Retailers rethink returns policies as ‘serial returners’ increase

Some 26% of retailers have seen an increase in the volume of goods being returned in the last two years, according to new findings.

Research from Barclaycard revealed that 20% of retailers had taken measures to make their returns policy more stringent in the last year, with a further 19% planning to do so in the next 12 months.

Of these businesses that have tightened up policies, 41% say this is because too many customers are over-ordering items knowing they will return most of it, while 31% claim shoppers are using items and then returning them.

Consumers are feeling the impact of retailers becoming stricter with 14% saying they have been penalised by a retailer for their returns behaviour, from warning emails to account deactivations. Penalties have also been incurred for returning too many items, sending back purchases that have been used, returning goods without the right packaging or missing the returns deadline.

This is especially true of millennials, who are more than twice as likely to fall foul of the small print.

However, this has not yet deterred consumers, with 29% of shoppers admitting they order items that they intend to return – a figure that rises to 48% of 25-34-year-olds.

Furthermore, 18% of shoppers said they will only shop at retailers that offer free returns while 49% of consumers said a retailer’s returns policy influences where they choose to shop.

Despite this expectation, an increased awareness of sustainability issues is leading some consumers to move towards a more mindful approach to the amount they are buying and returning. Some 46% are concerned about the environmental impact of over-ordering and returning goods, with 11% having actively reduced the amount they order and return because of this.

Anita Liu Harvey, director of strategy, Barclaycard, said: “The volume of goods being returned continues to rise and consumers have come to expect free returns as standard – otherwise they will shop elsewhere. As a result, we are seeing retailers implementing stricter returns policies to try to clamp down on serial returners and reduce the impact that returns are having on their business.

“These more stringent policies have begun to affect consumers, with some retailers starting to send warning emails to customers about accounts being deactivated, should unusual or suspicious behaviour continue. On the flip side, it does seem shoppers are becoming more mindful about the purchases they make and the impact their returns could have on the environment.”