Retailers are losing revenues to serial returners.
A quarter of them have seen an increase in in-store and online returns over the past two years, revealed a new study from Barclaycard, with the fashion segment being the most affected.
40% of fashion retailers said the alarming rise in refunds, which they’ve been experiencing since 2016, is more pronounced in clothing than in any other category.
On average, an online shopper in the UK spends £313 a year on clothes, only to return almost half of what they’ve purchased.
According to Barclaycard’s poll of 2,000 shoppers, size discrepancy is the number one reason why they return clothing bought online; 40% said the clothes don’t fit them properly.
Corrective measures to reduce return rates
Many retailers say that they can’t operate without free returns because it guarantees customer satisfaction.
Unfortunately, the downside is that it’s taking a toll on their bottom line.
Konrad Kelling, managing director of customer solutions at Barclaycard, said:
“It’s clear having an effective and convenient returns policy that satisfies customer needs is a crucial factor of success for retailers. While many have adopted new processes to help manage increasing returns volumes, the real focus should be on measures which help to reduce over-ordering in the first place.”
To keep shoppers from returning stuff, 36% of Barclaycard’s survey respondents suggested better online size charts, while 35% want standardised sizing to be implemented across clothing retailers.
16% of them, on the other hand, said sellers should start considering augmented reality (AR) as this would enable them to try on a piece of clothing, and be certain that it fits them perfectly before deciding to purchase it.
How’s your return rate so far? We hope to hear from you in the comments below.
As always, to your continued success,
Dave & Matt