Consumers expecting free returns for products bought online are now few and far between, according to new data.
With 33% of the 130 of the country’s largest retailers now committed to paid returns to offset related costs, up 17% year-on-year, 61% of UK shoppers would not be deterred by a returns fee, sector management provider Zig-Zag says.
But some retailers clearly hope the opposite as ASOS, for instance, has joined the long list of online retailers that will no longer offer free returns for so-called “serial refunders”. It’s charging £3.95 for such shoppers.
However, 42% of those leading retailers are also allowing longer to return in peak season, Zig-Zag’s new report about returns practices also shows, alongside a degree of consistency on returns windows outside of peak season.
So, 28 or 30-day returns windows are now the normal time frame for 68% of retailers and “this gives consumers ample time to make an informed decision and allows retailers to retain value from the sale”.
With returns windows often changing seasonally, 42% of the surveyed retailers extending the period during peak seasons to prevent returns volumes from overwhelming capacity.
“It’s crucial for retailers to heed consumer demands during Black Friday and Christmas sales, and adopting a flexible returns window is a surefire way to achieve this”, Zig-Zag said.
On the refunds front, things are less consistent and retailers are “playing catch-up” to align with consumer expectations. The majority of shoppers (85%) expect a refund within one week but, on average, they are kept waiting for 9.5 days.
Also, a return-to-store feature is now offered by 21.5% of retailers in 2024, rising to 82% of larger retailers with 20+ stores.
“By adopting free returns options like return to store, retailers save time and resources in the returns logistics cycle, whilst providing consumers with an alternative to online returns methods and incentivising more footfall in store”, it also said.
Meanwhile, offering refunds to gift cards and live exchanges improves the likelihood of retaining sales, the report finds, with 57% of consumers considering a return ready to accept a refund credited to a gift card. However, only 22% of retailers currently offer this as an option so it “presents an opportunity for retailers to raise the benchmark to be more in line with consumer expectations”.
Al Gerrie, CEO of ZigZag, said: “Returns are no longer just about logistics; they are a significant topic in boardrooms and have a considerable impact on the financial stability of retailers. As more retailers recognise how consumers respond to different returns policies, the industry standard for returns management has risen in the past few years. Given the unpredictability of consumer spending, our report underscores the importance of a strong returns policy, oriented towards customer satisfaction and retention.
“With this new data, we aim to help retailers identify the gaps between their existing policies and the industry average, understand how this relates to consumer opinions, and develop more accessible, user-friendly policies that prevent revenue loss.”
Copyright © 2024 FashionNetwork.com All rights reserved.
Like the Beatles before them, a slew of British brands are taking the US by storm with their whimsical dresses and cosy knitwear.The Guardian’s journalism is