More than half of peak returns were paid for, according to returns and post-purchase network ZigZag. Their data shows that 45% of returns made between Black Friday (28 November) and 6 January 2026 were paid for, rising to 69% among smaller retailers. This indicates growing consumer acceptance of paying for returns.
January returns are an annual problem for retailers, creating significant logistical challenges and negatively impacting the bottom line. This year, the cost of peak season returns was estimated at around £1.5 billion, including the cost of returned items and the costs of processing, storing, or disposing of them. Processing a single return typically costs retailers 20% to 65% of the item’s original value.
The problem of serial returners
For online fashion retailers, returns are already high because buyers cannot try on items before purchase. This problem is worsened by serial returners, who buy large quantities of clothing knowing they will return some or most of them. In 2024, 12% of UK shoppers were identified as serial returners, engaging in practices such as ‘wardrobing’ – wearing items then returning them. Historically, retailers were reluctant to introduce paid returns due to concerns about customer experience. However, the impact of serial returns, especially on smaller retailers, has proved unsustainable, and many have now introduced returns charges.
Major retailers as well as SMEs have taken this stance. ASOS, for example, allows free returns of most items in their original, unworn condition within 28 days of delivery (and will refund standard delivery costs if an entire order is returned within 14 days), but shoppers whose personal return rate exceeds 70% may incur a £3.95 fee on returns of over £40. While ASOS did receive some backlash for introducing this policy, the number of serial returners dropped from 12% to 8% last October, according to data from ZigZag.
A new normal
Recent research shows that customers understand why returns limitations and charges are becoming the norm. A 2025 Harris poll found that 86% of consumers believe limits on returns are fair if they are clearly communicated. This matches ZigZag’s data, which also points to growing consumer understanding of why paid returns are necessary to reduce the financial and operational burden on retailers and their employees, as well as being better for the planet. Up to 24 million metric tons of CO2 emissions are attributed to ecommerce returns each year, according to research by Optoro. A significant percentage of returned items end up in landfill.
ZigZag’s 2025 report found that Gen Z and Millennials would pay up to £2.10 in returns before abandoning a purchase, compared with £1.50 for older shoppers. However, 69% of shoppers have abandoned purchases due to unfavourable returns policies.
How retailers can win from returns
ZigZag CEO Al Gerrie highlighted the importance of making sure returns policies are fair. “Shoppers are savvy to what a return should cost and won’t put up with courier problems, a lack of options, or a slow refund if they’ve paid for the privilege,” he said. “As always, returns have trended upwards during Christmas, piling pressure on retailers to deliver an acceptable level of customer service while getting items back in stock before they lose value.”
He pointed to the need to be flexible in offering exchanges as well as returns, stating that the rise in exchanges shows that retailers who used the run-up to peak to test alternative returns options came out on top, turning unwanted Christmas gifts into a second chance to sell. “Customers remember the pain of a bad return more than the thrill of a small saving, so changes like this merit meticulous planning,” he added.
For retailers, the real win is not reducing returns but turning them into opportunities. Exchanges, clarity, and speed will define who thrives.
Discover more
Download InternetRetailing’s Returns Report 2025 to find out more about the innovative strategies retailers are employing to mitigate the impact of returns on their profitability, customer satisfaction, and the planet.
