Rising waste, emerging costs, and shrinking profits are driving corporations to adopt tactics to dissuade shoppers from returning their products.
As the UK gears up for this year’s festive shopping spree, retailers are increasingly worried about how to handle the millions of unwanted items bought online and then sent back by shoppers.
Up to a portion of the garments purchased at are backed, according to the retailer, and last year the number of garments backed increased by 26% compared to 2021, with the biggest return day being November 28, the Monday after the Day. Black Friday reduction, according to back specialist ReBound.
UK shoppers recorded more than £4. 1 billion in online clothing purchases last year, according to analysts at GlobalData, who estimate that figure will rise to 16. 7% by 2027. Meanwhile, the share of other People ordering parts to make a selection and ship some this year has increased to 46%, up from 33% in 2021, according to returns logistics company ZigZag.
As profits come under pressure due to rising transportation and hard-labor costs, and concerns mount about the environmental impact of the many returned parts that are too expensive to reprocess and resell, stores have made serious attempts to dissuade buyers from returning their pieces. .
Online fashion specialist Asos, for example, said in May that only 6% of shoppers had made a £100 million profit because they ordered discounted items, of which they received support in a giant proportion. Earlier this month, Asos highlighted that addressing the best buy-back rates were a vital component of its efforts to reduce prices over the next year.
Here, we take a look at why returns pose such a big challenge and how corporations are looking to fight back against serial returns.
Fashion returns have shot up since the Covid lockdowns ended as closer-fitting items – especially dresses and jackets – have come back into vogue, meaning shoppers are more likely to buy two or more products to ensure they have the right size.
Meanwhile, more than a third of online shoppers, or 35%, say they’re more likely to return an item due to the life crisis, according to studies by returns processing specialist ZigZagArray. Tighter budgets make reimbursement more urgent and cause some use a random item before endorsing it.
The use of social media, which encourages some to order an item just for a snapshot on Instagram, is also believed to be having an impact.
Asos and Next are among the stores sending letters to problematic returns — a visitor returning more than nine out of 10 pieces they order over an extended period, according to an industry definition — warning them that their accounts are being monitored.
Asos consumers who continue to abuse the formula will likely have their account deactivated (this turns out to be a small proportion), particularly less than 0. 5% of those who shop on the site.
Next says it only writes to those who return an incredibly high proportion of the pieces they’ve ordered for more than a year and that there are protections in place for vulnerable buyers who would possibly struggle to find the right size.
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Asos, which has used free returns as a marketing tool in the UK, is experimenting with charges elsewhere, billing those in the US and some European countries, such as Poland, Belgium or Portugal, if they send an item back after 14 days. In some countries all returns are now subject to a charge unless an item is faulty or incorrect including Australia, where it is A$8.99 (£4.67).
Some stores now only offer free returns to those who spend more than a certain amount or encourage shoppers to sign up for a loyalty program for the service.
Retailers are using data to help them spot products with problems more quickly and either take them off sale or adapt. Codes used to help customers communicate why they have returned an item are then analysed with AI to help identify brands, materials or manufacturing glitches on particular products – such as a poorly sewn button or seam or fit – that leads to items being sent back.
New technology ranging from body-scanning machines to digital avatars has been trialled to help online shoppers get the right item straight away.
Marks’ True Fit Tool
These concepts have been around for some time, but have not yet had a decisive effect on returns. Measuring yourself and creating an avatar can be a time-consuming, even depressing, experience and may not result in finding the right item. Nike has discontinued its Nike Fit service, which was introduced in 2019 with the aim of employing artificial intelligence to recommend a customer’s height if they scanned their feet with their phone.
However, other uses of generation include analyzing feedback patterns to separate avid enthusiasts from system abusers. Returns processing specialist ReBound claims that between 12% and 20% of consumers generate 80% of refunds, “but this percentage is the most productive and the worst consumers. “He says stores need a “well-informed technique for their shoppers” to identify those who are taking advantage of the system.