The initial quarter often sees a spike in returns following the festive period, impacting the operational flow of extensive online fashion outlets significantly.

An assessment by OrderFlow, looking into the ‘cooling off’ periods and comparing the number of leading 100 fashion e-commerce brands providing free returns against those imposing charges, has been carried out. The analysis encompassed the top 100 fashion websites as ranked by Google, offering a robust view of leading brands in the sector.

The analysis revealed that almost 2 in 5 (39%) of the examined firms have discontinued offering complimentary online returns, a shift that could significantly influence consumers planning to send back purchases in the coming month. Insights from Google Trends and Glimpse show a 66% rise in the search for ‘free returns’ over the past five years, indicating a heightened expectation for this flexibility among UK shoppers.

The span of the return periods differs across retailers, with the most common being 28 days, the longest at 100 days, and the shortest being the compulsory 14-day period stipulated by Consumer Contracts regulation. Variations were also noted in the return methods allowed, with some retailers only accepting returns via their chosen carriers, and others basing refunds on the customer’s selected delivery method.

Countering the Impact of Returns

According to Shopify, e-commerce stores typically experience a return rate of 20-30%, which can significantly erode margins due to the costs associated with processing returns.

The shift towards charging for returns is viewed by many retailers as a measure to mitigate the financial burden of return handling. Employing an efficient warehouse management system that adeptly manages returns can aid in reducing the additional costs and bolstering profit margins.

OrderFlow delivers warehouse management solutions for 3PLs and a broad array of industries. To discover more, please get in touch.