Serial returners and the future of eCommerce: A guide for businesses

What if some of your best customers are also your biggest source of returns? The paradox of serial returners presents a unique challenge for businesses. While returns are an unavoidable part of the retail and eCommerce industry, the surge of serial returners, with their high return rates and potentially exploitative behaviors, can strain resources, disrupt inventory management, and significantly impact the company’s profitability.

In this blog, we’ll explore the different types of serial returners, understand their motivations, and offer practical strategies for reducing returns while maintaining a positive customer experience.

What is a serial returner?

Types of serial returners

There are several types of serial returners, each with their own motivations and tactics.

Staging

Wardrobing

Bracketing

Why are serial returners on the rise?

Many businesses are puzzled by the growing number of serial returners, but understanding the reasons behind this trend can help us find solutions. Serial returners are driven by a combination of factors related to advances in online shopping and the growing influence of social media.

Online shopping

Online shopping has undoubtedly revolutionized retail by allowing customers to buy items with a few clicks from the comfort of their homes. However, this ease and convenience can also make it tempting to buy things without thinking them through.

When shopping online, buyers cannot physically examine products before purchasing, which creates uncertainty about fit, color, and quality. To find the perfect fit, customers often order multiple variations of the same item to try on at home and return those that don’t meet their expectations (bracketing).

On the other hand, many retailers offer generous return policies to encourage online sales and build trust, including free shipping and extended return windows. While these policies benefit genuine customers, they can also be exploited by those who intend to exploit the system. The convenience of online returns has fostered a “try before you buy” mentality, blurring the lines between a virtual fitting room and a risk-free trial period.

Social media and influencer culture

Adding to the complexity is the undeniable influence of social media and influencer culture.

Social media platforms like Instagram, TikTok, and YouTube are shaping consumer behavior and expectations. The pressure to present a perfect image online, amplified by influencer culture, can drive staging behavior, where people buy items solely for photoshoots and then return them.

Try-on haul videos, where influencers show multiple outfits or products from brands like Zara, H&M, and Mango, have become incredibly popular. These videos often encourage viewers to purchase the featured items, sometimes through affiliate links that earn the influencer a commission. While affiliate marketing can be a legitimate way to promote products, it can also create a conflict of interest, as influencers may prioritize promoting a large number of items over advocating responsible shopping habits.

To further complicate matters, some influencers may adjust or alter items to look better on them in videos or photos. Viewers often may be left disappointed when the item doesn’t look the same on them and return purchased items.

In turn, we are left in a cycle where consumers, influenced by social media trends, may purchase more than they intend to keep, contributing to the growing problem of serial returns. Buy Now Pay Later (BNPL) services, while offering convenience for shoppers, further contribute to this trend by enabling impulsive purchases with less immediate financial commitment.

Should you ban serial returners?

While the reasons behind the rise of serial returners are multifaceted, the question remains: how should businesses respond? One approach that has gained traction is banning serial returners altogether.

In fact, 55% of UK fashion and clothing retailers would consider banning serial returners, a decision that seems to have support from shoppers as well, with 56% of those surveyed stating that they believed Amazon’s intention to place lifetime bans on serial returners is fair.

However, implementing outright bans can be a potentially risky strategy. It requires careful consideration of various factors, such as:

• Identifying serial returners: Accurately identifying serial returners requires effective data analysis and tracking systems to differentiate between customers with genuine reasons for returns and those who consistently misuse return policies.
• Understand customer behavior across different channels: A customer might have a high return rate for online purchases because of inconsistencies in sizing or fabric quality, but they may rarely return items bought in-store. This suggests that the issue might be with the online shopping experience rather than the customer’s intent.
• Potential for negative PR: Banning customers can lead to negative publicity and damage your brand’s reputation, especially if not handled with sensitivity and transparency.
• Loss of potential revenue: Even customers with high return rates may still represent valuable revenue for a business. Banning them could result in lost sales and possible damage to customer relationships.

Therefore, while banning serial returners might seem like a straightforward solution, it’s crucial to weigh the potential benefits against the risks. Many brands are exploring alternative strategies to deter serial returners without resorting to outright bans.

For instance, online fashion retailer PrettyLittleThing has recently introduced return fees: £1.99 for UK customers, $4 for the US and Canada, 5€ in Europe, and 14.99 NZD in New Zealand. They’ve also started closing customer accounts with higher-than-normal return rates. Other brands that charge for returns include New Look, H&M, Next, UNIQLO and Zara. 

How to combat serial returners?

Combating serial returners requires an approach that combines proactive measures, customer-centric strategies, and intelligent use of technology. Here are some key tips for your brand:

Optimize product information

• Detailed descriptions and visuals: Provide in-depth product descriptions, size charts, and high-quality images from various angles to minimize uncertainty and manage customer expectations.
• Augmented reality (AR): Explore AR technology to allow customers to virtually try on clothes or visualize products in their own space.
• Consistent sizing: Work closely with manufacturers to ensure consistent sizing across your product lines. Inconsistent sizing is a major driver of bracketing.

Enhance customer communication

• Transparent return policies: Clearly communicate your return policy at the point of purchase, during checkout, and in order confirmations. Use clear and concise language, avoiding jargon or complex terms.  
• Proactive engagement: Contact customers who frequently return products and offer assistance, provide personalized recommendations, or suggest alternative products that better meet their needs.
• Targeted messaging: Use customer data and segmentation to identify potential serial returners and tailor your communication accordingly. For example, you could offer styling advice or size guides to customers who frequently return items due to fit issues.

Refine return policies

• Shorter return windows: Consider shortening the return window for certain products or customer segments to discourage wardrobing or other unethical behaviors.  
• Restocking fees: To deter excessive returns and offset processing costs, implement restocking fees for frequent returners or items returned in poor condition.  
• Tiered return policies: Offer different return options based on customer loyalty or purchase history. For example, loyal customers could enjoy free returns, while those with frequent returns might have to pay a fee.  

Leverage technology

Customer data platform (CDP)

Use CDP to gather and analyze customer data, identify return patterns, and personalize the customer journey.

Customer engagement solution

Use customer engagement solutions to create automated message flows triggered by customer actions, address potential concerns, and offer personalized support.

Chatbot building platform

Use chatbot building platform to create AI-powered conversational experiences that can help reduce returns and improve customer satisfaction.

Encourage sustainable practices

• Promote responsible shopping: Educate customers about the environmental impact of returns and encourage them to make informed purchasing decisions.
• Offer alternatives to returns: Explore options like exchanges or store credit to reduce the number of items being shipped back and forth.  
• Optimize packaging: Use eco-friendly packaging and minimize waste to reduce the environmental footprint of returns.

While these strategies are important for dealing with serial returners, another crucial aspect is the potential value that these customers hold.

Serial returners may actually be your best customers

It might seem counterintuitive, but serial returners can sometimes be your business’s most valuable customers. This may seem surprising given their challenges, but not all serial returners intentionally exploit the system. Some customers may genuinely struggle with finding the right size or style, and their frequent purchases and returns could actually indicate a high level of engagement with your brand.

Consider this: these customers are actively browsing your products, making purchases, and providing valuable feedback through their returns. They are invested in finding the perfect items from your store, and if you can address their needs and reduce their reasons for returns, they could become your most loyal shoppers.

So, how can you turn serial returners into loyal customers? Here are some strategies to consider:

• Personalize their experience: Use data and insights to understand their preferences and challenges. Offer personalized recommendations, size guides, or styling advice to help them make more informed purchasing decisions.
• Provide exceptional customer service: Go the extra mile to assist them with their returns and address any concerns they may have. This can build trust and loyalty, turning a potentially negative experience into a positive one.
• Offer alternative solutions: If a customer frequently returns items due to sizing issues, offer to exchange the item for a different size or suggest a similar product in a different style.
• Gather feedback: Use returns as an opportunity to gather valuable feedback about your products and processes. Ask customers why they are returning items and use this information to improve your offerings and reduce future returns.

By focusing on understanding and addressing the needs of serial returners, you can transform them from a challenge into a valuable asset for your business. Customer loyalty is built on trust and positive experiences, and even those who may have a history of frequent returns can become loyal advocates if you provide them with the right support and solutions.

Addressing the root causes of returns, whether it’s sizing issues, unclear product information, or social media pressures, creates a more sustainable and profitable commerce ecosystem that benefits both your company and your customers. It’s a win-win approach that promotes loyalty, reduces waste, and strengthens the overall retail industry.