ZigZag: Returns present not just a challenge, but an opportunity this year for retailers
Insights from DHL eCommerce and ZigZag, the returns management specialist, reveal a 3% increase in return volumes for September and October 2024, compared to the same period in 2023. Meanwhile, paid returns increased by 6%.
While the number of returns is only slightly up, the returns value has grown. The average return value reached £106 this autumn, a 7% increase from the same period last year, suggesting that customers are returning more premium items.
Convenience remains king
Consumer preference around the convenience of online shopping is now reflected in their expectations when it comes to return options. According to DHL’s Global Online Shopper Trends Report*, over a third of consumers state that control over delivery and return methods is essential to their online shopping experience. Parcel locker usage has also surged by 79% over the last 12 months, with many shoppers now opting for flexible return methods that fit their lifestyles.
Stuart Hill, CEO DHL eCommerce UK, says: “Returns are an essential part of the online shopping experience for consumers. Still, they’re a challenge for retailers, especially as we enter peak season. In addition to making returns policies clear, brands can benefit from leveraging logistics processes to make returns simpler and more convenient for both parties.
“Our insights have shown that flexibility is paramount for consumers, and options such as low-cost parcel lockers, or flexible drop-off points can help to keep customers satisfied, especially during the high-stakes holiday shopping period.
Paid returns are becoming the new ‘norm’
There has been a slight increase in paid returns adoption among retailers this Autumn, with 46% of returns being paid for in part by consumers across September and October 2024. While cost remains a consideration for consumers, with more than a third expressing frustration over paying for returns, almost a quarter of online shoppers say they do not mind paying if it is an item they really want.
The issue of serial returners also remains. DHL and ZigZag insights show that serial returners made up 11% of all return cohorts over the last year, generating 24% of return volumes. However, 83% of serial returners are willing to pay towards their returns.
Matthew Jacques, Global Partnerships Director at ZigZag, stated: “Returns present not just a challenge, but an opportunity this year for retailers. The tide is changing, and as our research suggests, whilst return volumes have never been higher, shoppers are more willing to start paying up. Plenty of leading retailers have made the move to paid returns, so the pathway to recouping the costs has already begun to take shape.
“However, with an added cost to consumers comes an expectation of ease and convenience. Retailers must be in a position this peak season to be able to offer customers with a wealth of suitable, hassle-free return options as well as tracking capabilities, proactive communication, and fast refunds. If you are going to start charging for returns, you better have a user-friendly online portal and solution that can justify it.”
As peak season approaches, retailers face the challenge of balancing return flexibility with operational costs. These findings underscore the value of offering diverse and flexible returns options, helping to meet evolving customer expectations and ensure a seamless shopping experience this holiday season.
