A £27 Billion Problem Hiding in Plain Sight

In the UK alone, the cost of online returns is now £27 billion annually. That’s not a typo. In their DELIVER Europe 2025 breakout session, Al Gerrie and Richard Lim laid bare the scale of the returns issue and its financial implications for retailers. The culprits? A fast-evolving customer journey and a rise in what they call “serial returners”.

Mapping the Modern Return Behaviour

Retail Economics’ data-driven segmentation breaks down consumers into four key return personas:

• Occasional Returners – The largest cohort, returning only when necessary.

• Efficient Returners – Timely and consistent, valuing convenience and clarity.

• Slow Returners – Hold onto items for weeks, often delaying returns.

• Serial Returners – Deliberately overorder with the intent to return most items.

While serial returners make up only 11% of consumers, they’re responsible for nearly a quarter of all returns. In some product categories—especially fashion—the impact is even greater.

Why Return Journeys Are More Complex Than Ever

The customer journey is no longer linear. Gerrie and Lim contrasted the simple M&S store journey of an older consumer with the TikTok-to-locker journey of Gen Z. These shoppers regularly order multiple sizes or colours of the same product, using their homes as fitting rooms—and often return 40% or more of what they buy.

The research revealed that 70% of Gen Z consumers overorder with the intention of returning. Nearly a quarter admitted to wearing items to events before returning them—a behaviour known as "wardrobing".

From Data to Action: How Retailers Can Adapt

ZigZag’s advice for retailers was clear: returns are not inherently bad. In fact, serial returners are often loyal customers. But to manage the cost effectively, retailers need data, segmentation, and proactive strategies.

Key recommendations included:

• Use return data to flag ‘toxic’ products with high return rates.

• Improve product information, size guides, and visuals to minimise confusion.

• Charge for returns where appropriate—serial returners are often willing to pay.

• Segment your returns strategy, offering free returns to VIPs and store drops, while charging for home pickups.

• Reduce the return window to accelerate stock turnaround and protect margin.

• Introduce exchanges and refunds to gift cards, which increase re-purchase intent.

Technology and Culture: Two Sides of the Same Coin

The ZigZag platform processes over £2 billion in returns annually and provides a robust reporting suite for retailers. Their vision of the future includes more intelligent personalisation, label-free returns, and dynamic returns policies tailored to customer cohorts.

But perhaps the most important shift is cultural. As Gerrie emphasised, “a poor returns experience kills repeat business.” A frictionless return isn’t just operationally efficient—it’s brand-building.

The Big Takeaway

Retailers must stop thinking of returns as a nuisance and start treating them as a critical part of the customer journey. The cost of ignoring them—or applying one-size-fits-all policies—is too high. Instead, with the right strategy, returns can become a competitive advantage.

As Richard Lim summarised, “Understand your customers, tailor your response, and take back control of your returns.”