Many happy returns? Not for much longer as retailers clamp down

As shoppers, we appreciate the convenience of sending something back if it isn’t quite right. But with some people stretching the rules, retailers have been clamping down on their returns policies lately and becoming more strict about customer behaviour that isn’t acceptable. Some have been sending warning emails to customers about their behaviour.
Retailers estimate that 10 per cent of items sold online and 9 per cent of all items sold in-store are returned by customers. Photograph: PARetailers estimate that 10 per cent of items sold online and 9 per cent of all items sold in-store are returned by customers. Photograph: PA
Retailers estimate that 10 per cent of items sold online and 9 per cent of all items sold in-store are returned by customers. Photograph: PA

There are a lot of items being sent back – retailers estimate that 10 per cent of items sold online and 9 per cent of all items sold in-store are returned by customers.

A fifth of retailers say they’ve taken steps to make their returns policy more stringent in the past year, with a similar proportion, 19 per cent, planning to do so in the next 12 months, according to a survey by Barclaycard.

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Here’s a look at why retailers’ policies are changing, and what it means for customers.

Why have some retailers toughened up their returns policies?

Three in ten retailers in Barclaycard’s survey say they are dissatisfied with the quantity of items returned by customers. And among businesses that have tightened up their policies, four in ten say it’s because too many customers are over-ordering items, knowing they will return the majority. Three in ten claim shoppers are using items and returning them. Many customers – 29 per cent in the survey – admit to deliberately ordering items they know they will send back. This rises to 48 per cent of millennials aged 25-34.

How is this affecting customers?

Consumers are feeling the impact of retailers becoming more strict. One in seven say they’ve had their knuckles rapped for their returns behaviour – such as being sent warning emails by retailers. Those returning too many items, sending back purchases that have been used, returning goods without the right packaging, or missing the returns deadline have fallen foul of the rules.

How do returns policies influence where we shop?

The returns culture means many people have come to think of being able to send items back, for free, as a standard part of their shopping experience – otherwise they’ll go elsewhere. Stores will need to be mindful of these expectations, as over a third (36 per cent) of consumers say they would be less likely to shop at a retailer if they made their returns policy stricter.

Nearly half (49 per cent) of consumers say a retailer’s returns policy influences where they shop, and nearly a fifth will only choose retailers that offer free returns. Six in ten retailers in the Barclaycard survey say they currently offer free returns.

What else is influencing our returns habits? Although consumers want the convenience of easy returns, just 46 per cent of people are concerned about the environmental impact of over-ordering and returning goods, with one in ten having actively reduced the amount they order and return because of this.

So where do you stand if you’re not happy with a purchase?

As well as complaining to the retailer directly, other organisations may help, such as Citizens Advice, Which? or complaints website Resolver.

Extra borrowing by homeowners surges

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The number of homeowners borrowing extra amounts on their mortgage has surged by just over 9 per cent year on-year, figures from trade association UK Finance show. Homeowners are borrowing just over £55,000 on average in addition to what they owe. Housing market experts have suggested the surge is due to people taking advantage of low mortgage rates and reflects the trend of homeowners improving their home rather than moving.

Money pressure linked to mental health woes

In a poll of 1,000 20-29-year-olds, 54 per cent said money pressures have had a negative impact on their mental health. The survey, commissioned by BBC Radio 5 Live and HuffPost UK, found money pressures ranked higher in this context than self-esteem concerns (49 per cent), body image pressures (47 per cent), and work pressures (37 per cent).

Online trading scam cost victims £27m

Victims of scams involving cryptocurrencies and foreign exchange lost more than £27 million in total in 2018- 19. People should be wary of investment scams carried out via bogus online trading platforms, Action Fraud and the Financial Conduct Authority warned. Criminals promise consumers they can “get rich quick” using social media and fake celebrity endorsements – but eventually the returns stop, the customer account is closed and the scammer disappears with no further contact.

Payday means splashing the cash

Some 32 per cent of people double their discretionary spending on the day they get their hands on their pay packet, according to a survey by Post Office Money and the Centre for Economics and Business Research. The average payday spend on non-essentials was £55, across the UK-wide poll of more than 2000 people.

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