Post-Christmas returns: 1.41 billion pounds of items returning to retailers

Brits are expected to return their unwanted and ill-fitting Christmas presents this week, with 1.41 billion pounds worth of items expected to be returned to retailers following the festive season, according to ParcelHero.

Royal Mail added that January 2, 2024, dubbed “take back Tuesday,” would see returns of online purchases increasing by 52 percent, compared to the average number of return parcels per day in December, as consumers look to return items on the first working day of the year.

Returns are a vital part of the e-commerce experience for consumers, and according to a study commissioned by Royal Mail, 81 percent of shoppers agree a good returns experience would make them more likely to shop with that retailer in the future.

81 percent of consumers added that they are also less likely to shop with a retailer that charges for returns than one that doesn’t. While almost half (47 percent) of those surveyed said free returns would most encourage them to choose one retailer over another when shopping online.

Nick Landon, chief commercial officer at Royal Mail, said in a statement: “Now that the festive shopping period has drawn to a close, January is the busiest time of the year for returns. As every retailer knows, an easy and convenient returns experience that’s in line with shoppers’ expectations, is vital for repeat business.”

Post-Christmas returns down by 6 percent

ParcelHero did add that post-Christmas returns for the first working day of the year were down by around 6 percent compared to the same day in 2023, noting that the slight dip was likely due to lower Christmas spending rather than a change in customer habits.

David Jinks, head of consumer research at ParcelHero, said: “We’ve looked at our own returns volumes and spoken to people in the courier and retail industries and it looks like there was a small but distinct drop in the volume and value of returns on “Takeback Tuesday” yesterday, compared to record returns last year.

“Last year, around 1.5 billion pounds of unwanted gifts and goods were returned in the first week after the Christmas and New Year break. This year, we’ve seen a slight dip in returns volumes and – looking at the types of items being returned. We’d love to say that the slight drop in the number of Takeback Tuesday returns is because shoppers are becoming more aware of the environmental impact of returns and the financial strains they place on many much-loved, smaller, specialist retailers."

Jinks added: "However, it’s more likely the slight fall reflects what we suspect was a relatively lacklustre Christmas period for retailers, with online and in-store sales looking relatively flat. Fewer gifts equal fewer returns.”

ParcelHero’s recent industry report showed that returns are costing UK sellers around 60 billion pounds a year, and “a large chunk of these” returns happen in the post-Christmas period. Around 47 percent of all ParcelHero shipments were marked as “returns” in the first week of last year.