Since internet shopping has become the standard, the number of returns has skyrocketed. According to new information from Paymentsense’s annual Serial Refunder Report, consumer returns cost UK fashion companies an estimated £ 48 million in sales.
For the biggest dollar amount of refunds issued by industry, apparel and garment companies came in seventh place out of ten. According to the survey, customer refunds cost each clothes and apparel industry in the UK an estimated 2,220 pounds annually.
This annual sum was determined using data from Paymentsense, which included the monthly return amount per location. Paymentsense reports that refunds have decreased by 3% since 2021, which is likely due to people having less disposable income with the rising cost of living problem.
Paymentsense gathered the information by analysing card machine transactions from more than 54,000 locations in the UK and combining it with data from the Local Data Company. The one-of-a-kind data shows which regions, industries, and months from October 2021 to September 2022 had the highest value of returned goods and how much money those industries, regrettably, lost as a result.
Commenting on the predictions for the rest of the year for small apparel and clothing businesses, Paymentsense said, “It’s unsurprising that online clothing sales rose by 2 per cent in January 2023 compared to the figures from December 2022 due to the January sales often being popular following the Christmas period.”
“However, the ONS data also found that online clothing sales increased by 3.1 percent YoY, comparing January 2023 and 2022 data. Even with the costs for food and energy still rising, consumers are prioritising spending on clothing, despite overall online spending reducing by 2.1. percent in January 2023.”
“As the economical state of the UK remains unsteady, this number is likely to fluctuate but seeing Year-on-Year growth is hopeful for clothing and apparel retailers.”
