Gen Z are serial returners but ignore strict retailer policies, want more personalisation – report

Gen Z shoppers have been branded ‘serial returners’ when it comes to buying goods online. But what’s more, they’re finding ways to avoid returns fees, according to a new study.

First, Gen-zers have seen their returns rising sharply, increasing 38 percentage points in just three years, according to new data from delivery intelligence platform, Ingrid

Original research of over 1,000 shoppers shows 53% of Gen Z shoppers have been identified as serial returners. What’s more, half of the group’s shoppers have had their online accounts suspended by a retailer for returning too many items. That’s 21 percentage points higher than average shoppers across all age groups (32%). Additionally, a further 47% have also received warnings about account suspension owing to their returns behaviours. 

However, while retailers including ASOS and PrettyLittleThing are enforcing more robust returns policies, traditional deterrents, such as fees and account suspension, “are becoming less effective”, the report shows.  

Some 38% of shoppers polled by Ingrid said they’re no longer put off by traditional returns deterrents, rising to 47% of Millennials. Meanwhile, 14% of Gen Z said they actively try to bypass returns fees by selling items on secondhand marketplaces like Vinted rather than going through the traditional returns channels or processes.

And these shifts are “prompting retailers to rethink how they tackle reverse logistics and offset the rising cost of returns without alienating customers.” 

Over half (57%) of shoppers want retailers to use AI to flag if an item has a high return rate among similar shoppers before checkout, and a rising number of shoppers also now want return fees to be calculated more dynamically.

Almost a quarter (22%) say returns fees should be personalised depending on each customer’s individual returns propensity, and 14% say they should be charged less for returns if they send back items quickly, allowing brands to process and re-merchandise the item ready for resale. 

Separate research of 100 UK retailers within Ingrid’s ‘Return Economics Report’ showed that 35% of brands now charge for returns, up 12% year-on-year. Yet few are implementing returns personalisation, such as dynamic terms which offer customers different conditions based on their buying history and past returns behaviour.

Reliable customers, for instance, who purchase often and return infrequently, could be offered lowered charges, waived fees or extended returns windows, while shoppers with high returns propensities face steeper charges. 

Piotr Zaleski, founder & CPTO of Ingrid, said: “What used to deter returns no longer works. Customers have adapted, and for many shoppers, returns are just part of online shopping and a layer of trust. Retailers obsess over personalisation before checkout, but they need to apply the same thinking to returns. 

“Dynamic, AI-led returns policies help reward reliable customers while managing costs from serial returners.  The faster you process returns, the faster you can re-merchandise – it’s a relationship that benefits both sides.”