The Annual Returns Benchmark Report 2024 by ZigZag and Retail Economics highlights $10B worth of rapid UK e-commerce returns, driven by clothing and footwear, creating logistical and financial challenges for retailers.
- The report found 82.8% of returns occur within 10 days of purchase.
- Over $10B in goods is returned annually, heavily impacting retailer margins.
- Fast-fashion leads return volumes, especially due to sizing issues.
- Clothing and footwear have return rates exceeding 50%, far above other categories.
- Furniture and electronics, with higher average order values, see fewer returns but still costly ones.
- Homewares and DIY items have lower return rates, reflecting practicality and fewer sizing concerns.
- Returns now account for 20% of all non-food online sales in the UK.
- Clothing contributes $38B to annual returns, while home goods add $27.3B.
- Only $102.2B of goods are kept, highlighting the scale of reverse logistics.
- Just 11% of shoppers generate 42% of total returns, making them a costly segment.
- Efficient and occasional returners are less burdensome for operations.
- Retailers are exploring strategies to mitigate costs, such as improving sizing accuracy.
Should retailers charge for returns to stay profitable?
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