Customer returns are a fact of retail (and especially of ecommerce) in a world where more and more people are buying goods for delivery, rather than in person.
A total of 4.2 billion parcels were delivered to UK addresses in 2024-25, up 7.1% year-on-year and 4% higher than during the COVID-19 pandemic.[1]
Nearly four in five people (78%) were satisfied with the service they received from parcel couriers in 2024-25. However, among those who encountered an issue with their delivery, one in four (25%) were dissatisfied with at least one aspect of the process.[2]
Reverse logistics, sometimes called return logistics, is the process by which you get your goods back from customers. Having a clear returns policy in place – backed up by effective logistics planning – is essential to the smooth running of any home delivery retail business.
You can think of returned goods as the physical equivalent of cash flow. In order to turn those items into revenue, you need to get them back on the shelf in saleable condition.
That means you need return logistics which is:
For example, MRM’s returns management and handling service not only recovers goods, but also checks their condition. Damaged goods can be returned directly to the manufacturer, or to an appropriate repair centre, removing an unnecessary additional delivery from the process.
Online purchases represent an ever-increasing share of total retail. From a long-term average of 16.3% in 2008-24, ecommerce sales accounted for 28.3% of UK retail in December 2025.[3]
At the same time, younger generations are more likely to return items they buy online. A survey of 2,000 UK consumers by Retail Economics[4] identified four main behaviours:
The 2025 edition of the survey revealed a stark contrast between different demographics, with a shift towards increased rates of return among younger generations such as Millennials and Gen Z.
| Generation | Born | Age in 2026 | Occasional Returner | Efficient Returner | Slow Returner | Serial Returner |
|---|---|---|---|---|---|---|
| Baby Boomers | 1947-1965 | 61-79 | 65% | 22% | 8% | 5% |
| Gen X | 1966-1981 | 45-60 | 56% | 24% | 11% | 9% |
| Millennials | 1982-1997 | 29-44 | 60% | 16% | 13% | 11% |
| Gen Z | 1998-2007 | 19-28 | 48% | 19% | 23% | 10% |
Table 1: ‘Returner’ behaviours by generation. Retail Economics 2025.[5]
As seen in Table 1, the majority (52%) of Gen Z shoppers are more than just occasional returners, with a third (33%) exhibiting problematic behaviours such as serially returning goods or doing so slowly.
Yes – and there are good reasons to make returns as easy as possible for your customers.
UK consumers are entitled to a 14-day ‘cooling-off period’ on items bought over distance, including mail order, telephone and ecommerce purchases.[6]
The 14 days begin on the day after the customer receives their order and, unless the item is bespoke (including personalised and made-to-measure goods), they do not need to give a reason why they want to return it.
Retailers should also refund the cost of standard delivery, but do not have to refund any extra paid for express delivery.[7]
Research carried out jointly by Sheffield’s universities found that 75% of UK online shoppers now check the returns policy – and will abandon the checkout process if it’s unclear how to send unwanted items back.[8]
The researchers point out the importance of an efficient return logistics policy, to reduce waste and goods sent to landfill, and to maximise the potential for resale of items.
“Every time you move a product there are environmental costs associated with the journey. As well as looking at the costs of sending a returned product to landfill, we’re evaluating ways to ensure that the product can be resold while limiting its movements.”
– Dr Erica Ballantyne, Senior Lecturer in Operations and Supply Chain Management, University of Sheffield[9]
Your returns policy and reverse logistics strategy should be part of a joined-up approach to minimising your rate of returns.
For example, 46% of shoppers return items because they are the wrong size, colour, or are poor quality – making it important to accurately describe products at the point of sale.[10]
When it comes to returning items bought online:
Again, planned returns play a part. One in six (17%) UK adults in 2025 said they bought multiple options and returned those they didn’t want. But only 4% had no intention of keeping the product at all, suggesting that there is legitimate buying intent in the vast majority of transactions.[11]
Consumers – especially the younger generations – are increasingly willing to use modern methods to return unwanted items.
Some of the technologies that are not only accepted, but in many cases preferred, include:
In terms of policy features, free returns (72%) and return shipping costs (54%) matter to the majority of consumers.
More than a third (37%) want different options, such as drop-off points and courier collection. Three in ten (30%) want a specific length of return window (e.g. 28 days) and the same proportion also care about the speed of returns and refunds.[12]
There are over 440,000 wholesale and retail businesses in the UK, including more than 14,000 retailers on MRM’s own doorstep in the East Midlands.[13] We want to help as many as possible to put in place reverse logistics strategies that cut waste, maximise resale and protect revenues.
Doing so is a win-win, not only safeguarding you against financial losses but also delighting customers who have a keen eye for a fair and efficient returns policy – and all while mitigating negative impacts on the environment.
Learn more about MRM’s returns management programme and how we can integrate reverse logistics seamlessly into our storage and fulfilment solutions for ecommerce operators across the UK.