Bad reviews costing online retailers £125k a year to rectify

Negative online reviews are costing British retailers an average of £125,000 every year to rectify as consumers become increasingly sensitive to user reviews.

According to new research from Brightpearl, more than half (56 per cent) of British companies selling online have received negative reviews over the past year.

Of those 29 per cent said poor reviews were getting worse, but 42 per cent said they had no idea how to tackle them.

These are now costing companies an average of £125,000 every year to rectify through the hiring of reputational PR agencies and social media managers.

READ MORE: Fake reviews 136% more likely to make online shoppers buy poor quality products

The study, which polled 2000 shoppers and 1000 decision makers, also revealed that 40 per cent of shoppers were put off by a single negative review, and that 46 per cent regularly checked user reviews.

Despite this just 23 per cent of brands said they always responded to negative feedback, while nearly 60 per cent of shopper stating they looked more favourably on retailers who respond actively.

“Reviews – whether they are positive or negative – can make a huge difference to the choices consumers make when it comes to selecting a brand or retailer,” Brightpearl’s chief revenue officer Nick Shaw said.

“It’s absolutely right that consumers should have a moan when they receive sub-par service – and brands need to start paying closer attention.”

“Retailers are increasingly aware of the wide-ranging financial and reputational impact a negative review can have on their business. But they need to understand where those problems are coming from – be that items not arriving on time or at all, a lack of delivery updates or cancelled purchases.”

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