New Loop research reveals how online returns policies have become a critical factor for British shoppers
New research finds that 55% of British shoppers have either stopped shopping with a retailer or abandoned a purchase because of its returns policy.
A survey, conducted among over 1,000 UK consumers and 200 UK retail decision-makers by e-commerce operations platform, Loop, is released as several major fashion retailers, including Asos, find themselves under increasing scrutiny over changes to their returns policies, reflecting the growing challenge brands face in balancing rising operational costs with consumers' expectations.
The research also suggests returns fraud is becoming increasingly normalised among shoppers. One in every three UK consumers surveyed admit they have sometimes or often provided an inaccurate reason for making a return and 26% admit to returning a different item than the one originally purchased.
Retailers are feeling the impact. 58% say false claims relating to damaged or missing items are among the most common forms of returns fraud they encounter, while 41% regularly deal with shoppers returning different or damaged items. Yet despite growing concern, 56% still rely on manual reviews to identify suspicious returns, with fewer than one in five using AI or machine learning to detect fraud.
The study also highlights how returns have become embedded and are delivering a shift in modern shopping behaviour. 32% of consumers state that they are deliberately ordering multiple sizes or colours intending to return some of the items. The findings suggest that for many people, returning items is just simply part of the online shopping journey and no longer an exception.
While consumer expectations continue to rise, retailers are increasingly aware that the post-purchase experience can directly influence commercial performance. 76% of UK retailers agree that the returns experience has a significant impact on customer loyalty, yet many remain caught between protecting profitability and retaining customers. Two-thirds are concerned that tightening returns policies could drive shoppers to competitors, while a similar amount (66%) worry about negative reactions on social media or online review platforms if they make returns more restrictive.
Despite recognising the importance of returns, retailers may still be underestimating their commercial impact. While more than half of consumers have already walked away from a retailer because of its returns policy, only a small minority (6%) of retailers identify customer churn as one of their biggest post-purchase challenges, suggesting many brands remain focused on the operational cost of returns rather than their influence on customer retention.
61% of UK consumers now say they always or often check a retailer'sreturns policy before making an online purchase. Return charges also have a significant influence on purchasing decisions, with 92% saying fees affect how they shop online. 24% stated that they are willing to pay a fee for returns for a more premium experience.
Hannah Bravo, CEO at Loop, comments: "Shoppers are judging brands on what happens after the sale, and that judgment turns into action. Looking at the data, shoppers are saying that a bad returns policy has made them walk away from a brand, whereas many retailers still aren’t recognising or acknowledging this risk. This gap represents a significant opportunity for the brands that do see returns as a driver of growth, rather than a cost centre.”
She adds: “The ultimate outcome of a return experience is a major driver of customer retention, good or bad. A staggering 87% of shoppers report a willingness to take an exchange under the right circumstances, and the value of that opportunity is eye-popping: over £2 billion globally to the brands Loop serves today.”
2026 RTIH Innovation Awards
Online returns will be a key focus area at the 2026 RTIH Innovation Awards.
The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.
Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.
Check out our 2025 winners here.
Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.
In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”
“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”
He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”
Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.
