Stricter online returns policies risk putting shoppers off before they buy, new Locus research finds
Research from logistics technology company, Locus, suggests retailers could slow online sales before they meaningfully reduce return levels if they tighten policies in this area. Key findings from its survey of 2,000 UK shoppers suggests shoppers may pull back spending due to strict return policies rather than reduce returns.
59% say they would be less likely to make a purchase if a retailer introduced return fees or stricter returns policies
56% say they would switch to a different retailer if faced with strict returns policies
38% say stricter policies would make them keep more items rather than return them
63% say stricter policies would make them more selective about what they buy online
Two thirds say refund speed would make them more likely to shop with that retailer again (67%)
The findings come as retailers such as Asos look for ways to reduce returns costs during a difficult period for discretionary spending.
Subhro Chakraborty, CRO at Locus, says: “Retailers are always looking for ways to reduce returns which lack efficiency and have an impact on costs. A lot of retailers assume stricter returns policies will mainly change what happens after purchase. However, what this data points to is shoppers changing behaviour much earlier than that. If customers start cutting items out of the basket, delaying purchases or shopping around more before they buy, retailers can end up slowing demand before they materially reduce returns volume. That becomes particularly difficult in categories like fashion, where retailers are already trying to move stock quickly and protect margin on seasonal inventory.”
2026 RTIH Innovation Awards
Online returns will be a key focus area at the 2026 RTIH Innovation Awards.
The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.
Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.
Check out our 2025 winners here.
Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.
In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”
“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”
He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”
Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.
