Takeback Tuesday: Returns Dip, but Still a Billion‑Plus Row of Rubbish on the Way Back
On the first working day after Christmas, retailers — and the logistics teams that move their return traffic — saw a ~6% drop in returns compared with the same day last year, according to ParcelHero. Even with that slight dip, around £1.41 bn worth of items are sliding back into the warehouses.
Why the Numbers Fell
ParcelHero’s Head of Consumer Research, David Jinks, points out that the change looks more like a reflection of slower holiday spending than a shift in how shoppers think about sending things back. “Last year there was a flood of almost £1.5 bn in unwanted gifts such as clothing, electronics and toys. This year we’re seeing a modest decline,” he explains.
What’s Actually Getting Returned?
Typically the first week after the New Year sees a rush in courier bookings, peaking around 10 am as people return to their post‑Christmas routine. ParcelHero’s data aligns with Royal Mail’s figures: Takeback Tuesday returns were up roughly 52% on an average day last month.
The Real Reason?
- Lower gift volume? Fewer presents means fewer returns.
- Retailers’ sales were flat during the holiday period.
- Black Friday card transactions dipped -0.6% versus 2022, while online “super weekend” sales dropped up to -32%.
While we’d love the narrative that shoppers are getting “sober” about the environmental cost of returns, the data suggests the dip is more likely a consequence of a lackluster Christmas spread.
Costs in the Big Picture
ParcelHero’s recent industry report indicates returns are chopping away about £60 bn from UK sellers each year — a substantial portion of which happens post‑Christmas. Last year, 47% of ParcelHero shipments in the first week were marked as returns.
So even as the numbers slide down a notch, the journey of a billion pounds of merchandise back to retailer shelves is a reminder that the post‑holiday season is still a bustling, if slightly quieter, ecosystem of supply and demand.
When the Return Game Turns into a Lost‑Wallet Classic
Picture a tiny online shop on a Wednesday afternoon: the sales board looks pretty bright, but the return rainstorms are brewing. Business owners are forced to pick one of two lousy options: either swallow the extra cost of each return or watch their star rating slump faster than a dropped pizza slice.
81% of Retailers Are Freaking Out About Returns
More than eight in ten online stores are on edge. Returns have gone from a “nice-to-have” occurrence to a full‑blown financial headache.
Stakeholders of the Post‑Christmas Panic
- Smaller, niche shops – once reeling off the holiday surge, now dealing with shrinking margins.
- Warehouse walls – choked with unsaleable stock that’s just demanding a dent in inventory budgets.
- Customers – expect hassle‑free returns; they won’t hesitate to shout off a negative review if the process is slow.
The Return Roller Coaster: From 0% to 60%
After big‑month selling, some retailers see return rates climb to a shocking 60%. They often commit to an “unconditional” acceptance policy—think of it as the “yes, sir” moment for keeping those coveted five‑star ratings.
Costs That Just Keep on Growing
For every click-and‑order, an online retailer is throwing out an extra £3 compared to a brick‑and‑mortar sale. That may sound small, but at scale it feels like someone’s been squeezing a pizza right on the edge.
Bottom Line: Catch a Break or Be the Next Big Online Horror Story
Everyone knows the right path is a bit of a hybrid—smart return policies, smart inventory juggling, and a splash of humor to keep customers dancing with your brand.
