Serial Returners Send Back £6.6bn of Online Purchases a Year in the UK, Report Finds
Online shopping has exploded in recent years, and while it’s more convenient than ever to buy with just a few clicks, there’s a surprising downside. According to a new report, serial returners are sending back £6.6 billion worth of online purchases each year in the UK. This staggering number reveals a hidden issue in the world of e-commerce that affects not just retailers, but also the environment and consumers themselves. But what’s driving this trend, and what does it mean for everyone involved?
In this article, we’ll break down the key factors behind the surge in returns, explore the impact on retailers and the environment, and look at what can be done to curb this growing issue. Let’s dive in!
Why Are Online Returns So High?
Buying online is fast, convenient, and lets us browse thousands of products from the comfort of our homes. But, there’s a catch: we can’t see or feel the products before purchasing. That means there’s a higher chance that what we ordered might not be what we expected.
When you’re buying a pair of shoes, for example, you don’t have the luxury of trying them on to check if they fit perfectly. As a result, many consumers order multiple sizes or colors, fully intending to return some of them. While this makes sense for the shopper, it leads to a large volume of returns, and not all businesses are prepared for that.
Does this sound familiar? You’re not alone. It’s a widespread habit that’s grown along with the e-commerce boom, but it’s also starting to cause big problems for retailers.
Who Are the Serial Returners?
Serial returners are customers who frequently buy items online only to return a significant portion of them. These aren’t people who return something once in a while because it didn’t fit—they’re regular returners who engage in this behavior almost habitually.
So why do they do it? One reason is the “buy now, decide later” mentality. With so many retailers offering free returns, there’s little to no downside for consumers to order multiple items, knowing they can easily send back what they don’t like. It’s almost like having a fitting room at home. In some cases, people even order clothes for a special occasion, wear them once, and then return them. This practice, known as “wardrobing,” is a key contributor to the rising number of returns.
The Environmental Impact of Returns
It’s not just retailers feeling the pain from this trend. The environment takes a hit, too. Each return means additional transportation, packaging waste, and often, products that can’t be resold end up in landfills. In fact, it’s estimated that over 10% of returns are discarded because they can’t be resold as new, either due to damage or sanitary concerns, especially when it comes to clothing.
Think about it: every returned item has to be shipped back, sometimes internationally, adding more carbon emissions. Returns are not just a financial drain—they’re an environmental one, too.
What’s Driving the £6.6bn in Returns?
So, what exactly is behind the jaw-dropping £6.6bn in online returns in the UK each year? A few factors stand out:
- Generous Return Policies: Free and easy return policies have created a mindset where customers feel no risk in over-ordering.
- Online Shopping Growth: As more people shop online, naturally, more returns are made. The sheer volume of transactions amplifies the issue.
- Fit and Quality Issues: Many consumers return items because they don’t meet expectations, whether it’s size, fit, or overall quality.
- Wardrobing: As mentioned earlier, some consumers buy items with the intention of wearing them once and returning them, contributing significantly to the return problem.
How Do Returns Affect Retailers?
Returns aren’t just a minor inconvenience for retailers—they’re a major headache. Processing returns costs time and money, from shipping fees to restocking and inspecting items. Some items can’t even be resold, forcing companies to absorb the full cost. Even worse, frequent returns cut into profit margins, making it harder for businesses to grow.
Retailers also face logistical challenges when dealing with returns. If you’ve ever returned an item to a store, you might assume it just goes back on the shelf. But with online shopping, it’s often not that simple. Items have to be inspected, repackaged, and sometimes even refurbished or written off entirely. For some companies, managing these returns is an operational nightmare.
Is “Wardrobing” a Part of the Problem?
Yes, absolutely. Wardrobing is when consumers buy items (usually clothing) for a specific occasion, use them, and then return them. It’s a trend that’s particularly harmful to the fashion industry, where items can lose value quickly after just one wear.
Retailers are aware of this issue, but it’s hard to combat without alienating customers. While some are introducing stricter return policies, they’re also wary of pushing away legitimate buyers. It’s a fine line to walk.
Impact on Smaller Businesses
While big retailers like Amazon and ASOS might be able to absorb the cost of frequent returns, smaller businesses suffer the most. For a small e-commerce business, the costs of processing returns can eat away at profit margins, making it hard to survive. Moreover, smaller companies don’t always have the infrastructure to manage returns efficiently, leading to delayed restocking and potential customer dissatisfaction.
How Are Retailers Fighting Back?
To combat the rising tide of returns, retailers are implementing various strategies:
- Stricter Return Policies: Some are starting to enforce shorter return windows or stricter conditions for items to be eligible for a return.
- Charging for Returns: While many brands still offer free returns, others are beginning to charge a fee for return shipping to discourage unnecessary returns.
- Data-Driven Approaches: Retailers are using data analytics to predict return behavior and offer better product descriptions, sizing tools, and images to reduce the likelihood of a return.
These measures are designed to curb unnecessary returns while still maintaining customer satisfaction, but it’s a delicate balance to strike.
Can Technology Help Reduce Returns?
Technology is playing an increasingly important role in helping reduce returns. Augmented reality (AR) tools, for example, allow customers to “try on” clothes virtually before buying. Some retailers are also adopting AI-powered sizing tools that help shoppers find the perfect fit without having to guess their size.
Additionally, better product descriptions, more accurate photos, and customer reviews are helping consumers make more informed purchasing decisions, ultimately leading to fewer returns.
What Can Consumers Do to Help?
As consumers, we have a role to play in reducing the strain of returns on both retailers and the environment. Here are a few simple steps we can take:
- Order Carefully: Instead of buying multiple sizes or colors, take the time to review sizing charts and product descriptions.
- Avoid Impulse Purchases: Ask yourself if you really need the item before hitting the “buy” button.
- Respect Return Policies: Don’t abuse generous return policies by engaging in practices like wardrobing.
By being more mindful of our shopping habits, we can help cut down on unnecessary returns and reduce the environmental impact.
Future Trends in E-commerce Returns
Looking ahead, the trend of online returns is likely to continue growing unless action is taken. Retailers will need to innovate, using technology and smarter return policies to manage the flow of returns. At the same time, consumers may face more stringent return conditions as companies seek to protect their bottom line.
We could also see a rise in more sustainable practices, such as re-commerce (selling second-hand goods) and better recycling efforts for unsellable items. Either way, it’s clear that the issue of serial returners isn’t going away anytime soon.
FAQs
1. What is a serial returner?
A serial returner is someone who frequently purchases items online and regularly returns a significant portion of them, often engaging in this behavior as a habit.
2. Why is wardrobing a problem?
Wardrobing is when consumers buy clothes to wear for a short time, such as for a special event, and then return them. This behavior is costly for retailers and unsustainable.
3. How do online returns affect the environment?
Returns contribute to additional transportation, packaging waste, and discarded items, many of which end up in landfills, increasing carbon emissions and waste.
4. What are retailers doing to reduce returns?
Retailers are implementing stricter return policies, charging for returns, and using technology like augmented reality and AI tools to help consumers make better purchasing decisions.
5. How can consumers reduce their return habits?
Consumers can reduce returns by carefully reviewing product descriptions, avoiding impulse purchases, and respecting return policies instead of over-ordering multiple sizes or colors.