2 in 5 UK retailers fail to communicate with customers during returns process, report finds

Almost 60% do not use sustainable packaging, which does not meet customer expectations

LONDON–(BUSINESS WIRE)–A new report from post-purchase customer service provider parcelLab and e-commerce customer service and fulfillment specialist Salesupply reveals alarming gaps in retail returns and packaging practices, highlighting the disconnect between retailers and changing customer expectations.

Returns management

The UK’s Top 100 Retailers’ Post-Purchase Secrets Report 2024 found that almost a third (28%) of retailers do not offer free returns, which could put off customers looking for a flexible returns policy.

It also highlighted that communication during the returns process is a key issue, with 40% of retailers failing to keep customers informed, leading to frustration and loss of loyalty.

Almost half of retailers take more than a week to process returns, with the average return time being eight days. Surprisingly, only 9% allow exchanges through their returns portals, missing out on a key opportunity to increase customer satisfaction and repeat business.

The report also revealed that 64% of retailers offer a 30-day returns period, while 21% allow up to 14 days. Interestingly, 15% of retailers offer returns periods longer than 30 days. Household goods retailers offer the longest returns periods, averaging 73 days, followed by DIY (42 days) and fashion and clothing (41 days).

When it comes to returns methods, more than a quarter (26%) of retailers use retailer-owned portals, while the same number rely on third-party portals. 19% of retailers use carrier portals to manage returns. Less common methods include customer service inquiries, paper labels, and self-mail.

Sustainable Practices – A Major Blind Spot

Despite the increased focus on sustainability, 58% of retailers surveyed still use plastic packaging. Only 36% provide environmental information on their packages, missing a critical opportunity to educate and engage eco-conscious consumers. While 80% of retailers ship products in appropriately sized packaging, only 6% offer carbon-neutral shipping.

Tobias Buxhoidt, CEO at parcelLab, said: “The report’s findings underline the 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 lead to repeat business and customer retention. We have helped clients increase AOV by up to 60% for returning customers. By addressing inefficient returns processes, including communication gaps and long refund times, retailers can significantly improve their service and increase customer loyalty.

As sustainability gains importance, these methods meet growing and increasingly anticipated consumer demand for eco-friendly options, and position retailers as responsible and socially conscious businesses that shoppers will want to associate with in the future.

Click here to read the full report.

About parcelLab

parcelLab is the only truly global provider of enterprise post-purchase software, enabling brands to increase revenue, reduce operating costs and optimize customer service like never before. Our award-winning post-purchase platform enables brands to transform mundane operational touchpoints into the most differentiated and personalized experiences, creating unique moments of pure joy for their customers. Trusted by over 800 brands including IKEA, Chico’s, H&M and Yeti, we actively manage post-purchase in 175 countries and track shipment data from over 350 carriers worldwide. Learn more at www.parcelLab.com.

About Salesupply

Salesupply is a global e-commerce service provider specializing in e-commerce customer service and order fulfillment. Salesupply offers native customer service in 36 languages ​​across 3 continents. Salesupply’s scalable and flexible order fulfillment platform enables online stores to compete with local players worldwide through local warehousing and delivery. Over 500 online brands and retailers worldwide rely on Salesupply’s services, including Carhartt, Tory Burch, Segway Ninebot, and Panasonic. Salesupply is headquartered in Nijmegen, the Netherlands, and has offices in the UK, US, Germany, and Spain, among others. For more information, visit: https://www.salesupply.co.uk/

Communication

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Articulate Communication for parcelLab

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