Online Shopping Returns on the Rise and How to Combat Them
- Serial returners cost UK retailers £7bn a year
- 47% of clothing goods purchased are returned by consumers
- Online shopping fuels rise in returns
- Size variation is a major factor for returns
- 36% of shoppers want improved online size guidelines
- 52% find the returns process convenient
- 55% of retailers offer free returns as a selling point
- 41% consider free returns crucial to competition
New research from Barclaycard reveals that retail returns cost UK retailers £7bn a year, with clothing goods being returned at a rate of 47%. Online shoppers spend an average of £313 on clothes but return £146 worth. Over the past two years, 26% of retailers have seen a rise in returns both in-store and online, with fashion, footwear, and accessory businesses reporting a 22% increase since 2016. The convenience of online shopping leads to ‘serial returners’ as 33% buy multiple sizes expecting items won’t fit. To combat this issue, 9% of shoppers want better online size guidelines and 27% of retailers have noticed this trend. A standardized sizing system and augmented reality could help reduce returns. The convenience of the returns process has increased by 52%, with 41% considering free returns a selling point despite its impact on their bottom line.
Factuality Level: 8
Factuality Justification: The article provides accurate information based on research conducted by Barclaycard, presents relevant statistics and insights from retailers, and offers suggestions for reducing returns without any personal perspective or exaggeration.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of online shopping returns on retailers and consumers, as well as insights into potential solutions such as improving sizing guidelines and using technology to reduce returns. It also includes data from a recent study by Barclaycard. However, it could benefit from more in-depth analysis or discussion of the broader economic implications of this issue.
Financial Relevance: Yes
Financial Markets Impacted: Retailers
Financial Rating Justification: The article discusses the financial impact of returns on retailers, which affects their bottom line and influences their business strategies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, and the impact of the issue discussed (high return rates) is considered minor as it mainly affects retailers’ profits and customer satisfaction.
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