‘Serial returners’ negatively impacts retailers

Consumer demand from free and easy returns when shopping online is placing “increased pressure” on retailers and impacting on their bottom line, according to new research from Barclaycard.

The emergence of ‘serial returners’, online shoppers who habitually over order and take advantage of free returns, are hindering the growth of UK businesses new research states, with six in ten retailers negatively impacted by consumers’ propensity to return unwanted items.

Three in ten shoppers (30 percent) deliberately over-purchase and subsequently return unwanted items, with one in five (19 percent) admitting to ordering multiple versions of the same item to make up their mind at home, as they know that they can choose from the ever-growing number of ways to quickly and easily send items, such as hourly courier services and local drop-off points.

Three in ten online-only retailers claiming that managing the returns process has an impact on their profit margins, while one in five businesses have increased the price of items to cover the cost of managing and processing customer returns. This comes as online shopping continues to grow in popularity, with spending in digital channels rising 14.1 percent year-on-year in 2015, compared to just 1.1 percent in-store.

However, the research notes that the returns economy is a dilemma, as six in ten consumers say a retailer’s returns policy impacts their purchase decision when shopping online, meaning that web-based retailers are caught between trying to attract customers and remaining competitive while also ensuring they protect their bottom line.

Barclaycard Global Payment Acceptance, director of customer solutions, Sharon Manikon, said: “Today’s time-pressed shopper expects the process to be fast, easy and free – and that applies to both buying goods as well as returning them. Faced with more choice than ever before, alongside a range of different clothing and shoe sizes, it’s hardly surprising that this new breed of online shopper – the serial returner – is starting to emerge.

“Online spending will continue to rise and the need to keep pace with customer demands presents a dilemma for businesses needing to protect their bottom line. Fortunately, there is light at the end of the tunnel with many ways retailers can streamline the returns process. From developing universal sizing to offering virtual dressing rooms, the key for today’s businesses is to determine which innovations work best for them – while ensuring they don’t lose out to their more savvy competition.”