Viral shopping hauls on social media are significantly affecting retail returns, with billions of pounds worth of clothing being sent back annually.
- Social media platforms, especially TikTok, are encouraging trends where users seek advice on keeping or returning fashion purchases, leading to increased returns.
- A significant portion of these returns comes from ‘serial returners’ who frequently over-order with the intent to return most items.
- New data reveals that the phenomenon is placing a substantial financial burden on UK retailers, impacting profitability.
- Retailers are responding by implementing measures such as return fees to curb excessive return behaviours.
In recent years, social media-driven ‘shopping hauls’ have emerged as a major trend, particularly on platforms like TikTok, where users showcase their latest fashion acquisitions and request feedback on what to keep or return. This practice has become a notable factor in the surge of online product returns.
The hashtag #KeepOrReturn has gained tremendous popularity on TikTok, amassing over 11 million videos. This trend encourages a consumer behaviour pattern that involves purchasing multiple items with the intention of returning most of them, relying on community feedback to make decisions.
According to a study by Retail Economics, the UK sees approximately £27 billion in online returns annually, with ‘serial returners’ contributing roughly £6.6 billion. These returners represent about a quarter of all returned items, illustrating the significant impact of this behaviour on the retail sector.
Further research indicates that each ‘serial returner’ sends back goods worth an average of £1,400 every year. A survey highlighted that over two-thirds of Generation Z shoppers admitted to ordering multiple sizes or colours with plans to return the unwanted ones, contrasting with only 16% of Baby Boomers who do the same.
Richard Lim, CEO of Retail Economics, noted, ‘Serial returners are quietly eroding retail profitability in ways many retailers are only just beginning to understand.’ This increasing opportunistic shopping behaviour is placing unprecedented strain on the industry, leading to strategic responses from retailers.
In response, retailers are implementing deterrents such as return fees. For instance, one online fashion company has introduced a £3.95 charge for customers with high return rates, unless they retain a minimum purchase value. This move seeks to offset the costs associated with excessive returns and promote more intentional buying habits.
The trend of social media-fuelled shopping hauls is reshaping the retail return landscape, prompting retailers to adapt to the evolving consumer behaviour.
