29 Need to Know Ecommerce Returns Statistics

To provide insight that guides retailers into creating the perfect returns process, we've compiled 29 statistics, gathered from 130 of the UK's largest retailers.

Data insight allows ZigZag to advise and equip e-commerce businesses with the best returns and refund options for their business. Ensuring they run a competitive and cost-effective returns experience.

Afterall, returns are a necessary part of the e-commerce structure and ongoing research and management of this solution ensures retailers:

• Are up to date on return trends
• Review their consumer's returns experience
• Assess how they can cut return fees

Subjects and statistics of interest researched by ZigZag and broached throughout this article include:

• Paid returns
• Return windows
• Policy convenience and clarity
• Store returns
• Carrier options
• Gift card and live exchanges
• Flexibility, clarity, and choice for consumers

Let’s begin with the importance of returns policies to customers.

1) 84% of consumers preview a returns policy before committing to a purchase.

This reveals how retailers present and process returns matters to consumers, and sways whether they're happy to continue with a purchase.

Since paid returns increased in 2022 more retailers have started charging customers for returns.

2) There's been a 17% rise in retailers charging for returns since last year with 33% currently charging customers for returns.

Retailer New Look has found paid returns advantageous, reducing returns volume by 0.5% since 2023 with no impact on sales.

3) In support of paid returns, ZigZag's research revealed that 61% of customers are happy to buy from retail businesses that charge for online returns.

This is a positive finding for businesses debating whether to introduce paid returns. Plus, as more retailers charge for returns, it'll become an expected norm among consumers.

4) 47% of customers said they would pay extra for quick home return collection services.

Compared to 2022, when 75% of consumers preferred, if not insisted, on free returns, it appears the cost to return items is less of an issue for almost half of consumers surveyed.

With shoppers' behaviours towards paid returns changing, and more retailers conscious of saving money spent on returns, the paid returns trend is expected to rise.

5) Findings revealed that 71% of consumers in the UK are prepared to pay for a membership featuring free returns.

Some paid memberships give customers free returns.

The con being some customers may participate in bracketing - where consumers purchase over an average quantity of goods to try on or use, without intending to keep all items ordered.

While paid memberships can reduce some returns costs incurred, for bulk buyers and returners, the cost of delivering may exceed a member's fee.

However, in other instances, memberships can build stronger relationships between customers and retailers rewarding customer loyalty, which can stimulate future sales.

6) 63% of ZigZag's retailers offer paid returns on ZigZag’s platform, in comparison, 33% of retailers offered paid returns from our research into 130 of the UK’s biggest retailers.

This statistic suggests e-commerce businesses using ZigZag are utilising our recommended advice, and see the benefits of enforcing paid returns.

7) Research by ZigZag shows that 68% of retailers prefer a 28 to 30-day window for returns.

In turn, providing consumers enough time and flexibility to see and try their items, and send them back if needed.

Plus, retailers have a timeframe to expect items back that need processing and refunding.

8) 42% of the 130 retailers surveyed, extend their returns policy in peak seasons such as popular holidays like Christmas.

The result is that consumers have more time during busier periods to try items, and retailers have more time to process an influx of returns at busier times of the year.

9) However, only 12% of retailers surveyed offer a 60+ day returns window.

Less retailers offer large returns window due to product depreciation associated with extended returns periods.

Plus, maintaining condensed returns windows reduces the risk of unforeseeable returns spikes.

10) 7% of retailers still don't offer combined returns (where a consumer can return items from different orders together).

However, this number will drop within 5 years as more retailers adopt modern returns methods to improve customer's returns experience.

11) After all, as above, with 84% of shoppers checking the returns policy before purchasing and the majority, 53%, avoiding purchases due to unfavourable policies, keeping policies convenient for customers is crucial.

To conclude, returns policies need to be accessible and user-friendly.

How does your company's returns policy compare with the metrics below?

12) ZigZags 'How easy is it to find the returns policy’ metric averaged 4.8/5, whereas the 'user-friendly' metric averaged 4.32/5.

13) Just 49% of 130 retailers achieved perfect results across ZigZag’s metrics.

Almost half of retailers researched are heeding consumer preferences, and recognise the importance of clear and simple returns policies and processes to keep customers loyal.

However, the other half shows there's room to enhance policy visibility and amp up its user-friendliness.

14) In 2024, 59% of retailers provide a return in-store option allowing consumers immediate refunds and exchanges.

As a result, retailers save money on return costs and packaging and reduce their carbon footprint through reduced deliveries.

15) 82% of retailers with 20 or more stores offer online return in-store options.

This statistic suggests that in-store returns are better suited to retailers with more stores that can facilitate the demand for returns across a specific location.

16) Royal Mail was an advertised carrier by 45% of 130 retailers surveyed.

17) Furthermore, on closer inspection of each retailer's returns policy, 62% of retailers use Royal Mail as a delivery option.

Royal Mail is the most popular carrier for UK retailers.

Advertising trusted, reputable carrier options to customers, such as Royal Mail, is beneficial for retailers wanting to instil trust in consumers about a business's returns process.

18) Other popular carriers retailers use include:

• Evri (45%)
• DPD (14%)
• Yodel (14%)
• DHL (10%)
• UPS (9%)
• FedEx (2%)

Assessing carrier options regularly is essential for retailers to identify:

• What carries do customers prefer
• The speed of each carrier
• Condition of items on arrival
• What tracking services are available to notify retailers of returns

Equally, advertising reputable carrier options like Royal Mail on retailers' returns page is preferable. As it shows customers, retailers are transparent about their returns policy and capabilities, and the range of professional carriers they're partnered with, which further increases trust in a brand.

19) In other news, ZigZag research reveals Locker usage has risen to 68% in 2023/24’s peak season, compared to the year before.

With a quarter of retailers showcasing their carrier options using Inpost self-service lockers.

Delivery lockers provide flexible and convenient return options for customers to send packages at a time and place that suits them.

As such, lockers are a popular hassle-free returns choice for customers that’s secure and free to use providing peace of mind, and free delivery for customers. So this may be a returns solution e-commerce businesses may want to consider for their customers. Offering carrier choice is a vital aspect of a great returns policy.

20) 42% of shoppers demand a printerless delivery option, which nods to more customers preferring a hassle-free returns process with fewer to-do's to return goods.

21) And 60% of 130 retailers have printerless returns options which comply with consumer demand. This figure has increased by 40% since 2018.

For retailers conscious of enhancing customer convenience, printerless delivery options are a must.

Simple and easy return options mean fewer things for customers to do when they want to return something.

Other options for returns include refunds to gift cards, which are touched on below.

22) ZigZag’s 2023 research found that 57% of consumers thinking of returning items would accept a gift card as a refund.

This option allows businesses to save the sale by keeping capital in the business. While benefiting customers with a quick gift card option they can use online instantly.

23) 22% of retailers surveyed offer customers a gift card as a refund option.

This statistic reflects a trend towards retailers using innovative returns options, such as gift cards and live exchanges to retain capital and improve a consumer's returns experience.

24) To add, 31% of retailers offer in-store exchanges and a further 15% offer exchanges through a convoluted customer service enquiry.

Before introducing new refund methods, it's crucial to assess the target audience and their capabilities and preferences for returning items.

For example, some customers may feel more comfortable speaking to customer service reps to initiate a refund for a gift card or live exchange, whereas others may find using a digital returns portal easier.

With multiple delivery methods highlighted, the next part of this article moves on to exploring stats surrounding returns and refund windows.

25) Interestingly, 85% of shoppers are only willing to wait up to a week for a refund, even though the average refund period is 9.5 days.

Consequently, consumers may frequently contact a retailer's Customer Service team to chase a refund. Applying pressure to customer service departments.

Alternatively, by maintaining a quick refund process, with live exchanges and refunds to gift cards, businesses can prevent customer queries regarding refunds.

26) 72% of customers told ZigZag that rapid refunds are an ideal feature of a returns policy.

27) Yet, 12% of retailers don’t give customers a set period for refunds.

Suggesting more retailers could benefit from displaying their refund timescale to customers. Managing expectations by keeping customers in the know is professional and fair.

28) Here’s a brief look at what return methods the 130 retailers use and the pros and cons of each.

1% use Label in the box only

Just 1 out of the 130 retailers uses a label-in-the-box returns method. The popularity of labels in the box has declined in favour of return options that track and record useful returns data, such as return portals.

15% use carrier portals only

Some retailers outsource returns solutions to carriers. The advantage is that carriers are expert delivery agents, and sometimes provide valuable tracking info - useful for retailers and consumers. They do however lose some control over the process.

15% use customer self-serve

Customers can take full control here in returning their items. However, this option can lead to costly and untraceable returns, with unpredictable return spikes and unhappy customers.

58% use an online returns portal

A popular choice for retailers who value managing and tracking new and existing returns data to enhance their returns operations.

9% use a returns portal and label in the box

With two returns options, customers can decide whether to send a package manually or use a retailer's returns portal.

Providing a few return options to customers can be preferable to give customers freedom and flexibility to choose what option works best for them.

However, as detailed above label-in-the-box return options are declining in favour of automated, delivery options.

Moreover, label-in-the-box methods can't be used internationally, as customs require a special barcode to permit the movement of items through borders.

2% Carrier portal and label in the box

Lastly, a few retailers offer a carrier portal and label-in-the-box method to customers.

As discussed, pre-made labels in a parcel make it difficult for retailers to track an item's progress along the delivery chain. But carriers are still relatively popular among retailers.

ZigZag Founder and CEO talks more about the adoption of the returns portal in his speech at ZigZag's Checkout Smarter Returns event.

29) And to finish, 29% of retailers offer interactive carrier maps with opening times for customers to check retailer stores or parcel drop-off locations.

Sometimes little immersive extras like this as part of the returns process, can make the customers' returns journey easier and more pleasurable.

With 29 statistics down, here’s the takeaway from today's article:

Successful Returns Systems Evolve - Competitive retailers research and evolve their returns systems over time to suit customer demand, trends and seasonal periods.

Paid Returns are Becoming More Popular - Giving more e-commerce businesses confidence to implement their own return fees.

Transparent Returns Policies Build Trust - An integral part of any returns process is a clear, user-friendly, accessible policy that's fair, yet competitive in meeting consumer expectations.

Preference for Digital Return Portals - Consolidating returns in one place for customers makes returning items a straightforward and hassle-free process. While also giving retailers the tools to collect data to improve their returns operations.

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