Returns are harmful to retailers. A customer may order 20 items, wear half a dozen, then return the lot after 28 days, in various states of disrepair. Online fashion retailer Asos has increased its returns policy from 28 days to 45 days. At the same time, on noticing an unusual pattern of returns activity that doesn’t sit right, that is, if someone is actually wearing their purchases and then returning them or ordering and returning huge bags, Asos deactivates their account.
There are four types of serial returners, compulsive shoppers, wardrobers, social media wardrobers and bracketers. The latter purchasing multiple items in different colors and sizes with no intention of keeping most of them, simply hedging their bets. It is estimated that just 50 per cent of returns goes back into store inventory. The other half comes back in a battered state and has to be returned to the manufacturer or resold. But often they are sold at a fraction of the original cost to discounters or liquidators. Or they are just dumped in landfills since that’s less expensive than carting them here and there.
On the other hand it’s also a fact that the people who return the most are the most profitable customers, with the top five per cent of returners being 30 per cent more profitable.
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