A new report by post-purchase customer experience provider parcelLab and e-commerce customer care and fulfilment specialist Salesupply, reveals alarming gaps in retail returns and packaging practices, highlighting a disconnect between retailers and the changing expectations of shoppers.
Returns management
The UK’s Top 100 Retailers’ Post-Purchase Secrets Report 2024 found that nearly a third (28%) of retailers do not offer free returns which may deter customers who prioritise flexible return policies.
It also highlighted that communication during the returns process is a key failure with 40% of retailers not keeping customers informed, leading to frustration and lost loyalty.
Nearly half of retailers take more than a week to process refunds, with an average refund time of eight days. Surprisingly, only 9% allow item exchanges through their returns portals, missing a crucial chance to boost customer satisfaction and repeat business.
The report also revealed that 64% of retailers offer a return period of up to 30 days, while 21% allow up to 14 days. Interestingly, 15% of retailers offer return periods longer than 30 days. Homeware retailers offer the longest return periods, averaging 73 days, followed by DIY (42 days) and fashion & apparel (41 days).
When it comes to return methods, over a quarter (26%) of retailers use retailer-owned portals and the same amount rely on third-party portals. 19% of retailers use carrier portals for managing returns. Less common methods include customer service queries, paper labels and self-organised postage.
Sustainable practices – a major blind spot
Despite a heightened focus on sustainability, 58% of surveyed retailers still use plastic packaging. Only 36% provide environmental information on their parcels, missing a critical chance to educate and engage eco-conscious consumers. Although 80% of retailers ship products in appropriately sized packaging, only 6% offer CO2-neutral shipping.
Tobias Buxhoidt, CEO at parcelLab, said: “These report findings underscore a critical need for UK retailers to rethink their returns management and sustainability strategies. This is a critical step for them to create an improved post-purchase experience for the consumer, building stronger customer trust and loyalty which will ultimately drive repeat business and customer retention. We’ve helped customers increase AOV by up to 60% for returning customers. By addressing the inefficiencies in the current returns processes including communication gaps and lengthy refund times, retailers can significantly enhance their service quality and increase customer loyalty.
As Sustainability grows in importance, these methods meet the growing and increasingly expected consumer demand for eco-friendly options but also positions retailers as responsible and socially conscious businesses that shoppers will want to affiliate themselves with in the future.”
Click here to read the full report.
