Zigzag Global, the global platform that enables retailers to turn their return policy into a business game-changer, today announced new insights that show that UK retailers could lose ্যের 19 billion worth of business if they do not have their return policy. Scratch
Online fashion is still the most valuable sector in the UK retail industry, with Forrester predicting more than bn 28bn in 2022. To help retailers understand the impact of their return policy on sales and retention of clients, ZigZag conducted a thorough study of consumer attitudes toward returns. Policy matters when they will purchase.
Returns – free, fast and easy
More than three-quarters (76%) of UK shoppers now examine the return policy before making a purchase. Moreover, 8 out of 10 retailers (78%) say that it should be easier for you to get your product back – this has increased to 85% among 18-25 year olds. Easy returns can also be the key to customer loyalty, with 82% agreeing that an easy return experience will encourage them to shop with the retailer again.
A bad return can be just as damaging, with 62% of UK buyers claiming they will never shop with a retailer again after experiencing a bad return.
According to UK buyers, a good return policy should:
Quick return (63%)
Provide multiple options for return (45%)
Paperless and trackable everywhere (43%)
Currently, a quarter (26%) of UK buyers say they find the experience of returns disappointing to most retailers, and 36% agree that it must be a problem.
“Returns have been a contentious issue for retailers for many years. Just offering a free return is not enough. This is just as important as removing the barriers to retail returns, as a simple and efficient return process can make all the difference when it comes to sales, “said Al Gerry, founder and CEO of Zigzag Global.
Emergence of regular returns
According to GlobalData, retail returns will grow 27.3% in five years by 2023, hitting a total of £ 5.6 billion. This is mainly due to the trend of returns across clothing and footwear and the rise of ‘regular returners’.
Zigzag found that almost half (47%) of UK shoppers now consider themselves ‘regular returnees’ – a significant increase of 67% among 18-25 year olds. Interestingly, about one in five buyers (18%) consider the cost of higher returns to retailers, but it does not affect how much they return. One-third (33%) of respondents said they did not rely on cost at all.
Retailers also find themselves in a frustrating catch-22. 38% of UK buyers say that if a retailer charges for a return, they will pay less. Yet, as Zigzag has found, charging for returns will discourage them from making an initial purchase.
Al adds: “Although the frequency and price of returns are increasing, it does not require the retailer to sell. Retailers now have plenty of options to make up for lost sales and to encourage customer loyalty and repeat purchases. “Whether it’s retailers returning digital gift cards, live exchanges or re-trading opportunities, retailers can turn small losses into big gains in the long run.”