Holiday Returns: What are Online Shoppers Returning and Why?

While December sees shoppers scrambling to get their online orders in time, in January we will inevitably witness many returning a gift from a well-meaning aunt that had underestimated your clothing size. Holiday presents see a return rate of 17% higher than their annual return rate, according to the National Retail Federation.

Returns are sometimes inevitable: 28% of consumers returned an item due to economic factors in 2023, according to Shipup research. But with half of consumers demanding multiple return options, it’s essential that you not only mitigate returns, but choose the right returns solution to retain revenue.

Without further ado, here are the top 3 types of presents holiday shoppers are returning, why they are returning them, and how you can prevent them.

1. Clothing & Accessories

Top return reasons: ‍‍‍‍‍

‍Wrong size or fit

We’ve all been there: at one online store you’re a size S, while another you’re suddenly a size M. It’s a tail as old as time that’s frustrating for both consumer and brand. But here’s the good news: there are many ways online brands can prevent it.

Here are our tips to avoid to returns due to size:

• Provide visual references on your product pages, such as ‘Model measures X and wears X size’. You can even go a step further and include videos to show how the pieces flow. Luxury fashion marketplace Mr Porter provides fantastic visual references, including model heigh, fit and a short clip of the model moving around i each piece. 

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• Offer detailed, brand-specific size charts, with measurements in multiple units and guidance on how to measure bust, waist and hips).
  
  
• When leaving a review, encourage customers to give their personal feedback on sizing. New Balance is a prime a example of an online store that takes into account sizing in their reviews: all the important when you’re shopping for shoes.
  

Wardrobing

‍‍‍What is wardrobing? Wardrobing is the practice of buying an item for a specific occasion, such as a photoshoot or formal event for example, with the intention of returning it afterwards.

According to Shipup research, 27% of French consumers engaged in wardrobing in 2023, a figure which rises to 47% in the US. The practice is particularly widespread among younger consumers with less spending power: 47% of 18 - 25 year olds returned an online order in 2023.

How can online retailers discourage wardrobing?

• Offer store credit instead of refunds. Over ¾ of French shoppers say they would accept reimbursement in the form of gifts cards or store credit, making it an appealing option for both consumer and brand. 

• Reduce the return window for high-risk items, such as formalwear or season pieces – from 30 days to 7-14 days for example. 
• Provide clear return guidelines before and even during delivery, in high-engagmeent delivery emails, and educate consumers on the negative impact of online returns (for small businesses, environmental factors…) 

2. Consumer electronics

‍Top return reasons:

‍User incompatibility

‍‍‍Unlike fashion items, consumer electronics suffer from the drawback that sometimes, the item just won’t work.

Examples of electronic items that are simply incompatible with users' existing setups:

• Wearable devices, such as smart watches or fitness trackers, that may not sync with the buyer's smartphone model or operating system (for example, an Apple Watch not compatible with Android).
• Smart home devices that aren’t compatible with existing ecosystems (e.g., works with Google Assistant but not Apple HomeKit).
• Monitors that do not work at full resolution or refresh rate without the correct graphics card or cables (e.g., HDMI 2.1)

However, many consumer electronic returns may not even be necessary, with clients lack the information to set up their devices.
Here’s how to avoid unnecessary returns of consumer electronics that could cost you in lost revenue:

• Provide virtual troubleshooting before processing a return: for example, prompt the user with setup guides to resolve connectivity or installation issues.
• Offer tutorials and guides: provide video demonstrations, user manuals, or downloadable guides that explain how to set up and use the product effectively. Order tracking pages are a fantastic place to offer these explanations, with 4 visits per shopper on average. 

• Create easy-to-understand FAQs about the origin of your package for B2B orders, addressing common compatibility concerns. Again, tracking pages and notifications are prime spots to reassure customers with FAQs.

3. Cosmetics and body care

Top return reasons:

Wrong shade of colour ‍

‍F‍or makeup in particular, the product shown on the screen when making a purchase doesn’t exactly match reality. To avoid returns due to colours not turning out quite as customers had hoped, it’s important to:

• Enable customers to provide photos in reviews: encourage customers to upload photos of themselves using or wearing the product to show how it looks in real life.
• Use color comparison charts to help customers match the shade to products they already own.
• Include multiple angles and lighting conditions to show the product in various scenarios (ex: natural and artificial light).

Scent of texture issues

To avoid returns due to problems with scent or texture, make sure to:

• Use quizzes or recommendation tools to match customers with products based on their scent and texture preferences.

• Develop a scent intensity scale (e.g., "subtle," "moderate," "strong") to help customers understand how noticeable the fragrance is.
• Include texture details, such as "silky, lightweight," or "thick and creamy," to set realistic expectations.
  

Holiday returns are an inevitable part of the online shopping experience. Some purchases, such as a clothing items, understandably see high return rates, but other less obvious product categories- such as cosmetics and body care- should not be ignored. Regarding return reasons, you’ll find the common sizing issue, but as consumer choice online increases, shoppers are increasingly engaging in more harmful behaviours such as wardrobing - purchase items with the intention of only using them once.