Viral ‘shopping hauls’ have escalated online returns, incurring significant costs for retailers annually.
- A trend on social media is prompting increased returns, costing near £7bn in unwanted clothing yearly.
- Approximately 25% of returns are due to ‘serial returners’ as influenced by social media trends.
- Retail Economics data indicates online returns may reach over £27bn this year, with a major contribution from Gen Z.
- Retailers are responding with policies like return fees to mitigate profitability erosion.
The rise of viral ‘shopping hauls’ on platforms such as TikTok has transformed consumer habits, leading to a surge in online order returns. Social media users, particularly from Generation Z, frequently post videos trying on new clothes and solicit feedback on which items to keep, significantly impacting retailers.
These ‘serial returners’ form a substantial proportion of all online returns in the United Kingdom. Videos under the #KeepOrReturn hashtag alone have amassed over 11 million listings. This behavior is not merely a trend; it represents a significant shift in consumer purchasing and returning habits, challenging the traditional retail model.
Research forecasts online returns are likely to exceed £27bn this year. Out of this, ‘serial returners’ are expected to account for approximately £6.6bn. The demographic most involved in this activity, Generation Z, shows a pronounced tendency to order different sizes and colors with the intent of returning most items. In contrast, similar behavior is noted in only 16% of baby boomers.
Richard Lim, the Chief Executive of Retail Economics, highlighted the silent erosion of profitability caused by these opportunistic shopping behaviors. Lim states: “The rise of opportunistic shopping behaviors, where many people intentionally buy large quantities of goods with the intention of returning most of them, is placing an unprecedented strain on retailers.”
In response, retailers have begun imposing return fees to curb such practices. For example, one online fashion retailer has introduced a £3.95 fee for customers with high return rates unless they retain items worth at least £40. This move reflects a broader strategy to maintain financial stability amidst changing consumer behaviors.
Retailers are adapting to evolving consumer behaviors influenced by social media, but the financial impact remains significant.
