Refund surge turns Black Friday into Blue Monday for UK retailers
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Retailers across the UK may be experiencing a Black Friday hangover this week as they could see the number of returns raise as much as 49 percent following the borrowed US promotional offer, predicts payments processor Worldpay.
Based on Worldpay's analysis of the previous years of Black Friday mayhem, the total number of refunds processed by UK retailers in the week following Black Friday and Cyber Monday could increase by more than 40 percent as impulse purchases are returned to stores or online. If the return rates follow a similar pattern to last year, then the total amount of refunds as a proportion of total card transactions processed could also rise by a much as 20 percent this week.
This suggests that Black Friday bargain-hunters are more likely to return impulse buys in the period following Black Friday and Cyber Monday than other shoppers who purchases items during other periods of the holiday shopping season. In addition, research from Worldpay also shows that 63 percent consumers of more likely to purchase something from a retailer with no quibbles returns policy, or free return delivery offer as it makes it easier to return items.
"Returns have always been part and parcel of the retail experience over the Christmas period, but the increased trend we’re seeing as a result of impulse-purchasing around Black Friday and Cyber Monday is adding a new level of complexity for retailers," commented Dave Hobday, UK Managing Director, Worldpay.
"High returns can turn into a logistical and operational headache for retailers, many of whom use Black Friday sales as a way of clearing stock in time for Christmas. But retailers can turn this additional level of interaction to their advantage, building goodwill and future loyalty by ensuring the refunds process is as quick, friendly and painless as possible, and even using it as an opportunity to upsell."