£2.6bn “returns explosion” to hit online retailers this holiday season
Online retailers face £2.6 billion in returns over the vital holiday shopping season, as retailers are warned to prepare for “key spikes” in returns volumes.
Returns are set to grow by £300 million in the UK over the festive season compared to last year, according to new data from ReBOUND.
Black Friday promotions are due to see massive returns spikes on December 4 and December 9, while a further holiday returns peak is due to take place on January 7.
Online fashion retailers are set to be hardest hit, with returns over the Black Friday weekend expected to top a whopping £457 million, placing a significant “financial hangover” on those who don’t fully prepare.
Over the Black Friday weekend alone, returns across all UK online retailers are set to hit £606 million, well over twice as much as the £244 million seen last year.
“Returns are often the unknown quantity in online shopping, but with one in four items being returned and huge seasonal spikes on the horizon, retailers are increasingly waking up to the need to address the costly returns hangover,” ReBOUND chief executive Graham Best said.
“When you consider the total impact of online fashion returns to be nearing £2 billion over peak, this returns explosion is hard to ignore.”