A UK report found that shoppers who return goods purchased online will send back £1,400 worth of items each in this year. This totals £6,6 billion.
According to a report from ZigZag, a return logistics company, and Retail Economics, a research firm, serial returners make up 11% of all shoppers but will account for nearly a quarter (£27bn) of the forecast returns for this year. Nearly half of all returns are made by serial and slow returners. These shoppers are often impulsive, returning items out of buyer’s remorse.
Retailers have been hit by a growing number of online sales, and the delays in returns can make it hard to keep track of stock levels. In the UK, more than a fifth (or 5%) of online non-food orders are returned to the retailer.
The behaviour of shoppers varies by generation. Younger consumers are more likely to order too much with the intent of returning many of the items. Over two-thirds of Gen Z consumers (69%) said that they have bought online this way. This compares to a little over a sixth (16%) among the over-60s.
Al Gerrie, chief executive officer of ZigZag which handles returns for Selfridges Boden, New Look and others, said that the rise in serial returners “would likely cause alarm for retailers”.
He said that, “Led primarily by young shoppers, this group exploits retailers and forces them to take more controversial and divisive action,” he added. “Retailers are continuing to crack down on spiraling costs and returns fraud through paid returns, policies that target abusive return behaviours and policies that focus on abusive return behaviors.”
More than half of all shoppers admitted to “bracketing”, the practice of ordering additional sizes or colors only to return certain items.
A sixth (16%) of shoppers admitted that they had bought clothing or shoes online for short-term use, such as for a social gathering – a practice known as “wardrobing”. Another similar number confessed that they bought clothes to display on social media – a practice known as “staging”.
Retailers are looking for ways to recover some of the costs associated with consumer returns while not deterring customers.
Richard Lim, chief executive of Retail Economics said: “Serial returns are eroding profitability in retail in ways that many retailers have only recently begun to understand.” The growth of opportunistic buying behaviours where people buy large quantities with the intention to return most of them is putting unprecedented pressure on retailers.
Asos, an online fashion retailer , recently told some customers they would charge a fee of £3.95 for those who return items frequently unless the order is worth up to £40.
H&M has started charging online returns unless customers return items to physical retailers. It is believed that other big players are considering introducing delivery fees.
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