Independent study commissioned by Loop reveals how return policies have become a deciding factor for British shoppers
- More than half of British consumers have walked away from a retailer or abandoned a purchase because of its return policy
- Brands face growing pressure to balance customer expectations with rising operational costs
LONDON, Sept. 10, 2026 /PRNewswire/ -- New research has found that 55% of British shoppers have either stopped shopping with a retailer or abandoned a purchase because of its returns policy.
The findings, conducted independently among over 1,000 UK consumers and 200 UK retail decision-makers by ecommerce operations platform, Loop, come as several major fashion retailers have recently come under increasing scrutiny over changes to their returns policies, reflecting the growing challenge brands face in balancing rising operational costs with consumers' expectations.
The returns economy is fuelling a new fraud challenge
The research also suggests returns fraud is becoming increasingly normalised among shoppers. One in every three UK consumers surveyed (31%) 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. Over half (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, more than half (56%) still rely on manual reviews to identify suspicious returns, with fewer than one in five (16%) 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. Nearly one in three consumers (32%) state that they are deliberately ordering multiple sizes or colours intending to return some of the items.
The findings suggest that for many consumers, returning items is just simply part of the online shopping journey and no longer an exception.
Retailers face a growing loyalty dilemma
While consumer expectations continue to rise, retailers are increasingly aware that the post-purchase experience can directly influence commercial performance.
More than three-quarters (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 (68%) 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.
Returns can determine where Britons choose to shop
More than six in ten UK consumers (61%) now say they always or often check a retailer's returns 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. Almost a quarter (24%) stated that they are willing to pay a fee for returns for a more premium experience.
Hannah Bravo, CEO of Loop, commented: "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 continued: "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."
The findings form part of Loop's latest research report, titled The Returns Revenue Gap, examining changing consumer and retailer attitudes towards the post-purchase experience, highlighting the growing role that returns, exchanges, tracking, refunds and customer communication now play in shaping long-term retail loyalty.
Key findings
- 55% of British consumers have stopped shopping with a retailer or abandoned a purchase because of its returns policy.
- 92% of consumers say return charges influence how they shop online.
- 76% of retailers say the returns experience directly affects customer loyalty.
- 24% of consumers are willing to pay a fee for returns for a more premium experience.
- 58% of retailers say false returns claims are the most common forms of returns fraud.
- 31% admit they have sometimes or often provided an inaccurate reason for making a return.
- 32% of consumers admit ordering multiple sizes intending to return some.
- 26% of consumers admit to returning a different item than the one originally purchased.
- 56% of retailers rely on manual reviews to identify suspicious returns.
- 16% of retailers are using AI or machine learning to detect fraud.
Methodology
The independent research was conducted online by Sapio Research on behalf of Loop between May and June 2026. The study surveyed 1,000 UK consumers who had made an online return in the previous six months and 200 UK retail decision-makers responsible for ecommerce returns strategies.
*Loop applied the 87% of consumers who told us (via our Sapio-commissioned survey) they would take an exchange under the right conditions, to the actual refund in pounds Loop merchants issued over the past 12 months in each region, showing how much of what's currently paid out as cash refunds, could instead stay in the merchant's business as retained revenue.
About Loop
Loop is an operations platform built for retention. We drive customer confidence across the full shopper journey. Before purchase, Loop reduces hesitation; after purchase, it makes everything that follows predictable-from tracking and returns to exchanges, protection, and support. Trusted by more than 5,000 of the world's most-loved brands, Loop has processed over 100 million returns and counting. Through innovative features like Workflows, Instant Exchanges, Shop Now, Checkout+, and Bonus Credit, Loop helps brands unlock cost savings, increase customer lifetime value, and retain more revenue. Learn more at loopreturns.com
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