A flood of online Christmas returns is increasing a £7billion nightmare for retailers.
As the festive period ends, return warehouse workers are scrambling to process millions of unwanted gifts at an average cost of £20 per package, according to nShift, a returns management company.
ReBound, another returns specialist, said one in three fashion items bought online is sent back – double the rate for goods bought in shops.
Al Gerrie is the chief executive officer of ZigZag Global. The company offers online returns software to clients such as Selfridges and Gap.
“It is not uncommon to see a 30% to 50% return rate on womenswear, and 20% for menswear within the UK.
“Germany is home to the highest rates, with up to 50 percent.”
As the festive period ends, return warehouse workers are scrambling to process millions of unwanted gifts at an average cost of £20 per package, according to nShift, a returns management company (stock image)
KPMG, the professional services company said that retailers are now facing a Pandora’s Box due to spiralling expenses.
It puts the bill for British retailers at around £7billion a year.
The US-based Reverse Logistics Association claims that returns could reduce profits up to 30%.
Many retailers do not charge customers a fee if they return goods, but some have introduced them, including Hollister, which charges £5, and Uniqlo which charges £2.95. Next charges £2 per collection.
Many factories are running 24 hours a day throughout the year, with staff opening, checking – and even sniffing the item – before it is steamed, repressed, repackaged and resold as new.
Many retailers do not charge customers a fee if they return goods, but some have introduced them, including Hollister, which charges £5, and Uniqlo which charges £2.95. Next charges £2 per collection (stock image)