A new report from Whistl has revealed that the rise in e-commerce returns shows no sign of slowing down in 2024 as consumers and retailers prioritize hassle-free shopping experiences.
According to the report, based on third-party research, the worldwide reverse logistics market is expected to grow by US$250bn over the next five years to US$954.5bn.
It also suggests that customers expect online returns to be at no or low-cost and as seamless as possible while e-commerce businesses find themselves working harder than ever to streamline their returns management processes and minimize the cost of returns.
Melanie Darvall, director of marketing and communications at Whistl, said, “If online retailers don’t manage their returns effectively, it will have a significant impact on their sales and profitability. They also risk losing competitive advantage to retailers offering an easier, faster and more efficient returns journey. By adopting new systems and ways of working it is possible to reduce the number of returns while boosting revenue and customer satisfaction.”
Key findings for the UK
According to the eCommerce Returns: UK Consumer Trends and Best Practice report, 71% of UK online shoppers return items, with clothing the most returned item (27%) followed by shoes (15%) and bags and accessories (14%).
Other key findings for the UK market include:
- Online parcel returns typically cost £3 (US$3.79) more than in-store returns;
- False damage and refund claims top the list of return reasons, while nearly a third of online consumers falsely claim they never received their item;
- 38% of online shoppers said they now feel more confident in returning online purchases;
- 65% of UK online shoppers expect returns to be free under any circumstance;
- 57% of consumers are willing to pay more for products if they’re produced and transported in a way that doesn’t harm the environment.