers experiencing buyer’s remorse are:

• Increases in refunds & returns;
• Deterioration of brand image, reputation, and value;
• Reduced customer loyalty;
• Additional operational costs;
• Potentially higher customer acquisition costs in the future.

What can online retailers do to prevent buyer’s remorse?

The options online retailers have to prevent and soften buyer’s remorse are numerous. Let’s go over some of the most effective methods.

Competitive pricing

In eCommerce, prices are one of the primary triggers of buyer’s remorse. Or to be more precise—high prices. When customers feel they have overpaid for a product they will trust your brand less and make fewer purchases from your store. Experienced merchants and retailers are known to say I don’t want to make a quick profit, I want to get a [long-term] customer. What does this mean? In this case, it means that even if you hold an item that’s low on supply on the market, perhaps don’t go overboard with the markups. 
This will require you to keep an eye on both your competitors’ prices and stock availability. In this context, competitive pricing means calculating your prices based on how many competitors are stocking the same products as you, and what their prices are.

Transparent pricing

Transparent pricing refers to showing all the costs included in a purchase. What does this include, besides the product price? Here are a few potential fees your customers may want to know about:

• Shipping fees,
• Return shipping fees,
• Gift wrapping/packaging,
• Handling fees,
• Taxes.

Please do note that this is not an exhaustive list and that even in some cases (e.g. taxes) some of those suggestions may not be applicable or that you may be already required by law to include them.

Personalized suggestions & pricing

Personalized suggestions and personalized prices lead towards your customers buying the products they actually want at price points they are satisfied with.

If you are afraid of leaving money on the table consider bundling potential loss-leader products in your general repricing strategy.

Display product reviews on the product page

Shoppers inherently trust their peers (i.e. other shoppers) more than sellers. If you have a range of products your customers are satisfied with, don’t shy away from displaying good reviews on those product pages. It will reduce the doubts your customers have, improve the overall user experience on your website, and even potentially improve your search engine rankings.

Write detailed product descriptions

Detailed product descriptions help online retailers reduce buyer’s remorse by setting clear expectations and providing customers with the essential information they need to make informed decisions. When product details are transparent, customers are more likely to feel confident in their purchase and less likely to experience regret. This trust in the product ultimately leads to higher satisfaction and fewer returns.

Post-purchase surveys

Post-purchase surveys do two primary things: (1) they let you know if your customers actually regret the purchase or not, so you eliminate the guesswork; and (2) they show your customers you care. Essentially, post-purchase surveys help online retailers reduce buyer’s remorse by gathering feedback on customer satisfaction. This allows retailers to identify issues early and address them, preventing regret from setting in. By listening to your customers after the purchase, you can improve their experience and build trust.

Fair return policy

When customers know they have the option to return an item if they’re not satisfied with it, it can alleviate the pressure to make a perfect decision at the time of purchase. A return policy provides a safety net, which makes consumers feel more comfortable taking the risk of buying something new. What is crucial here is that the return process is easy to navigate, and isn’t restrictive or complicated.

Conclusion

There are numerous factors that can lead up to a sense of regret after a purchase. From the perspective of an eCommerce business it is important to be mindful of those factors and try to be one step ahead of them.

Resources spent during a purchase (both time and money), the feeling of accepting one’s own responsibility for the purchasing decision, and living with the undesired item, are all causes of buyer’s remorse on the customer’s side.

Having these factors in in mind, together with the toolset we provided above, you should design your store experience around nurturing long-term relationships with your customers. It will help you set a solid foundation for your eCommerce business to thrive, even in difficult times.