With ASOS’ return fees starting to roll out, more UK online retailers are now open than ever before… | kbnmart

Fewer consumers expect to return products they buy online for free, according to new data.

With 33% of the country’s 130 largest retailers now offering to pay returns fees to offset related costs, up 17% year-on-year, 61% of UK shoppers would not hesitate to pay returns fees, says industry management firm Zig-Zag.

But some retailers are clearly hoping the opposite is true, with ASOS, for example, joining the long list of online retailers that will no longer offer free returns to so-called “serial returners”. It is charging such shoppers a £3.95 fee.

However, 42% of major retailers also allow longer returns in peak season, according to a new report from Zig-Zag on returns practices, along with a degree of consistency in off-peak return windows.

As a result, extended return periods of 28 or 30 days are now the norm for 68% of retailers, “giving consumers plenty of time to make an informed decision and allowing retailers to retain value from the sale.”

Since return periods often change seasonally, 42% of retailers surveyed extend the period during peak seasons to prevent return volumes from overwhelming capacity.

“It is essential for retailers to respond to consumer demand during Black Friday and Christmas sales, and introducing a flexible returns window is a sure way to do this,” added Zig Zag.

On the refund front, things are becoming less consistent, and retailers are trying to “catch up” to keep up with consumer expectations. The majority of shoppers (85%) expect to receive a refund within one week, but on average, they are still waiting 9.5 days.

Return-to-store will also be offered by 21.5% of retailers in 2024, rising to 82% of larger retailers with more than 20 stores.

“By offering free return options such as return to store, retailers save time and resources in the return logistics cycle, while providing consumers with an alternative to online return methods and encouraging more customers to visit the store,” the company added.

Meanwhile, the report found that offering cash backs for gift cards and direct exchanges improves the odds of sales retention, with 57% of consumers considering returning products and willing to accept a refund converted to a gift card. However, only 22% of retailers currently offer this option, so it “represents an opportunity for retailers to raise the bar to be more in line with consumer expectations.”

“Returns are no longer just a logistical issue; they are a hot topic in the boardroom and have a significant impact on the financial stability of retailers,” said Al Gerry, CEO of ZigZag. “As more retailers become aware of how consumers respond to different return 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, geared toward customer satisfaction and retention.”

“With this new data, we aim to help retailers identify gaps between their current policies and the industry average, understand how this relates to consumer sentiment, and develop more accessible and user-friendly policies that prevent revenue loss.”