Social media trends contribute to a surge in online order returns, significantly impacting retailers’ profits.
- Retailers are experiencing an estimated £7 billion annual loss due to unwanted clothing returns.
- “Serial returners” form a substantial part of the online returns, driven by viral haul videos.
- Platforms like TikTok have popularised the #KeepOrReturn phenomenon, intensifying return rates.
- Retailers are implementing measures to curb the financial strain caused by frequent returns.
Social media platforms, particularly TikTok, have fostered a trend whereby users document their shopping experiences through videos, encouraging followers to help them decide which items to keep or return. This trend, known as ‘shopping hauls,’ has significantly increased the volume of online returns, with retailers estimating a loss of nearly £7 billion annually due to returned merchandise.
The phenomenon has given rise to a group identified as “serial returners,” individuals who frequently make large online purchases with the intention of returning most items. According to Retail Economics, these returners contribute approximately £6.6 billion to the total £27 billion of online returns observed this year alone.
The #KeepOrReturn tag on TikTok exemplifies this behaviour, boasting over 11 million related videos. Participants in these videos often solicit opinions from their audience on what should be kept, resulting in increased return rates. Chief Executive of Retail Economics, Richard Lim, highlighted the issue, stating, “Serial returners are quietly eroding retail profitability in ways many retailers are only just beginning to understand.”
Efforts to mitigate the financial impact of frequent returns include retailers like Asos instituting fees for customers exhibiting high return rates. For instance, Asos has introduced a £3.95 charge for serial returners unless they retain items valued at a minimum of £40 per order. This initiative aims to discourage excessive returns by imposing a financial deterrent.
Further data indicates a generational divide in return habits, with over two-thirds of Generation Z shoppers admitting to over-purchasing online with the intention of returning items, contrasted with only 16% of the baby boomer demographic. This disparity underscores the emerging shopping behaviours that retailers must navigate to maintain profitability.
The rise of viral shopping hauls on social media underscores the evolving dynamic between consumer habits and retail strategies, prompting retailers to adapt in order to safeguard their profitability.
