A report reveals that serial returners—11% of online shoppers—account for a staggering 24% of online non-food returns, significantly impacting retail profitability. Driven mostly by younger generations, these shoppers engage in over-ordering and returning practices that complicate inventory management and inflate costs. Retailers are revising their return policies to mitigate losses and foster better consumer practices.
Retailers are facing a growing challenge posed by “serial returners,” who contribute significantly to the online return crisis according to the Annual Returns Benchmark Report 2024. This group, making up about 11% of online shoppers, is responsible for 24% of online non-food returns, with estimates predicting their returns will reach £6.6 billion this year amidst a total forecast of £27.3 billion in the UK. Younger shoppers are more prone to serial returning, demonstrating new shopping habits such as over-ordering with plans to return several items. Among four consumer segments—serial, slow, efficient, and occasional returners—serial returners disproportionately impact retailers with delayed returns that complicate stock management. Slow returners, while not as numerous, also account for nearly half of total returns, indicating a wider issue that retailers must address. On average, a serial returner is expected to return around £1,400 worth of items this year, pulling the total return costs for retailers into sharp focus. This behavior outstrips that of both efficient and occasional returners, who typically manage their returns better, illustrating the challenge of the returns landscape. Retailers are addressing these challenges through revised return policies, particularly in response to opportunism observed within fast fashion brands. Bracketing, wardrobing, and staging are prevalent behaviors among shoppers, especially among Gen Z, with 42% admitting to over-ordering intentionally. Examples like wardrobing—using clothes for one occasion—and staging—purchasing for social media—highlight a generational shift in consumer behavior that retailers must navigate carefully. Companies must adapt to these cultural shifts to mitigate the impact on their finances. In response to rising costs from returns, retailers are introducing fees and stricter return policies, particularly targeting serial returners. Surveys show that almost half of shoppers abandon jackets and items due to unfavorable return policies, urging brands to balance lost sales against the risks of payment for returns. Insight from ZigZag suggests that many consumers would prefer a flat fee setup rather than higher product costs, indicating a potential path forward for retailers. Retail executives recognize the critical need for a strategic approach to returns management as they seek to preserve profitability amid the growing trend of opportunistic return behaviors. Richard Lim emphasizes that the rise in such shopping behavior strains both profit margins and inventory sustainability, calling for retailers to educate consumers on the costs tied to returns. By integrating better solutions and transparent practices, they can strike a balance between consumer satisfaction and profitability.
The phenomenon of serial returns presents a significant challenge for the retail industry, characterized by consumers who intentionally buy multiple items with the intention of returning many. This behavior is particularly pronounced among younger generations, changing traditional shopping habits and complicating inventory control for retailers. As online shopping continues to dominate, findings from the Annual Returns Benchmark Report underline the economic implications of this trend, making strategic management of returns critical for maintaining profitability.
In summary, the rise of serial returners is a silent crisis that threatens retail profitability, primarily driven by younger consumers with new shopping habits. Retailers are beginning to implement fees and heightened policies to discourage excess returns, indicating a shift in management strategies. The necessity for balancing customer satisfaction with financial sustainability is more pressing than ever, calling for comprehensive solutions and consumer education to address evolving behaviors.
Original Source: postandparcel.info
