Online Shopping Return Policy: The Make-or-Break Factor For E-commerce Firms This Festive Season

With urban Indian households projected to spend Rs 2.19 lakh crore this festive season, the stakes for a smooth shopping experience are higher than ever. For online shoppers, particularly those making high-value purchases over Rs 1,000, the confidence to buy hinges on the assurance that a product can be returned without hassle.

A recent report by LocalCircles highlights a key finding that goes beyond just spending: the critical role of a return and refund process in shaping consumer trust. The report reveals a strong consensus of 79% of online shoppers considering an efficient return and refund process extremely important.

A supplementary poll from the report provides insight, showing Amazon India as the preferred platform for returns and refunds among e-commerce sites, while Big Basket leads among quick commerce platforms.

The single-digit ratings for many other platforms call for a significant need for a sector-wide improvement in how they handle returns.

The data shows that while attractive prices and wide selection drive initial interest, it is the post-purchase experience that builds long-term loyalty.

This is especially true for items like smartphones, electronics, and home appliances, which are major spending categories this festive season.

While traditional markets and retail stores remain popular, digital shopping is emerging as the new favourite means for the big shop.

The study shows that the percentage of households planning to use e-commerce platforms as their primary shopping channel has more than doubled, jumping from 13% in 2024 to a significant 28% in 2025.

This 115% surge is driven by the convenience, attractive deals, and wider product selection offered by online platforms. As a result, e-commerce is set to capture a much larger share of the festive season market, according to the report.