Rise in returns expected after Black Friday & Cyber Monday

Research indicates a rise in product returns following Black Friday and Cyber Monday sales, with many consumers purchasing items with the intent to return them after use.

Experts from Advanced Supply Chain (ASC) and ReBound Returns predict that approximately one in three shoppers will return their Black Friday and Cyber Monday purchases, leading to a surge of returns on 'Returns Tuesday', which falls on the 10th of December this year. This expectation is based on increasing trends observed in recent years. In 2022, returns increased by 130% post-sales, which escalated in 2023 with a 145% rise in returns compared to the previous year.

A YouGov survey of 2,000 consumers found that nearly a third (29%) admitted to returning items influenced by substantial discounts, while a quarter cited impulse purchasing as the reason for their returns. The festive season, particularly around Christmas, significantly contributes to these return rates. 28% of those purchasing 'one-off wear' items, such as outfits for festive parties, return them thereafter. This includes specific holiday apparel like 'Christmas Jumper Day' gear, with 15% of these being returned.

The research also highlights that nearly four in ten 'one-off-wear' consumers purchase clothing and accessories, intending to send them back post-use. Additionally, 19% of surveyed individuals reported returning items upon disliking photos of themselves in those outfits, contributing to the rising returns.

Ben Balfour, Managing Director at Advanced Supply Chain, noted, "It usually takes just a few minutes for shoppers to decide on what products they're sending back, and then a couple of days to package up and return goods. The weekend after Black Friday and Cyber Monday will be a busy time for shoppers sending bargains back, with the majority of returns arriving at retailers on Returns Tuesday, the 10th December."

Jelle Schoenmaker from ReBound Returns commented on the trend's growth, stating, "This year we're expecting an even bigger spike in returns as consumers are open to buying with the intention of returning – even after wearing."

Schoenmaker further elaborated on the need for retailers to assess return policies, "Retailers need to decide whether such returns should be fully refunded. Having returns grading in place will allow brand to have the necessary data whether they will be acting on it or not. There's still time for retailers to improve their returns set-up for this festive peak period. Having proper insights in place will lead to fewer returns and better performance throughout the entire peak season and into 2025."

A study by ASC last year revealed that only one in ten retailers were able to resell most of the returned items through the original sales channel. Instead, 41% of returns are resold through discount routes, 16% are recycled, 13% are donated to charity, and the remaining 12% are disposed of due to irreparable damage.