Retail Technology Show research: a third of shoppers say retailers shouldn’t ban serial returners
Consumers feel that retailers shouldn’t ban serial returners from shopping with them, according to new research from Retail Technology Show, which will take place on 26th and 27th April at London’s Olympia.
A survey of over 1,000 UK shoppers revealed that the average Brit now returns 15% of the total number of items they buy online, rising to 20% for Millennials and 22% among Gen Z shoppers;
KPMG now estimates returns represent a £7 billion problem for retailers.
And, as the latest data from the British Fashion Council shows, this isn’t just impacting retailers’ profits, but is also having an increasing impact on the planet, with an estimated 23 million returned items destroyed or sent to landfill each year in the UK, generating 750,000 tonnes of CO₂ emissions.
This has led many retailers, including Zara, Next, boohoo, THG owned LookFantastic and Mountain Warehouse, to start charging shoppers to send items back, prompting a backlash from shoppers.
Some, including Asos and boohoo, have gone further and reportedly started sending warning letters to customers deemed to be ‘serial returners’, reserving the right to suspend accounts.
However, Retail Technology Show’s research showed currently just 6% of UK shoppers have been banned from shopping with a brand for being a serial returner, rising to 15% of Gen Z.
32% of UK consumers say retailers shouldn’t ban serial returners, rising to 44% of Gen Z, while a further three in ten believe retailers shouldn’t ban serial returners if they kept some of their order.
26% stated that rather than a ban, the retailer should take responsibility for preventing the return in the first place, while a further 27% said retailers should do more to understand why an item was being returned.
23% believed that those who returned the most were often the highest spenders.
However, 35% did concede retailers had a right to ban serial returners, due to the cost of returning an item and processing a return, and 24% agreed retailers should ban people if they exhibit size sampling behaviours.
Matt Bradley, Event Director at Retail Technology Show, comments: “Despite much debate on the best way to tackle the issue, it’s clear that retailers still haven’t squared the circle when it comes to returns.”
“Retailers are looking at ways to address the spiralling operational costs associated with returns on the one hand – and where the responsibility for paying for that lies. Yet, on the other, they are also having to weigh up the cost of potential lost conversions, customer lifetime value and loyalty from shoppers who have been conditioned to expect returns to be free.”
Retail Technology Show will be showcasing technologies that help retailers take preventative measures to reduce returns, including two AI powered solutions, Sizer and Vestico, which are dedicated to solving the online shopping size and fit conundrum.
Meanwhile, on the conference programme, adidas’ Director of Global Profit Protection & Risk, Corin Dennison, takes to the stage on day two to discuss how retailers can fight back effectively against returns fraud.
RTIH at Retail Technology Show
RTIH will be exhibiting at Retail Technology Show 2023.
Visitors to our stand (number 5B49) will be able to meet our Editor, Scott Thompson, and pick up the most recent issues of our printed magazine.
If you’re interested in advertising in our special Retail Technology Show edition of the magazine, please email us for further details at: scott.thompson@retailtechinnovationhub.com
In addition to interviews with industry big hitters, and thought leadership articles, the magazine will include our hotly anticipated Top 100 Retail Technology Influencers List of 2023.
It will also be distributed at Shoptalk Europe, which will take place in Barcelona, Spain, from 9th to 11th May.
Continue reading…