Retailers are losing billions each year due to a significant increase in clothing returns, primarily influenced by social media shopping. Over 43% of shoppers now buy items with the intention of returning them, a figure that has risen dramatically since the pandemic. Sizing inconsistencies, over-ordering, and fraud contribute to the rising return rates, putting pressure on retail profitability. Returns in the UK alone cost retailers around £5.2bn annually and the trend seems to worsen as more consumers engage with online shopping. This trend will likely lead to higher prices for consumers.
"A couple years ago, that was below 30 per cent... through the pandemic, it has grown significantly as people get more comfortable shopping online, and they understand the need to buy different sizes."
"The return to sender phenomenon is no longer a minor backend issue... It's a frontline challenge impacting customer satisfaction and profitability."
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