1.5 million parcels expected to be returned this week in pre-Christmas surge

Research out today from returns and delivery provider Collect+ warns retailers to brace themselves for a surge in returned goods as online shoppers rush to secure replacement gifts before Christmas. The research forecasts that a massive 1.5 million parcels will be returned this week, with the peak day set to be 9th December, dubbed “Boomerang Thursday”. There is expected to be a 15% jump in parcel returns during the week.¹

Returns have been boosted this year thanks to high levels of confidence in the returns process, with almost half (47%) of shoppers fully confident of receiving replacement gifts in time for Christmas just three weeks out from Christmas. Less than a fifth (17%) would request a refund and buy the gift elsewhere for fear of not receiving the replacement in time.²

Mark Lewis, CEO of Collect+ (the joint venture between PayPoint and Yodel), comments:

“All the signs are that this Christmas will be a bumper one for online retailers, despite the tough economic conditions. For retailers to profit from this, they must make sure that when a gift isn’t right first time, they’re able to remedy this with a swift replacement. Equally, retailers must exert strict control over their warehouses and stocks to ensure they can get items back on the shelves as quickly as possible.”

Many Happy Returns

The research reveals that savvy shoppers are making the most of their additional rights when shopping online. Two fifths (38%) of online shoppers reported returning goods if they spotted them for sale at a lower price elsewhere. In contrast to the high street, online shoppers benefit from a seven day “cooling off period” during which time an order can be cancelled without any reason and a full refund requested.

We are revealed to be a nation of fickle shoppers, with 40% of us returning gifts before passing them on to the recipient after changing our mind about the choice of present. A tenth of us are so well prepared that we purchase surplus presents in preparation, just in case we need extra gifts for friends and family.

Mark Lewis continues:

“For leading online retailers, it is clear that an effective returns process helps build customer loyalty and trust. With the right systems and processes in place, Boomerang Thursday should mean happy returns for retailers and shoppers alike.”

¹ Collect+ customer returns data
² Figures taken from research carried out by Populus on behalf of Collect+. 2000 consumers were polled in November 2010

- ENDS -

For more information or to set up a personal briefing with Mark Lewis, please contact the Collect+ PR team at the Red Consultancy:
0207 025 4980 / collectplus@redconsultancy.com

Notes to editors

Calculation of 1.5 million returns for the week commencing 6 December 2010:

According to Collect+ customer data, the peak for online sales is 62.5% higher during this week than the average week and IMRG research suggests that total package delivery volume for a year is 1 billion. Collect+ research with Populus found that 5% of consumers are expected to return gifts before Christmas. The total returns volume is therefore 1.5 million for the week.

About Collect+

Collect+ is a new delivery and returns service giving online shoppers greater freedom and flexibility with the choice of collecting and dropping off parcels at local convenience stores.

With 98% of Collect+ outlets open seven days a week and, normally, early in the morning until late at night, the service offers online shoppers the option to pick up or drop off purchases at a time and place convenient to them.

75% of the UK population lives within a mile of a Collect+ store in urban areas, and five miles in rural areas.

Collect+ services are securely delivered by Yodel (formerly Home Delivery Network), which has 90 years delivery experience, carrying 300,000 items a day, and the retail payment network PayPoint, which handles over a million financial transactions each day through simple, staff operated terminals located in a nationwide network of 22,500 shops.

This backing gives Collect+ a mass of experience in logistics, fulfilment and retail as well as making the company entirely scalable in line with client need or in response to seasonal peaks.