UK businesses are experienced an unexpected plague that threatens to impede their economic growth, a plague that comes in the form of what is known as the “serial returner”. There are a wide range of online shoppers who have zero qualms about taking advantage of free return policies and UK stores have become overrun with consumers who are unaware of the cumulative effect that their buying habits are having on the economy.
According to a recent report by Barclaycard, The Emergence of Serial Returners, at least 60 percent of UK retailers are claiming to have been adversely by this newfound consumer propensity. Online only businesses are also being hit particularly hard by this trend, as 30 percent of these businesses have reported a significant effect on their profit margins.
Now that businesses have been forced to adjust to the new landscape, 20 percent are now increasing the price of their items in order to make up for the losses that they are experiencing. For their part, shoppers have responded by requesting a more standardized clothing and shoe sizing system to remedy the issues that have led to the spike in returns.
Online retailers are left facing a new and interesting challenge, one that could make or break their level of viability going forward. As online shopping’s popularity continues to grow, more and more consumers are spending larger amounts of money on digital shopping channels.
In 2015, the amount of spending that took place in digital stores increased by over 14 percent, while in store spending remained mostly static, increasing by a mere 1 percent. Now that online shopping has become commonplace, “serial returners” are attempting to take advantage, by placing large orders that they have zero intention of keeping.
This is because they will order several versions of the same item, with the idea of making up their mind at a later date and dropping the unneeded products at an hourly courier service. Web based retailers claim that this is having a negative impact on their bottom line and shoppers are requesting a better in store shopping experience to enhance their ability to make the correct choice.
The modern shopper is always pressed for time and they expect a free return policy. However, they are also presented with far more choices than ever before, which can make it difficult to make a timely decision. Fortunately for both shoppers or retailers, there are a number of ways to streamline the process.
Streamlining sizing systems is one step that can be taken and companies are also in the process of offering virtual dressing rooms for their customers. In order to survive in the current marketplace and get the most of their consumer interactions, businesses will need to decide which innovations work for them and remain one step ahead of their competitors.
