web and mobile fraud
Serial refunders responsible for a quarter of online returns
Viral “shopping hauls” on social media platforms are fuelling a surge in people sending back online orders, with an estimated almost £7bn worth of unwanted clothes returned to retailers each year.
The “serial returners” account for around a quarter of all online returns in the UK, according to new data from Retail Economics.
It follows the rise of “hauls” on platforms such as TikTok, where social media users will share videos of themselves trying on items and asking viewers which items they should keep or return.
On the platform, #KeepOrReturn has more than 11 million videos listed under it.
The research found that online returns is estimated to exceed £27bn this year, with serial returners accounting for £6.6bn of the total.
Each “serial returner” is sending back on average around £1,400 worth of goods each year.
A survey found that more than two thirds of Gen Z shoppers admitted to over-ordering online on sizes or colours with a view of returning unwanted items. This was the case for just 16 per cent of baby boomers.
Retail Economics chief executive Richard Lim said: “Serial returners are quietly eroding retail profitability in ways many retailers are only just beginning to understand."
“The rise of opportunistic shopping behaviours, where many people intentionally buy large quantities of goods with the intention of returning most of them, is placing an unprecedented strain on retailers.”
The last couple of years has seen a clampdown by retailers introducing fees for customers wanting to send back their online orders.
Asos said early last year that frequent returners were costing them £6 per order, with some of those customers ordering two or three times a month and returning as much as 90% of what they received.
The online fashion giant introduced a £3.95 fee for customers with a high return rate earlier this month unless they keep at least £40 worth of items to avoid the charge.
