Returns provider ZigZag has predicted the biggest-ever wave of January returns in 2024. It has already seen a 42% increase in returns in the UK, comparing volumes on January 1-2, 2024, with those of the same dates in 2023.
There was also reportedly a 16% year-on-year (YOY) increase in returns during the Christmas period (December 24, 2023, to January 2, 2024) in the UK, rising to 26% in the US. The research found that 48% of all returns over the Christmas period were paid returns. Both Germany and France showed sizable jumps of 13-20% in paid returns from December 24, 2023, to January 2, 2024, compared with the same period last year. Furthermore, 63% of ZigZag’s retail clients now include some form of paid returns, demonstrating where the future of retail returns is heading.
Al Gerrie, CEO of ZigZag, stated, “This influx of returns at the beginning of January is not surprising in the current economic climate and indicative of how consumers are trying to keep spending down. Whilst we’re not expecting returns to be up 42% over the whole of January, these figures show we can expect to see one of the busiest Januarys ever for returns. It’s possible that shoppers are returning Christmas gifts and purchases now with the intention of purchasing them cheaper in the January sales – a complex situation that retailers will need to carefully navigate.”
According to the report, sizing issues continue to be a key driver for fashion returns, accounting for 49% of all returns globally and 68% of all returns in the UK – up 37% YOY. In addition to this, 9% of all returns in the UK were due to items being defective.
On sizing, Gerrie added, “This is likely due to the ongoing practice of shoppers purchasing multiple sizes of items with the intention of trying them on at home and returning those that don’t fit or, of course, the issue of buying items for others. The inconsistency of sizing is an ongoing frustration for shoppers and if retailers want to reduce returns, it is a key factor they need to address. Many retailers now include customer reviews and sizing guides to indicate if it comes up small/large or true to size; virtual changing rooms are also a good way to counteract this issue.”
ZigZag has also seen a distinct change in how shoppers are returning their items, with home collection up 77% year-on-year and locker drop-off up 68%. Traditional methods of returns are still popular, however, with returns via the post office up by 29% YOY.
Gerrie concluded, “As is expected, where flexibility and choice are offered, consumers are jumping on the opportunity. With people spending more time working from home, collection from home is an appealing option. Shoppers have also matched the UK’s expansion of locker drop-off locations with an eagerness to utilize them as a convenient returns method.”
For more of ZigZag’s research insights into the future of returns, read Parcel and Postal Technology International’s feature, ‘How are 2023 trends in retail and logistics informing predictions for 2024?’, here.