UK Retailers Revamp Return Policies

The report includes a comprehensive analysis of return policy data from 130 leading retailers in the UK. A team of returns experts from ZigZag conducted the research in June 2024.

Paid return policies are becoming the norm

The rise of paid returns represents a significant shift in e-commerce. In 2023, 33% of British retailers charged fees for online returns, a 17% increase from the previous year. Retailers are increasingly adopting this approach to offset high reverse logistics costs. However, the report recommends balancing fees with convenience – for example, New Look introduced a £2.50 fee for online returns. At the same time, they maintained free in-store returns, leading to a smoother transition and improved customer experience.

“71% of consumers in the United Kingdom would pay for a membership with free returns, so retailers are likely to continue offering them as incentives.”

Interestingly, fees are not deterring Britons. 61% of shoppers are still willing to buy from retailers who charge for returns. Nearly half would pay extra for convenient options such as ‘home collection’. This is a service where the retailer or courier collects the item directly from the customer’s home for return.

Convenience and return period are important

Convenience is now a decisive factor in returns. As 84% of shoppers check return policies before purchasing, retailers must emphasise simplicity and clarity. Offering multiple return options, such as home collection, parcel lockers, and in-store returns, is standard. Retailers are also focusing on ‘paperless’ returns. This option is offered by up to 60% of companies – a significant increase from 20% in 2018. The length of the return period remains important for customer satisfaction. Research shows that 68% of retailers offer a 28- to 30-day return period, with only 12% extending this period to more than 60 days.

 

“62% of retailers now offer 3 or more shipping services in the returns process, representing an increase of 26 percentage points compared to 2018,” the report states.

Speed of refund is crucial

Customers expect quick refunds. 85% are unwilling to wait longer than a week. However, the average time for refunds is 9.5 days. Retailers offering faster return options, such as store credit or real-time exchanges, are likely to achieve higher customer satisfaction.

Innovative practices drive success

The best retailers are using technology to improve return processes. For example, New Look tested self-service return kiosks, providing a seamless experience and reducing staff workload. Similarly, Next offers various return options, from home collection to parcel lockers, demonstrating how a flexible return process can support customer retention.

Frequently Asked Question

Prioritising convenience and flexibility

The UK e-commerce market is expected to reach £152 billion by 2027. This indicates a highly competitive environment that retailers must reflect and constantly innovate their return strategies. Paid returns are growing, but flexibility, convenience, and transparency are essential to maintain customer loyalty. Retailers offering quick refunds, various return options, and clear policies will be well-positioned to succeed.

Returns remain a problem for e-commerce. It’s both an economic and ecological burden. Therefore, it’s appropriate to consider educating customers and, alongside accommodating return options, provide information about what happens to returned products. E-commerce experts should pay attention to these trends and consider how to implement similar strategies to improve their operations and increase customer satisfaction.