As peak season approaches, a silent disruptor in the retail industry is emerging: slow returners. This group, who delay returning online purchases for extended periods, represent just 11% of all online shoppers yet are projected to account for £5.8bn - or 21% - of all online non-food returns in the UK in 2024. As uncovered in the Annual Shopper Research 2024* conducted by returns specialists ZigZag, in partnership with Retail Economics, the impact of this returner cohort will hit retailers hardest during peak season, when late returns can derail inventory management and cause bottom lines to plummet.
Over a fifth of online non-food purchases are now returned with online returns forecasted to exceed £27 billion in 2024 in the UK
Slow returners are primarily younger consumers, with 75% being Gen Z or Millennials who shop predominantly online. Alongside serial returners, they generate a disproportionately high share of returns compared to the other cohorts (efficient returners and occasional returners). However, unlike their counterparts, slow returners prioritise convenience and exhibit impulsive buying behaviours often driven by buyer’s remorse. They tend to over-order, are highly price-sensitive and frequently delay returns, complicating retailers’ inventory management. In fact, slow returners are projected to send back an average of £1,231 worth of non-food products in 2024 - more than double efficient and convenient returners.
The problems with delaying returns
The speed at which consumers return goods is critical to reselling items at maximum value, especially during peak season shopping events like Black Friday. While around two-thirds of consumers return items within five days, 15.5% delay their returns by more than 10 days. This group is forecast to account for £9.8 billion in returns in 2024, making up over 35.5% of all returns. These delays pose significant risks for retailers, especially in fast-paced sectors like fashion, where item values decline if products miss peak sales periods during the returns process.
ZigZag’s Returns Secrets Exposed Report 2024 found that 42% of the top 130 UK retailers extended their returns policy window during peak. However, the financial risks posed by slow returners and the challenges of managing post-Black Friday inventory suggest that shorter return windows could provide a better opportunity to restock and resell goods.
Gen Z and Millennials take an average of seven days to return items, while Baby Boomers average within four days.
Generational differences also affect return timings. Gen Z and Millennials take an average of seven days to return items, while Baby Boomers average within four days. Nearly half (46.9%) of Gen Z and Millennials place a high value on longer returns windows when selecting return methods for online orders. Whilst accommodating customer preferences is important, encouraging faster returns during Black Friday will help mitigate inventory risks and ensure products remain profitable during the peak season shopping frenzy.
Discussing the findings, Al Gerrie, CEO of ZigZag, commented: “Slow returners might seem more innocent than serial returners, but their behaviour will wreak just as much havoc if it continues to go unnoticed by retailers. Led by younger shoppers, this cohort is stretching out the returns process for retailers and severely increasing the chances of collecting unsellable stock. As we enter peak, when stock turnover is critical, retailers may struggle to resell returned items in time to meet seasonal demand. It’s crucial that retailers identify this cohort and tailor strategies to address the challenges head on. This might consist of incentivising shoppers that take more than 10 days to return items to process that return more quickly by offering discounts or seasonal offers. This can be achieved through more proactive communication via email or SMS.
We recommend retailers also offer the big five return options: post office, home collection, convenient drop-off locations like local shops, lockers, and if available, the retailer’s own store. By offering plenty of suitable carrier options, you can encourage fast returns from your customers whilst providing your business with greater flexibility during peak spikes or adverse weather.”
Profiting from returns
Different returner cohorts are not just using returns to reverse a purchase, but also as a way to make or save money. Slow returners exhibit profit-driven behaviours, with nearly a third (30.4%) delaying returns to benefit from rewards or cashback, often holding onto items for weeks to qualify for rebates. Additionally, just under a quarter (24.4%) of customers over-order to reach minimum spend thresholds, later returning part of the order.
The research also found that, on top of the trends seen with slow returners, nearly half (46.4%) of Gen Z and a third (35.3%) of Millennials chose a different payment method if they thought they might return an online order. This compares to just 5.5% among Baby Boomers. Payment methods include using digital wallets, buy now and pay later services, gift cards and credit cards when they might not have otherwise.
The data underscores a significant generational gap. Younger shoppers are more strategic in their use of alternative payment choices than older counterparts This is likely due to a greater familiarity with digital options, more convenience-focused habits and concerns over refund delays. We see similar patterns across regional hotspots. More than one third of consumers (37%) living in Greater London, 30% in Birmingham and 28% in Manchester engage in this activity compared to the nationwide average of just 24%.
About the Annual Returns Benchmark Report 2024
Consumer surveys were undertaken in August 2024 to include answers from a sample of 2,000 nationally representative UK households. Economic modelling and retail sales forecasts are based on proprietary Retail Economics data and official national statistics.
Returner cohorts can be defined as:
- Occasional returners; Rarely returns items unless they fail to meet expectations.
- Efficient returners: Promptly returns items, typically only returning a small percentage.
- Serial returners: Frequently over-orders with the intention of returning many items.
- Slow returners: Typically more impulsive buyers who tend to delay returns out of forgetfulness or inconvenience.
About ZigZag
ZigZag is a software solution to help eCommerce retailers manage returns domestically and globally. The ZigZag platform connects major retailers to a global network of over 200 warehouses and 1,500+ carrier services in over 170+ countries. ZigZag's clients include Selfridges, Frasers Group, Boden, New Look, Puma, The Hut Group, and many more.
ZigZag delivers best-in-class technology and service to transform the post-purchase and returns experience globally. ZigZag’s mission is to reduce cost and waste, increase customer loyalty, and enable our clients to be more profitable and sustainable.
ZigZag has continually been awarded for its innovation and data winning 15 awards since 2019, including Tech Innovator of the Year at the prestigious Drapers Awards 2023 and is nominated again in 2024.
ZigZag is also proud to be a member of the Ellen MacArthur Foundation.
Learn more about ZigZag at https://www.zigzag.global/