According to data from returns technology provider ZigZag, 43% of UK returns in the wake of Black Friday and Cyber Monday in 2023 were paid for by the consumer.
Over the past year, there has been a trend amongst retailers of moving away from the free returns model that has been very popular up to this point. Many e-commerce consumers or those wishing to return goods via post rather than in-store can now expect to pay a small fee, or have to become part of a membership scheme to get free returns.
In September 2023, Logistics Manager reported that fashion retailer H&M had introduced a £1.99 return fee per parcel for non-member customers. However, this return fee does not apply to items deemed faulty or incorrect, or to the return of goods in-store.
This trend is further evidenced by other retailers having already adopted similar policies. For example, Zara has charged a £1.95 return fee since May 2022, while Boohoo has charged £1.99 per parcel returned for non-Premier customers since July 2022.
Al Gerrie, ZigZag’s CEO, shared his thoughts on the upward trend in paid returns: “With more and more retailers moving to charge shoppers for returns, it’s no surprise that almost half of returns were paid. However, this is a positive sign for retailers as it shows that shoppers are willing to pay for returns, allowing them to recoup some of the losses returns bring.
“What’s really interesting is the change of returns methods, the locker option in particular has become more popular. As lockers were introduced they were predominantly only available in large towns and cities but now, as more have become available nationwide, shoppers are choosing to use them for convenience. Retailers have also clocked on to the fact that more people are working from home and so, the home collection option is really a must-have.”
In 2022, ZigZag found that returns using lockers increased by 207% across 2022’s Black Friday week compared with the same week in 2021.
Speaking to Logistics Manager in September, Peter Blackburn, international commercial director at parcel locker company InPost, said: “Gen Z and Millennials demand the same frictionless, tech-led service in all aspects of their life, whether they’re watching a film or returning a parcel. To remain relevant, it’s essential that retail and logistic companies step up to the challenge.
“In the current economic climate when disposable income is squeezed, there is a heightened pressure on retailers to deliver a positive returns experience which meets the customer’s needs. They need to hone in on efficiencies while keeping costs down to maintain tight margins.”
With the Christmas period fast approaching, retailers can expect a surge in returns throughout January 2024. As such, retailers should ensure that their returns policies are suitable and that the returns processes in place, whether in-house or through a third-party logistics company, are optimised to cope with increased volumes.
For more information on returns, check out the reverse logistics feature in the September issue of Logistics Manager!
