Retailers are facing mounting pressure to overhaul returns strategies as new research reveals a sharp rise in ‘serial returners’ among Gen Z shoppers, raising fresh challenges around reverse logistics, customer retention and fraud prevention.
Research from delivery intelligence platform Ingrid found that 53% of Gen Z consumers now identify as serial returners, up from just 15% in 2023. The data highlights how returns behaviour is rapidly evolving, with younger shoppers increasingly viewing returns as a standard part of the online shopping experience rather than an exception.
The findings suggest traditional deterrents such as returns fees and account suspensions are losing effectiveness. Nearly two-fifths (38%) of shoppers say these measures no longer discourage returns, rising to 47% among Millennials.
The research also points to emerging workarounds. Around 14% of Gen Z shoppers report bypassing retailer returns processes entirely by reselling unwanted items on platforms such as Vinted instead of returning them directly, adding further complexity to how retailers track customer behaviour and manage return-related losses.
At the same time, brands are under increasing pressure to balance fraud prevention with customer experience. While retailers including ASOS and PrettyLittleThing have tightened returns policies, half of Gen Z respondents say they have already had accounts suspended due to excessive returns activity.
The growing cost of reverse logistics is now pushing retailers toward more sophisticated, data-driven approaches. Ingrid’s research found that 57% of consumers would support AI being used to flag products with high return rates before checkout, while 22% believe return fees should be personalised based on individual customer behaviour.
This shift toward dynamic returns management mirrors broader trends in e-commerce personalisation. Rather than applying blanket policies, retailers are increasingly exploring AI-led systems that differentiate between high-risk serial returners and loyal, low-risk customers.
It seems the challenge is becoming less about simply reducing returns volumes and more about managing returns intelligently, protecting margins without damaging trust or loyalty.
AI-driven personalisation and faster re-commerce processes are likely to become central to how retailers tackle both operational costs and return-related fraud.
Photo by Jiawei Zhao on Unsplash
