Zigzag, the global delivery firm, has predicted that 2024 will witness the largest wave of January returns ever recorded, as the company reports a substantial increase in returns in the early stages of January. Year-on-year, there has been a rise of 42% in returns during this period, with a specific 16% increase in returns related to Christmas.
The surge in returns can be attributed to various factors, with sizing issues playing a major role. In the UK, sizing issues account for 68% of fashion returns, marking a 37% increase compared to the previous year. Globally, sizing issues contribute to 49% of returns. Additionally, defective items account for 9% of returns in the UK.
Zigzag has observed a shift in how shoppers are returning items, with home collection increasing by 77% and locker drop-off rising by 68% year-on-year. Notwithstanding these changes, traditional methods of returns, such as via the Post Office, remain popular and have witnessed a 29% year-on-year increase.
Paid returns have also seen a surge during the Christmas period, with 48% of all returns being paid returns. Germany and France experienced significant increases of 13-20% in paid returns from 24 December to 2 January compared to the previous year. Among Zigzag’s retail clients, 63% offer a paid returns solution.
Al Gerrie, CEO of Zigzag, commented on the spike in returns, stating that it is unsurprising given the current economic climate and consumer behavior of trying to limit spending. While he does not anticipate returns to increase by 42% for the entire month of January, he believes this data indicates one of the busiest Januarys ever for returns. Gerrie also pointed out that shoppers may be returning Christmas gifts and purchases in order to repurchase them at a lower price during the January sales. This presents a complex situation that retailers will need to navigate carefully.
Gerrie explained that shoppers often purchase multiple sizes with the intention of trying them on at home and returning the ones that don’t fit, due to the inconsistency of sizing. To minimize returns, retailers should address this issue by providing customer reviews, sizing guides, and even virtual changing rooms to help shoppers determine the correct size to purchase.
In conclusion, Zigzag’s analysis highlights a significant increase in returns during January, primarily due to sizing issues and defects. As more retailers opt for a paid returns model, the company expects returns to continue to rise. To counter this trend, retailers should focus on addressing sizing inconsistencies and offering resources to assist customers in making accurate purchasing decisions.
Useful links:
1. How to Reduce Returns in Your E-commerce Business
2. Managing Returns for Sustainable Fashion Brands
