Published
October 21, 2024
We know serial returners are a big problem for the fashion industry, clogging up supply channels and hurting retail margins and profits, but how damaging are they?
They accounted for £6.6 billion in costs in the UK in 2024, according to returns specialist ZigZag whose ‘Annual Returns Benchmark Report 2024’ shows that over a fifth of online non-food purchases are now returned with online returns forecast to exceed £27 billion in 2024 in the UK
Although serial returners account for only 11% of online shoppers who make returns, they’re generating 24% of all online non-food returns (£6.6 billion in 2024). Slow and serial returners together account for 22% but generate 45.5% of returns.
Furthermore, serial returners are projected to send back a staggering £1,400 worth of non-food products this year – more than double that returned by efficient and occasional returners.
The report, produced in partnership with Retail Economics, showed 42% of shoppers admit to returning items because of over ordering sizes or colours (‘bracketing’) and while 16% of Baby Boomers engage in this behaviour across any retail category this is nothing compared to 69% of Gen Z consumers.
Also, 16% of shoppers admitted to having bought clothing or footwear online just to use for a short time like a social event (‘wardrobing’) and 15% have bought clothing or footwear online to showcase on social media (‘staging’).
Nearly half (49%) of online shoppers have also abandoned purchases due to unfavourable return policies. But consumers are willing to pay £2 for returns on average, the report showed.
It also highlighted that sub-optimal returns policies “are driving opportunistic behaviours”, with fast fashion brands such as H&M, Zara, and PrettyLittleThing having to introduce fees for online returns “to discourage excessive returns and offset expenses”.
To counteract the impact of serial returners in particular, some brands including ASOS have introduced higher returns fees for individual customers and deactivated accounts altogether, it noted.
Al Gerrie, CEO of ZigZag, said: “There have always been good and bad returners but the rise of serial returners, in particular, is likely to cause alarm for retailers. Led by younger shoppers, this cohort is exploiting retailers and forcing them to make more controversial and divisive actions.
“Retailers will continue to clamp down on spiralling costs and returns fraud by introducing paid returns and policies that hone in on abusive returns behaviours, like wardrobing, staging or bracketing. Education also plays a pivotal role. Retailers must ensure customers have accurate product information — consistent sizing, clear descriptions and transparent return policies – so that confidence, not abuse, drives buying decisions.”
Richard Lim, CEO at Retail Economics, added: “Serial returners are quietly eroding retail profitability in ways many retailers are only just beginning to understand. The rise of opportunistic shopping behaviours, where many people intentionally buy large quantities of goods with the intention of returning most of them, is placing an unprecedented strain on retailers. This not only impacts the bottom line through increased operational costs but also creates significant challenges in inventory management and sustainability efforts.
“Retailers are facing thinner margins and must urgently rethink their approach to returns management by integrating advanced returns solutions and educating consumers about the implications of their returns, balancing customer satisfaction with profitability.”
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