Global delivery powerhouse ZigZag predicts an unprecedented wave of returns in January 2024, with a notable 42% year-on-year surge in returns observed in the early stages of the month. The surge includes a 16% increase in Christmas-specific returns (24 December-2 January).
Sizing issues emerge as the primary catalyst for returns, constituting a substantial 68% of all returns in the UK, marking a significant 37% increase year-on-year, and contributing to 49% of global returns. Defective items account for 9% of returns in the UK.
ZigZag highlights a shift in return methods, with home collection soaring by 77% year-on-year and locker drop-off experiencing a 68% increase. Traditional methods, including returns via the Post Office, remain popular, witnessing a 29% year-on-year rise.
As retailers increasingly embrace paid-for returns, ZigZag reveals that 48% of all Christmas returns were paid returns. Globally, Germany and France show substantial jumps of 13-20% in paid returns from 24 December-2 January compared to the previous year. The prevalence of paid returns reflects a notable trend, with 63% of ZigZag’s retail clients integrating a paid returns solution.
CEO Al Gerrie comments on the January returns surge, stating, «This influx of returns at the beginning of January is indicative of how consumers are managing spending in the current economic climate.» While not anticipating a sustained 42% increase throughout January, Gerrie acknowledges the likelihood of one of the busiest Januarys ever for returns.
He adds, «Shoppers may be returning Christmas gifts with the intention of purchasing them at a lower price in the January sales—a complex situation that retailers need to navigate carefully.»
Addressing sizing concerns, Gerrie notes, «The inconsistency of sizing is an ongoing frustration for shoppers, and retailers must address it to reduce returns.» He recommends strategies like customer reviews, sizing guides, and virtual changing rooms to mitigate sizing-related challenges.
