Data from a survey conducted by returns specialist ZigZag has revealed that nearly three-quarters of consumers surveyed claim that ‘one-off fees for returns are preferable to price rises on items’.
The independent survey asked 2,000 consumers if they’d rather retailers cover a fraction of the cost of returns by increasing the price of items they sell or by imposing a one-off returns fee of £2.50, with 71% preferring the second option.
ZigZag says that in the wake of recent backlash to new returns fees being introduced by retailers, the results of this survey ‘point to an acceptance that paid returns are better for consumers than inflated prices to compensate for running a free returns policy’.
This news comes as a key time of year for returns, Black Friday, draws closer. Last year, ZigZag data showed that 43% of UK returns in the wake of Black Friday and Cyber Monday in 2023 were paid for by the consumer.
ZigZag founder Al Gerrie commented: “We commissioned this question as a thought experiment to see if consumers understand the reasoning behind the introduction of returns fees. Our aim is to show people that they aren’t paying for nothing – free returns policies aren’t sustainable in any sense of the word for most retailers.
“The miles travelled for each return made eat into revenues and add to the hundreds of thousands of tons of CO2 emitted each year making online fashion returns alone.”
According to ZigZag, ‘free returns policies encourage fraudulent returns practices like wardrobing – where shoppers buy items to use once and then return it to get their money back – and staging – where shoppers purchase items to flaunt on social media before returning’.
Furthermore, it claims that returns fraud and other misuse of returns policies cost British retailers significantly, noting that its data from 2023 found that 46% of UK consumers buy multiple products with the intention of returning at least one item.
On this, Gerrie adds: “Returns fraud cost UK retailers £5.4 million in the first half of the year according to the National Fraud Intelligence Bureau. Paid returns are often a necessity to avoid these costs impacting the whole customer base.
“To maintain customer loyalty, it’s crucial that retailers introduce returns fees without compromising on the factors that matter most to their customer bases.
“We found in previous reports that many consumers are willing to pay a surcharge if their needs are met – these are commonly attached to affordability, convenience, and sustainability but it’s up to retailers to use the wealth of data that’s now available to them through processing returns.
“The right paid returns policy can facilitate all of this, and the survey proves that people can come round to that idea if they see the returns dilemma that retailers contend with.”
