The number of shoppers who identify themselves as ‘serial returners’ has dropped by a quarter, as smart policies and returns deterrents help reduce returns abuse, says new research by ZigZag, a post-purchase solution provider, and Retail Economics.

Original research of over 2,000 UK shoppers in Zig Zag’s annual returns report showed that the number of customers identifying as serial returners has dropped from 12% to 8% in the last 12months.

This decline is projected to save retailers ~£1.7billion in the value of returns from serial returners compared to last year, as policies, including charging returns fees, become more effective at encouraging considered purchasing.

Effective policies for reducing returns

With brands, including ASOS and Next, having introduced measures to curb high-frequency returns, a separate poll also by ZigZag of over 100 UK retailers shows that now three quarters (76%) have implemented returns fees or are withholding delivery refunds.

“Returns policies define customer behaviour at the checkout,” said ZigZag’s CEO, Al Gerrie. “We’re now seeing the industry draw a clear line between loyal customers and those gaming the system.”

Most retailers now charge under £3 for returns, creating enough friction to stamp out over-ordering and returns abuse, which is, in turn, helping protect margins. Despite representing just under an eighth of all shoppers (12%), last year serial returners were thought to have cost retailers £6.6billion.

“Retailers have made real progress in curbing the most costly returns behaviours, but the next step is about encouragement as much as deterrence,” said Richard Lim, CEO at Retail Economics. “As returns policies mature, the focus will shift from simply reducing costs to actively shaping positive, efficient post-purchase behaviour.”

Creating friction to cut returns without impacting conversion

However, whilst policies are helping reduce the overall numbers of serial returners, consumers’ mindsets are still geared towards free returns, with 71% of shoppers expecting returns to be free.

This means retailers are having to strike a delicate balance of creating enough friction to prevent inefficient returns, while not losing out on conversions or causing purchase abandonment.

“When done right, returns policies are a competitive advantage” Gerrie said, but he warned a balance must be struck “between cost control and customer satisfaction.” He added that “retailers must continuously hone their returns models, as basket abandonment is common and consumer expectations are always shifting.”

Returns fees and the conversion tipping point

Millennials are among the most demanding when its comes to returns, with six in ten (60%) having abandoned a purchase due to unsatisfactory returns policies, compared to 49% overall. They are also most likely to believe returns should be free, yet recognise fees are a reality.

Both Gen Z and Millennials are prepared to pay up to £2.10 for returns fees before abandoning a purchase, compared with £1.50 for older shoppers.

“Free returns are no longer the default. In reality, most consumers are willing to pay a reasonable price so long as the experience is clear, fast, and reliable,” Gerrie added.

“Brands can fine-tune their approach to reduce costs, ease pressure on customer service and improve satisfaction. Retailers need to understand how customers feel about the process to really drive retention,” he concluded.