ZigZag, a returns management provider for some of the UK’s top retailers, has issued its first ‘Returns Secrets Exposed: Inside the UK’s Leading Retail Practices’ report. Following on from its 2023 consumer survey, ZigZag examined the returns policies of the country’s biggest brands to explore how returns are defining the shopping experience, given that 84 per cent of British shoppers check the returns policy before making a purchase. ZigZag conducted the analysis to establish industry benchmarks for retailers to refer to and get the crucial aspects of returns management right.
A rise in paid returns
Fewer shoppers expect returns to be completely free of charge than in the past, and retailers have responded by introducing fees to offset the costs of returns. ZigZag’s 2023 data showed that a majority of shoppers (61 per cent) would not be deterred by a returns fee, and the 2024 report found a 17 per cent year-on-year rise in retailers offering paid returns as over one third (33 per cent) now charge for returns.
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 the way free returns are set to evolve rather than disappearing entirely.”
The perfect time frame, even in peak season
Timing is an important part of the shopping experience, and the report found a degree of consistency on returns windows outside of peak season. 28-or 30-day returns windows are the norm, with 68 per cent of retailers using this time frame. This gives consumers ample time to make an informed decision and allows retailers to retain value from the sale. In addition, 12 per cent of retailers allow 60 or more days to return and 3 retailers adopt a 365-day window, but these are outliers against the 28-or-30-day industry benchmark.
Refund times are less consistent and retailers are playing catch up to align with consumer expectations. The majority of shoppers (85 per cent) expect a refund within one week, but on average, they are kept waiting for 9.5 days.
Returns windows often change seasonally, with 42 per cent of the surveyed retailers extending the period during peak seasons to prevent returns volumes 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 achieve this.
Convenience is key, but there’s room for improvement
Return to store is offered by 21.5 per cent of retailers in 2024, rising to 82 per cent of larger retailers with 20+ stores. By adopting free returns options like return to store, retailers save time and resources in the returns logistics cycle, whilst providing consumers with an alternative to online returns methods and incentivising more footfall in store.
Offering refunds to gift cards and live exchanges improves the likelihood of retaining sales. ZigZag found that 57 per cent of consumers considering a return would accept a refund credited to a gift card. However, only 22 per cent of retailers currently offer this as an option. It presents an opportunity for retailers to raise the benchmark to be more in line with consumer expectations.
Al Gerrie, CEO of ZigZag, commented: “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 recognise 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 towards 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.”
Share