What: Returns in the UK hit a record level in 2022 as the cost of living hit consumers hard.

Why it is important: The end of free returns could be getting closer as more and more retailers start charging for returns with changing consumer behavior.

The 26% rise in returns came despite online retail purchases being 11.5% lower.

December 2022 was the busiest month ever for returns, with factors beyond retailers’ control combining to create a perfect storm for returns. The pandemic, looming recession, strikes, and cost-of-living crisis are all factors contributing to the uptick in returns.

Consumers are only keeping what they really love, a growing shift in consumer behavior that has ‘turbocharged’ with household bills increasing.

It is imperative for retailers to ensure a positive experience for each customer as returns volumes increase. Consumers want and need refunds quickly and are making decisions faster on what they keep, therefore retailers should monitor why products are being returned to improve their product listings.

Additionally, retailers should track returns data to understand how carbon emissions can be cut from inefficient routes and how to provide shoppers with purchases they are more likely to keep, as returns volumes of this scale will have enormous environmental and economic costs.

2022 was a year of returns deluge with consumer behavior changing