Serial Returners Fuel Online Shopping Crisis

  • Viral ‘shopping hauls’ on social media platforms are costing retailers £7bn in unwanted clothing returns annually
  • Serial returners account for around 25% of all online returns in the UK, according to Retail Economics data
  • Online returns estimated to exceed £27bn this year with serial returners accounting for £6.6bn
  • Gen Z shoppers more likely to over-order and return items compared to baby boomers
  • Asos introduces fee for customers with high return rates to combat the issue

Viral ‘shopping hauls’ on social media platforms are driving a surge in people sending back online orders, with an estimated £7bn of unwanted clothes returned to retailers each year. Retail Economics found that serial returners account for around a quarter of all online returns in the UK. The rise of #KeepOrReturn on TikTok has contributed to this issue, as users share videos of themselves trying on items and asking viewers which ones to keep or return. Online returns are estimated to exceed £27bn this year, with serial returners accounting for £6.6bn of the total. A survey found that over two-thirds of Gen Z shoppers admit to over-ordering online with the intention of returning unwanted items, compared to just 16% of baby boomers. Retail Economics CEO Richard Lim stated that serial returners are eroding retail profitability and placing an unprecedented strain on retailers. Asos introduced a £3.95 fee for customers with high return rates earlier this month to combat the issue.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the issue of serial returners and its impact on retailers, citing relevant data from Retail Economics and specific examples like Asos’ fee for high return rates. However, it includes a tangential statement at the end about CEOs exiting in the retail industry which is not directly related to the main topic.
Noise Level: 3
Noise Justification: The article provides relevant information about the issue of serial returners and its impact on retail profitability, but it could benefit from more in-depth analysis or data to support its claims and explore potential solutions for the problem.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the financial impact of serial returners on retailers, specifically in relation to online shopping and returns. It mentions that the practice is costing retailers billions of pounds each year and has led some companies like Asos to introduce fees for frequent returners. This impacts the profitability of these businesses.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text and it does not mention any event that happened in the last 48 hours.

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