ZigZag has published the results of a survey which indicates that one-off return charge fees are preferable to price rises on items among consumers. In the wake of recent backlash to new returns fees being introduced by retailers, the results point to an acceptance that paid returns are better for consumers than inflated prices to compensate for running a free returns policy.
ZigZag commissioned an independent survey of 2,000 consumers to see if they’d rather retailers cover a fraction of the cost of returns by increasing the price of items they sell or by imposing a one off return charge fee. Almost three quarters of respondents (71%) would prefer to pay a flat return charge fee of £2.50 when they make a return. ZigZag’s objective was to show that paid returns policies are both necessary and preferable to the long-term alternative of more expensive products.
Free returns policies encourage fraudulent returns practices like wardrobing, where shoppers buy items to use once and then return it to get their money back, and staging, where shoppers purchase items to flaunt on social media before returning. Each year returns fraud or other misuse of returns policies costs British retailers significantly, with ZigZag’s 2023 data revealing that nearly half (46%) of UK consumers buy multiple products with the intention of returning at least one item.
We commissioned this question as a thought experiment to see if consumers understand the reasoning behind the introduction of returns fees. Our aim is to show people that they aren’t paying for nothing – free returns policies aren’t sustainable in any sense of the word for most retailers. The miles travelled for each return made eat into revenues and add to the hundreds of thousands of tons of CO2 emitted each year making online fashion returns alone.
Returns fraud cost UK retailers £5.4 million in the first half of the year according to the National Fraud Intelligence Bureau. Paid returns are often a necessity to avoid these costs impacting the whole customer base. To maintain customer loyalty, it’s crucial that retailers introduce returns fees without compromising on the factors that matter most to their customer bases. We found in previous reports that many consumers are willing to pay a surcharge if their needs are met – these are commonly attached to affordability, convenience, and sustainability but it’s up to retailers to use the wealth of data that’s now available to them through processing returns. The right paid returns policy can facilitate all of this, and the survey proves that people can come round to that idea if they see the returns dilemma that retailers contend with.
– Al Gerrie, founder, ZigZag
