Viral “shopping hauls” on social media are significantly impacting retailers, leading to an estimated £7 billion in returned clothes annually.
- Social media platforms like TikTok encourage users to decide their purchases through audience feedback, increasing return rates.
- The trend is largely influenced by ‘serial returners’, who return a significant portion of their online orders.
- Younger demographics, especially Gen Z, are more prone to excessive ordering with the intention of returning some items.
- Retailers are countering these behaviours by imposing return fees and setting purchase conditions to manage frequent returns.
Viral ‘shopping hauls’ showcased on social media platforms such as TikTok are contributing to a substantial rise in online retail returns, amassing close to £7 billion in clothing returns annually. These videos often feature users trying on numerous items and soliciting viewer opinions on what to keep or discard, particularly under the hashtag #KeepOrReturn, which boasts over 11 million video entries.
The phenomenon of ‘serial returners’ is notably impactful, with these individuals accounting for about 25% of all online returns in the UK. This results in significant financial consequences for retailers, as indicated by Retail Economics’ data showing that returns could surpass £27 billion this year, with ‘serial returners’ alone responsible for £6.6 billion of this total.
Statistics reveal that, on average, each ‘serial returner’ returns approximately £1,400 worth of goods annually. A compelling trend within this dynamic is the propensity of younger shoppers, particularly Gen Z, to over-order with an explicit plan to return unwanted items. While over two-thirds of Gen Z engage in such behaviour, only 16% of baby boomers do likewise.
Retail Economics chief executive Richard Lim highlights the subtle yet significant erosion of retail profitability caused by opportunistic shopping behaviours. He notes that intentional over-purchasing, with plans for returns, is imposing unprecedented financial strains on retailers.
In response to these challenges, retailers have started implementing measures such as return fees to deter such practices. For instance, in recent times, a prominent online fashion retailer introduced a policy requiring customers with high return rates to retain items worth at least £40 or face a return fee of £3.95. This strategy aims to curb the continuous cycle of purchases and returns that disrupts retail operations.
The emergence of social media-driven shopping behaviours presents complex challenges for retailers, necessitating strategic adjustments to mitigate financial impacts.
