ZigZag report benchmarks shows how UK retailers are reacting to wider consumer trends via returns policies

ZigZag has taken a look at the returns policies of the UK’s 130 largest retailers, finding that 33% now offer a paid returns policy - up 17% year-on-year. 

Other insights from its report include:

• Returns windows are seasonal - 68% stick to a 28-30 day window, and 42% extend this in peak season

• Portals are the standard - only 1% use label in the box as returns portals dominate (58%)

• Convenience is key - 82% of retailers with 20+ stores offer return to store, and 62% of retailers now offer three or more carrier services in the returns process

• Retailer spotlights - how New Look and Next managed the transition to paid returns

Al Gerrie, CEO at ZigZag, comments: "Returns are never free for retailers, and the fees being introduced are reducing the burden. Consumers are becoming more forgiving, especially as retailers turn to more innovative and customer friendly returns methods, so I’m expecting this trend to continue.”

“The most important part of returns is providing convenience and choice for shoppers so a mixture of paid and free returns options is likely to continue. Return to store options can alleviate some of the logistical costs associated with free returns and it can be an incentive to buy memberships, so the way free returns are set to evolve rather than disappearing entirely.”

Timing is an important part of the shopping experience, and the report found a degree of consistency on returns windows outside of peak season. 28-or 30-day returns windows are the norm, with 68% of retailers using this time frame.

This gives consumers ample time to make an informed decision and allows retailers to retain value from the sale. In addition, 12% of retailers allow 60 or more days to return and three retailers adopt a 365-day window, but these are outliers against the 28-or-30-day industry benchmark.

Refund times are less consistent and retailers are playing catch up to align with consumer expectations. The majority of shoppers (85%) expect a refund within one week, but on average they are kept waiting for 9.5 days. 

Returns windows often change seasonally, with 42% of the surveyed retailers extending the period during peak seasons to prevent returns volumes from overwhelming capacity.

Return to store is offered by 21.5% of retailers in 2024, rising to 82% of larger retailers with 20+ stores.

By adopting free returns options like return to store, retailers save time and resources in the returns logistics cycle, whilst providing consumers with an alternative to online returns methods and incentivising more footfall in-store. 

Offering refunds to gift cards and live exchanges improves the likelihood of retaining sales.

ZigZag found that 57% of consumers considering a return would accept a refund credited to a gift card, however only 22% of retailers currently offer this as an option. It presents an opportunity for retailers to raise the benchmark to be more in line with consumer expectations. 

Gerrie says: “Returns are no longer just about logistics; they are a significant topic in boardrooms and have a considerable impact on the financial stability of retailers. As more retailers recognise how consumers respond to different returns 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, oriented towards customer satisfaction and retention.”

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

2024 RTIH INNOVATION AWARDS

Returns are a key focus area for the sixth edition of the RTIH Innovation Awards, which is now open for entries.

The awards, sponsored by CADS, 3D Cloud, Retail Technology Show 2025, and Business France, celebrate global tech innovation in a fast moving omnichannel world.

It’s free to enter and you can do so across multiple categories.

Key 2024 dates

Friday, 25th October: Award entry deadline 

Tuesday, 29th October: 2024 shortlist revealed

30th October-6th November: Judging days

Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.