Returns management solution provider ZigZag has issued its first Returns Secrets Exposed: Inside the UK’s Leading Retail Practices report, analyzing returns trends among 130 of the biggest retailers in the country.
According to the report, 61% of shoppers now expect to pay for e-commerce returns, and retailers have responded – 33% of them now offer paid returns, a 17% rise on 2023.
Al Gerrie, CEO of ZigZag, commented, “Returns are never free for retailers, and the fees being introduced are reducing the burden. Consumers are becoming more forgiving, especially as retailers turn to more innovative and customer-friendly returns methods, so I’m expecting this trend to continue.
“The most important part of returns is providing convenience and choice for shoppers so a mixture of paid and free returns options is likely to continue. Return-to-store options can alleviate some of the logistical costs associated with free returns and it can be an incentive to buy memberships, so free returns are set to evolve rather than disappearing entirely.”
Seasonal changes
According to the report, the majority (68%) of retailers offer a 28- or 30-day returns window, with just 12% offering 60 days or more, but they do adjust their returns policies during peak season, with 42% extending the period to prevent returns 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 do this, according to ZigZag.
Convenience is key
Providing convenient returns services is important, with 21.5% of retailers offering return to store in 2024 – this rises to 82% for large retailers with 20+ stores. According to ZigZag, by adopting free returns options like return to store, retailers save time and resources in the returns logistics cycle while providing consumers with an alternative to online returns methods and incentivizing more footfall in store.
Gerrie added, “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 recognize 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 toward 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.”