Online Shopping Dominates Holiday Sales Results so Far

“Return wave” floods online sellers

The e-commerce is currently grappling with an unprecedented surge in January returns, marking a significant challenge for online retailers, reports ZigZag, a returns provider acquired by Global Blue three years ago.

“Return wave” floods online sellers

Despite the growing trend of consumers having to pay for returns, the percentages of returns this year surpass the figures from the previous year. This observation is drawn from user data collected on ZigZag's returns management platform, with the company headquartered in the United Kingdom.

In the UK, the period from December 24 to January 2 witnessed a 16 percent increase in returns compared to the same timeframe in the previous year. Meanwhile, in the United States, the surge was even more pronounced, with a staggering 26 percent rise in returns over the same period. ZigZag recorded an absolute peak on January 1 and 2, where British online sellers experienced a 42 percent surge in returns compared to the first two days of 2023.

Al Gerrie, CEO of ZigZag, contextualizes this influx, emphasizing its alignment with the current economic climate where consumers are keen on curbing expenditures. He anticipates that while the overall January returns may not see a 42 percent increase, the data suggests one of the busiest Januarys ever for returns. Gerrie speculates that shoppers might be strategically returning Christmas gifts and purchases to capitalize on January sales, creating a nuanced challenge for retailers.

Paid returns have become a prevalent trend, constituting almost half (48 percent) of ZigZag's registered online returns during the Christmas period. This represents a significant increase from the previous year. Notably, in Germany and France, paid returns surged by 13 and 20 percentage points, respectively. A striking 63 percent of ZigZag's retail clients now incorporate a paid returns solution in some capacity, underscoring the shift towards this being the new norm.

Online retailers, wary of the elevated handling costs associated with returns, are increasingly adopting paid returns as a strategic approach. Despite the preference for products not to be returned at all, the current landscape emphasizes the growing importance of effectively navigating the complexities of returns, especially in the aftermath of holiday seasons. The evolving dynamics underscore the necessity for retailers to adapt and carefully manage returns, considering the financial implications and the shifting expectations of consumers.