There’s an alarming gap in retail returns policies and a shortfall in packaging practices, according to a new report.

Highlighting a disconnect between retailers and the changing expectations of shoppers, 40% of UK retailers fail to communicate with customers during the returns process and nearly 60% don’t use sustainable packaging, falling short of customer expectations.

Those are the findings by post-purchase customer experience provider parcelLab and e-commerce customer care and fulfilment specialist Salesupply.

In the ‘UK’s Top 100 Retailers’ Post-Purchase Secrets Report 2024’, they found 28% of retailers don’t offer free returns “which may deter customers who prioritise flexible return policies”.  

The report also highlighted that communication during the returns process is a key failure with the aforementioned 40% of retailers not keeping customers informed “leading to frustration and lost loyalty”.  

Nearly half of retailers take more than a week to process refunds, with an average refund time of eight days. Surprisingly, only 9% allow item exchanges through their returns portals, “missing a crucial chance to boost customer satisfaction and repeat business”. 

But the report also revealed that 64% of retailers offer a return period of up to 30 days, while 21% allow up to 14 days. Also, 15% of retailers offer return periods longer than 30 days. Fashion and apparel retailers offer the third longest return periods, (41 days), ahead of homewares (73 days) and DIY (42 days).

When it comes to return methods, 26% of retailers use retailer-owned portals and the same amount rely on third-party portals. Some 19% of retailers use carrier portals for managing returns. Less common methods include customer service queries, paper labels and self-organised postage. 

Despite a heightened focus on sustainability, 58% of surveyed retailers still use plastic packaging. Only 36% provide environmental information on their parcels, “missing a critical chance to educate and engage eco-conscious consumers”. Although 80% of retailers ship products in appropriately sized packaging, only 6% offer CO2-neutral shipping.

Tobias Buxhoidt, CEO at parcelLab, said: “These report findings underscore a critical need for UK retailers to rethink their returns management and sustainability strategies. This is a critical step for them to create an improved post-purchase experience for the consumer, building stronger customer trust and loyalty which will ultimately drive repeat business and customer retention.”