ZigZag’s Annual Returns Report

The 6 Pillars of Returns Excellence™

ZigZag’s proprietary framework identified six core drivers of high-performing returns processes:

1. Ease of Returns
2. Returns Cost & Fee Strategy
3. Communication & Policy Clarity
4. Choice of Return Methods
5. Refund Speed
6. Sustainability & Environmental Impact

Key Ecommerce Returns Insights from the 2025/2026 Benchmark

Refund Speed Impacts Customer Satisfaction

Clear communication and fast refunds significantly influence repurchase behaviour. Retailers optimising refund speed outperform those treating it as an operational afterthought.

Multiple Return Methods Drive Conversion

Consumers increasingly expect choice — including in-store returns, parcel shop drop-off, locker networks and courier collection.

Returns convenience now impacts pre-purchase decision-making.

Product Fit Drives the Majority of Returns

Sizing and fit remain the primary reason for fashion returns, reinforcing the commercial opportunity in predictive sizing tools, AI-driven recommendations and returns data analytics.

Reducing avoidable returns is a direct profitability lever.

Generational Differences Influence Returns Behaviour

Millennials and Gen Z consumers demonstrate lower tolerance for restrictive returns policies. Poor returns experiences directly affect brand loyalty and repeat purchase rates.

Returns policy is now a conversion strategy.

Why Returns Management Is a Competitive Advantage

The research highlights a widening performance gap between retailers who:

• Actively engineer returns as a loyalty driver
• Use returns data to inform buying and merchandising
• Segment customers by value and behaviour
• Personalise policies using AI
• Embed sustainability into the returns journey

And those who simply process returns reactively.
Returns excellence is becoming a measurable differentiator in UK ecommerce.