The first quarter is traditionally a period that witnesses a surge in returns, post-holiday season, significantly impacting the operational efficiency of major online fashion retailers.
OrderFlow has conducted an analysis comparing the ‘cooling off’ periods and the ratio of top 100 fashion e-commerce brands that offer complimentary returns against those that impose a fee. For a comprehensive overview, OrderFlow selected the top 100 fashion websites listed on Google.
Recent findings indicate that almost 2 in 5 (39%) of the surveyed companies have ceased to provide cost-free online returns, a change that could notably affect consumers intending to return items in the ensuing month. Data sourced from Google Trends and Glimpse reveals a 66% increase in searches for ‘free returns’ over the last five years, suggesting a growing expectation amongst UK shoppers for such convenience.
The duration for returns varies across retailers, with 28 days being the norm, 100 days the maximum, and the minimum being the 14-day statutory period mandated by the Consumer Contracts regulation. The study also uncovered differences in return policies, with some retailers specifying preferred return methods and others basing refunds on the customer’s initial delivery choice.
Mitigating the Effects of Returns
Shopify‘s research indicates that the typical return rate for e-commerce platforms ranges between 20-30%, a figure that significantly affects profit margins due to the associated costs of return processing.
The trend towards chargeable returns is seen as a strategy by numerous retailers to diminish the expenses involved in return handling. Implementing a robust warehouse management system that efficiently oversees returns can help lower incremental costs and enhance profitability.
OrderFlow specializes in providing warehouse management solutions for 3PLs and various other sectors. For more information, please contact us.
