We found an article from The Guardian which shed light on some interesting shopping statistics in the UK. With the holiday shopping season looming, UK retailers are facing a daunting challenge: how to manage the avalanche of unwanted items flooding back from online shoppers. We promise this won’t be the last time you hear about refund nightmares from us this season!
The statistics are staggering, revealing that up to half of clothing purchased online is returned, a figure that spiked by 26% last year compared to 2021. The post-Black Friday period, specifically November 28th, saw the highest surge in returns, as reported by returns specialist ReBound.
Analysts from GlobalData shed light on the financial implications, disclosing that UK shoppers sent back over £4.1 billion worth of online clothing purchases last year. And even worse, projections indicate a 16.7% increase by 2027. Additionally, the percentage of consumers ordering multiple items and returning some has risen to 46%, up from 33% in 2021, according to ZigZag, a returns logistics company.
Tightened budgets and the cost of living crisis have intensified return behaviors. Over 35% of online shoppers admitted they’re more likely to return items due to financial constraints. Also, fashion trends post-Covid, have led to a surge in returns as shoppers strive to find the perfect fit.
With profits further restricted by rising transport and labor costs, retailers are making serious efforts to discourage excessive returns. Giants like Asos and Next send written warnings to prolific returners, closely monitor accounts, and even deactivate accounts for continued abuse. However, this is a small percentage, less than 0.5% of those shopping on Asos.
Several retailers, including H&M, Boohoo, New Look, and Uniqlo, have started charging for online returns. Asos, once a proponent of free returns, is experimenting with charges in certain regions, aiming to bill customers in the US and select European countries if items are returned after 14 days. (As avid online shoppers, we’re not too happy about this shift.)
To address the underlying causes, retailers are utilizing data and AI to identify problematic products swiftly. Analyzing return codes helps identify issues like poorly sewn buttons or fit problems. Technology is also being used to enhance the online shopping experience, with body-scanning machines and digital avatars designed to ensure customers find the right fit.
While technological solutions are promising, challenges persist. Initiatives like Nike Fit, launched in 2019 to suggest shoe sizes via a phone scan, have been abandoned. Creating avatars and measuring oneself can be time-consuming, and the effectiveness of such tools remains to be seen.
Returns specialist ReBound highlights that a small percentage of customers, between 12% and 20%, generate over 80% of refunds. Identifying those exploiting the system requires a well-informed approach from retailers.
As the retail landscape undergoes a transformation, finding a delicate balance between customer satisfaction, sustainability, and profitability is paramount. The coming festive season will serve as a test for the effectiveness of these strategies in tackling the escalating challenge of online returns. TodayPay, every day we need you more to get rid of return fraud! The good consumers demand free returns!
Yours truly,
The Instant Refund Expert™
The Refunds Blog 