A Quarter Of Fashion Goods Bought Online Are Returned

Almost a quarter of all fashion goods bought online are returned by shoppers, according to a new survey which claims to be the first of its kind to comprehensively measure the phenomenon.

The survey also found that the long-term average return rate among its sample was 23 per cent in the second and third quarter of 2013 and that up to 50 per cent of fashion returns are caused by just 10 per cent of products.

The survey has been carried out by the IMRG and technology firm Clear Returns which specialises in measuring the phenomenon. The review drew on two years background data to ensure consistency and a sample of around 1 million transactions for the current survey findings taken from between May and October.

The survey comprised a limited number of retailers ranging in size from £130 million turnover to just under £9 million.

The survey found that the value of a product can drop by up to 10 per cent once it is returned and estimated that by reducing returns by just 1 per cent, a company could increase its profit by 1 per cent.

The busiest month for returns was October when 29 per cent of items were returned.

Returns for fashion retailers are costly because goods can get damaged in transit or because they can be out of fashion in the weeks it takes for them to be sent and returned to store. This is particularly so later in the year when retailers can switch rapidly from full-priced sales before Christmas to massive discounts.

The average lead time for returns was calculated at 10 days, the survey said, but it can be much longer and retailers return policies mainly provide for a window between 14 days and 30 days.

Some retailers are introducing policies to make it more attractive for customers to return goods earlier, such as money off delivery. Dresses were by far the most returned items with tops second, according to the survey which asked respondents to name the top three most returned items.