ZigZag research: January retail returns already up 16% YOY with more on the way

Global returns software provider, ZigZag, is predicting the biggest-ever wave of January returns in 2024 after already seeing a 16% year-on-year (YOY) increase in returns during this year’s Christmas period from 24th December - 2nd January in the UK. The figure is 26% in the US.

Yet more returns are on the horizon as Zig Zag recorded a 42% YOY increase in UK returns on 1st and 2nd January as the new year began, with numbers on its return platform escalating before the return to work really got underway this week. 

ZigZag is a British company that helps e-commerce retailers manage their returns domestically and globally. Its platform connects major retailers to a global network of over 220 warehouses and 1,500+ carrier services in more than 170 countries.

Clients for its software solution include New Look, Selfridges, MandM Direct, Superdry, The Hut Group, and many more.  

Commenting on the January returns flurry, ZigZag’s CEO, Al Gerrie, said: “This influx of returns at the beginning of January is not surprising in the current economic climate and indicative of how consumers are trying to keep spending down.”

“Whilst we’re not expecting returns to be up 42% over the whole of the month of January, these figures do show we can expect to see one of the busiest January’s ever for returns.”  

“It’s also possible that shoppers are returning Christmas gifts and purchases now with the intention of purchasing them cheaper in the January sales,” added Gerrie, while warning this scenario – pertinent to free returns providers – is “a complex situation that retailers will need to carefully navigate.”   

As more and more retailers move to an alternative paid-for returns model, it’s unsurprising that 48% of all returns over the Christmas period were in this arena.

From a global perspective, both Germany and France showed sizable jumps of 13-20% in paid for returns from 24 December 2023 through to 2 January 2024, in comparison to the same period last year.

Furthermore, 63% of ZigZag’s retail clients now include a paid returns solution in some capacity, demonstrating where the future of retail returns is undoubtedly heading. 

Why shoppers are returning
Sizing issues continue to be a key driver for fashion returns, accounting for 49% of all returns globally and an astounding 68% of all returns in the UK - up 37% YOY.

In addition to this, 9% of all returns in the UK were due to items being defective - not good for any product, let alone Christmas gifts.

“The sizing issue is likely due to the ongoing practice of shoppers purchasing multiple sizes of items with the intention of trying them on at home and returning those that don’t fit – or, of course, the issue of buying items for others over Christmas,” explains Gerrie.

“The inconsistency of sizing is an ongoing frustration for shoppers and if retailers want to reduce returns, it’s a key factor they need to address. Many retailers now include customer reviews and sizing guides to indicate if it comes up small/large or true to size. Virtual changing rooms are also a good way to counteract this issue.”  

How shoppers are returning
ZigZag has also seen a distinct change in how shoppers are returning their items, with home collection up an impressive 77% YOY and locker drop-off also up 68%. Traditional methods of returns are still popular however, with returns via the UK Post Office up by 29% YOY. 

Where flexibility and choice is offered, consumers will take up the opportunity to choose the most convenient method of return.

“With people spending more time working from home, collection from home is now an appealing option,” said Gerrie. “Shoppers have also matched the UK’s expansion of locker drop-off locations with an eagerness to utilise them as a convenient means of return.”