Al Gerrie presents at ZigZag's Checkout Smarter Returns 2024

Our final presentation from the ZigZag Checkout Smarter Returns event back in October 2024 was hosted by ZigZag’s Founder & CEO Al Gerrie. In front of a packed audience of senior retail and ecommerce decision-makers, Al took us through some of ZigZag’s latest research on 130 of the UK’s finest retailers.

The Returns Secrets Exposed: Inside the UK’s Leading Retail Practices Report

ZigZag’s returns experts investigated the returns policies of 130 retailers to allow brands to compared their own returns experiences with their competitors, look at the innovations being provided, and get a general understanding of the successes and shortcomings of the industry. Al broke down some of the key findings from the report and offered best practice advice for retailers looking to make amends to their own policies.

You can watch the session below:

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80% of retailers now use an online portal

There has been a monumental shift over the last decade to adopt Returns portal technology – like that offered by ZigZag. Al explains how ZigZag was at the forefront of that revolution back in 2015, back when most retailers were using a label in the box, or even worse self-serve returns.

A surprising 15% do still put the onus completely on the customer to get their returns back to the retailer. This clunky process with often start with vague or incomplete instructions for handling your own return on the retailer’s website and produces the poorest results of all return methods with costly and untraceable returns hitting the warehouse at random times, poor or non-existent returns data collected, and ultimately unhappy customers.

The industry standard is to offer 3 or more carriers

62% of retailers now offer 3 or more carrier services in the returns process, which is a 26% point increase from 2018.

Customers will most likely be spread out all across the UK and will thus have access to different carriers and methods of service. So, it’s great to see retailers increasing their coverage, with the average brand adding an additional carrier in the last few years.

Ultimately, customers want choice and we discuss this at greater length in this blog about using multiple carrier services.

Saving the sale with Refund to Gift Card

22% of retailers now keep cash in their business by offering shoppers the option to get their refund through a digital gift card or store credit. 9% of retailers go a step further and even incentivise it with additional credit.

Around a third of retailers offer in-store exchanges but that drops to 12% for exchanges dealt with through an online portal.

Fast refund rates are crucial

Advertised refund rates vary significantly across retailers, ranging from just 3 days to as many as 30 days. Consumers can expect to wait for a refund for 9.5 days on average, highlighting substantial variation. Retailers need to address this inconsistency because a rapid refund is crucial for consumers with 85% of shoppers only willing to wait up to a week for a refund.

Should retailers charge for returns?

Solving the paid returns conundrum continues to be a key focus for retailers in 2024. The number of retailers charging for returns has increased by 17% in the past year, reflecting efforts to manage return costs in a competitive market. Initially, this decision shocked shoppers who were used to free returns.

Retailers estimated it costs £13 to process each return

The returns fee is one of the simplest ways to directly recoup the high costs of returns brands are reporting.

We asked retailers for an estimate on how much they think it costs them to process a return. From start to finish. The estimates ranged from just £2 from a fast fashion retailers, a rather impressive figure, to a high of £35 from a well-known luxury retailer.

Want to see the other presentations from ZigZag’s annual event?

The CEO of Retail Economics, Richard Lim, kicked of the day by exploring the four returner cohorts that were outlined by the recent shopper research with ZigZag. Watch here >>

Jason Taylor, Commercial Director, and Laura Davies, Director of Client Services, are two returns experts at ZigZag, and they outlined the strategies and tactics retailers can use to better manage and satisfy their customers. Watch here >>

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