Recent research conducted by DHL eCommerce and ZigZag reveals an intriguing trend in the United Kingdom: return values have soared by 7% in September and October, reaching nearly 127 euros (approximately 106 British pounds) per return. This increase prompts a closer look at consumer behavior, the evolving dynamics of online shopping, and the implications for retailers.
Understanding the Data Behind Returns
According to the report, not only are return values higher, but return volumes have also risen by 3% compared to the same timeframe last year. Interestingly, the report indicates that paid returns, where customers foot the bill for sending items back, increased by 6%. This suggests that while consumers may be purchasing more expensive or high-value items, they are also more prepared to handle the costs associated with returning them.
A significant portion of online shoppers—46%—reported paying for returns during the survey period. Additionally, a notable 25% of these shoppers indicated they wouldn’t mind paying for returns if they genuinely desire the item in question. These statistics illustrate a shift in consumer attitudes towards returns, hinting that shoppers are becoming increasingly selective and knowledgeable about their purchases.
The Rise of Frequent Returners
The report also highlights the segment of frequent returners, who represent 11% of all return cohorts yet account for a staggering 24% of return volumes. Retailers have begun to take notice of this trend, with Asos implementing extra fees for habitual returners in an effort to curb the practice. Surprisingly, 83% of these frequent returners expressed willingness to cover the cost of returns, suggesting that they are invested in obtaining the products they desire, even at an added expense.
An Opportunity in Challenges
Matthew Jacques, Global Partnerships Director at ZigZag, emphasizes that returns should not be viewed solely as a challenge but as an opportunity for retailers. As the landscape shifts, with consumers more willing to pay for returns, retailers must adapt to capitalize on this changing mentality. “Plenty of leading retailers have made the move to paid returns,” he notes. This transition could pave the way for a more sustainable approach to online retail, transforming what has traditionally been a burden into an avenue for profit.
However, Jacques also warns that with the introduction of paid returns comes heightened expectations from customers. Retailers must ensure they offer user-friendly online return portals, comprehensive tracking solutions, and swift refund processes to justify any charges associated with returns. The convenience factor is essential; shoppers expect hassle-free return options, clear communication, and proactive status updates.
Best Practices for Retailers Looking to Adapt
For retailers seeking to navigate this evolving landscape, here are several actionable strategies:
1. Clear Return Policies: Make it easy for customers to understand your return policies. This transparency helps build trust and reduces friction at the point of purchase.
2. Enhanced Tracking Capabilities: Implement systems that allow shoppers to track their returns seamlessly. Providing real-time updates can reassure customers throughout the return process.
3. User-Friendly Online Portals: Create intuitive online interfaces for managing returns. A straightforward, hassle-free return process can significantly improve customer experience and loyalty.
4. Use Data Analytics: Analyze trends in return behavior to identify which products are frequently returned and why. Understanding these patterns can inform inventory management and product descriptions.
5. Customer Engagement: Actively engage with shoppers about their return experiences. Personalizing communication and offering incentives for future purchases can help foster goodwill and customer retention.
By understanding consumer behavior and leveraging data effectively, retailers can turn the increasing trend of returns into a strategic advantage. With the right approach, returns can become a valuable part of the customer journey rather than merely a hurdle to overcome.
As the e-commerce landscape continues to evolve, monitoring these shifts in return values will be vital for retailers aiming to remain competitive and customer-oriented in a challenging market.
